Before the midnight shutdown, rails are rushing to transport billions of cargo as ports on the East Coast and Gulf prepare to strike.

• Ports management and longshoremen's unions are struggling to reach an agreement on a new contract, which has resulted in a scramble among trucking companies and freight rail operators to move billions in trade from the 14 ports where the strike is scheduled to take place after midnight Monday.
• Last Friday, nearly $14 billion in trade arrived at these ports, including New York/New Jersey, Baltimore, Norfolk, Savannah, Miami, New Orleans and Houston, with $2.7 billion in trade arriving on Friday alone.
• The International Longshoremen's Association announced that it will strike at 12:01 a.m. ET on Tuesday, October 1. "Importers are running out of time," a logistics CEO tells CNBC.

The remaining hours are crucial in moving out as much trade as possible before a potential strike at ports up and down the East Coast and along the Gulf Coast begins at midnight Monday, which could cause significant harm to the functioning of the U.S. economy, logistics executives tell CNBC.

On Friday, 54,456 TEUs arrived at 14 ports under the Master Contract between the International Longshoremen's Association and the US Maritime Alliance, which expires at midnight Monday. The value of that freight was over $2.7 billion, based on an MDS Transmodal estimate of $50,000 per container. Between September 23-27, a total of 273,417 TEUs were imported through customs at these ports with a value of approximately $13.67 billion.

"To avoid delays in acquiring inventory, importers should work with their logistic partners to clear as many containers off open terminals as possible by close of business Monday, as shown by the enormous freight volumes arriving Friday," said Alan Baer, CEO of OL USA.

It takes an average of one week to clear out one day of a port closure, and up to 49% of total containerized goods entering the U.S are processed through ports on the East Coast and Gulf Coast.

Michael Kanko, CEO of ImportGenius, tells CNBC that the economic impact of the ports affected by an ILA strike is significant. According to his data, a one-week strike will halt the entry of hundreds of thousands of containers into the U.S. These ports also serve as a crucial entry point for refrigerated produce, and time is of the essence for importers.

Seko Logistics' global chief commercial officer, Brian Bourke, advised that importers, exporters, and domestic shippers should closely monitor developments this week, as a port strike on the U.S. East Coast and Gulf Coast ports could potentially affect all modes of transportation if it occurs and lasts for an extended period.

The ILA, North America's largest longshoremen's union, announced that its 85,000 members, along with tens of thousands of dockworkers and maritime workers worldwide, will strike at all Atlantic and Gulf Coast ports from Maine to Texas starting at 12:01 am on Tuesday, October 1.

Approximately 50,000 ILA union members are employed at the ports of Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston.

According to a Reuters report, there were no negotiations scheduled before the Monday deadline.

The Biden administration officials, including Transportation Secretary Pete Buttigieg, Acting Labor Secretary Julie Su, and Director of the National Economic Council Lael Brainard, have separately spoken with USMX and ILA representatives, urging them to reach a fair agreement quickly. The administration has made it clear that it will not use federal powers to force dock workers to remain on the job and has stated that it will not invoke Taft-Hartley to break a strike.

In June, the union suspended negotiations with the USMX over issues such as automation at ports, and the ports ownership group has stated that the ILA continues to signal its decision to strike.

The ongoing strike at ports could jeopardize the recent progress in reducing inflation and the prices paid by consumers for various goods, and could provide former President Donald Trump with another opportunity to criticize the economy as a crucial campaigning issue in the final month.

Ocean carriers typically experience higher profits due to increased freight rates and fees during port shutdowns. Analysts predict that ocean spot rates could rise by 20%-50%. UBS anticipates that 20% of Maersk's total volume will be affected by the USMX strike. If freight rates increase by 30% over two quarters, UBS estimates that a revenue tailwind of over $1 billion will be generated.

Taft-Hartley is not supported by the Democrats, and President Biden has stated that he does not like it.

The U.S. Chamber of Commerce has released a poll showing that a majority of both registered voters and the general population support the Biden administration intervening and ordering the union to work and negotiate through the use of Taft-Hartley. Roughly 20% of respondents said they were opposed to federal intervention.

In a recent video, ILA president Harold Daggett informed rank-and-file union members that if the Biden administration forces them back to the docks using the Taft-Hartley Act, they will intentionally slow down the movement of containers. He advised them to sit down and negotiate a contract to resolve the issue.

On Friday, the Port of New York/New Jersey, the largest port on the East Coast, received a diverse range of products, including cosmetics and perfume from L'oreal, auto parts and tires, and electrical materials and circuit breakers from automation and electrical leader.

Over the past week, hundreds of containers arrived at retailers such as Walmart and Walgreens, containing winter clothing, food, electronics, towels, and holiday items, including Disney Halloween pieces and Christmas string lights.

According to ImportGenius data, the largest importer is the one that imports the most across all of the threatened ports.

The Port Authority of NY/NJ is closely monitoring the developments related to the strike at the port, which began two weeks ago.

"The spokesman stated that we are collaborating with partners throughout the supply chain to ensure we are prepared for any potential effects. He emphasized the importance of this coordination for the 600,000 regional jobs supported by our port and the $240 billion in goods moved through it annually. He urged both sides to come to a mutual agreement and keep the cargo flowing for the benefit of the national economy."

The economic toll of a strike could reach billions of dollars in the U.S., with the Port of New York/New Jersey facing a potential impact of $641 million per day and Virginia facing an economic impact of $600 million per day, according to an analysis from Mitre.

In October, it is predicted that U.S. East Coast ports will handle 2.3 million TEU, which translates to 74,000 shipping containers per day and a daily freight value of over $3.7 billion.

The president of the American Apparel & Footwear Association, Steve Lamar, stated on CNBC that a disruption to the East and Gulf Coast ports would significantly affect the cost and accessibility of apparel, footwear, and travel goods, as over half of these items are transported through these ports.

The Port of Virginia in Norfolk processed over 32,000 packages and cargo for the German footwear giant between September 23-Sept. 27.

Between September 23 and Sept. 25, over 26,000 mini smart cameras and other products from Amazon.com Services, a subsidiary that offers e-commerce services for third-party sellers, arrived and cleared customs.

Between September 23 and 26, Customs processed 57 containers containing over 64,000 items from Ace Hardware.

was also among major importers with product cleared through Customs in recent days.

Over the past two weeks, ITS Logistics' vice president of global supply chain, Paul Brashier, has been discussing freight pickup strategy with clients.

Brashier warned that if shippers delayed bringing on additional trucks to pick up their freight until Monday, it may be too late to avoid excessive demurrage charges during the strike. He advised shippers not to be complacent during the strike, as the breakdown in the supply chain did not occur until after operations resumed after the shutdown, just like during Covid.

To minimize disruptions, the Georgia Ports Authority advised clients to deliver imports before October 1.

On Friday, the Port of Savannah received thousands of LED panels, brewers, and wine, while the Port of Houston identified Tempur-Pedic mattresses and products for Ikea as arriving.