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.
JAS China was honored with the 2025 Panda d'Oro-Sustainability Award at the annual China-Italian Chamber of Commerce awards ceremony. The sustainability award is presented to companies that actively promote green business practices and environmental responsibility. The recognition acknowledges JAS’s commitment to sustainable development and implementing strategies that have a real impact on business, society and environment. Cissy Lu, Chief Commercial Officer of JAS China, and Mario Tasso, Regional Account Manager JAS APAC, accepted the award on behalf of the company.
“This recognition belongs to every team member who has contributed to our sustainability journey. We will continue to drive green logistics innovation and corporate responsibility, contributing to a more sustainable future in China,” said Cissy Lu.
JAS's Commitment to Sustainability
A look at JAS China’s continuing efforts in environmental, social, and governance (ESG) excellence.
Key Achievements
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JAS is proud to be part of Lufthansa Cargo’s expanded network to Italy through its partnership with ITA Airways—and to be on board one of the inaugural flights from Brazil to Italy on June 16.
As part of our ongoing commitment to a more sustainable future, we booked the “Sustainable Choice” Add-on Service and purchased an additional 10,000 liters of Sustainable Aviation Fuel (SAF) to help reduce CO₂ emissions from the very start.
Together with Lufthansa Cargo, we're helping to shape the future of greener supply chains.
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JAS has once again been honored by Flowserve Corporation, a global leader in flow control solutions, securing the Freight Forwarder of the Year 2024 award. This marks the second year in a row JAS has been recognized by Flowserve, reinforcing its position as a trusted logistics partner in Flowserve’s supply chain.
JAS’s 2024 recognition builds on its exceptional 2023 performance, which included Customs Broker of the Year and Best Account Management of the Year awards, with a special commendation for Regional Account Manager Katarina Cook. Flowserve annually awards five logistics partners across three freight forwarding and two non-freight categories (e.g., trucking, small packages), making JAS’s multi-year success a testament to its operational excellence and client-centric approach.
“We are proud to receive this award; it is a testament to the dedication and passion of every JAS team member across the globe. It proves that at JAS, it’s our people who truly make the difference,” Manuele Mazzacurati, EVP Global Sales and Marketing, JAS.
“JAS plays a vital role in keeping our operations in motion. Their dedication to operational excellence, collaborative approach and innovative adoption of new technologies have been instrumental in supporting our mission to deliver reliable flow control solutions worldwide,” said Matt Dowgill, Flowserve’s Vice President of Global Supply Chain. “This award reflects not only their performance but also their commitment to helping Flowserve develop and mature our logistics function.”
About JAS
JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.
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