JAS IN THE AMERICAS

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.

JAS Projects successfully completed the Koh Sichang Islands – Submarine Electric Transmission Line Project, designed to enhance the electrical infrastructure of the Sichang Islands in Thailand. This initiative ensures a reliable power supply for residents and businesses on the islands. 

From October to November 2024, JAS Projects executed a complex transportation operation that began at the port of Shanghai, China, and concluded at Siam Kerrz Seaport in Laem Chabang, Thailand. The cargo included two packages with a total weight of 327,476.00 KGS and a volume of 322 CBMs, featuring a specially designed basket carrying a submarine cable and its accessories. 

The success of this project was driven by the collaborative expertise of JAS Projects teams in Vietnam, China, and Thailand. The teams developed a comprehensive logistics solution, starting with the design and fabrication of a seaworthy cable basket. The design was technically vetted and approved by a Marine Surveyor before the operation began. 

Key steps in the project included: 

• Assembling the cable basket at a fabrication yard in China. 
• Lifting and securely sea-fastening the basket onto a barge. 
• Transporting the basket from the fabrication hall to a jetty. 
• Spooling the submarine cable from a storage area into the basket. 
• Moving the cargo from the jetty to Shanghai Seaport, where it was loaded onto a multi-purpose vessel (MPV). 

The MPV then embarked on its sea voyage to Laem Chabang Port in Thailand. Upon arrival, the vessel’s cranes discharged the cable basket onto the receiver’s barge in Thai waters. Marine Warranty Surveyors (MWS) oversaw the entire operation, from steel cutting for the basket fabrication to its final discharge. 

This project demonstrated the exceptional capabilities of the JAS Projects team in managing international logistics with precision and efficiency. Through seamless coordination and expertise, the team delivered a successful transportation solution for this critical infrastructure initiative. 

Atlanta, Georgia – December 23, 2024 – JAS Worldwide, a global leader in logistics and supply chain solutions, and International Airfreight Associates (IAA) B.V., a prominent provider of comprehensive Air and Ocean freight services headquartered in the Netherlands, are proud to announce the signing of a Share Purchase Agreement (SPA). This agreement marks an important step toward JAS Worldwide’s acquisition of IAA which, pending regulatory approval, is expected to be completed in the first quarter of 2025. 

“This acquisition aligns with our strategic goals and enhances our ability to provide comprehensive logistics solutions to our clients. We eagerly await the finalization of this deal and look forward to welcoming IAA’s talented air and ocean team into the JAS family,” said Marco Rebuffi, CEO of JAS Worldwide. 

“In JAS Worldwide we have found the right party to realize our growth ambitions and guarantee a pleasant working environment for our employees. By joining forces, we can also offer an even broader service to our current customers. We therefore look to the future with confidence” said Jur de Graaf, Managing Director of International Airfreight Associates. 

IAA handles multi-modal general cargo and specializes in the transportation of perishable goods, with headquarters in The Netherlands and an operation in Germany. This acquisition will strengthen JAS’s presence in key markets and increase its expertise in managing time-sensitive perishable shipments. 

The combined strengths of JAS Worldwide and IAA will drive value for customers through enhanced service offerings and a broader global network. 

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About JAS Worldwide  

JAS Worldwide, 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, it focuses on creating solutions that are innovative, sustainable, and unique to each customer's needs. At the heart of its success is its people, who are committed to delivering customer value. As a privately owned company, JAS maintains a steadfast commitment to creating opportunities for our communities, customers, and colleagues to thrive. Together. 

About International Airfreight Associates B.V. 

International Airfreight Associates B.V. is a trusted provider of airfreight logistics services with headquarters in the Netherlands and additional operations in Germany. With nearly 100 employees across four locations, including Amsterdam, Aalsmeer, Rotterdam, and Frankfurt, the company specializes in moving perishable goods and delivering tailored logistics solutions for a diverse range of clients.