COSCO
SITC
PACIFIC LINES
Thursday, 15/08/2024, 14:00 (GMT +7)
802
Potential Impact of ILA Strike
The looming possibility of an ILA strike on the US East Coast raises concerns about significant disruptions to container volumes and port operations, with potential long-term consequences for cargo clearance and supply chain stability.
The labor agreement between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on September 30, 2024. If a new agreement isn't reached, the ILA has indicated its intention to strike starting October 1st. This could have a significant impact on container volumes and port operations on the US East Coast.
Estimated Impact on Container Volumes
Based on historical data, we anticipate US East Coast ports handling around 2.3 million TEUs in October, translating to 74,000 TEUs per day (36,000 imports and 38,000 exports). A strike would also disrupt the loading of 20,000 empty TEUs daily.
Backlog Clearance
Once a strike ends, the accumulated backlog of containers would need to be cleared in addition to the normal flow of cargo. The speed of this process depends on the excess capacity available at East Coast ports. Excess capacity refers to the ports' ability to handle volumes beyond their usual throughput.
One way to estimate excess capacity is to compare the maximum containers ever handled on the East Coast to the expected handling in October 2024. Our analysis suggests that the port system could potentially increase handling by 13% compared to the anticipated 2.3 million TEUs in October.
Figure 1 illustrates the time required to clear a backlog of 74,000 TEUs (resulting from one day of strike) at different levels of excess capacity. Assuming East Coast ports have 13% excess capacity, it would take approximately 6 days to clear the backlog from a single day of strike. With slightly more excess capacity, this could be reduced to 4-5 days.
Consequences of a Prolonged Strike
A one-week strike in early October would likely not be cleared until mid-November. In the event of a two-week strike, it's realistic to expect that normal port operations wouldn't resume until sometime in 2025.
Overall, a potential ILA strike could lead to substantial disruptions in container handling and port operations on the US East Coast. The duration of the strike and the available excess capacity at ports would significantly impact the time required to clear the resulting backlog.
Source: Phaata.com (via Sea-Intelligence)
Phaata.com - Vietnam's First International Logistics Marketplace
► Find Better Freight Rates & Logistics Services!
Featured News
- Hapag-Lloyd applies Peak Season Surcharge from East Asia to USA and Canada
- The world\'s largest container ships MSC Irina and MSC Loreto floated
- MSC (Mediterranean Shipping Company) - The world\'s leading container shipping lines
- Information you need to know about Maersk Line
- Top 10 export and import goods between Vietnam - Philippines in the first 5 months of 2020
Market News
See more
.webp)
_(2).webp)
HOT PROMO
See more
44
FCL
6 Days
Freight cost
Expiry date
ASIAN EXPRESS LINE VIETNAM ( AEL VIET NAM )
3.5
46
FCL
6 Days
Freight cost
Expiry date
ASIAN EXPRESS LINE VIETNAM ( AEL VIET NAM )
3.5
49
FCL
6 Days
Freight cost
Expiry date
ASIAN EXPRESS LINE VIETNAM ( AEL VIET NAM )
3.5
44
FCL
6 Days
Freight cost
Expiry date
ASIAN EXPRESS LINE VIETNAM ( AEL VIET NAM )
3.5
232
LCL
6 Days
Freight cost
Expiry date
ORIENTAL LOGISTICS MULTIMODAL TRANSPORT COMPANY LIMITED
1.8
WHY PHAATA.COM?
