Port strike: Can West Coast ports absorb East and Gulf Coast import volumes?

Published On Sep 30, 2024, 5:17 PM

The International Longshoremen's Association (ILA) is potentially set to strike at East and Gulf Coast ports if negotiations with port employers do not reach a resolution by the contract expiration deadline on September 30. A strike could halt about half of the U.S. import volume, with the impact expected to be significant given the upcoming holiday season. West Coast ports may become destinations for rerouted shipments, but their capacity to absorb the additional volume is limited. The U.S. economy could incur losses upwards of $5 billion per day during the strike, which could notably affect small to medium-sized businesses that rely on timely imports.