The port strike that took place at East Coast and Gulf ports have ended on October 3, 2024. This is, however, not the conclusion of the negotiation between USMX and ILA - the remaining issues, other than wages, will be negotiated again starting January 15, 2025.

I have seen an online commentary that the negotiating parties basically punted the ho potato of an issue down the road but I do think this is a smart move both from the Biden-Harris administration and ILA. The port strike being so close to the November presidential election could crease risks especially for the Democrat’s candidates.

Whatever the issues may be - port strikes are just not good for the economy. The meat news of it has already create a certain degree of irrational behaviors that we have seen in the past - people started buying toilet paper even on the West Coast despite the location of the problems being on the East and Gulf coasts. Those who rely on ocean import and export have even started making preparations for the worst-case scenario months ahead of October. I have seen companies moving as much as 10% of their cargo from East Coast ports to West Coast ports.

Will this temporary ease of tension between the employers and union shift market share back to the East Coast and Gulf ports? It is hard to say but I think the answer is probably “yes”. However, importers have told me that they have already shipped enough for the holiday season and that indicated to me that overall the cargo volume will start to taper for the rest of 2024.

There are still issues in the Red Sea region - and I do anticipate the vessel assets will start be tied up due to the longer route around the Africa continent. That will uphold the ocean freight for the foreseeable future. And 2025 will continue to be unpredictable for those in the supply chain business.