Prepare for Potential January 15, 2025 Port Strike
Pierson Ferdinand LLP wanted to remind you that the strike by the International Longshore Association (ILA), initially set for Oct. 1, 2024, has merely been postponed and not fully resolved. This offers a brief respite, but businesses must remain prepared for the strike to take place starting January 15, 2025. The new timing coincides with the peak export season for Chile and Uruguay, particularly for grapes and citrus.
The timing also coincides with a new administration in the United States. If another strike occurs, we expect it will be short lived, because no president wants to start his/her term with a strike that will result in inflation and shortages.
However, we advise that you hope for the best and plan for the worst. It is unlikely that USMX will change its position on automation, given that doing so means ports would be prevented from automating for 6 years at a minimum.
If the strike occurs, it will shut down key Atlantic and Gulf Coast ports, halting more than half of the United States’ container operations. Stakeholders—including importers, exporters, and carriers—must act now to minimize exposure to delays, increased costs, and legal challenges.
Stakeholders must use this time to review contracts, secure insurance, and explore shipment alternatives to mitigate risks. For tailored legal advice or assistance in preparing your business, please contact us directly.
Key Ports Likely to Be Affected:
New York and New Jersey
Miami
Philadelphia
Houston
Savannah
Charleston
Baltimore, among others
Proactive Risk Mitigation Strategies
Push Carriers to Hire Replacement Workers: Carriers have the option to hire replacement workers under economic strikes such as this one. Speak to your carriers about whether they intend to hire replacement workers and if not, why not.
Review Insurance Policies: Confirm whether your cargo insurance covers strike-related disruptions and perishable goods spoilage. Many policies exclude delays and associated financial losses (e.g., demurrage fees). Consider adding trade disruption coverage or specific endorsements for deterioration.
Analyze Contracts with Ocean Carriers:
Evaluate Force Majeure Provisions: Understand what your contracts and BLs with carriers state with respect to force majeure, and plan accordingly.
Challenge Demurrage Charges: Most ports and carriers are aligned with the USMX, which is negotiating with the ILA. Be prepared to contest unfair demurrage fees if carriers attempt to profit from delays. We stand ready to file claims under the Shipping Act of 1984 on your behalf.
Prepare for Force Majeure Notices:
Contracts with U.S. Buyers: Review your agreements to determine whether the strike qualifies as force majeure or a case of impossibility. Ensure compliance with notice provisions.
Contracts with Foreign Suppliers: Anticipate receiving force majeure notices if the strike moves forward.
Explore Shipment Alternatives: Consider rerouting shipments via West Coast ports, Canada, or Mexico. In case of urgent deliveries of perishable goods, air freight may be a viable, though costlier, solution to avoid delays.
Prepare for Rising Costs and Logistical Challenges: Cargo stranded at ports could incur demurrage, detention, and storage fees. Theft risks may also increase with delayed shipments. Businesses should anticipate higher freight, container, and storage costs as disruptions ripple through logistics networks.
For more detailed guidance on how the port strike could impact your business from a legal standpoint, please feel free to contact Tiffany N. Comprés.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2025 Pierson Ferdinand LLP.
