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US Port Strike Updates & How They Can Affect The Shipping Container Industry & Pricing | Updated January 13, 2025
A tentative six-year agreement has been reached between the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX), averting a potential strike that could have disrupted operations at East and Gulf Coast ports, including the Port of Charleston. AP NEWS
The agreement, announced on January 9, 2025, includes a nearly 62% wage increase over six years and introduces new regulations on technology use at ports. Notably, it bans full automation and the use of artificial intelligence that replaces workers, while setting guidelines for implementing new technologies. WSJ
The tentative agreement is pending review and approval by union members, with the ratification process expected to take several weeks. AP NEWS
Potential Port Strike or Agreement Extension Set For January 15th – Impact on Shipping Container Availability | Updated: January 7th, 10:00am EST
As the January 15, 2025, expiration of the temporary agreement between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) looms, the shipping and logistics industry is bracing for significant potential disruptions. Negotiations are set to resume on January 7, but with critical issues like port automation still unresolved, the situation remains uncertain.
Two Scenarios Are Most Likely To Unfold:
Scenario 1: A Prolonged Port Strike If negotiations fail, a strike could begin shortly after the current agreement expires. Unlike the brief strike in October 2024, many experts predict this one could last much longer, leading to widespread disruption in the supply chain. Ports, container depots, and terminals would shut down, effectively halting the movement of goods and drying up the supply of shipping containers. This would severely impact businesses relying on containers for storage and operations, causing significant delays and higher costs. The longer the strike lasts, the more challenging it will be to secure containers, potentially leading to a sharp rise in container prices.
Scenario 2: Temporary Agreement Extension An alternative scenario is a 30-day extension of the current temporary agreement to allow more time for negotiations. While this would prevent an immediate strike, it offers only a short-term reprieve. The market would remain uncertain. This uncertainty is already affecting availability, as many shipping lines preemptively evacuate empty containers from inland locations to safeguard against potential disruptions. This has further tightened supply, especially as an import surge caused by tariff concerns has increased demand for containers in China as companies try to import as much goods as possible before tariffs take effect.
In both scenarios, container availability could be significantly impacted, with prices likely to rise due to increased demand and limited supply.
What Does This Mean for You?
Eveon Containers recommends that businesses and consumers secure their containers now rather than wait. Buying early ensures you avoid potential shortages and price hikes, protecting your operations and storage plans against future uncertainties.
If you are in need of a 20ft or 40ft shipping container, please order in the near future, as availability nationwide will deminish as the strike continues. To check inventory and for real-time pricing Click Here
Updated: October 4th, 10:00am EST
As of this morning, East Coast longshoremen and dockworkers have returned to work, suspending their strike until January 15th to allow time for further contract negotiations.
The three-day strike, which halted operations at nearly 16 ports from Maine to Florida, is expected to have a serious ripple effect on port and depot activities over the next several weeks.
Especially in the Midwest we expect to run into serious issues as container flows that supply the Midwest via the East Coast have been disrupted in past days. Getting this flow up and running again will take a longer time than it will to resupply the East Coast port cities.
According to sources at AP News, industry analysts estimate that for each day of a port strike, it typically takes four to six days to recover. However, they believe a short strike of just a few days is unlikely to disrupt the supply chain severely. Port and depot nationwide operations are expected to return to normal over the coming weeks, though disruptions will still occur due to backlog. .
Updated October 2nd, 8:00am EST
On October 1st, nearly 50,000 members of the International Longshoremen’s Association (ILA) initiated a strike at ports across the East and Gulf Coasts. This large-scale action stems from stalled negotiations with the United States Maritime Alliance, and the ILA has made it clear they’re prepared to maintain the strike until a new agreement is reached.
The strike will likely have a significant impact on the availability and pricing of shipping containers in the coming weeks, as disruptions to port operations cause delays and supply shortages. As of October 2nd, the following ports have closed operations; Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami (USMX groups Port Everglades in Ford Lauderdale, Florida, with the Port of Miami); Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware. Thus affecting 60% of the nation's container imports.
At Eveon Containers we are closely monitoring the situation and actively collaborating with our suppliers and depots to mitigate potential delays and operational disruptions.
While the majority of our markets remains fully operational, we will keep you informed with updates as the situation evolves. If you have any questions about how this strike may affect your order, please contact us at 888-489-7585.
September 30th, 8:00am EST
As you may have heard, there’s recent news about a potential strike affecting U.S. East Coast ports. According to AP World News, negotiations between Longshoremen and management have reached a critical point, with a looming stike date of October 1st, a move that would shut down ports that handle about half the nation’s cargo from ships. This development has significant implications for the shipping and logistics industry, and our customers need to be aware of how it might impact you.
The Potential Impact on Shipping Container Prices
If the strike goes into effect, it could disrupt port operations across the Gulf & East Coast, leading to delays in shipping and handling. Such disruptions often create a ripple effect throughout the supply chain, including:
- Increased Container Prices: With port operations slowed or halted, the availability of shipping containers could decrease, leading to higher prices as demand remains high.
- Extended Lead Times: Shipping delays mean getting your containers might take longer than usual, potentially affecting your business operations.
- Rising Shipping Costs: The overall shipping cost could rise due to increased operational costs and the need for alternative routes and solutions.
Why Now is the Best Time to Buy
Given the potential for a strike and its associated impacts, we strongly encourage our customers to consider making any necessary purchases or investments in shipping containers sooner rather than later. Here’s why:
- Lock in Current Prices: By purchasing containers now, you can avoid the potential price hikes that might occur if the strike causes a surge in demand.
- Ensure Availability: Acting before any disruptions ensures that you can secure the containers you need without facing limited availability due to shipping delays.
- Plan Ahead: By proactively addressing your container needs, you can better manage your inventory and supply chain, mitigating the risk of operational hiccups.
At Eveon Containers, we are committed to helping you navigate these uncertainties with ease. If you’re considering purchasing used shipping containers or have any questions about how the potential strike could impact your operations, please don’t hesitate to reach out to our team. We’re here to provide support and ensure you have the resources you need to stay ahead of any disruptions.
In times of potential disruption, being proactive can make all the difference. Act now to secure your shipping containers and avoid the uncertainties that might arise from a potential port strike. Stay informed, stay prepared, and let us help you keep your business running smoothly.