ALERTS & ​ADVISORIES

Preparing for an Imminent ILA Strike

By
September 25, 2024
Preparing for an Imminent ILA Strike
Preparing for an Imminent ILA Strike

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled, with key issues like wages and automation remaining unresolved. If an agreement is not reached by September 30, 2024, the ILA is set to strike on October 1, 2024.

What This Means for Your Business

The ILA represents maritime workers at container ports across the U.S. East and Gulf Coasts. A strike would result in:

  • A halt to container handling at over half of U.S. container ports.
  • Severe delays at East and Gulf Coast entry points.
  • Significant delays for cargo already en route to these ports.
  • Rerouted vessels, leading to extended transit times and higher costs.
  • Stranded cargo at ports, adding storage and detention fees.
  • A ripple effect on importers, retailers, and others during the peak season.
  • Increased global shipping costs and freight congestion.

Recommendations for Shippers and Clients

  1. Prepare for Congestion at West Coast Ports: Many shippers have already redirected cargo to the West Coast, leading to heavy congestion. Expect extended transit times, higher fees, and longer wait times for unloading.
  2. Expect Delays for In-Transit Cargo: Ships bound for East and Gulf Coast ports will face docking delays. Even after the strike, expect backlogs at ports before operations normalize.
  3. Use Air Freight for Urgent Shipments: Air freight is the fastest alternative for time-sensitive shipments. JAS offers multiple air cargo solutions.
  4. Prepare for Higher Shipping Rates: Costs will rise dramatically due to increased demand for freight capacity.
  5. Expect Higher Container Fees: Delays will trigger higher demurrage, detention, and storage fees. 
  6. Review Financial Responsibilities: Incoterms determines who bears the cost of delays and fees. Shippers and importers must be prepared to address storage and rerouting costs.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible. To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can also assist with rerouting options.

No items found.
Linkedin Logo

Alerts & ​Advisories

NEWS

Stay in the know with JAS
Advisories
news.

Latest News

Getting Ready for a Blue World Atlantic Flight.

In the vibrant heart of Chicago, our freighter operation orchestrated a remarkable display of efficiency and precision. Our plane touched down on the tarmac at 12:19 PM, and by 12:29 PM, our aircraft was parked and ready, with our 53-foot trailer positioned alongside. This moment, captured against the backdrop of a radiant Chicago sky, symbolized our meticulous coordination and unwavering readiness.  

Just 18 minutes later, our first truck began its journey to JAS ORD, marking the swift commencement of the cargo’s journey. In collaboration with our dedicated partners, our team worked with remarkable precision to ensure every kilogram was meticulously handled. By 1:59 PM, the flight was empty, and we had successfully offloaded an impressive 95,549 kilograms in just 1 hour and 30 minutes.  

In the realm of freight forwarding, where both speed and safety are crucial, this feat exemplifies our commitment to excellence. Our efficient turnaround not only highlights our core values but also underscores our promise of rapid and secure cargo handling.  

As we enjoyed the beautiful Chicago day, with our trailer and plane framed in a perfect snapshot of efficiency, it became clear: we don’t just move cargo; we redefine the standards of reliability and efficiency. Our streamlined operations significantly reduce tarmac time, especially for temperature-controlled shipments, ensuring optimal conditions every step of the way.  

Here’s to achieving flawless results with every shipment—where success transcends promise and becomes a stunning reality.   

We're thrilled to announce that JAS Chile has been recognized as a Great Place to Work for the second consecutive year!

October 2024 – Santiago, Chile – JAS Chile is proud to announce that it has been named a Great Place to Work for the second year in a row. This prestigious recognition highlights the company's commitment to fostering an inclusive, collaborative, and empowering work environment that prioritizes employee well-being and growth. 

The Great Place to Work award is based on employee feedback, recognizing organizations that promote a strong company culture, trust, and engagement. JAS Chile’s continuous efforts to enhance its workplace culture have been instrumental in achieving this honor. The company places a high value on creating an environment where employees feel respected, heard, and motivated to contribute to the company’s success. 

“We are incredibly proud to be recognized again as a Great Place to Work,” said Rodrigo Bustos, Managing Director of JAS Chile. “This achievement is a testament to our team’s dedication and our ongoing commitment to creating a workplace where every employee can thrive. We believe that when our people succeed, our business succeeds.” 

JAS Chile continues to invest in initiatives that promote employee development, diversity, and inclusion, as well as programs focused on mental and physical health. The company strives to maintain a culture that supports work-life balance, innovation, and open communication, making it a rewarding place to work for all team members. 

By receiving this award for the second consecutive year, JAS Chile reaffirms its status as a leading logistics company not only in terms of operational excellence but also as an employer of choice. The company remains committed to nurturing its talented workforce as it continues to grow and expand its global footprint. 

East and Gulf Coast Strike Ends: Backlog Clearance Underway as Ports Move Toward Full Recovery

With job actions suspended and ports resuming operations, efforts are now focused on clearing the significant backlog caused by the three-day strike. Full recovery is expected to take most of October, as dockworkers manage the accumulated vessels and cargo.

Carrier Actions: Force Majeure and Surcharges

In response to the disruption in the past days, major carriers like COSCO, ONE, CMA CGM, and Evergreen declared force majeure, which could lead to additional fees for shippers in the coming weeks. As the strike forced many carriers to divert containers to alternative ports, delays and added complications may persist.

With port operations now resuming, shippers should remain alert to detention and demurrage fees, as the previous suspension of these charges during the strike has ended, with trucks waiting outside the gates also those charges are to be expected. The ongoing congestion is expected to exacerbate these costs. Many carriers have also announced disruption surcharges, set to take effect by mid-October. However, shippers should not be surprised if these charges do not always materialize, as carriers often announce such fees without clarifying when they will be withdrawn. Shippers are encouraged to review their contracts and force majeure clauses to better understand potential additional costs.

Global Market Disruptions Ripple On

Although the strike is over, its effects are expected to ripple across global markets. In about two weeks, there may be a temporary reduction in export capacity from Europe, further driving up freight rates. This disruption could spread to other regions with a delayed impact. Global logistics networks will take time to fully stabilize, and rate volatility is likely to continue.

Air Freight Surge as Ocean Capacity Tightens

With ocean freight constrained, shippers are turning to air freight, causing rates to rise sharply. Time-sensitive shipments, in particular, are facing higher costs as air freight capacity is stretched. Businesses relying on fast deliveries should brace for continued increases in air freight costs.

JAS Worldwide: Supporting Your Supply Chain Needs

JAS Worldwide remains committed to helping businesses navigate these challenges. Our teams are actively monitoring the situation and are ready to provide customized solutions to minimize disruptions. Whether you need alternative air freight services, rerouting assistance, or expert advice, JAS Worldwide is here to support your supply chain. Contact your JAS representative today to create a strategic plan that ensures your operations remain resilient and efficient.

Our Sites use cookies for analytics purposes. For more information about the cookies we use on our Sites or how you can disable them, please see our Cookie Policy.