Dear Customer,
At Freight Systems, we are committed to keeping our clients informed about any developments that may affect our services. We would like to bring to your attention the potential labour disruptions at US East Coast and Gulf Coast ports, along with the implications of port disruption surcharges.
Key Issues:
The International Longshoremen’s Association (ILA), representing dock workers from Maine to Texas, and the United States Maritime Alliance (USMX) have reached an impasse in negotiations over wage disputes.
The current six-year labour contract is set to expire at midnight on September 30, 2024. If an agreement is not reached, ILA members are expected to launch a coast-wide strike starting October 1, 2024.
This would mark the first strike by the ILA since 1977, and it is anticipated to severely disrupt operations at all East Coast and Gulf of Mexico ports.
Port Disruption Surcharge:
In response to the potential strike, several major carriers have announced the implementation of a port disruption surcharge to mitigate the anticipated operational challenges.
Export Surcharge:
Surcharges will be imposed by carriers effective October 2024 in the range of $1,000 to 1,500 per TEU, depending on the shipping line’s discretion.
Import Surcharge:
Surcharges will be imposed by carriers effective October 2024 sailings in the range of $800 to $1,000 per TEU, depending on the shipping line’s discretion.
This surcharge is essential to cover the increased costs associated with potential delays, congestion, and rerouting of cargo. It is aimed at ensuring that service levels can be maintained despite the challenging conditions.
Equipment Imbalance Surcharge:
In view of equipment pricing imbalance (pricing for 20’ vs. 40’), shipping lines are contemplating an additional surcharge of $500 per TEU to overcome the pricing imbalance.
Impact on Supply Chain:
- Given the possibility of a strike starting on October 1, cargo bound for East Coast and Gulf Coast ports may face significant delays.
- Shipments arriving on or after this date could remain stranded on vessels until the industrial action is resolved.
We are monitoring the situation closely and will keep you informed of any further developments. If you need any further assistance, please reach out to our customer service or sales team at info@freightsystems.com.
We understand the challenges this disruption may cause and are committed to providing the necessary support to mitigate the impact on your supply chains. Thank you for your understanding and continued partnership.
Regards,
Team Freight Systems
