Growing Concerns Over Potential US East and Gulf Coast Port Strikes Impact on Airfreight

14 Aug Growing Concerns Over Potential US East and Gulf Coast Port Strikes Impact on Airfreight

The looming threat of strikes at US East and Gulf Coast ports is raising significant concerns about the impact on the nation’s airfreight capacity, especially as e-commerce demand surges ahead of the peak season.

As reported by The Loadstar, the International Longshoremen’s Association (ILA) is preparing for a potential strike on October 1 if negotiations with the United States Maritime Alliance fail. This has prompted cargo owners and their partners to explore alternatives, including airfreight, though the viability of this solution is increasingly in question.

Brandon Fried, Executive Director of the US Airforwarders Association, noted that the mere threat of a port strike has already led to a shift in shipping volumes to West Coast gateways. He emphasized that the strike could be “extremely disruptive” for the US airfreight sector, particularly with the holiday season approaching.

“Port strikes will inevitably lead to a spike in airfreight activity,” Fried told The Loadstar. “This surge is largely driven by concerns among importers and cargo owners about the holiday season.”

However, this increased demand for airfreight coincides with a significant rise in e-commerce, which is already straining available capacity. A recent e-commerce trends report predicts a 12-fold increase in online orders by 2030, adding $8.5 trillion to global trade.

Emerging Chinese platforms like Shein and Temu are leading this trend, with Shein alone accounting for 20% of global fast-fashion sales.

“Spiking e-commerce demand has been consuming much of the available airfreight capacity into the US,” Fried continued. “If this demand remains high and the port strikes occur, it could trigger a severe capacity crisis, especially if a major product launch coincides with these events.”