East Coast and Gulf Coast ports account for approximately 43% of all imports entering the United States.
Retailers and manufacturers are actively working to prevent what could be a multibillion-dollar loss if the International Longshoremen’s Association (ILA) members initiate a strike on October 1 at 13 major ports along the East Coast and Gulf Coast. The current contract between the ILA and the United States Maritime Alliance, which represents port, terminal, and shipping line management, is set to expire at midnight on September 30. This agreement covers around 25,000 workers across ports from Boston to Houston, as noted by the ILA.
A diverse array of imported goods, including automobiles, electronics, food, clothing, jewelry, and agricultural products, flows into the U.S. through these critical ports.
Concerns regarding the potential strike have been prominent among members of the National Retail Federation (NRF) for several months, according to Jonathan Gold, NRF’s vice president of supply chain and customs policy.
“Many retailers have proactively sought to minimize potential disruptions by importing products earlier in anticipation of the peak shipping season or shifting shipments back to the West Coast,” Gold explained on the NRF website. “Import volumes at U.S. ports have consistently exceeded 2 million twenty-foot equivalent units (TEU) since April, with an expected 2.31 million TEU in September — levels not recorded since 2022.”
Gold also highlighted that a strike could significantly impact retailers preparing for the holiday season, as well as manufacturers and farmers reliant on raw materials for ongoing operations.
“For retailers, this could mean delays in holiday shipments. Manufacturers could face shortages of essential parts and materials, leading to production halts. Meanwhile, farmers might struggle to export their products, resulting in lost sales,” Gold stated.
Key ports like Savannah, Georgia, and Houston are vital to U.S. manufacturers, supplying a variety of materials including automotive components, heavy machinery, steel, and lumber.
Officials from the National Association of Manufacturers (NAM) warned that a lengthy strike could severely harm the manufacturing sector.
“Any disruption arising from the negotiations between the United States Maritime Alliance and the International Longshoremen’s Association would have an immediate negative impact on the manufacturing supply chain,” said Christopher Netram, NAM’s managing vice president of policy, in a recent interview with CNBC. “A work stoppage at East Coast and Gulf Coast ports would disrupt logistics for U.S. businesses and impede the movement of goods essential to millions of Americans. Rising costs and potential job losses in manufacturing could occur if parts and supplies are delayed.”
The ongoing labor dispute is already affecting global logistics providers and transportation operators, according to Paul Brashier, vice president of drayage and intermodal at ITS Logistics.
“The East Coast and Gulf Coast ports facilitate billions of dollars in trade every month, constituting about 43% of all U.S. imports,” Brashier stated in ITS Logistics’ September U.S. Port/Rail Ramp Freight Index. “As we await the conclusion of these negotiations, industry professionals should anticipate several weeks of heightened demand for inland drayage, rail congestion, and other operational challenges in September as containers navigate through the North American supply chain.”
