U.S. Port Strike in Southern California 

In addition to the pending strike at the end of December on the East Coast, another service disruption has occurred and we have now confirmed the Office Clerical Unit (OCU) of the International Longshore and Warehouse Union (ILWU) Local 63 in Southern California is officially on strike at the LA-Long Beach terminals. 600 OCU members employed by shipping lines and terminal operators took to the picket lines and the ports in Los Angeles have been closed as of November 28th. As of 8.00 a.m. this morning, three of the six container terminals at the Port of Long Beach were closed.

The ILWU dock workers are honoring the OCU picket lines and six vessels were already backed up outside Los Angeles, CA. More vessels are due to arrive over the weekend which will be impacted by the strike. The impact may spread along the West Coast through Portland and Seattle. Imports and exports are currently at a standstill in Los Angeles and a possible force majeur may add additional inland cost if cargo is discharged at an alternate port on an LA bill of lading. This additional inland cost would be at the shipper's expense. Furthermore, a $1,000 strike surcharge may apply at all ports on imports and exports as a result of diversions of cargo to other ports and congestion at those ports.

The disruption is costing an estimated $1 billion a day at the ports of Los Angeles and Long Beach, on which some 600,000 truckers, dockworkers, trading companies and others depend for their livelihoods

We are continuing to monitor the situation. Please contact your move manager if you have any questions and for the latest information.