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:
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:
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:
Mitigating Future Disruptions:
To minimize risks, businesses should consider these strategies:
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.
As a trusted international freight forwarder, we understand the challenges that come with navigating global trade, especially with the recent announcement of reciprocal tariffs. Now, more than ever, it’s crucial for businesses to stay agile and optimize their supply chains. We are excited to offer you strategic solutions through our Foreign-Trade Zones (FTZs) in the USA and Panama to help mitigate tariff impacts and streamline your logistics.
Take Advantage of Our FTZs in the USA
Our FTZs located across the South, East, and West Coasts of the USA offer unparalleled benefits to help you manage costs, build inventory close to your end-consumer, and remain competitive. Here’s why you should consider utilizing these zones:
Panama as a Key Logistics Hub for the Americas
Additionally, our operations in Panama provide you with access to one of the most important logistics hubs in the Americas. With direct access to the Colon Free Zone and proximity to major shipping routes, Panama offers several advantages for your logistics strategy:
Why This Matters Now
With the new reciprocal tariffs being announced, it’s critical to find ways to lower your exposure to these increasing costs. Both our USA FTZs and Panama operations provide solutions that allow you to store, manage, and distribute goods with significant cost savings, particularly when facing unpredictable tariff changes.
By leveraging our FTZs and Panama’s logistical advantages, you gain flexibility, efficiency, and a competitive edge in today’s rapidly changing global trade environment.
Let’s Talk!
Our team is ready to discuss how our FTZs in the USA and our Panama logistics hub can benefit your business. Don’t wait—take full advantage of these strategic locations and the opportunities they present during these uncertain times.
Contact us today to learn more or schedule a consultation with one of our experts!
At JAS, sustainability is a journey we're deeply committed to, and Earth Month serves as an ideal moment to shine a spotlight on initiatives that embody this commitment. One initiative that continues to drive positive change is JAS ECONTAINER, our innovative ocean freight solution designed to enhance operational efficiency while reducing environmental impact.
JAS ECONTAINER combines the efficiency of headload shipments with eco-friendly practices. This approach has been at the forefront of our efforts for some time now, as highlighted by Vice President, Global Head of LCL, Peter Sinka.
"In our ongoing journey towards sustainability, JAS ECONTAINER stands as a testament to our commitment to environmental responsibility," says Sinka. "By encouraging frequent replenishment and eliminating the pressure to fill containers to capacity, JAS ECONTAINER helps shippers reduce inventory costs, optimize warehouse space, and mitigate supply chain disruptions."
JAS ECONTAINER isn't just about operational efficiency—it's about driving meaningful change in the industry. Sinka emphasizes the product's positive environmental impact, citing its adoption of Marine Biofuel programs through insetting to achieve a net-zero carbon footprint.
"Our goal was to create a product that not only meets modern supply chain challenges but also aligns with our commitment to sustainability," Sinka explains. "By choosing JAS ECONTAINER, shippers not only benefit from cost savings and operational efficiencies but also contribute to a greener, more sustainable future."
Beyond its environmental benefits, JAS ECONTAINER offers a competitive edge in the market. Sinka notes that the product bridges the gap between traditional LCL and FCL offerings, providing cost-effective solutions for shipments ranging from 20 to 50 CBM.
"Traditionally, LCL shipments face competitiveness challenges beyond a certain volume threshold," Sinka observes. "JAS ECONTAINER's pricing methodology ensures cost-effectiveness even for larger shipments, making it a preferred choice for shippers seeking optimal value and sustainability."
As businesses worldwide prioritize sustainability and operational efficiency, JAS ECONTAINER emerges as a catalyst for positive change. Its flat-rate pricing model, strategic consolidation strategies, and eco-friendly initiatives not only drive cost savings but also empower shippers to make environmentally conscious choices.
"In a world where sustainability and efficiency go hand in hand, JAS ECONTAINER offers a compelling solution," Sinka concludes. "We invite businesses to join us in embracing a greener future—one shipment at a time."
Tariff regulations are evolving—are you prepared? Watch our exclusive webinar featuring JAS experts Laurie Arnold and Scott Cassell as they break down the latest updates on:
Don’t miss these expert insights—stay informed and stay ahead! Watch now.
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