Port strike 2024: Latest updates [+how to prepare for challenges]

Port strikes can disrupt operations, but staying informed helps businesses and consumers navigate these challenges smoothly. Read this blog for insights on strikes, including those on the US East Coast, and tips to stay prepared.

When shipping goods, your priority is to get your cargo to the destination on time while keeping shipping costs down. However, with the threat of port strikes, moving your cargo efficiently can be challenging, as strikes often lead to significant delays and disruptions.

If you’re looking for a reliable way to keep your operations running smoothly during such disruptions, buying your own containers can give you more control over your shipments. Container xChange’s trading platform makes this easy, offering a wide selection of containers at competitive prices.

With over 100,000 containers in 2,500 locations worldwide, we help you source the containers you need quickly and easily.

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What is a port strike?

A port strike occurs when port workers stop working as part of a labor dispute. These strikes are typically organized by unions to demand better working conditions, pay, or benefits. When a port strike happens, it halts the loading and unloading of ships, causing significant disruptions to global trade and supply chains.

What causes port strikes? 

Several major port strikes have disrupted global trade. The 2021 West Coast port strike in the US led to massive delays, while port workers in Felixstowe, UK, staged strikes in 2022 over wage disputes. In 2023, a significant strike hit Canadian ports, causing severe supply chain disruptions. However, the causes of most port strikes remain almost the same. Let’s explore them in detail below. 

Labor disputes

Port strikes often occur due to disagreements between workers and employers over wages, benefits, or working conditions. When negotiations fail to resolve these issues, unions may resort to strikes to push for better terms.

Job security and automation

Concerns about job security, particularly with the rise of automation in ports, can lead to strikes. Workers may fear that new technologies will replace their roles, prompting them to protest against these changes.

Expired contracts

When labor contracts expire without a new agreement in place, strikes can happen. Workers may strike to pressure employers into offering more favorable terms before agreeing to a new master contract.

Port strikes can cause major disruptions to shipping. Read on to know how. 

What is the impact of port strike on global shipping? 

The five common impacts of port strikes on global shipping are as follows: 

Port congestion 

Port strikes can lead to significant port congestion as ships pile up, waiting for port operators to resume operations. This results in backlogs that can take weeks or even months to clear, affecting trade flow.

Port delays 

With strikes halting cargo handling, port delays become inevitable. Vessels are forced to wait longer to dock and unload, causing ripple effects that impact delivery schedules and inventory planning.

Longer inland transit times

As cargo remains stuck at ports, inland transit times increase due to congestion and delays. This can create bottlenecks further down the supply chain, disrupting timely delivery to final destinations.

Supply chain disruptions

Strikes create widespread supply chain disruptions due to a combination of port congestion, delays, and longer transit times. Businesses may struggle to meet demand, and consumers might experience delays or price hikes on products. 

Demurrage and detention charges

During port strikes, containers often exceed their free time, leading to costly demurrage and detention charges. Demurrage refers to fees for keeping containers at the terminal beyond the allowed free days, while detention charges apply when containers are held outside the terminal longer than permitted. These extra costs can quickly add up, impacting your shipping costs.

We’ll tell you how you can avoid paying D&D charges later in the blog, but first, let’s look at the current threat of port strikes in the US. 

US East Coast port strike 2024

Port workers on the US East Coast, represented by the International Longshoremen’s Association (ILA), are threatening to strike due to unresolved contract negotiations with the United States Maritime Alliance (USMX). The dispute centers around the introduction of automated gate systems, which process trucks without the need for ILA labor.

The ILA is demanding that employers halt the use of automation in ports, specifically the Auto Gate system. They argue that the introduction of this technology threatens their jobs and undermines their role in port operations.

In addition to concerns over automation, union members are seeking better compensation packages, which are expected to be a key point in their contract negotiations.

The strike could occur from October 1, 2024, if an agreement is not reached before the current Master Contract expires on September 30, 2024. This strike would affect major ports across the Atlantic and Gulf Coasts of the US, which are critical for global trade.

How would the East Coast strike affect the supply chain?

The Port of New York and New Jersey ships about $300 billion worth of goods annually. The Port of Savannah, the second largest on the East Coast, ships over $150 billion. Strikes on the East and Gulf Coast would cause severe disruptions to the already strained supply chain, which is struggling with the Red Sea crises and peak shipping season.

A potential port strike could halt cargo movement at these key ports. This would lead to delays, higher shipping costs, and possible shortages of goods, similar to the disruptions seen during the West Coast port strike in 2023.

Gulf Coast ports benefited from increased cargo volume due to disruptions on the West Coast last year, and such a strike could erode that newfound confidence in East Coast operations. 

At a time like this, it’s important to keep up with what’s happening in the industry so you can plan your shipments better. Subscribe to our monthly newsletter to get news updates, shipping routes, container prices, and more insights straight to your inbox. 

Canadian port strike 2024

Canada’s rail industry briefly faced disruption on August 22, 2024, when workers from Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) went on strike over labor availability, scheduling, and work-life balance concerns. 

