Strike Threat at US East Coast Ports Could Disrupt Supply Chains

A potential strike by dockworkers at U.S. East Coast and Gulf Coast ports on October 1 is poised to immediately disrupt the nation’s supply chains, according to George Goldman, North America Chief Executive of CMA CGM. The International Longshoremen’s Association (ILA) represents 45,000 workers across 36 ports, including New York/New Jersey, Houston, and Savannah, Georgia, and has pledged to halt operations if a new labor agreement is not reached by the expiration of the current contract on September 30 at midnight. Goldman emphasized the urgency of the situation during a webcast hosted by the Port of Los Angeles, stating, “The moment you close the door, things begin to back up. One day is too long for port closures.” CMA CGM is part of the United States Maritime Alliance, which is currently negotiating with the ILA.   The ports affected handle approximately half of U.S. imports, prompting retailers and manufacturers to shift some cargo to West Coast facilities to avoid delays. Analysts at Sea-Intelligence, a Copenhagen-based shipping advisory firm, warned that a one-day strike could lead to a backlog requiring four to six