Recent strikes along the US East Coast and ongoing labour tensions at the Port of Montreal continue to pose significant risks to North American supply chains.

Although the three-day strike by dockworkers on the East and Gulf coasts in early October was resolved quickly, the ripple effects on vessel schedules, equipment availability, and capacity are expected to last well into November. Meanwhile, dockworkers at the Port of Montreal are engaging in an overtime strike, leading to growing congestion and delays at one of Canada’s largest ports.

The October strike in the US, though brief, has led to reduced capacity on major trade lanes, particularly those between Asia and the US East Coast, as well as between Europe and North America. Delays caused by the strike are expected to lead to an approximate 17% drop in capacity on the Asia-East Coast trade lane in mid-November. Meanwhile, the effects of the strike are also being felt on the trans-Atlantic trade, with a 10% drop in capacity this week and further reductions expected before a recovery later in November.

The threat of another potential strike looms large as the deadline for a new contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) approaches in January. This has prompted shippers to consider front-loading cargo in anticipation of further disruptions, particularly as demand spikes ahead of the Lunar New Year. These disruptions, coupled with potential tariff concerns, could lead to significant strain on available capacity.

In Montreal, the refusal of dockworkers to work overtime is already creating backlogs and delays, and hopes of a prompt resolution of the dispute have been quashed, after Canadian minister of labour Steven MacKinnon’s proposal for “special mediation” was rejected.

Key points:

  • The US East Coast strike has led to a 17% capacity drop on Asia-East Coast routes, with further impacts expected on other trade lanes.
  • Montreal dockworkers’ overtime strike is causing growing congestion at the port, with delays impacting vessel arrivals and container processing.
  • Another potential strike from the 15th January 2025, alongside the front-loading of cargo, could place additional pressure on already strained supply chains.

Despite these challenges, spot rates between Asia and the US East and West Coasts have recently stabilised, with surcharges introduced during the strike period being dropped. However, the potential for further disruptions continues to loom, particularly as carriers work to balance capacity and demand during the busy holiday season. Shippers are urged to plan ahead and adjust their forecasts to navigate this period of uncertainty effectively.

We recommend sharing your shipping forecasts as early as possible, so we can secure space on vessels and avoid congestion at affected ports.

As the situation in North America develops we will continue to provide regular updates, but if you have any concerns or questions about how these events might impact your shipments, please reach out to us.

EMAIL us today to learn how we can safeguard your logistics operations during challenging periods.