Auto Care Association
10/01/2024 | News release | Distributed by Public on 09/30/2024 22:16
Port Strike at East and Gulf Coast Ports, Disrupting U.S. Supply Chain
As of today, a strike of 45,000 dockworkers has officially begun at 14 U.S. East and Gulf Coast ports, starting at 12:01 a.m. ET on Tuesday, October 1, 2024.
The strike is expected to cause significant disruptions to supply chains, with estimates suggesting that for every day the strike continues, it will take 5 to 7 days to recover from the associated delays. A J.P. Morgan analysis projected that a strike could cost the U.S. economy $5 billion daily.
The 14 ports include the Ports of Boston, New York/New Jersey, Philadelphia, Baltimore, Norfolk, Wilmington, Charleston, Savannah, Jacksonville, Miami, Tampa, Mobile, New Orleans and Houston.
Despite last-minute efforts, the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) were unable to reach an agreement over the weekend. USMX officials met last Friday with Transportation Secretary Pete Buttigieg, Acting Labor Secretary Julie Su, and top White House economic adviser Lael Brainard in hopes of brokering a deal. The ILA was invited but declined to participate.
In recent statements posted on the ILA's official Facebook page, the union voiced concerns over the threat of automation and criticized ocean carriers' "mega-billion dollar" profits, while ILA longshore wages have reportedly remained stagnant. The USMX has also issued statements that the ILA has repeatedly refused to come to the bargaining table. According to the USMX, this is the first walkout by dockworkers on the East Coast since 1977.
President Biden has stated that he does not plan to invoke the Taft-Hartley Act and encourages the parties to engage in negotiations. The Taft-Hartley Act, which was previously used by President Bush in 2002 during the west coast port strike, would grant the president authority to intervene in labor disputes that threaten national security, forcing both parties to return to the negotiating table and requiring longshoremen to return to work.
The Auto Care Association continues to work with industry groups representing industries across the U.S. to urge President Biden to work with both sides of the ongoing labor negotiations.
U.S. automotive parts exports and imports represent $51.2 billion and $138.9 billion, respectively. (Source: Auto Care Association, 2025 Factbook, pg. 152). With the looming threat of multiple ports closing along the United States coastlines, U.S. automotive aftermarket businesses could risk losing up to nearly $340 million each day the strike prevents imports from being delivered. (Source: 2025 Auto Care Factbook).
In 2023, nearly 25% of automotive parts were imported through the east and gulf coast ports that are at risk of disruption from the labor strike. Members have reported imports being diverted to west coast ports, which are seeing a surge in imports and will also be impacted by the labor strike. This is compared to nearly 40% of imports that are imported via truck and rail freight through land port of entry from Mexico.
(Source: U.S. International Trade Commission, U.S. Dataweb, General Imports of International Trade Administration Auto Parts HTS, Ports as listed in USMX 2023 Annual Report).
Demurrage and Detention Fees: Filing a Charge Complaint at the FMC
A key concern for importers is compounding fees associated with container pick up (demurrage charges) and container returns (detention charges) that may be assessed during the port strike and during the subsequent recovery period.
The Federal Maritime Commission (FMC) issued a Final Rule intended to add clarity to invoicing requirements outlined in the Ocean Shipping Reform Act of 2022 (OSRA 2022), which reaffirmed that demurrage and detention charges be reasonable and applied in a way that serves their intended primary purposes as financial incentives to promote freight fluidity.
Members that believe their charges are not in compliance with the Shipping Act are encouraged to file complaints with the FMC.
Port Strike Impact Stories
The East and Gulf Coast ports handle a significant portion of our industry's imports and exports, and a prolonged strike would strain the supply chain, lead to billions of dollars in losses, as well as delays in the movement of goods, making it difficult for repair shops and distributors to meet demand.
In addition to the disruption at East and Gulf Coast ports, West Coast ports are also experiencing a surge in cargo, which could slow down the movement of goods in that region as well.
We want to hear from you. Please share your port strike impact stories to help support our advocacy efforts.