In a significant development, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) issued a joint statement late on October 3, announcing that they have reached a tentative agreement on wages. Both parties have also agreed to extend the Master Contract until January 15, 2025, allowing additional time to negotiate other unresolved issues. Effective immediately after the announcement, all ongoing job actions ceased, and work covered by the Master Contract will resume across the East and Gulf Coast ports.
While this agreement brings temporary relief, the backlog of vessels and congestion at key ports remains a critical challenge for the supply chain. Over the last three days, the disruption has caused significant delays that will take weeks to clear.
Vessels Stalled and Rising Congestion
Many container ships remain anchored off the U.S. East and Gulf Coasts, with more arriving. Several vessels are also stationed outside Freeport, Bahamas, attempting to offload U.S. East Coast cargo. This situation threatens to create severe congestion at Freeport, Cartagena, Panama, Kingston, and Caucedo. The backlog at these key ports will be challenging to clear, potentially causing delays that ripple throughout the global logistics network.
Force Majeure & Carrier Adjustments
As of now, major carriers like COSCO, CMA CGM, Evergreen and ONE have declared force majeure for the affected regions, invoking Clause 20 of their Bill of Lading. Despite these declarations, some carriers are still accepting bookings for U.S. East and Gulf Coast ports. This suggests that carriers may be betting on a short-term resolution. However, given the scale of the disruption, vessel cancellations and further delays remain likely, especially if congestion worsens at transshipment hubs. The effects are expected to reach Europe within the next two weeks.
Global Impacts & Growing Disruptions
Although the strike has ended for now, the three days of halted port activity have already reduced export capacity from Europe, Latin America, and other regions. This shrinkage has caused bottlenecks at origin ports, further disrupting global trade. Additionally, ongoing shipping diversions in the Red Sea, now entering their 292nd day, are compounding delays in other regions, making global supply chains even more fragile.
Air Freight Demand and Rising Rates
As ocean freight options dwindle, demand for air freight has surged significantly, driving air freight rates sharply upward. This trend particularly impacts time-sensitive shipments, adding new cost pressures for shippers. Companies relying on urgent deliveries should brace for continued rising costs as air freight capacity tightens.
Worsening Congestion and Long-Term Disruptions
Despite the strike’s resolution the congestion at key ports is expected to take weeks, if not months, to clear. Major transshipment hubs like Freeport, Cartagena, Panama, Kingston, and Caucedo are already experiencing delays, and congestion is expected to worsen. Businesses must continue to prepare for prolonged disruptions, as the backlog will have lasting effects on global trade routes and schedules.
Mitigation Strategies
JAS Worldwide Is Ready to Support You
Our people remain fully committed to assisting your business through these challenging times. Our team is not closely monitoring the situation and already delivering tailored solutions and effective contingency plans to keep your supply chain moving smoothly. Whether you require air freight alternatives, rerouting strategies, or expert advice, we are ensuring that disruptions are minimized. Contact your JAS representative today to learn how our proactive approach can help you navigate these challenges and create a logistics plan that meets your specific needs.
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Riyadh, Saudi Arabia, March 24, 2025 – JAS and Naqel have signed a Memorandum of Understanding (MoU) to establish a strategic partnership. The partnership will combine Naqel's robust regional network with JAS's global logistics expertise.
Naqel, a subsidiary of Saudi Post Logistics (SPL) provides comprehensive coverage across the GCC region. By partnering with JAS, one of the largest and fastest-growing privately-owned logistics companies, both organizations are well-positioned to support the Kingdom's ambitious plans and strengthen its role as a global logistics hub.
"This partnership marks an exciting milestone for JAS as we expand our presence in Saudi Arabia," said Erwin Wittemaier, Area VP of JAS Middle East. "By combining our global reach with Naqel's deep-rooted regional expertise, we can unlock the full potential of the highly promising Saudi Arabian market."
Dr. Sohail Choudhry, CEO of Naqel Express and Group Chief Commercial Officer of SPL said “This partnership is a bold step towards strengthening our joint position in the region, opening new trade lanes and supporting our SPL Group vision to be a National Logistics champion which reimagines logistics and enhances experiences for our customers”
The MoU was signed by Dr. Adnan Almazrooa, Deputy CEO of Naqel, and Erwin Wittemaier, Area VP of JAS Middle East, in the presence of Dr. Sohail Choudhry, CEO of Naqel, Justin Sloan, Chief of Freight Forwarding at Naqel, and senior leaders from both organizations.
This collaboration aims to develop strategic trade lanes, mitigate supply chain disruptions, and provide multi-modal logistics solutions that drive efficiency and resilience.
By working together, JAS and Naqel will contribute to the Kingdom's Vision 2030 goals of enhancing trade integration, accelerating economic diversification, and fostering sustainable logistics solutions.
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About JAS
JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, USA, and supported by 7,000+ team members in more than 100 countries, it builds innovative and sustainable solutions that focus on customer needs and a better future for all. At the heart of JAS's success is its people who deliver customer value. As one of the largest and fastest-growing privately-owned logistics companies, JAS is committed to creating opportunities for our communities, customers, and colleagues to thrive. Together.
About Naqel Express by SPL
NAQEL Express by SPL has been operating in the MENA region since 2005 and is now a proud member of the Saudi Post family. With a presence in 16 countries, it has established itself as a formidable force in logistics. With its unrivaled distribution network and robust fleet, NAQEL seamlessly connects you with even the most remote corners of Saudi Arabia.
NAQEL provides tailored solutions and services such as speedy e-commerce and courier delivery, efficient road transport, smart warehousing and order fulfillment, global air and sea freight forwarding, seamless supply chain solutions, project management, 3PL services, and easy customs clearance. Committed to delivering innovative and sustainable solutions with a focus on environmental responsibility, NAQEL strives to lead the logistics industry towards a greener and more sustainable future.
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JAS is excited to announce its participation in LogiPharma 2025, the leading global supply chain conference for the life sciences industry. Taking place from April 8-10 at the Centre de Congrès de Lyon, France, the event brings together key industry leaders to discuss innovations and best practices in logistics.
As a trusted logistics partner, JAS will be exhibiting at Booth 71, where attendees can connect with our experts to explore cutting-edge cold chain solutions, temperature-controlled logistics, and end-to-end supply chain strategies tailored for the industry.
Continuing our tradition, the team will also take part in the LogiPharma 5K Run on Wednesday, April 8, at 7 AM.
Join us at LogiPharma 2025 to discover how we are driving innovation in logistics and ensuring supply chain excellence for our partners around the world.
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