NEWS FROM jas wORLDWIDE

JAS Worldwide recently participated in the Asia Fruit Logistica 2024 trade show, held in Hong Kong, reinforcing its commitment to providing innovative logistics solutions for the fresh produce industry. As one of the premier events in the fresh fruit and vegetable supply chain, the exhibition brought together industry leaders, suppliers, and service providers from across the globe. 

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During the event, JAS highlighted its end-to-end cold chain logistics solutions, designed to ensure the safe and efficient transport of temperature-sensitive products. With a focus on preserving the freshness and quality of produce, JAS offers a comprehensive range of services, including air and ocean freight, warehousing, and last-mile delivery—tailored to meet the specific needs of the fresh produce industry. 
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As the global demand for fresh produce continues to rise, JAS remains dedicated to leveraging its innovative technology and industry knowledge to meet evolving customer needs. The company's presence at Asia Fruit Logistica 2024 underscored its role as a trusted advisor in the industry. 

JAS Worldwide is proud to announce its attendance and sponsorship of LogiPharma USA 2024, taking place from September 23-25, 2024, in Boston, MA. As a key player in the pharma & healthcare logistics industry, JAS is committed to advancing pharmaceutical supply chain solutions and is excited to engage with industry leaders at this premier event.  

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LogiPharma USA is the world's leading event for pharmaceutical supply chain professionals, bringing together industry experts to discuss the latest trends, innovations, and challenges in the field. This year's conference will focus on driving operational excellence, digital transformation, and customer-centric supply chains in the pharmaceutical industry.  

As a sponsor, JAS Worldwide will have a prominent presence at the event, showcasing its innovative logistics solutions designed to meet the unique demands of the pharmaceutical sector. Attendees are invited to visit with JAS Pharma & Healthcare experts at booth 106 to learn about the company's innovative technologies and comprehensive services that ensure the safe, efficient, and compliant movement of pharmaceutical products. 

"LogiPharma USA offers a unique for JAS Worldwide to connect with industry leaders and demonstrate our commitment to advancing pharmaceutical logistics," said Frank Cascante, Global VP Pharma & Healthcare "We look forward to sharing our expertise and exploring new partnerships that drive innovation and improve patient outcomes."  

As you are likely aware, there is a significant risk of a strike by the International Longshoremen’s Association (ILA) if negotiations with the United States Maritime Alliance (USMX) do not resolve before the current contract expires on September 30, 2024. This could lead to major disruptions at ports across the East and Gulf Coasts, which handle roughly 43% of U.S. imports. With the potential for a work stoppage as early as October 1, we are prepared to proactively manage and execute contingency plans.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible.

Operational Considerations:

If the strike occurs, disruptions across the supply chain are very likely, potentially leading to delays and increased costs. While surcharges may be anticipated, we are keeping a close watch on developments and will keep you informed as more information becomes available.

Alternative Solutions – Airfreight and Routing Options:

To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can assist with re-routing options, including shifting to West Coast ports where feasible, though we are aware of potential congestion in those areas as well.

Potential Disruptions:

In the event of a full strike, operations at affected ports could come to a standstill, leading to significant delays for inbound and outbound shipments. We are prepared to assist you in mitigating these disruptions and will provide regular updates as the situation evolves.

Please be advised that Golden Week in China, from October 1st to 7th, will impact logistics operations across the region. During this holiday, many businesses, including factories, suppliers, and transportation companies, will pause their operations, potentially affecting the shipping schedules.  

Key Things to Consider:  

• Delays Expected: Port, airfreight, and land transportation services may experience delays before, during, and after the holiday week as businesses close or reduce capacity.  
• Capacity Challenges: There may be an increase in demand for space on vessels and flights leading up to Golden Week, potentially limiting availability.  
• Planning Ahead: We encourage our customers to plan shipments early to avoid disruptions. Bookings and arrangements made in advance can help mitigate the impact.  

Our team is here to assist you with any questions and ensure minimal disruption to your supply chain. Please don’t hesitate to reach out to your local JAS contact for support.  

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled, with key issues like wages and automation remaining unresolved. If an agreement is not reached by September 30, 2024, the ILA is set to strike on October 1, 2024.

What This Means for Your Business

The ILA represents maritime workers at container ports across the U.S. East and Gulf Coasts. A strike would result in:

• A halt to container handling at over half of U.S. container ports.
• Severe delays at East and Gulf Coast entry points.
• Significant delays for cargo already en route to these ports.
• Rerouted vessels, leading to extended transit times and higher costs.
• Stranded cargo at ports, adding storage and detention fees.
• A ripple effect on importers, retailers, and others during the peak season.
• Increased global shipping costs and freight congestion.

Recommendations for Shippers and Clients

1. Prepare for Congestion at West Coast Ports: Many shippers have already redirected cargo to the West Coast, leading to heavy congestion. Expect extended transit times, higher fees, and longer wait times for unloading.
2. Expect Delays for In-Transit Cargo: Ships bound for East and Gulf Coast ports will face docking delays. Even after the strike, expect backlogs at ports before operations normalize.
3. Use Air Freight for Urgent Shipments: Air freight is the fastest alternative for time-sensitive shipments. JAS offers multiple air cargo solutions.
4. Prepare for Higher Shipping Rates: Costs will rise dramatically due to increased demand for freight capacity.
5. Expect Higher Container Fees: Delays will trigger higher demurrage, detention, and storage fees. 
6. Review Financial Responsibilities: Incoterms determines who bears the cost of delays and fees. Shippers and importers must be prepared to address storage and rerouting costs.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible. To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can also assist with rerouting options.

