ALERTS & ​ADVISORIES

Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business

By
September 30, 2024
Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business
Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business

With key issues such as wages and automation unresolved, talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have broken down. If no agreement is reached by September 30, 2024, the ILA plans to initiate a strike on October 1, 2024, which will have significant consequences for businesses relying on U.S. East and Gulf Coast ports.

What This Means for Your Business:

The ILA represents workers at major U.S. container ports, and a strike could result in:

  • A halt to container operations at over half of U.S. ports.
  • Major delays at East and Gulf Coast entry points.
  • Prolonged transit times and rerouted vessels, leading to increased shipping costs.
  • Cargo stranded at ports, triggering costly storage and detention fees.
  • A ripple effect across industries during the peak season, from importers to retailers.
  • Heightened global shipping congestion and elevated freight rates.

Key Updates:

  • Vessel Rerouting: Hapag-Lloyd and ONE have already adjusted operations, rerouting 11 vessels to alternative ports. For example, "Alessia" (AN2 service) will offload Houston and New Orleans-bound cargo in Cartagena, Colombia, while "Tempanos" (ANG service) will discharge similar cargo in Altamira, Mexico, on October 1. ONE plans to return the cargo to the U.S. once the strike ends.
  • Updated Surcharges: ONE has announced updated strike-related surcharges: CGD (except China) at $2,000/40' and CON (China) at $1,000/40', reflecting different regulatory requirements. MSC has also introduced a $3,000/40' Emergency Operation Surcharge (EOS) from China, Japan, Korea, and Southeast Asia, effective October 27.
  • Reefer Cargo: MSC will continue accepting dry container bookings into USEC and USGC but reserves the right to reject reefer bookings and will not assume liability for those left in strike-affected terminals.

Recommendations for Shippers:

  • Prepare for West Coast Congestion: As many shippers reroute to West Coast ports, anticipate longer wait times, increased fees, and congestion.
  • Expect Delays: In-transit cargo bound for East and Gulf Coast ports will face docking delays, with backlogs persisting even after a strike ends.
  • Consider Air Freight: For time-sensitive shipments, air freight remains the fastest alternative. JAS offers multiple air cargo solutions.
  • Plan for Higher Costs: Shipping rates will rise due to increased demand, while delays will lead to higher demurrage, detention, and storage fees.
  • Review Incoterms: Ensure clarity on financial responsibilities for delays and fees as determined by Incoterms. Be prepared to manage rerouting and storage costs.

To mitigate potential disruption, JAS has contingency plans ready. We recommend exploring alternative logistics solutions, such as air freight for high-priority shipments and can assist with rerouting options. Contact your JAS representative to discuss tailored strategies for keeping your cargo moving smoothly amid these challenges.

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Parker Hannifin has recognized JAS with its International Freight Forwarder of the Year award for 2025

Once again, Parker Hannifin has recognized JAS with its International Freight Forwarder of the Year award for 2025. Parker Hannifin, a Fortune 250 global leader in motion and control technologies, serves a wide range of industries including aerospace, climate control, filtration, and automation. The company highlighted JAS’s cybersecurity and sustainability efforts, on-time delivery, and commitment to continuous improvement as key reasons for selecting JAS as this year’s recipient.

This marks the third time JAS has been honored with this award, having previously received the recognition in 2017 and 2020. Being named  International Freight Forwarder of the Year once again underscores JAS’s ongoing commitment to delivering customer value, consistent partnership, and excellence in global logistics solutions.

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We would like to remind our customers of the implementation of the Import Control System 2 (ICS2), the European Union’s enhanced pre-arrival safety and security program for cargo entering or transiting through EU Member States, as well as Norway, Switzerland, and Northern Ireland. Effective 1 September 2025, ICS2 became mandatory across all modes of transport—air, ocean, road, and rail. This regulation requires the submission of detailed shipment data via an Entry Summary Declaration (ENS) prior to cargo arrival at the EU border.

What You Need to Know ICS2 is designed to:

  • Strengthen EU border security
  • Enable early risk assessment
  • Facilitate legitimate trade
  • Prevent delays and penalties due to non-compliance

Your Responsibilities as a Shipper or Cargo Owner

To ensure compliance and avoid disruptions, please take note of the following obligations:

Data Submission Requirements

You must provide:

  • A complete and accurate commercial description of each item
  • A valid Harmonized System (HS) code, consisting of at least six digits—though in many cases, EU customs may require eight digits or the full tariff code.
  • A valid Economic Operator Registration and Identification (EORI) number for the EU consignee/importer (and for other parties in the EU where applicable)
  • Full details of all parties involved (seller, buyer, consignor, consignee)

Filing Responsibilities

  • Freight Forwarders/NVOCCs: File ENS at the house bill level.
  • Carriers: File ENS at the master bill level.
  • Consignees: Provide valid EORI numbers to ensure accurate filing.

Non-Compliance Risks Failure to comply with ICS2 requirements may lead to:

  • Shipments being delayed, rejected, or held at EU borders
  • Customs inspections and possible administrative penalties
  • Additional costs related to storage or missed deliveries

Recommended Actions to prepare for ICS2 compliance:

  • Audit your product master data for HS codes and descriptions
  • Standardize commercial invoices and packing lists
  • Validate and integrate EORI numbers into your systems
  • Establish clear communication protocols with your logistics partners
  • Ensure complete shipment data is provided to your freight forwarder in time for ENS filing (e.g., at least 24 hours before vessel loading for ocean freight).

Technology & Support

In response to the EU’s Import Control System 2 (ICS2) requirements, we want to reassure our customers that our experienced staff and systems are fully prepared to manage the necessary data submissions and compliance procedures on your behalf. To support this service and ensure the smooth processing of your shipments, a compliance handling fee will apply. This fee covers the administrative effort and data validation to meet the latest EU regulations efficiently and accurately.


We are also investing in digital tools and customs platforms to automate data validation and submission, reducing manual errors and ensuring timely compliance. If you have any questions or would like guidance on preparing your shipment data, please contact your JAS account representative.

JAS has been awarded a Silver Medal in the EcoVadis sustainability assessment, achieving a score of 75 points.

JAS has been awarded a Silver Medal in the EcoVadis sustainability assessment, achieving a score of 75 points. This marks a 15-point improvement from last year’s Bronze rating and places JAS among the top 15% of companies assessed globally.

EcoVadis is one of the world’s most trusted providers of business sustainability ratings, evaluating over 130,000 companies across four categories: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.

In the latest assessment, JAS received particularly strong recognition in the Environment category (91/100), reflecting our focus on decarbonization, responsible resource use, and advancing sustainable logistics solutions. JAS also recorded solid progress in Labor & Human Rights, Ethics, and Sustainable Procurement, showing how JAS is working to embed responsible practices across its global operations and supply chain.

Andrea Goeman, SVP Sustainability, JAS, commented:

“We are proud to see our progress recognized with the EcoVadis Silver Medal. This achievement reflects the collaboration across our global teams and our strong commitment to building a more sustainable future for our customers, partners, and communities. While this is an important milestone, we will continue to strengthen our practices to further improve our performance in the years ahead.”

With a score of 75 points, JAS now ranks in the 92nd percentile of all companies assessed by EcoVadis. This performance not only supports many of our customers’ supplier selection and evaluation processes, but also highlights the steady progress we are making year over year.

As JAS continues its sustainability journey, the company remains focused on driving measurable improvements across its operations and working closely with customers and partners to reduce environmental impact and achieve shared sustainability goals.

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