Dockworkers on the U.S. East and Gulf Coasts began strike action at 12:01 a.m. ET on October 1st. The large-scale stoppage affects 36 ports with the combined capacity to handle about half of all U.S. ocean shipping volumes.
The strike is expected to have a consequential impact, with analysts estimating the work stoppage will cost the economy billions of dollars per day. In addition to the disruption to operations, shippers will also have to contend with an increase to the overall cost of shipping as container carriers prepare to impose surcharges tied to the disruption.
The U.S. Customs and Border Protection (CBP) agency has issued guidelines for processing cargo and vessels impacted by the strike: CSMS # 62464633 – Cargo and Vessel Processing Guidelines due to Possible International Longshoremen’s Association Strike.
It’s estimated that it could take about a month to clear shipping congestion resulting from a week-long strike. Shippers with cargo either currently on route to an East Coast or Gulf Coast terminal, or scheduled to be sent to one of these terminals in the near future, should contact their freight partners to see if alternative arrangements are possible. At this point, the White House is not intervening.