The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative agreement on a new six-year Master Contract, helping to provide stability for East and Gulf Coast ports. The agreement, announced on January 8, 2025, prevents a potential work stoppage scheduled for January 15.

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In a joint statement, the ILA and USMX highlighted the agreement's importance: "This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong."

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The contract, which is subject to ratification by both parties, supports job creation and port efficiency while helping sustain the U.S. economy's role in global trade. Further details will remain confidential until the review and approval process is complete.

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This milestone agreement marks a collaborative step forward for the maritime industry, ensuring stability and growth in the years to come.

Buenos Aires, Argentina –– JAS Worldwide is proud to announce that its Argentina office has been recognized as a Great Place to Work for the fifth consecutive year. This award highlights the teams commitment to creating a positive and inclusive workplace culture where employees feel valued, supported, and empowered to thrive.

The recognition as a Great Place to Work is based on direct feedback from employees and reflects JAS Argentina’s dedication to upholding the highest standards in workplace excellence.  

“We are honored to receive this recognition for the fifth year in a row,” said Patricio Pranzetti, Managing Director of JAS Argentina. “Our team is the heart of our success, and this achievement reflects their passion, dedication, and commitment to building a workplace where everyone can excel. Together, we will continue to create a culture of innovation, trust, and excellence.”

JAS Argentina’s recognition underscores the company’s broader global vision to create a unified, inclusive, and engaging work environment across all its offices. By investing in people, processes, and technology, JAS Worldwide empowers its employees to deliver exceptional service and innovative solutions to customers around the world.

JAS Argentina is honored to celebrate this milestone alongside its talented team and looks forward to continuing its legacy of excellence in the years ahead.

JAS Projects and JAS Sweden are proud to share an exciting achievement in heavy transport, executed deep in northern Sweden near the Polar Circle. This unique project involves the movement of oversized cargo through challenging winter conditions, where temperatures plummet as low as minus 15 degrees Celsius. 

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The cargos dimensions are impressive: 

• Max Weight: 240 tons 
• Max Length: 49 meters 
• Max Width: 6.5 meters 
• Max Height: 5.15 meters 

Transporting such massive loads requires meticulous planning, technical expertise, and flawless teamwork—all of which were on full display as our team worked tirelessly to ensure safe and efficient delivery through the icy terrain. 

Luiz Dos Santos, Project Coordinator at JAS Projects, accompanied the operation and shared his firsthand experience. For Luiz, this was his first opportunity to be on-site for a heavy-lift transport, and it proved to be both thrilling and educational: 

"A thrilling mission in the far north. I accompanied the heavy transport from start to finish through the icy winter landscape of northern Sweden. It was an extraordinary and impressive experience to see the required precision and flawless teamwork with my own eyes. The execution, as well as the planning, are significantly more complex than they often appear from the desk. So, it was all the more helpful to have experienced the entire process firsthand."

This operation is a testament to the team's commitment to excellence, even in extreme environments. From intricate planning to navigating unpredictable Arctic conditions, the success of this transport highlights our ability to deliver solutions tailored to every challenge. 

As you may have seen in recent news, labor negotiations between the ILA and the USMX remain unresolved. While a tentative agreement was reached in October 2024 to extend the Master Contract until January 15, 2025, key issues are still under negotiation, raising concerns about potential port disruptions.

Despite ongoing efforts to reach a resolution, the risk of disruption is increasing as the deadline approaches, though the situation remains dynamic.

Current Negotiation Status:

• Tentative Agreement: On October 3, 2024, ILA and USMX reached a tentative agreement on wages and extended the Master Contract until January 15, 2025. This extension allows both parties to continue negotiations on outstanding issues.
• Concerns Over Automation: The ILA has expressed strong opposition to any form of automation that could jeopardize jobs. While they support modernization that enhances efficiency, they insist that it should not come at the cost of job losses. The ongoing discussions have become increasingly tense as both sides strive to find common ground.

Potential for Disruption:

As negotiations remain stalled, the risk of disruption at East and Gulf Coast ports is escalating. Stakeholders across various industries are urging both parties to reach a resolution to avoid further economic impacts.

Carrier Surcharges:

Proactively, several carriers, including CMA CGM, Hapag-Lloyd, and ZIM, have announced the implementation of surcharges due to the potential for labor disruptions:

• ZIM: Starting January 10, 2025, ZIM will implement an ILA Strike Surcharge for cargo moving to or from U.S. East Coast and Gulf ports. This surcharge will apply until further notice and is intended to cover additional costs incurred due to potential strikes or labor-related disruptions.

• Hapag-Lloyd: The company has introduced two surcharges—the Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID)—effective January 20, 2025. These surcharges will cover additional costs from labor disruptions and will apply if a strike occurs.

• CMA CGM: Similar measures have been taken by CMA CGM, which has warned clients about potential surcharges for cargo moving in and out of U.S. East and Gulf Coast terminals in light of ongoing negotiations.

As the deadline draws near, it is anticipated that all carriers will implement similar surcharges. As we continue to monitor developments, JAS as well reserves the right to activate the BWL congestion surcharges should any actions be taken by the ILA.

Impact of Previous Strike Action:

The previous three-day strike in October 2024 caused significant delays and operational disruptions, affecting:

• 36 ports handling over half of U.S. container volume.
• Increased fees for freight storage and detention.
• Prolonged transit times due to vessel rerouting.

Mitigating Future Disruptions:

To minimize risks, businesses should consider these strategies:

• Divert shipments to alternate ports, such as those on the West Coast.
• Anticipate congestion at rerouted locations.
• Leverage air freight for time-sensitive cargo.
• Utilize intermodal solutions for inland transportation.
• Be prepared for increased shipping costs and fees.
• Stay informed and work proactively with logistics partners to reduce delays.

Guidance from JAS:

JAS Worldwide continues to support clients during this uncertain period. Businesses are encouraged to prepare for potential disruptions by exploring alternative routing options and staying informed about ongoing negotiations. JAS is available to provide tailored solutions to help mitigate risks associated with these developments.As the January deadline approaches, both parties must work diligently to resolve their differences and secure a stable working environment for longshore workers and businesses alike.