Potential for Renewed ILA Strike Over Automation Disputes

Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a critical impasse, primarily due to disagreements over port automation. After walking away from talks in November 2024, the ILA has signaled the possibility of a renewed strike if their demands are not addressed before the January 15, 2025, deadline.

This situation follows a previous three-day strike in early October 2024, which temporarily halted operations at ports along the East and Gulf Coasts. While those ports have since resumed operations, the disruption caused widespread delays and financial strain on the U.S. economy. The recent suspension of strike action was agreed upon for 90 days, ending January 15, 2025, but with negotiations stalled, the risk of further disruption looms large.

Impact of Previous Strike Action

The October strike caused significant delays, cost overruns, and operational disruptions, including:

• Shutdowns at 36 ports handling over half of U.S. container volume.
• Increased fees for freight storage, detention, and other services.
• Prolonged transit times due to vessel rerouting.
• Downstream effects on retailers and supply chains during peak season.

Mitigating Future Disruptions

To minimize risks, businesses should consider these strategies:

1. Divert shipments to alternate ports, such as those on the West Coast.
2. Anticipate congestion at rerouted locations.
3. Leverage air freight for time-sensitive cargo.
4. Utilize intermodal solutions for inland transportation.
5. Be prepared for increased shipping costs and fees.
6. Stay informed and work proactively with logistics partners to reduce delays.

Guidance from JAS

JAS remains committed to supporting clients during these uncertain times. If your operations are at risk of being impacted, we strongly encourage you to reach out to your JAS representative. Our team can provide tailored solutions to mitigate disruptions, streamline supply chains, and optimize freight options. Whether through alternative routing, expedited services, or strategic planning, JAS is here to help you navigate these challenges effectively.

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.

In a pivotal development for global logistics, the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) jointly announced late on October 3 that they reached a tentative wage agreement. The Master Contract, governing work at East and Gulf Coast ports, has been extended until January 15, 2025, allowing further negotiations on unresolved issues. As a result, all job actions have ceased, and port operations will resume immediately under the Master Contract.

While this agreement averts a prolonged crisis that could have severely impacted global supply chains, the three-day strike has already caused significant operational disruptions. It is anticipated that full port recovery will take between 2-3 weeks, depending on how swiftly dockworkers manage the backlog of vessels waiting to unload billions of dollars worth of goods. However, it is important to note that not all terminals have reopened immediately. Some port gates will only reopen on October 7, and vessel operations have staggered reopening times, further complicating the situation.

Vessels Anchored and Congestion Worsening

Even though operations have restarted, many container ships remain anchored off the U.S. East and Gulf Coasts, and new vessels continue to arrive. Several ships have diverted to ports such as Freeport, Bahamas, to offload U.S.-bound cargo. This diversion risks creating bottlenecks at critical transshipment hubs, including Cartagena, Panama, Kingston, and Caucedo. Clearing the backlog at these ports may take time, potentially leading to delays across global supply chains.

Spike in Freight Rates Linked to Strikes

Recent data indicates that freight rates have surged, with shippers feeling the direct impact of the strikes. On the most affected routes, such as North Europe to the U.S. East Coast, average spot rates have increased by 58% since the end of August. This highlights the immediate financial strain on businesses that rely on stable shipping rates.

Force Majeure, Surcharges, and Carrier Adjustments

Before the agreement, most major carriers, including COSCO, ONE,  CMA CGM, and Evergreen, declared force majeure, which could result in additional charges for shippers in the coming weeks. Even though the strike has ended, it forced carriers to divert containers to alternative ports outside the U.S., creating further complications.

With the reopening of ports, shippers should stay vigilant regarding potential detention and demurrage fees, as the "stopping the clock" that applied during the strike no longer holds. Congestion over the next several weeks will only compound the situation.

Many carriers have also announced disruption surcharges, expected to come into effect by mid-October. However, it's worth noting that carriers often announce such fees but rarely communicate when they are rescinded. Shippers should not be surprised if these surcharges do not fully materialize. Businesses are advised to review shipping contracts, particularly force majeure clauses, to understand better how surcharges and additional costs may apply.

Global Disruptions Ripple Across Markets

While the strike has concluded, its after effects will likely be felt globally. A temporary reduction in export capacity from Europe is expected in about two weeks, which could apply upward pressure on freight rates. This pattern may also play out in other regions with a longer lag. The global logistics network will take time to normalize, and rates are expected to remain volatile.

Air Freight Surge as Shippers Seek Alternatives

With ocean freight options constrained, demand for air freight has skyrocketed, driving rates higher. Time-sensitive shipments are particularly affected, with shippers facing increased costs as air freight capacity tightens. Businesses relying on urgent deliveries should prepare for continued cost increases in the near future.

JAS Worldwide: Here to Support You

In these challenging times, JAS Worldwide remains dedicated to supporting your business. Our teams are actively monitoring the situation and delivering customized solutions to minimize disruptions. Whether you need air freight alternatives, rerouting options, or expert logistics advice, JAS Worldwide is ready to help you navigate these complexities. Reach out to your JAS representative today to develop a strategic plan that ensures your supply chain remains resilient and efficient.

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.

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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.

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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.

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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.

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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.

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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.

