Potential ILA Strike Threatens Supply Chains – Are You Ready?

The negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have hit a significant impasse, driven by disagreements over port automation. After walking away from talks in November 2024, the ILA has warned of a potential strike if their demands are not met before the January 15, 2025 deadline.

The ILA’s stance remains firm, and a strike could lead to significant disruptions across East and Gulf Coast ports, exacerbating supply chain pressures for businesses nationwide.

This situation follows a three-day strike in October 2024 that paralyzed ports along the East and Gulf Coasts, causing widespread economic and logistical disruptions. With the 90-day suspension period ending soon, businesses face another round of uncertainty.

The Impact of Previous Strike Action

The October strike disrupted operations at 36 ports, which handle over 50% of U.S. container volume, resulting in increased fees for storage and detention, prolonged transit times due to rerouting, and significant downstream effects on retailers and supply chains during peak season.

Upcoming Disruptions to Consider:

January 15th ILA Strike: A potential labor strike threatens ports from Massachusetts to Texas, creating bottlenecks across key U.S. trade routes.

LCL Exports: A $40 Emergency Congestion Surcharge (w/m) will apply to all Less-than-Container Load (LCL) exports from the East and Gulf Coasts starting January 15, 2025.

LCL Imports: The same surcharge will apply to imports, collected at the destination until the situation stabilizes.

Chinese New Year (CNY): Beginning on January 29, 2025, CNY historically causes production slowdowns and delays across Asia. Combined with the potential strike, businesses importing from Asia will face compounded challenges.

December 15th GRI: General Rate Increases (GRI) will raise shipping rates from Asia to the U.S. by over $2,000 per container, adding financial pressure.

Mitigating Future Disruptions: Proactive Strategies

To safeguard your supply chain, consider the following:

  • Diversify Shipping Routes: Shift cargo to West Coast ports or other unaffected locations.
  • Anticipate Congestion: Prepare for delays at alternate ports with contingency plans.
  • Leverage Air Freight: Prioritize critical cargo with faster, time-sensitive solutions.
  • Utilize Intermodal Solutions: Integrate rail and trucking services to mitigate delays inland.
  • Secure Inventory Early: Ship goods ahead of peak disruption periods.

Plan for Higher Costs: Budget for increased freight surcharges and rate hikes.

GLC Inc: Your Partner in Navigating Disruptions

At GLC Inc., we understand the complexity of managing supply chain disruptions. Our global expertise and strategic solutions can help you stay ahead:

Flexible Logistics Planning: Diversified routing options to minimize delays.

End-to-End Supply Chain Solutions: From warehousing to intermodal transport.

Proactive Communication: Keeping you informed at every step to mitigate risks.

As the potential ILA strike, Chinese New Year, and December GRIs approach, planning ahead is critical. GLC is here to support your logistics needs with tailored solutions that ensure business continuity and peace of mind.

Click here and let’s plan ahead together. Contact GLC today to secure your shipments and stay prepared for 2025.