USERS/MONTH
LOGISTICS COMPANIES
REQUEST FOR QUOTEŚ
QUOTATIONS
VIETNAM LOGISTICS COMMUNITY
5 Steps to Get the Best Quote
Find price quickly
and
Send quote request
Compare Quotes
and
Selection
Contact for Further Consultation
and
Send request booking
Get feedback
and
Direct Negotiation
Management
and
Evaluate
Freight rates
Sea freight
7
Days Transit
- $300 / 20'GP
Valid till: 2026-01-31
CÔNG TY TNHH SHIP LINK VIỆT NAM
0.4
20
Days Transit
- $815 / 20'GP
- $1,010 / 40'GP
Valid till: 2026-02-27
Chi nhánh tại Khu vực Bắc Bộ - Công ty TNHH Giao nhận vận chuyển Quốc tế Trường Hải
3
25
Days Direct
- $1,390 / 20'GP
- $1,760 / 40'GP
- $1,760 / 40'HQ
Valid till: 2026-01-31
SOV（越南海光）
0.1
45
Days Transit
- $3,400 / 40'HQ
Valid till: 2026-02-14
Công ty T&T Global Agency
1.8
16
Days Transit
- $180 / 20'GP
- $520 / 40'GP
- $520 / 40'HQ
Valid till: 2026-01-31
CÔNG TY CỔ PHẦN THƯƠNG MẠI VÀ TIẾP VẬN ĐẠI DƯƠNG
0.6
3
Days Direct
- $0 /cbm
Valid till: 2026-01-31
WR1 MASTER CONSOL
Verified
2.1
8
Days Direct
- $0 /cbm
Valid till: 2026-02-01
CÔNG TY TNHH VẬN TẢI BIỂN MINH NGUYÊN
0.1
19
Days Direct
-
Refund
$75 /cbm
Valid till: 2026-01-31
CÔNG TY TNHH VẬN TẢI BIỂN MINH NGUYÊN
2.6
30
Days Direct
- $40 /cbm
Valid till: 2025-12-31
CÔNG TY TNHH THƯƠNG MẠI DỊCH VỤ 3N
0
30
Days Transit
- $50 /cbm
Valid till: 2025-12-31
KHAI MINH GROUPS CO., LTD – Ho Chi Minh Branch
2.6
Air freight
1
Days Direct
- 1.9 $/kg
Valid till: 2026-01-31
CÔNG TY TNHH EVERGLORY LOGISTICS VIỆT NAM
2.6
7
Days Transit
- 5.3 $/kg
Valid till: 2026-01-31
CÔNG TY CỔ PHẦN DỊCH VỤ VÀ HẠ TẦNG Ô TÔ THÀNH CÔNG
2.1
4
Days Direct
- 8.05 $/kg
Valid till: 2026-01-17
AN BÌNH EXPRESS
2.6
4
Days Transit
- 3.7 $/kg
Valid till: 2026-01-31
MAXTENA SHIPPING&FORWARDING AGENT CO., LTD
2.7
1
Days Direct
- 2.5 $/kg
Valid till: 2026-01-10
TTL Cargo Max
2.6
Rail freight
20
Days Direct
- $7,300 / 40'HQ
Valid till: 2026-01-31
CÔNG TY CỔ PHẦN VẬN TẢI VÀ THƯƠNG MẠI ĐƯỜNG SẮT
Verified
3.8
3
Days Direct
- $450 / 20'GP
- $600 / 40'GP
- $600 / 40'HQ
Valid till: 2025-09-30
SilverSea Co.,Ltd
2.5
26
Days Transit
- $6,710 / 40'GP
- $6,710 / 40'HQ
Valid till: 2024-12-31
WORLDLINK LOGISTICS VIET NAM COMPANY LIMITED
1.8
10
Days Direct
- $1,000 / 20'GP
- $1,000 / 40'GP
- $1,000 / 40'HQ
- $1,000 / 45'HQ
Valid till: 2024-12-31
VIPUTRANS
1.8
3
Days Direct
- $706.5 / 40'HQ
Valid till: 2024-10-31
CÔNG TY CP PROSHIP
1.8
Road freight
6
Hour
- $136.44 / 20'GP
- $155.39 / 40'GP
- $155.39 / 40'HQ
Valid till: 2026-01-31
CÔNG TY CỔ PHẦN THƯƠNG MẠI VÀ TIẾP VẬN ĐẠI DƯƠNG
0.6
1
Day
- $155.39 / 40'GP
Valid till: 2026-02-18
CÔNG TY TNHH THƯƠNG MẠI DỊCH VỤ 3N
0
9
Hour
- $570 / 20'RF
Valid till: 2025-11-30
Headway Joint Stock Compnay
3.5
2
Day
- $2,263.3 / 20'GP
- $3,017.73 / 40'GP
- $3,017.73 / 40'HQ
- $3,017.73 / 45'HQ
Valid till: 2026-10-31
CÔNG TY CỔ PHẦN MORNING LOGISTICS
2
1
Day
- $169.75 / 40'HQ
Valid till: 2025-09-30
CÔNG TY TNHH LOGISTICS FV
2.5
Request For Quotes
Help you send and receive quotes from Forwarders on the market quickly and efficiently.
See more
