The International Longshoremen’s Association (ILA), which represents 45,000 workers across 36 ports, has stated it will stop work if a new labor agreement is not reached before the current contract expires at midnight on September 30.
Ports that could be affected include major hubs like New York/New Jersey, Houston, and Savannah, Georgia, which handle about half of U.S. imports. A strike would likely cause immediate delays, with Goldman emphasizing that even a single day of closure would have severe consequences.
Analysts from Sea-Intelligence, a shipping advisory firm, estimate that clearing backlogs from a one-day strike could take four to six days, while a two-week strike could disrupt operations until 2025.
Manufacturers Have Begun Diverting Cargo
Goods from Europe, India, and other regions with direct routes across the Atlantic would face the most significant impact. In anticipation of potential disruptions, many retailers and manufacturers have begun diverting cargo to U.S. West Coast ports, which have seen a surge in imports.
The Port of Long Beach recorded its busiest month ever in August, with a nearly 34% increase in volume compared to the previous year. Similarly, the Port of Los Angeles reported a 16% increase in August traffic.
Gene Seroka, executive director of the Port of Los Angeles, noted that the port can manage additional cargo, processing up to 1.2 million 20-foot equivalent units (TEUs) per month.
