Breaking | The crisis of the East Coast port strike has been resolved, with a 62% salary increase confirmed for a 6-year operational stability period!

Categories:

News Center

News

Time of issue：

2025-02-28 17:54

Views：

　February 26, 2025,47,000 dockworkers on the East Coast of the United States and the Gulf of Mexico overwhelmingly approved a new labor agreement with a 99% support rate, ending a six-month tug-of-war.

This six-year contract,not only raises workers' hourly wages by 62%, but also avoids any potential disruptions before 2030.What does the resolution of this crisis mean for cross-border sellers? How to seize the "golden window period" in the next six years?

Strike crisis resolved: A "calming pill" for cross-border sellers

　　In October 2024, a three-day strike broke out at East Coast ports,resulting in 54 cargo ships being stranded, with daily losses reaching up to $250 million to $300 million.During the strike, retailers were forced to switch to air freight or West Coast ports,logistics costs soared, and prices of some goods even increased by 50%.

　　The conclusion of this agreement,not only prevents the recurrence of strikes but also brings the following benefits to cross-border sellers:

　　Stable logistics costs:Shipping companies cancel strike surcharges, and freight rates tend to stabilize;

Supply chain recovery:Port backlogs are gradually cleared, and logistics timeliness returns to normal;

Market confidence boosted:Consumer panic buying has eased, and the retail market has stabilized.

Six years of a 62% wage increase: A "new challenge" for cross-border sellers

　　Although the strike crisis has been resolved, the agreement for dockworkers to receive a 62% wage increase over six years,may bring the following impacts to cross-border sellers:

　　Pressure of rising freight rates:Shipping companies may pass on labor costs by raising freight rates;

Improved port efficiency:The introduction of automation technology will accelerate port modernization, but initial technical adjustments may cause efficiency fluctuations.

Strategies for cross-border sellers

　　Optimize logistics solutions:Work closely with freight forwarders to choose more cost-effective transportation methods;

Stock up in advance:Utilize the window period before the agreement takes effect to lay out inventory in advance and avoid logistics congestion during peak seasons;

Pay attention to policy dynamics:Stay updated on port automation progress and adjust supply chain strategies.

The wave of automation: A "new opportunity" for cross-border sellers

　　The new agreement allows ports to introduce automation technology, but each technology must be accompanied by new manual positions. This policy brings the following opportunities for cross-border sellers:

Improved logistics efficiency:Automated equipment will shorten cargo handling times and reduce the risk of delays;

Cost optimization space:In the long run, port modernization will lower overall logistics costs;

Enhanced market competitiveness:A more efficient supply chain will help sellers capture market share.

Action recommendations for cross-border sellers

　　Action recommendations:Layout overseas warehouses: Utilize the efficient delivery capabilities of automated ports to stock up in target markets in advance;

Optimize packaging design:Reduce volume and weight to lower freight costs;

Data-driven decision-making:Use logistics data analysis tools to adjust operational strategies in real time.

Future outlook: The "golden six years" for cross-border sellers

　　The new contract is valid until September 30, 2030, and these six years will be the "golden window period" for cross-border sellers:

　　Policy dividends:Port modernization and labor peace provide a stable environment for the supply chain;

Market expansion:The U.S. consumer market continues to grow, and cross-border sellers are expected to further expand their share;

Technological empowerment:The popularization of automation technology will drive changes in the logistics industry, creating new opportunities for sellers.

　　The resolution of the East Coast port strike crisis,has cleared supply chain obstacles for cross-border sellers, but it has also brought new challenges.In the next six years,how to seize policy dividends, optimize logistics costs, and enhance market competitiveness will be a compulsory course for every seller.

Keywords:

East Coast Port,East Coast Port Strike Crisis

New maritime policy! Seller costs may rise again.

Shenzhen Speed: Tax Refund upon Departure, Completed within 24 Hours from Submission to Arrival!