With ports strike imminent on East Coast, Gulf, truckers, rails are scrambling to move billions in cargo before midnight shutdown
With a potential strike at ports up and down the East Coast and along the Gulf Coast set to begin after midnight Monday, logistics executives tell CNBC the remaining hours are critical in moving out as much trade as possible before a shutdown that will do serious damage to the functioning of the U.S. economy.
With a potential strike at ports up and down the East Coast and along the Gulf Coast set to begin after midnight Monday, logistics executives tell CNBC the remaining hours are critical in moving out as much trade as possible before a shutdown that will do serious damage to the functioning of the U.S. economy.
Based on data from ImportGenius, which tracks the Bills of Lading — the digital receipts of cargo containers — a total of 54,456 twenty-foot equivalent units (TEUs) arrived on Friday at the 14 ports operating under the Master Contract between the International Longshoremen’s Association and the US Maritime Alliance (USMX) which expires at midnight Monday. The approximate value of that freight was upwards of $2.7 billion, based on an MDS Transmodal estimate of $50,000 per container. For the weekdays between September 23-27, a total of 273,417 TEUs were imputed through customs at these ports with a value of approximately $13.67 billion.
Alan Baer, CEO of OL USA, said the enormity of the freight volumes arriving Friday alone shows the scramble logistics companies are in to get the containers off the dock by close of business Monday. “Importers, in coordination with their logistic partners, should try to clear as many of their containers off open terminals where possible to avoid possible delays in acquiring their inventory,” said Baer.
On average, it takes one week to clear out one day of a port closure. As much as 43% to 49% of total containerized goods entering the U.S are processed through ports on the East Coast and Gulf Coast.
Michael Kanko, CEO of ImportGenius, tells CNBC the economic importance of the ports impacted by an ILA strike is profound. “As our data shows, a strike of even a week will block the flow of hundreds of thousands of containers into the U.S.,” he said. “These ports are also a major gateway into the U.S. for refrigerated produce. Time isn’t on the side of importers.”
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