MODE Global Advisory: Potential Labor Disruption at Los Angeles & Long Beach Ports by MODE Global

MODE GLOBAL ADVISORY: POTENTIAL LABOR DISRUPTION AT LOS ANGELES & LONG BEACH PORTS

WHAT WE KNOW There is a developing labor situation at the Ports of Los Angeles and Long Beach that could impact both import and export cargo moving through Southern California over the coming days. A labor dispute involving ILWU Local 26 watchmen/security personnel remains unresolved. While this group represents only a small portion of the overall ILWU workforce, they support terminals handling a significant percentage of the cargo moving through Los Angeles and Long Beach. Current reports indicate the original November 1 strike deadline may be pushed to November 4 while negotiations continue. At this time, no strike has begun, and discussions remain ongoing. The primary concern is not necessarily the number of workers involved, but rather the possibility that other ILWU labor groups could honor picket lines established at affected terminals. If that occurs, terminal operations could be significantly disrupted, resulting in reduced truck gate activity, vessel delays, limited appointment availability, rail delays and increasing congestion throughout the Southern California gateway.

WHAT THIS MEANS FOR IMPORT CARGO For containers that are already available for pickup, we are evaluating recovery options on a case-bycase basis and can attempt to secure expedited drayage where feasible. However, appointment availability is becoming increasingly constrained as many importers attempt to pull cargo before any potential disruption. Even if truck capacity exists, containers cannot be recovered without a valid terminal appointment, and appointment availability cannot be guaranteed. For cargo that has not yet discharged, become available, or is scheduled to move inland by rail, we will need to evaluate conditions day-by-day. Depending on the extent of any disruption, customers may experience delays related to vessel discharge, cargo availability, rail loading, intermodal departures, and inland transportation scheduling.

WHAT THIS MEANS FOR EXPORT CARGO Exporters should also prepare for potential disruptions. If terminal operations are impacted, terminals may reduce receiving hours, suspend export receiving activity, or experience appointment constraints that could result in missed cutoff dates, rolled bookings, equipment challenges, and vessel-loading delays. Customers with export cargo scheduled to move through Los Angeles or Long Beach in the coming days should review their shipping timelines closely. Where possible, accelerating cargo delivery may reduce risk, though terminal restrictions, appointment availability and carrier cutoffs may limit available options.

POTENTIAL ADDITIONAL COSTS Customers should also be aware that disruptions of this nature can increase exposure to demurrage, detention, storage, rollover fees and other accessorial charges. While labor disruptions are outside the control of cargo owners, carriers and terminals may treat these events as force majeure situations and continue assessing applicable charges. Customers should not assume that demurrage, detention or storage charges will automatically be suspended or waived. Where applicable, MODE will aggressively pursue mitigation and waiver requests; however, approval remains solely at the discretion of the ocean carrier and terminal operator.

WHAT MODE IS DOING Our teams are actively monitoring developments with ocean carriers, terminals, drayage providers, rail partners and port authorities. We are reviewing potentially impacted shipments daily and identifying opportunities to minimize delays and recover cargo whenever operational conditions allow. Given the fluid nature of this situation, conditions may change quickly with limited notice. We will continue providing updates as additional information becomes available.

If you have import or export cargo moving through Los Angeles or Long Beach, please contact your MODE representative immediately to discuss contingency planning and available options.

FAQS Q: Is my import cargo going to be delayed? A: Potentially. If labor disruptions occur at affected terminals, customers may experience delays related to vessel discharge, container availability, port appointments, drayage recovery, rail loading and inland transportation. Q: Can I pay extra to expedite pickup? A: In some cases, yes. Expedited drayage options may be available, subject to truck capacity and terminal appointment availability. Premium transportation costs may apply. Q: My container is on the water and has not arrived yet. What happens now? A: We will monitor the vessel and terminal status closely. Depending on the duration and scope of any disruption, cargo may experience delays in vessel discharge, container availability, rail loading or inland transportation. At this stage, shipments will need to be managed on a case-by-case basis as conditions evolve. Q: My shipment is scheduled to move on the rail from Los Angeles/Long Beach. Will rail service be impacted? A: Potentially. Rail operations are dependent on containers being discharged from vessels and made available for rail loading. Any disruption to terminal operations could create downstream impacts to rail schedules, loading operations and inland delivery timelines. Q: Will ocean carriers automatically waive demurrage and detention charges? A: No. Any waivers or mitigation measures would typically be evaluated by the carrier on a case-bycase basis. Customers should not assume charges will automatically be suspended. Q: What is MODE doing to help? A: Our team is actively monitoring carrier advisories, terminal status updates, port conditions, appointment availability and drayage capacity. We are reviewing impacted shipments daily and working to identify recovery opportunities wherever possible. Q: My export container has not yet been delivered to the terminal. What should I do? A: Contact your MODE representative immediately. Depending on timing and carrier requirements, we may be able to accelerate delivery, identify alternate scheduling options or evaluate other contingency plans. Q: What happens if my export cutoff is missed because of the disruption? A: The booking may need to be rebooked onto a future vessel, subject to carrier approval and vessel availability. Additional costs and delays may occur depending on carrier policies. Q: Will empty container returns be impacted? A: Potentially. If terminals reduce operations or temporarily close gates, empty returns could become difficult or impossible at certain locations. This could create equipment shortages and scheduling challenges. 03