A threatened strike by dockworkers at U.S. East Coast and Gulf of Mexico ports, set for October 1, could cause immediate disruptions in the flow of goods across the country, according to George Goldman, CEO of CMA CGM North America. The International Longshoremen’s Association (ILA), representing 45,000 workers at 36 ports, has indicated that work will cease if a new labor agreement is not reached by the expiration of the current contract on September 30.
Goldman emphasized that even a single day of port closures could lead to significant backlogs, with analysts estimating that a one-day strike could take four to six days to clear. A longer strike of two weeks could push normal operations into 2025.
The ports affected handle approximately half of U.S. imports, prompting retailers and manufacturers to shift some cargo to the West Coast to mitigate the risk of delays. This surge in activity has led to record volumes at West Coast ports, with the Port of Long Beach experiencing its busiest month in history in August, showing a nearly 34% increase in volume from the previous year.
Goods from Europe, India, and other regions relying on direct transatlantic routes would be most impacted. Meanwhile, major carriers like CMA CGM and Maersk are seeing increased imports as businesses stock up on seasonal goods and items potentially subject to tariff increases.