Impending East Coast ILA Strike - Update

There have been no new developments in the contract negotiations today. A letter signed by many trade organizations was sent to the President yesterday asking him to intervene to avoid a strike. We're seeing more in the news on this topic today at both the national and local levels.

Liberty has executed on its Contingency Plan for the strike and is targeting all ocean shipments arriving at East Coast ports for our clients during the next 5 days. We are directing the majority of our resources in concert with our origin and vendor partners to remove as much cargo as possible from the terminals prior to end of business on the 28th.

It is possible that the contract could get extended at the last moment. We expect to have an additional update at the middle of next week, but if there are developments over the holiday, we'll certainly send a message to our clients and partners.

As we've mentioned in previous messages, carriers have announced surcharges on all cargo moving during any potential labor action - both East and West Coast cargo even if there is no labor action on the West Coast. There are some groups currently working with the FMC to question whether the steamship lines can implement surcharges against West Coast cargo and one carrier has reversed its original announcement. We will continue to keep you advised on this topic, but for planning purposes, please anticipate the full surcharge until further notice.

CBP and its Partner Government Agencies have developed a plan of operations for entry processing during the potential strike. Liberty's team is reviewing this plan to insure we and our clients are prepared to respond to a strike with the best possible solution.

Liberty will continue to provide updates on this topic as more information becomes available.