Bühler GmbHViganTMS Awards 2023TelestackGeneva DrySailors Society
  • Vigan
  • Cimbria
  • Geneva Dry
  • Telestack
  • TMS Awards 2023
  • Bühler GmbH

Xeneta: US port strike ends, but supply chains to take weeks to recover

Xeneta: US port strike ends, but supply chains to take weeks to recover

(Posted on 04/10/24)

Strike action at ports on the US East and Gulf Coast have ended after a new wage agreement was reached, but a backlog of more than 40 ships waiting to offload billions of dollars of cargo means the pain is not yet over.

The International Longshoremen’s Association and the United States Maritime Alliance reached a tentative agreement on wages while also extending the Master Contract until 15 January 2025 to allow further negotiations, in particular around automation at ports.

The strike lasted three days and at 5am (Eastern Time) today, Friday, there were 44 ships queuing to enter affected ports (source: Xeneta and Kuehne+Nagel) and more than 120 en route (source: Xeneta and Marine Benchmark).

Peter Sand, Xeneta Chief Analyst, said: “A prolonged crisis on this scale would have been toxic for global supply chains so the market is breathing a sigh of relief.

“Closing all ports on the US East Coast and Gulf Coast – even for just three days – comes with severe consequences. We must now wait to see how quickly the returning workers are able and willing to deal with the huge backlog of ships waiting to offload thousands of containers carrying billions of dollars of goods.”

Sand believes the ripple effect of the strike will spread across global supply chains in the weeks to come.

He said: “The dozens of ships delayed on the US East Coast and Gulf Coast will also be late arriving back in the Far East. This will impact schedules towards the end of this year and possibly into 2025 in the run-up to Lunar New Year at the end of January, which traditionally sees an increase in goods shipped out of the Far East.”

Latest data from Xeneta – based on more than 450 million crowd-sourced data points – shows shippers have already been hit by increasing freight rates as a direct result of strikes.

Sand has warned the market will remain challenging in the weeks and months ahead.

He said: “There has already been a financial impact for shippers through increasing freight rates on Transatlantic trades at a time when markets on other major trades out of the Far East remain elevated due to conflict in the Red Sea.

“It is good news the strike has ended but shippers are not out of the woods just yet. It is only a tentative agreement and automation at ports will remain a major stumbling block.

“Automation is an issue the two sides have been unable to resolve in over a year of negotiations – now they have just 100 days to reach an agreement otherwise we could see further strike action.”

Latest News

Lagging iron ore offsets export surge in Duluth

(Posted on 31/01/25)

Total waterborne tonnage through the Port of Duluth-Superior declined 6.8 percent compared to the 2023... Read more


Fertilisers up as Antwerp-Bruges shows growth despite challenges

(Posted on 31/01/25)

Port of Antwerp-Bruges closed 2024 with 2.3% growth in total throughput, amounting to 278 million tons... Read more


Focus on speed limits around the Erasmusbrug in Rotterdam

(Posted on 30/01/25)

In 2024, the number of visits by incoming sea-going vessels in the port of Rotterdam fell slightly:... Read more


Dry bulk increases again in North Sea Port

(Posted on 20/01/25)

In 2024, the North Sea Port companies recorded a volume of 66.3 million tons of seaborne cargo transhipment... Read more


AD Ports to invest in Sarzha Grain Terminal in Kazakhstan

(Posted on 20/01/25)

AD Ports Group, a leading facilitator of global trade, logistics, and industry based in Abu Dhabi, has... Read more


Leading Vietnamese seaport makes impression at 12th PorTech Asia Summit

(Posted on 17/01/25)

Long An International Port has made its inaugural appearance at the 12th PorTech Asia Summit 2025 and... Read more


Rhenus becomes majority shareholder of Bulk Cargo – Port Szczecin

(Posted on 10/01/25)

Germany based Rhenus Group has acquired an additional 58,5 percent of shares in the Polish port operation... Read more


AD Ports closes strong year of growth

(Posted on 07/01/25)

AD Ports Group has solidified its position as a leading facilitator of global trade and logistics through... Read more


Mukran Port starts 2025 with new management

(Posted on 07/01/25)

Mukran Port has welcomed Henry Forster as the new Managing Director of Faehrhafen Sassnitz GmbH. Ines... Read more


EIB provides €80m loan for Bilbao expansion and electrification

(Posted on 17/12/24)

The European Investment Bank (EIB) has signed an €80 million loan with the Port Authority of Bilbao... Read more


Port of South LouisianaTBA GroupCimbriaPort of StocktonVan Aalst
  • TBA Group
  • Van Aalst
  • Port of Stockton

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping