With only days to go before the East and Gulf Coast labor contract expires, the industry is preparing for a coast-wide port strike effective October 1. Container ports are expected to cease operations late Monday, barring a last-minute agreement. We anticipate significant delays and congestion, even if the strike lasts only a few days.
Terminals are preparing by offering extended gate hours to allow shippers to out-gate as much cargo as possible prior to the work stoppage. Ocean carriers have announced a variety of surcharges in anticipation of major congestion, with effective dates throughout October, ranging from $1000-3000 per container, applicable on import and export lanes via the impacted ports. Some carriers have stopped accepting new export bookings. The Federal Maritime Commission has issued guidance reminding carriers and marine terminal operators that the existing regulations on freight, surcharges, detention, and demurrage will be applicable in the event of a strike.
Ocean freight rates on the major import trades remain relatively flat ahead of the strike, and it’s not yet clear how a work stoppage will impact freight rates in October and beyond.
For urgent shipments, we recommend utilizing air freight options when possible. Routings via West Coast ports are also available, though those gateways are expected to be inundated with cargo. Rail dwell times from West Coast ports to inland points are already significant and likely to increase. Transloading and trucking from WC ports is recommended as a rail alternative.
We will provide updates as they become available.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.