ILA DOCKWORKERS ON STRIKE
PORT CONTINGENCY PLANS
Impacted ports implemented contingency plans in advance of the ILA strike. These plans include prioritizing critical medial and food supplies while providing designated protest spaces to mitigate impact to operations.
Affected ports include:
Port of New York/New Jersey (PANYNJ) –Â PANYNJ is focusing on moving essential goods such as food and medical supplies. Petrochemical products like heating oil and gasoline are unaffected. Designated protest zones are established to ensure that picketing does not disrupt critical port operations.
Port of Savannah– The Georgia Ports Authority (GPA) has activated its contingency plan, redirecting certain cargo shipments inland and utilizing off-terminal storage to minimize disruption. GPA is working with railroads and trucking firms to move time-sensitive shipments.
Port of Charleston – The South Carolina Ports Authority (SCPA) has rerouted critical shipments and is using off-site storage locations to minimize the impact. Cruise ship operations remain unaffected, with a focus on ensuring the timely movement of essential goods.
Port of Miami – Cargo operations are expected to experience disruptions, while cruise services remain unaffected. Port Miami is maintaining its contingency plan, ensuring that cargo terminals are operational with enhanced security measures.
Port of Houston – The  has instituted contingency plans, focusing on moving pre-staged cargo out of the port to ensure minimal disruption. Coordination with trucking and rail providers is ongoing to handle critical shipments.
Port of Virginia – The Port of Virginia has been coordinating with local transportation providers to prioritize critical shipments. The port has also identified additional storage locations offsite to mitigate cargo disruptions.
Port of Baltimore – The Maryland Port Administration is working closely with state and federal agencies to prioritize essential goods. The port has implemented measures to reroute cargo and leverage partnerships with rail companies to move critical supplies.
Port of Jacksonville (JAXPORT) –Â JAXPORT is prioritizing the movement of essential goods like food and medical supplies. Operations are continuing with reduced labor, and contingency plans include working with third-party storage facilities to manage excess cargo.
Port of Mobile – The Alabama State Port Authority has implemented its contingency plan, focusing on moving essential goods while maintaining dialogue with local stakeholders to minimize disruptions. They have increased coordination with trucking companies to prioritize critical shipments.
USMX Update: The United States Maritime Alliance (USMX) has stated that despite multiple attempts to restart negotiations, no new meetings have been scheduled with the ILA. The alliance has offered substantial wage increases and the retention of current automation terms, but discussions remain deadlocked​.
FEDERAL MEDIATION EFFORTS
President Biden has not issued direct statements specific to the ILA-USMX strike. His administration has been consistently supportive of labor rights and collective bargaining. In a broader context of labor negotiations, Biden emphasized his commitment to collective bargaining, saying, “substantial evidence shows that union membership increases wages, the likelihood of receiving employer-provided benefits, and job security.  Union membership also gives workers the means to build the power to ensure that their voices are heard in their workplaces, their communities, and in the Nation,” in his 2021 Executive Order on Worker Organizing and Empowerment.
The U.S. Department of Labor, alongside the Federal Mediation and Conciliation Service (FMCS), has reached out to both parties involved, but mediation can only proceed if both sides agree. As of October 1, 2024, no significant progress has been reported in advancing these discussions. Under federal law, the President has the authority to invoke the Taft-Hartley Act to mandate that dockworkers return to work, but it is unlikely in this case due to the potential political consequences, especially given the administration’s strong support for unions.
ILA STRIKE: SUPPLY CHAIN IMPACT
The ILA dockworker strike could cost the U.S. economy over $5 billion daily, triggering emergency surcharges, worsening port congestion, and delaying shipments by 4 to 6 weeks.
Emergency Surcharges from Carriers: Ocean carriers have begun announcing emergency port charges, work disruption surcharges, and port congestion surcharges in anticipation of delay ranging from $800 to over $3700 per container.
Economic Impact Projections: According to financial analysts, a strike could cost the U.S. economy over $5 billion per day, disrupting supply chains and causing significant delays in trucking, rail, and warehouse operations​.
Port Congestion: East Coast ports are already seeing congestion due to increased imports and the return of empty containers. Any strike could exacerbate these challenges, leading to weeks or months of delays in clearing backlogs​.
Domestic Impact: A strike would result in 4-6 weeks of delays for shipments, and Container Freight Stations (CFS) would face a backlog of work. Trucking and rail operations, essential for moving goods inland, would be significantly impacted, leading to increased costs and longer transit times.
HURRICANE HELEN RECOVERY IMPACT
Currently, no specific federal or state agencies have issued statements directly linking the ILA dockworker strike with impediments to hurricane relief efforts. However, considering the timing of the strike and the recent impacts of Hurricane Helene, there is significant concern about the strain this is putting on an already stressed logistics and supply chain network.
FEMA has been actively coordinating multi-state response efforts in the wake of Hurricane Helene, which has caused substantial flooding and storm surges across Florida, Georgia, and Alabama. The agency is leveraging federal resources and engaging state and local officials to ensure timely relief efforts, while urging the public to follow evacuation and safety instructions​.
Given the strike’s potential impact on major ports that are critical hubs for hurricane relief, such as the Port of Savannah and Port of Houston, delays in the shipment of essential goods and emergency supplies could hinder recovery efforts. Coordination between FEMA and the U.S. Army Corps of Engineers has been vital to ensure that key infrastructure remains operational during this critical time. Federal agencies remain on high alert to mitigate any delays caused by labor disruptions.
MILITARY FREIGHT AND CRUISE SHIP OPERATIONS
ILA has stated that union members will continue to process military shipments and support cruise ship operations throughout the duration of the strike.
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