Canada Update
The good news: longshoreman strikes in Canada’s British Columbia ports—Vancouver and Prince Rupert—and at Montreal Port have been resolved by government intervention. On November 14, the Minister of Labor ordered workers back to their jobs and mandated binding arbitration to settle the disputes.

After two weeks of shutdowns, operations have resumed, and ports are back in action. This resolution is particularly positive for U.S. Midwest importers, as Canada’s western ports play a crucial role in transporting Asian ocean containers via rail to destinations like Chicago.

However, congestion caused by the strikes may take several months to return to normal, so shippers should expect some delays as the backlog clears.

U.S. East Coast & Gulf Update
The bad news: negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have broken down. Talks were canceled this week, with the ILA walking away and declaring an impasse.

Previously, in October, the two parties had agreed on a six-year wage increase and extended the existing contract until January 15. The interim period was meant to finalize outstanding terms related to benefits and port automation. Unfortunately, the discussions have stalled, reportedly due to disagreements over automation.

  • The ILA opposes further port automation, arguing it reduces jobs and threatens the labor force’s historical roles. They have even called for rolling back existing automation at some terminals, like those in New York and Norfolk.
ILA: “We embrace technologies that improve safety and efficiency, but only when a human being remains at the helm. Automation, whether full or semi, replaces jobs and erodes the historical work functions we’ve fought hard to protect.”
  • The USMX maintains that existing and future automation improves safety and productivity without reducing labor needs.
USMX: “We are not seeking technology that would eliminate jobs. What we need is continued modernization that is essential to improve worker safety, increase efficiency...”

Both sides remain at odds, increasing the likelihood of a strike after January 15. Even the previously agreed wage terms could now be back on the table.

What to Do Now


Shippers and importers should act quickly. Here’s how to prepare:

  1. Ship Sooner Rather Than Later
    With 60 days until January 15, importers should aim to ship and sail containers to U.S. East Coast and Gulf ports as soon as possible. Transit times include:
    • Shanghai to New York: 40–45 days
    • Singapore/Port Klang: 50 days
    • South Asia (Colombo/Mumbai): 45 days

For East Coast arrivals, book and sail no later than the end of November. The sooner you act, the better your chances of avoiding disruptions.

  1. Prepare for Congestion
    If a strike lasts more than a few days, heavy congestion is inevitable. A strike lasting over a week could result in a backlog that takes six months to clear.
  2. Consider Alternate Routes
  • Start routing shipments through U.S. West Coast or Canadian ports now.
  • Although these options may incur higher costs, they could be worth it for critical inventory.
  • Intermodal rail is still available but will quickly become congested if a strike looms or occurs.
  • There's no longer time to build up your in-country inventories.
  1. Plan for Lunar New Year
  • Lunar New Year begins at the end of January. Expect increased shipping volumes from China in the lead-up, as importers stock up before the holiday.
  • Products from China subject to higher U.S. duties starting January 1 will also add to shipping demand now. Ensure your customs entries are completed before January 1 to avoid new tariffs. It's already too late for

Looking Ahead

  • President Biden: There’s a chance President Biden could intervene before January 15, as he did in October, to pressure both sides into a resolution.
  • President-Elect Trump: Sworn in on January 20, Trump may act quickly to address the situation, possibly invoking the Taft-Hartley Act to force workers back under a cooling-off period. His approach will likely depend on the economic impact of a potential strike.

Key Takeaways

Acting quickly is essential to mitigate risks in the current logistics environment. Ship goods early to East Coast and Gulf ports to avoid potential delays caused by a strike. Diversify your shipping routes by using West Coast or Canadian ports as alternatives. Planning ahead is crucial to stay ahead of potential port delays and the impact of upcoming tariff increases. The combination of unresolved labor negotiations and uncertainty surrounding a new administration emphasizes the need to take proactive measures to safeguard your supply chain.