Dear FIDI Affiliate,
I am writing to you today to address a developing situation that could have a significant impact on our industry. As of 1 October 2024, the International Longshoremen’s Association (ILA) has initiated a strike at major ports along the U.S. East and Gulf Coasts, following a breakdown in negotiations with the United States Maritime Alliance (USMX). The strike, which involves approximately 45,000 dockworkers, is affecting key ports that handle a substantial portion of imports and exports to and from the United States. Port closures, vessel berthing delays, and congestion are disrupting shipments. Some cargo is being diverted to West Coast ports, but limited capacity means disruptions will worsen the longer the strike lasts.
The impact of this strike is expected to be felt across multiple sectors, including our own. We are aware of the potential disruptions this strike could bring to the shipment and clearance of private household goods through these crucial ports. The work stoppage at these ports, some of the largest in the United States, has already created significant logistical challenges and delays in the movement of cargo, with no clear end in sight.
FIDI members are likely to face additional costs and operational challenges due to these delays. Rerouting shipments through alternative ports or arranging additional warehousing will incur further expenses. Additionally, storage, demurrage, and detention fees are expected to rise as goods sit longer at ports. Some shipping lines have already declared “force majeure,” meaning they may not cover these extra costs, leaving members – and ultimately their clients - responsible for any surcharges caused by the disruptions.
It is crucial to communicate proactively with your clients about these developments, setting realistic expectations and timelines. While this situation is beyond your control, providing transparent updates will help to maintain client confidence during this period of uncertainty.
FIDI Global Alliance is closely monitoring this evolving situation and will keep you informed of any significant changes. Please share this letter with your supply chain partners and customers to keep them updated. Should you require any assistance, please reach out to the FIDI office.
www.fidi.org