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On 3rd October, the International Longshoremen’s Association (ILA), representing US dockworkers, called off the strike that had paralyzed cargo movements at ports along the US East Coast and Gulf Coast since 1st October. The ILA and the employers’ association USMX announced that they had reached a 'tentative agreement on wages,' valid for one year, and that the current master contract would be extended until 15 January 2025.

Analysts reported that at least 45 container ships were prevented from docking at US East Coast and southern Gulf Coast ports during the strike, with estimated economic losses of around $4 to $5 billion per day. Peter Sand, chief analyst at Xeneta, as cited by ShippingWatch, estimated that it will take approximately three weeks for ports to clear the backlog of containers accumulated during the four-day strike. According to Xeneta, 44 ships are still waiting to berth, with an additional 120 en route to US East and Gulf Coast ports.

While some ocean carriers have declared force majeure to relieve themselves of contractual obligations, resulting in extra fees and surcharges, the risk of ripple effects extending to other regions, including Europe, through cargo rerouting, blank sailings, and added delays and costs, has been minimized. However, some schedules are still expected to be impacted until at least the end of the year. For European freight forwarders, the knock-on effects mean they must consider alternative strategies, including increasing reliance on airfreight. With demand for air cargo capacity surging, rates are expected to spike, particularly for express and guaranteed shipments. This complex situation requires European freight forwarders and shippers to proactively manage their supply chains by closely tracking inbound shipments, collaborating with shipping lines to find alternative routes, and considering expedited solutions like airfreight.

Source: The Loadstar, ShippingWatch