Important Update: US East & Gulf Coast Port Strike Resolution (4 October)
The port strike across the US East and Gulf Coasts has officially ended. Dockworkers are expected to resume operations on Friday, October 4, 2024. However, the backlog caused by the strike is expected to lead to continued congestion throughout the rest of the month.We are working closely with carrier lines to address any disruptions and ensure that all cargo reaches its final destination as planned. For any questions, please contact your local Savino Del Bene representatives in our global network of more than 330 offices.Thank you for your patience and understanding of the situation.
US East & Gulf Coast Ports on Strike (1 October)
As of October 1, 2024, dockworkers along the U.S. East and Gulf Coasts have officially gone on strike, resulting in the closure of 14 major ports, including Miami, New York/New Jersey, Philadelphia, Savannah, and Charleston.
The strike stems from unsuccessful contract negotiations between the International Longshoremen’s Association (ILA) – which represents approximately 45,000 dockworkers – and the United States Maritime Alliance (USMX). Key issues include disputes over wages, working conditions, and concerns regarding automation.
The U.S. administration has opted not to intervene at this stage, refraining from invoking the Taft-Hartley Act. This decision allows the negotiation process to continue without federal intervention.
The strike has already disrupted operations at all major East Coast ports, halting vessel, gate, and rail activities. This is expected to cause significant delays in cargo movement and potential backlogs, impacting a variety of industries.
Mr. Alberto Rivola, Head of Global Ocean Procurement at Savino Del Bene, commented on the strike’s impact:
“This is an exceptional situation which involves exceptional measures though, whose consequences may expand beyond the US borders. Besides the extra costs that customers will pay due to this situation, a prolonged strike will affect the regular flow of equipment. Vessel routings will change, transit times will be even less reliable, causing an increase of freight rates, not just on the trades to the US, but likely across all major deep-sea trades. Savino Del Bene commitment to finding effective solutions for our customers is firm. We appreciate the trust on us, and we will navigate these uncertain waters with you, and we will do the utmost to deliver your cargo in the most suitable way and time, despite the negative circumstances.”
We are closely monitoring the situation and staying in contact with our customers to find suitable solutions to move their cargo. We will be sure to keep everyone informed as developments unfold.
Key Impact on Businesses:
- Severe Delays: Cargo movement will cease, creating major supply chain bottlenecks.
- Higher Costs: Prolonged transit times and the necessity for rerouting will drive up shipping expenses.
- Port Congestion: Significant fees for storing stranded cargo, along with carrier surcharges.
- Global Disruption: Congestion at alternative ports and increased demand for logistics services will affect worldwide operations.
Recommendations for Our Customers:
- Prepare for West Coast Congestion: As cargo reroutes to the West Coast, anticipate longer wait times and additional costs.
- Explore Air Freight Solutions: For time-sensitive shipments, air freight remains the fastest alternative. Savino Del Bene offers flexible air freight services to meet your urgent shipping needs.
- Plan for Higher Costs: Increased demand for alternative routes will drive up shipping rates, and delays may result in higher storage and detention fees.
- Leverage Our Warehousing and Transload Services: Use Savino Del Bene’s transload capabilities to efficiently move cargo through our warehouses, minimizing the risk of delay at congested ports.
- Review Incoterms and Contracts: Ensure that your contracts clearly define financial responsibilities for any additional costs caused by delays or rerouting.
Savino Del Bene’s Response: With our extensive network of assets across the U.S., we can create customized logistics solutions tailored to your business needs. Our capabilities include:
- Strategic Rerouting and Alternative Solutions: Leveraging our national presence, we can reroute cargo to minimize delays. Whether through alternative ports or air freight, we will ensure that your shipments continue moving.
- Transload Services: Savino Del Bene offers transloading services at our strategically located U.S. warehouses. This allows us to efficiently move cargo from one mode of transportation to another, bypassing congested strike-affected ports and ensuring quick deliveries to final destinations.
- Integrated Service Capabilities: Thanks to our extensive US team, we can combine multiple services—including trucking, warehousing, and last-mile delivery—to provide a seamless logistics experience. By performing transloads and managing deliveries from our warehouses, we can help you avoid significant delays and keep your supply chain operational.
To discuss how Savino Del Bene can support your business during this critical time, please reach out to your Savino Del Bene representative. Together, we can develop a proactive plan to mitigate potential disruptions and ensure your supply chain remains resilient.
