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Information on US Port Strikes

You may be aware of the current port strikes across the East and Gulf coasts of the United States of America (US).

The industrial action stems from unresolved contract negotiations between the International Longshoreman’s Association (ILA) and US port operators, in relation to wage increases and the avoidance of automating operations.

The agreement expired Monday 30 September 2024. As no resolution has been sought, as a result an estimated 25,000 workers began striking 1 October US time.

At this point in time, the United States government is unwilling to intervene by enforcing legislation to keep the terminals running.


What does this mean for shipping?

Any delay in port operations has the potential to cause significant global service disruption. The East and Gulf US ports include 6 of the 10 busiest US ports and the United States is a major trading partner of Australia so the industrial action could cause Australian importers and exporters to experience widespread delays across the supply chain for months.


What does this mean for our customers?*

These strikes and ensuing delays can cause cargo to become stranded at ports or rerouted to ports the goods were not originally intended for. This could be especially problematic for perishable cargo such as foodstuffs. Customers may also experience increased freight costs and container hire fees, the disruption could also impact access to containers and limit vessel availability if they are held up entering or leaving the US.


Next steps

We encourage Brokers to discuss the situation with Customers, and encourage Customers to speak to their Freight Forwarders or other logistics specialists, to understand if there are changes to supply chains that will impact them. It is also important to review Policy Limits to ensure cover is adequate for increased shipping costs and potential accumulations.

In the event our customers do experience loss or damage to cargo as a result of the strikes, NTI’s marine cargo insurance products provide comprehensive coverage for damage and diversion expenses caused by strikes.

Cover can be provided for damage to insured cargo caused by strikers and locked out workmen and our Combined Cargo policy automatically includes an extension for Strikes Diversions expenses.

This extension provides cover for up to $50,000 of expenses incurred in the event goods are discharged at a port other than the intended port of discharge due to a strike, protecting our customers against unforeseen costs to have their goods delivered to the final destination from the alternate port.



Limits and exclusions apply. National Transport Insurance is an equal joint venture administered on behalf of the insurers (CGU Insurance ABN 11 000 016 722 AFSL 227681 & Vero Insurance ABN 48 005 297 807 AFSL 230859) by its manager NTI Limited ABN 84 000 746 109 AFSL 237246.

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