Strike Aftermath: What the Three-Day Port Shutdown Means for Your Q4 Shipments

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Strike Aftermath: What the Three-Day Port Shutdown Means for Your Q4 Shipments
October 29, 2024

The recent East Coast work stoppage ended quickly, but cargo is still backed up. Here's what that means for your Q4 timelines.

The East and Gulf Coast port disruption ended after just three days, but the backlog isn't clearing as quickly as you'd hope. After dockworkers accepted a 62% wage increase over six years, operations resumed—but residual delays are real, and if you've got cargo sitting at those ports, you're probably feeling it.

The International Longshoremen's Association walked out at 14 ports from Maine to Texas in early October, halting operations for the first time in nearly 50 years. The tentative agreement extended the contract until mid-January, giving both sides time to negotiate automation and other sticking points.

What it means for shippers: Even though the stoppage only lasted three days, the ripple effects will stretch into November. Containers are still sitting in yards, vessels are backed up, and trucking capacity to move cargo inland is strained. If you had shipments scheduled to arrive in early October, expect 1-2 week delays beyond normal timelines.

Carriers introduced surcharges ranging from $1,000 to $4,500 per FEU in anticipation of disruptions, and transatlantic rates jumped into the mid-$2,300/FEU range as shippers scrambled for alternative routing. Transpacific rates to both coasts dropped more than 30% from July highs during the disruption—but that's partly because importers had already front-loaded cargo in August and September to avoid the mess.

What we're watching: Whether West Coast ports can absorb diverted volume without creating their own congestion problems. So far, LA/Long Beach reports fluid operations, but a sustained shift could change that.

Air cargo capacity tightened: Some shippers—especially those moving perishables—shifted to air freight. China-North America air rates climbed roughly 9% to around $5.90/kg, and congestion is forming in Singapore and Vietnam.

Europe-U.S. rates climbed too: Transatlantic air cargo rates rose approximately 4% to the mid-$1.70s/kg as capacity tightened from the ocean disruption.

Automation remains the sticking point: The mid-January deadline looms, and if the union and port operators can't agree on automation limits, another stoppage is possible. Plan accordingly.

Red Sea diversions continue: The root cause of elevated global rates—longer routes around Africa—hasn't changed. Capacity remains tight across the board.

Bottom line: If you're shipping into U.S. East or Gulf Coast ports in November, add 7-10 days to your expected timelines. If you're planning Q1 shipments, keep mid-January on your radar. Another work stoppage would be worse than the first.

Questions or topics you want covered? Reply anytime — I read them.
—Robyn

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Disclaimer: Crossing Currents provides general logistics intelligence and analysis based on publicly available information. This content is for informational purposes only and does not constitute operational, financial, or legal advice.