As most are aware, our East Coast/Gulf Coast Ports are currently closed for operation due to The International Longshoremen’s Association (ILA) strike.
As the strike continues into day three, non-ILA ports, contingency modes, and routes are beginning to see congestion as shippers look for alternative methods to move their cargo. Container dwell times at USWC ports and congestion across the rail and transload services are rapidly increasing. Furthermore, as a result of the strike, several Ocean carriers have declared Force Majeure for shipments to and from the ILA-represented ports. This means that impacted shipments in or out of the affected ports are now subject to price increases without the required 30-day notice. If the strike persists, carriers may also elect to seek alternate routes at the discretion of the shipping lines, with additional expenses being the customer’s responsibility.
We have been closely monitoring the situation for several months and determined that, from experience, our best option was to “stay the course,” electing NOT to re-route cargo away from the ILA ports. This decision was based on the fact that, historically, the ripple effects of importers and exporters re-routing cargo leads to congestion through those alternative modes, causing similar delays and surcharges. Our hope is that the strike will be over, either through government intervention or by means of a new contract being accepted, by October 10th, 2024. If the strike continues beyond this date and little progress is being made in the negotiations, we will be forced to re-evaluate and find alternative modes for import.
If you have any questions regarding the impact on your bag supply, please contact your sales rep directly or reach out to us at Sales@FlexSack.com.