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 days to clear, while a two-week strike could delay port operations until 2025.

Transportation experts indicate that goods arriving from Europe, India, and other countries reliant on direct transatlantic routes would face the most significant impacts from the strike.
Meanwhile, U.S. West Coast ports are experiencing a surge in imports as businesses stock up on Halloween costumes, Christmas apparel, and solar panels ahead of possible labor disruptions. In August, the Port of Long Beach recorded its busiest month in 113 years, with volumes increasing nearly 34% year-over-year, aided by a 40% surge in imports. The Port of Los Angeles also reported a 16% increase in volume during August, driven by an 18% rise in imports.

Gene Seroka, Executive Director of the Port of Los Angeles, noted the challenge in quantifying the influx of cargo from other ports but highlighted that Los Angeles can manage approximately 1.2 million twenty-foot equivalent units (TEUs) per month, compared to the 960,597 TEUs processed in August.

As the deadline approaches, the industry remains on edge, closely monitoring developments in negotiations and the potential for a strike.