With losses estimated at US$5 billion per day, this event has caused a series of repercussions on global supply chains and transportation costs.
The strike at US ports shakes global shipping. A recent strike by the International Longshoremen’s Association (ILA) in 36 ports on the east coast of the United States has generated strong uncertainty in the shipping industry. With losses estimated at US$5 billion per day, this event has caused a series of repercussions on global supply chains and transportation costs.
Impact on maritime freight
The strike interrupted the downward trend in maritime freight rates, which had been experiencing a decline since July. Shipping lines responded to the situation by applying significant surcharges to compensate for port congestion and delays.
- Temporary increase in freight rates: The surcharges implemented by shipping companies caused an increase in transportation costs, directly affecting importers and exporters.
- Market volatility: The strike generated greater volatility in freight, making logistical planning difficult for companies.
- Port congestion: The accumulation of cargo in US ports has generated delays in operations and has hindered the fluidity of international trade.
Despite the disruption caused by the strike, ocean freight rates are expected to continue their downward trend in the long term. However, the recovery will be gradual and will depend on several factors:
- Port decongestion: It is estimated that it will take several weeks to clear the accumulated congestion in US ports.
- Seasonal demand: The decrease in demand after the peak season will help reduce pressure on rates.
- External factors: Geopolitical conflicts, new variants of COVID-19 and other unforeseen events could affect supply and demand in the maritime market.
Marine rates are expected to continue their downward trend towards the end of 2024 and beginning of 2025.