With key issues such as wages and automation unresolved, talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have broken down. If no agreement is reached by September 30, 2024, the ILA plans to initiate a strike on October 1, 2024, which will have significant consequences for businesses relying on U.S. East and Gulf Coast ports.

What This Means for Your Business:

The ILA represents workers at major U.S. container ports, and a strike could result in:

• A halt to container operations at over half of U.S. ports.
• Major delays at East and Gulf Coast entry points.
• Prolonged transit times and rerouted vessels, leading to increased shipping costs.
• Cargo stranded at ports, triggering costly storage and detention fees.
• A ripple effect across industries during the peak season, from importers to retailers.
• Heightened global shipping congestion and elevated freight rates.

Key Updates:

• Vessel Rerouting: Hapag-Lloyd and ONE have already adjusted operations, rerouting 11 vessels to alternative ports. For example, "Alessia" (AN2 service) will offload Houston and New Orleans-bound cargo in Cartagena, Colombia, while "Tempanos" (ANG service) will discharge similar cargo in Altamira, Mexico, on October 1. ONE plans to return the cargo to the U.S. once the strike ends.
• Updated Surcharges: ONE has announced updated strike-related surcharges: CGD (except China) at $2,000/40' and CON (China) at $1,000/40', reflecting different regulatory requirements. MSC has also introduced a $3,000/40' Emergency Operation Surcharge (EOS) from China, Japan, Korea, and Southeast Asia, effective October 27.
• Reefer Cargo: MSC will continue accepting dry container bookings into USEC and USGC but reserves the right to reject reefer bookings and will not assume liability for those left in strike-affected terminals.

Recommendations for Shippers:

• Prepare for West Coast Congestion: As many shippers reroute to West Coast ports, anticipate longer wait times, increased fees, and congestion.
• Expect Delays: In-transit cargo bound for East and Gulf Coast ports will face docking delays, with backlogs persisting even after a strike ends.
• Consider Air Freight: For time-sensitive shipments, air freight remains the fastest alternative. JAS offers multiple air cargo solutions.
• Plan for Higher Costs: Shipping rates will rise due to increased demand, while delays will lead to higher demurrage, detention, and storage fees.
• Review Incoterms: Ensure clarity on financial responsibilities for delays and fees as determined by Incoterms. Be prepared to manage rerouting and storage costs.

To mitigate potential disruption, JAS has contingency plans ready. We recommend exploring alternative logistics solutions, such as air freight for high-priority shipments and can assist with rerouting options. Contact your JAS representative to discuss tailored strategies for keeping your cargo moving smoothly amid these challenges.

There is no resolution in sight: negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have stalled, making a strike by 45,000 dockworkers look inevitable. The strike, which is set to commence at midnight, poses a critical threat to U.S. supply chains, with widespread port closures expected across the East and Gulf coasts.

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What’s at Stake: This disruption could grind operations to a halt at 36 key ports—responsible for handling nearly 50% of all U.S. trade. The ripple effect on businesses could be significant, leading to:

• Severe supply chain delays and halted operations at crucial container ports.
• Extended transit times and the need for costly rerouting.
• Higher shipping rates and additional fees due to cargo congestion and storage.
• Surcharges from carriers already announced, including declarations of Force Majeure by some.
• Global shipping slowdowns as bottlenecks intensify.

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Key Impacts for Your Business:

• Port Closures: Expect major disruptions at East and Gulf Coast entry points.
• Shipping Delays: Prolonged transit times could lead to increased costs for businesses and consumers.
• Costly Storage Fees: Stranded cargo may result in significant detention and demurrage charges.
• Industry-Wide Ripples: Retailers and importers will feel the effects, especially during peak season.
• Global Congestion: Heightened demand for alternative routes and services will drive freight rates higher.

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Proactive Recommendations to Minimize Disruption:

1. Prepare for West Coast Congestion: As cargo reroutes to the West Coast, anticipate delays and increased fees due to congestion.
2. Expect Docking Delays: Cargo destined for East and Gulf Coast ports will experience prolonged wait times, even post-strike.
3. Consider Air Freight: For urgent shipments, air freight remains the quickest option. JAS offers a variety of air cargo solutions, though high demand will likely push rates up.
4. Plan for Increased Costs: Rising demand and delays will lead to higher shipping rates, along with elevated storage, detention, and demurrage fees.
5. Review Incoterms: Ensure that all parties are clear on financial responsibilities for additional costs caused by delays or rerouting.

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JAS is Here to Support You:

To help navigate these challenges, JAS has developed contingency plans. We recommend exploring alternative solutions like air freight for time-sensitive shipments or strategic rerouting to minimize delays. Our team is ready to tailor logistics strategies to keep your supply chain moving.

Contact your JAS representative today to discuss how we can support your business during this critical time.