FAQ for How the Potential USMX-ILA Strike Could Impact Your Supply Chain

What ports will be directly affected by a strike?

The strike will impact major East Coast and Gulf Coast ports, including New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades. Indirectly, West Coast ports, such as LA/ Long Beach, will see increased volume as companies divert containers.

What types of companies will be most impacted?

Disruptions at these key ports will severely impact all supply chains, particularly in industries such as automotive, retail, pharmaceuticals, and others that depend on timely imports.

Will there be a government response?

The U.S. government might invoke the Taft-Hartley Act to impose an 80-day cooling-off period if the strike is considered a threat to national security. However, the ILA’s resistance to federal intervention may complicate a quick resolution.

What disruptions are anticipated in the lead-up and during a strike?

Ports in the Northeast are already experiencing slowdowns due to a surge in imports and operational challenges. It is already a busy season for imports. Other regions may face similar delays as possible labor action approaches.

In the event of a one-to-two-day strike, operations at major East and Gulf Coast ports will likely halt. Ships may remain anchored offshore, Container Freight Stations (CFS) will face backlogs, and warehouses and transportation hubs will experience delays, though these are expected to be manageable in the short term.

In the event of a longer strike, the impacts will be more severe. It is likely congestion will build at ports, many warehouses will fill up, and transportation networks, including trucking and rail, will face significant strain. The result for shippers will be higher costs and delays.

What measures are Jaguar Freight recommending companies take in preparation for a strike?

Jaguar Freight offers several options to help customers avoid the full impact of a work stoppage.

These options include:

• Rerouting exports from East and Gulf Coast ports to the West Coast

• Routing imports and exports via Canada with transloading to direct trucks to the U.S.

• Routing imports to the West Coast ports with transloading to direct trucks to meet delivery deadlines.

• When necessary, air freight is an option to minimize transit times in most lanes

Contact Jaguar Freight with any questions. We will continue to provide updates on the situation until it is resolved.