The International Longshoremen’s Association (ILA) went on strike as of midnight, October 1st, 2024. The strike, which has forced the closure of all major container terminals from Maine to Texas, has scrambled the expected arrival during October of some 80 container ships to ports along the East and Gulf coasts. This is the first strike at USEC ports since 1977.

Despite the high stakes, the Biden administration has indicated that the president does not plan to invoke the Taft-Hartley Act, which allows presidential intervention in labor disputes that create a national emergency.

There are currently no estimates when the strike will stop. ILA President Harold Daggett told a crowd of ILA members early this morning: “Whether it’s one week, two — I’m hoping by three it’s over, I’m hoping — you are making history here,”.

To that end, ocean carriers have already begun to declare force majeure. Ocean Network Express (ONE) made their announcement, reserving all rights for force majeure under their Bill of Lading Terms; namely Clauses 17 & 18.

Ships are already planning to discharge cargo at non-affected ports. Hapag-Lloyd said Monday that vessels in its Caribbean Express Service that would have called the Port of Virginia this week now plan to call Canada’s Port of Saint John. In addition, the carrier’s South America East Coast Service is now preparing to call Mexico’s Port of Altamira instead of the US Gulf Coast ports it normally calls the US Gulf Coast ports.

Mallory will be monitoring this situation very closely and will provide regular updates as soon as new information becomes available.

Please feel free to contact your local Mallory representative with any questions or concerns you may have.