With the port strike approaching, unions caution that companies such as Walmart, Ikea, and Home Depot will have limited to no import options.

• The East Coast ports, where ILA union members have vowed to strike, are among the top destinations for companies such as Walmart, Home Depot, Ikea, Samsung, LG Electronics, and major automakers and auto suppliers importing products.
• Some logistics experts predict that importers may look for alternative ports to divert their trade, but ILA union representatives assert that solidarity with fellow Canadian and West Coast port unions will prevent any diverted vessels from being successful.
• The diversion of cargo in the Southeast is being complicated by the impact of Hurricane Helene.
• The congestion at East Coast and Gulf ports can be cleared out in one week for every port that is shut down, with approximately $34.3 billion in trade currently en route to these ports.

If the International Longshoremen's Association port workers go on strike at East Coast and Gulf Coast ports, major importers such as LG Electronics, Walmart, Ikea, Samsung, and Home Depot will have no alternative to divert their trade to Canada or the West Coast, as other unions will stand in solidarity with the labor fight.

According to ImportGenius, these companies are among the leading importers at the 14 major ports that would be affected by an ILA strike. Between 43%-49% of all U.S. imports and billions of dollars in trade monthly are at risk as the union approaches the Oct. 1 deadline for a new contract. Talks between the union and port management broke down in June and have not resumed. However, cruise operations at ports would continue.

"The large-scale entry of trade into the U.S. is highly damaging to the economy, so government intervention is necessary to resolve the issue for the nation's good. According to Peter Sand, chief shipping analyst at Xeneta, a one-week strike will significantly impact the schedules of ships leaving the Far East and heading to the U.S. in late December and January."

The ILA has union chapters at the Atlantic Coast and Great Lakes ports in Canada, which are not options for vessels to divert to and unload cargo, according to some logistics managers.

The ILA, with 85,000 members, has 50,000 members who would strike at 14 ports without a negotiated master contract.

James McNamara, spokesman for the ILU, stated that the ILA's 85,000 members will be backing their fellow union members.

The Port of Montreal union, affiliated with the Canadian Union of Public Employees, announced a 72-hour strike starting on Monday, Sept. 30. Mia Ginter, director of North American ocean shipping at C.H. Robinson, told CNBC that this strike could worsen the U.S. port strike disruption. She explained that with Canada being a main contingency route, an overlapping strike at the Port of Montreal, even with some terminals remaining operational, would significantly weaken this as a contingency route.

The ILA strike may be affected by the impact of Hurricane Helene on the U.S. Southeast, as fewer trucks are heading to those ports.

In 1977, the ILWU union at West Coast ports supported the ILA's strike by allowing its members to go to the Port of Los Angeles and stop the unloading of a diverted vessel. Harold Daggett, the union's president, has referenced this historical example in recent communications with members, who unanimously voted to authorize a strike.

In a recent video message to union members, Daggett stated, "We'll shut them down."

The Bills of Lading for 2024 were compiled by ImportGenius, which includes digital receipts with shipper and product information at the ports of New York/New Jersey, Baltimore, Savannah, Houston, North Carolina, South Carolina, Virginia, and New Orleans.

LG Electronics led the way with 54,363.57 TEUs, while Ikea came in second with 47,680.10 TEUs. Bob's Furniture, , , and were also among the top importers, along with tire companies Michelin, , and Continental Tire.

According to William George, director of research for importGenius, the top importers for New York and New Jersey are General Motors, Glovis America, LG Electronics, Samsung Electronics, and Bob's Furniture, in that order. In Baltimore, IKEA is the No. 1 importer. In Savannah, the largest port in the South, Hanwha Q Cells Georgia, a division of a South Korean company that makes solar cell components, Walmart, and automotive logistics company Glovis America are the top importers, according to its data.

According to Sand, it takes an average of one week to clear out one day of a port closure, and the stakes are high as more than 40% of total containerized goods enter the U.S. through ports on the East Coast and Gulf Coast.

On Thursday, the US Maritime Alliance (USMX) filed an Unfair Labor Practice charge with the NLRB accusing the union of refusing to negotiate the Master Contract. The NLRB's Newark office will investigate the charge, and a decision on the merits is typically made within seven to 14 weeks. However, certain cases can take much longer. During this time, the majority of charges are settled, withdrawn, or dismissed by the NLRB regional director.

The ILA has been indicating that it has decided to strike, according to a recent statement by the USMX on its website.

The Biden administration has stated that it will not utilize Taft-Hartley Act powers to compel union members to resume work, contrary to initial CNBC reports, and instead encouraged the parties to engage in further negotiations.

Harold Daggett, ILA president, stated in a video to union members that the union would first negotiate all local agreements from the 14 major ports from Maine to Texas before signing off on a Master Contract for the 2024 contract negotiations. Meanwhile, McNamara told CNBC that some local port areas are still finalizing agreements, but declined to provide more specific details.

The 14 ports are located in Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, New Orleans, Mobile, and Houston.

Kpler reports that 147 vessels, including container ships and roll-on/roll-off vessels, are heading towards the East Coast and Gulf ports by October 1st, with 38 of them bound for the Port of NY/NJ. The total carrying capacity of these inbound vessels is 686,181 twenty-foot equivalent container units, which translates to a freight value of over $34.3 billion, based on an MDS Transmodal estimate of $50,000 per container.

Major ocean carriers and ports in Texas, Georgia, and New York/New Jersey have begun preparing for a potential strike, with the Georgia Ports Authority advising import delivery before October 1 to minimize disruptions.

Maersk has announced that it will implement a local port disruption surcharge for all cargo moving to and from the U.S. East Coast and Gulf Coast terminals, effective October 21. The surcharge will be imposed based on the impact on the supply chain and the higher operational costs incurred.

A 30-day strike at the Port of New York and New Jersey could result in an economic impact of up to $641 million per day, while in Virginia, an economic impact of $600 million per day or approximately $18 billion over 30 days is forecast. In Houston, export impacts could reach $51 million per day, and $41.5 million per day for imports.