The ongoing U.S. East and Gulf Coast port strike is intensifying logistics chaos as it enters its third day, amid widespread container diversions and growing costs.
Thousands of containers have been dropped at unintended ports, creating transportation backlogs and pushing up costs for trucking and rail.
The disruption has left billions of dollars in trade anchored offshore, as carriers impose surcharges on shipping clients to manage the strain.
Despite the Biden administration's efforts to mediate, there is no indication that negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) will resume soon.
Key issues like wage increases and port automation remain unresolved.
The strike is already causing significant logistical issues. Ocean carriers have diverted roughly 2,000 shipments to alternative ports, raising inland transportation costs by tenfold in some cases.
Adding to the complications, many vessels have switched destinations or are waiting offshore, further delaying deliveries.
The strike is forecast to cause congestion at ports to persist for weeks even after it ends, as shippers face mounting surcharges, delays, and escalating costs.
The impact on retailers like Walmart, Amazon, and Home Depot is already visible, with their goods stuck in floating storage.
Experts warn that the longer the strike lasts, the more difficult it will be for businesses to meet market demands, with daily economic losses projected to rise to $2 billion if the strike continues.