The Canada Industrial Relations Board (CIRB) quickly intervened, ordering an end to the strike and directing both sides to resolve the dispute.

However, now the country’s port sector is grappling with potential port strike concerns. Workers from Local 514 of the International Longshore Warehouse Union (ILWU) have a mandate to strike after their agreement with the British Columbia Maritime Employers Association (BCMEA) expired in March 2023. 

Although no strike date has been set, ongoing labor disputes and contract negotiations threaten to significantly impact Canada’s vital port operations and supply chain.

Update on port strikes across the world

Ports across the world have seen strikes in 2024. Germany’s port sector has ongoing labor tensions, with workers represented by the trade union ver.di negotiating with the Central Association of German Seaport Operators (ZDS). 

According to our latest Where Are All the Containers report, “the dispute stems from disagreements over wage increases, inflation compensation, and shift bonuses, following the expiration of the previous agreement earlier this year. Since then, periodic warning strikes have affected major ports, including Hamburg, Bremen, Bremerhaven, Wilhelmshaven, Emden, and Brake.”

Download our free report to get more insights on the ongoing strike in Germany and learn how to mitigate the challenges for your business. 

Port workers in India also prepared to go on strike in August 2024. However, the nationwide strike was averted following successful negotiations with the government. The agreement addressed key labor concerns, preventing further disruptions in one of the world’s busiest shipping regions. 

Let’s now look at how you can prepare for port strikes and lessen the risks for your business. 

How to prepare for a potential strike in the US?

Here are four ways you can prepare for a potential strike in the US.  

Diversifying port options 

To reduce the impact of a strike, you can diversify your port options by using alternative ports, just as many shippers did during the West Coast strikes by shifting to East Gulf Coast ports. While this helps avoid major disruptions, it may come with higher shipping costs due to longer routes or limited capacity at alternative locations.

Alternative modes of transport

Exploring alternative transport modes like the Panama Canal Railway can help you move cargo during port strikes. This railway connects the Atlantic and Pacific oceans, offering a fast and reliable option to bypass congested ports and keep shipments on track.

Cargo redistribution 

Redistributing cargo across multiple carriers reduces the risk of total shipment delays in the event of a strike. By spreading your shipment between different carriers or ports, you can better manage potential disruptions and maintain a steady flow of goods.

Using shipper-owned containers

Shipper Owned Containers (SOCs) are containers that belong to the shipper rather than the carrier. By using SOCs, you can avoid hefty demurrage and detention charges since they aren’t bound by the carrier’s container return deadlines. 

Additionally, SOCs offer greater flexibility in choosing the most efficient routes, helping shippers navigate around potential port strikes. Read on to know more. 

How to avoid demurrage and detention charges using SOCs

During a port strike, using SOCs can be an effective way to avoid costly demurrage and detention charges. Since SOCs belong to the shipper, you’ll have no pressure to return the container to the carrier within a specific period, even when port operations are disrupted. 

This means you won’t incur extra fees if containers are stuck at terminals or delayed due to the strike. SOCs also give you the flexibility to choose alternative ports or routes, helping to maintain the flow of goods despite any strikes. By using SOCs, you can reduce risks and control costs in times of uncertainty.

But how do you lease SOCs from reliable suppliers? Right here on the xChange marketplace. 

Lease SOCs on Container xChange to tackle port strikes 

On the Container xChange leasing marketplace, you can find vetted suppliers to lease SOCs. Just select the container type and size you need, and you’ll get multiple offers to choose from within seconds. When you find something that suits you, reach out to the supplier directly to negotiate the rates, terms, and conditions.

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• Access 100,000+ containers in over 2,500 locations worldwide.
• Work with 1,700+ vetted and pre-approved suppliers.
• Compare multiple SOC offers in one place.
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• No hidden costs 
• Negotiate deals directly with partners—no middleman

Here’s what Jérémy Grandjean, the co-founder of MG-Atlantic, has to say about using xChange: 

“We almost consider xChange to be our third colleague because of the amount of work that the marketplace does for us.”

Do you also want to connect with more such companies and lease containers to avoid D&D charges for your next shipment? Simply click the banner below to explore all offers on your preferred route today! Talk to our experts on how you can mitigate supply chain risks during a strike. 

Port strike: Common FAQs

How can businesses prepare for port strikes?

Businesses can prepare for port strikes by diversifying their shipping routes, using alternative transport modes, and utilizing SOCs to avoid extra fees. Staying informed about strike developments also helps in adjusting logistics plans quickly.

Are port workers on strike in the US?

Port workers in the US are planning to strike due to unresolved contract negotiations with the US Maritime Alliance (USMX). The strike could start on October 1, 2024, if an agreement is not reached before the current Master Contract expires on September 30, 2024.

Which ports are located on the US East coast?

Some of the most important East Coast ports are the Port of New York/New Jersey, Port of Savannah, Port of Virginia, and Charleston Port.

Which is the busiest port in the US?

The busiest shipping port in the US is the Port of Los Angeles, followed closely by the Port of New Jersey & New York.