The ports of Los Angeles and Long Beach face potential disruption from Sunday, as around 250 security workers represented by ILWU Local 26 prepare for strike action. The latest contract extension with employers represented by the Pacific Maritime Association (PMA) expires at 5pm Pacific Time on Sunday, and negotiations are ongoing with no strike yet confirmed.
What Happened
According to foreign media reports, the dispute involves security positions at the two ports. Although the workforce is small, the impact could extend well beyond security. According to the PMA, about 85% of all container cargo at Long Beach and 33% at Los Angeles passes through terminals employing the affected workers.
Industry consultant Lars Jensen noted that traditionally other ILWU members will not cross picket lines, potentially bringing operations at affected terminals to a standstill and risking spread to more operations.
The South California port complex is handling record volumes. According to Jensen, LA/LB processed an average of 68,000 teu a day in September, meaning even a short strike could quickly create bottlenecks for landside trucking and arriving vessels. Inland rail congestion is already adding pressure. CargoTrans reported that on Monday about 35,700 containers were awaiting rail transportation, including around 10,500 that had been at terminals for nine days or longer.
Background
The contract expiry comes during the traditional peak season on the US West Coast, when high volumes amplify any operational disruption. In addition, the Vincent Thomas Bridge is scheduled to close from November 7 for approximately 16 months, potentially lengthening drayage journeys through the port complex. An international dockworker day of action is also planned for October 30, with unions in multiple countries planning strikes or demonstrations. Although separate from the ILWU Local 26 dispute, it highlights the potential for labour action to affect port operations and supply chains.
Impact on Shippers
In terms of transit time, a strike could suspend operations at affected terminals, delaying vessel discharge and container pickup, further backing up rail evacuation and lengthening last-mile trucking. On cost, congestion could raise truck waiting fees and storage charges, while rail dwell adds to demurrage costs. For customs clearance, cargo unable to be picked up promptly may affect downstream clearance and delivery, so shippers should allow more time for post-arrival processing.
Recommendations
Shippers should closely monitor negotiations and terminal announcements, arrange pickup of released cargo before Sunday evening where possible, and allow flexible delivery schedules for rail shipments. They should also evaluate alternative discharge ports or adjust sailing schedules to avoid concentrating high-value cargo arrivals, and confirm contingency plans with trucking providers.