| A potential dockworker strike next week at container terminals along the US East and Gulf coasts could disrupt about 1.7% of global shipping capacity if it lasts a week, negating around 500,000 TEUs of capacity, according to HSBC.
The strike could lead to tighter shipping supply, similar to Red Sea diversions, though on a smaller scale. Prolonged disruptions might extend capacity shortages into early 2025, keeping freight rates elevated.
Ocean carriers and ports are preparing for the strike, with East Coast ports setting contingency plans and West Coast ports expected to absorb only 17-18% of the diverted cargo. Other alternatives like Mexican and Canadian ports are seen as less equipped to handle the overflow.
A one-day stoppage could cause a six-to-seven-day recovery, while a two-week disruption might extend the impact into next year.
THE Alliance is exploring options to mitigate losses by shifting ports, but carriers are uncertain about the ability of alternative ports to handle the increased volumes. Freight rates may rise depending on the length of the strike. |