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Mitigation Strategies

• Monitor Key Hubs: Stay informed on congestion levels at Freeport, Cartagena, Panama, Kingston, and Caucedo to anticipate potential delays.
• Review Shipping Contracts: Examine force majeure clauses and carrier agreements to better understand the implications of surcharges and responsibilities, especially considering current disruptions.

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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.

As the ILA strike reached its third day, the lack of progress between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) remained apparent. The USMX rejected preconditions for talks, and the ILA stayed silent, leaving negotiations at a standstill.

However, there is growing speculation in the market that discussions between the two sides may now be underway. In a notable shift, the ILA has not posted any updates on its normally active media page, and there have been no public statements from either party today. This uncharacteristic silence suggests that both groups might be working behind the scenes to resolve the dispute.

We will continue to monitor the situation closely and provide updates as more information becomes available.

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Vessels Stalled and Rising Congestion

Nearly 60 container ships are anchored off the U.S. East and Gulf Coasts, with more arriving by the hour. Several vessels are also waiting outside Freeport, Bahamas, likely attempting to offload U.S. East Coast cargo. This will likely lead to severe congestion at Freeport, similar to the growing bottlenecks anticipated at other transshipment hubs such as Cartagena, Panama, Kingston, and Caucedo.

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Force Majeure & Carrier Adjustments

COSCO has joined CMA CGM and ONE in declaring force majeure for the affected regions, invoking Clause 20 of its Bill of Lading. Despite this, some carriers are still accepting bookings for U.S. East and Gulf Coast ports, though vessel cancellations remain a risk. This suggests carriers are hoping for a short-term resolution. However, if the strike continues, backlogs in transshipment hubs will likely trigger widespread congestion, with effects felt in Europe within two weeks.

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Global Impacts & Growing Disruptions

With vessels unable to dock at U.S. ports, export capacity from Europe, Latin America, and other regions is shrinking, potentially creating bottlenecks at origin ports and disrupting global trade. In its 292nd day of ongoing diversions, the Red Sea is also adding to the mounting global disruptions.

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Air Freight Demand and Rising Rates

As ocean freight options become more constrained, the demand for air freight has surged. This spike in demand is significantly increasing air freight rates, making it a more expensive—but crucial—option for businesses needing time-sensitive shipments. Companies relying on urgent deliveries should prepare for higher costs as air freight capacity tightens.

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Key Insights for Businesses

1. Worsening Congestion: The number of anchored vessels is expected to double by the end of the week, and clearing this congestion may take months.
2. Transshipment Hubs Under Pressure: Key hubs in the Caribbean and Latin America are already experiencing growing congestion, with delays expected to worsen.
3. Air Freight Costs on the Rise: The surge in air freight demand is driving up rates sharply, especially for time-critical shipments, adding new cost pressures for shippers.
4. Long-Term Disruptions: Businesses must prepare for prolonged disruptions, as the strike could last for weeks, causing ripple effects across global trade routes.

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Mitigation Strategies

• Alternative Routing: Consider West Coast ports or air freight options, though both incur increased costs and delays.
• Monitor Key Hubs: Keep track of congestion levels at Freeport, Cartagena, Panama, Kingston, and Caucedo to anticipate potential delays.
• Review Shipping Contracts: Review force majeure clauses and carrier agreements to better understand surcharges and responsibilities.

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JAS Worldwide is Ready to Support You

Our people remain fully committed to assisting your business through these challenging times. Our team is not only closely monitoring the situation but is 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.

The strike has entered its second day, and the global impact is growing more pronounced. Yesterday's announcement from the White House confirmed the U.S. administration's support for the International Longshoremen's Association (ILA) in their labor dispute. With no significant concessions from the U.S. Maritime Alliance (USMX) on the horizon, it appears increasingly likely that this conflict will extend beyond just a few days, potentially lasting for an extended period. The prolonged uncertainty in port operations is compounding supply chain disruptions across industries worldwide.

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Key Updates from Major Carriers:

1. CMA CGM Declares Force Majeure: CMA CGM has invoked force majeure due to the strike, citing Term 10 of their Bill of Lading. As a result, operational costs from vessel delays at East and Gulf Coast ports will be charged to cargo on the water as of October 1st, 2024. A Local Port Charge (LPC) will apply to all incoming cargo from October 11th, but this will not include additional operational costs under Term 10(a).
2. ONE's Force Majeure & Route Adjustments: ONE has also declared force majeure, invoking rights under Clauses 17 and 18 of their Bill of Lading Terms. In addition, the carrier has adjusted routes, with the “NYK Demeter” on the AL5 Eur-America service now skipping Port Everglades and discharging USEC cargo in Halifax instead.
3. Montreal Terminal Strikes: Strikes at the Maisonneuve and Viau terminals in Montreal continue, with operations expected to resume by October 3rd. Other terminals are functioning, but the disruption is already causing ripple effects across the supply chain.

What to Expect:

The effects of the strike are beginning to take hold, with growing congestion in Central American hubs and a significant drop in export capacity from Europe and South America. Delays in U.S. vessel arrivals will lead to further congestion across global trade routes, creating additional bottlenecks for shippers worldwide.

1. Export Bottlenecks: As vessels fail to arrive from the U.S., export capacity from Europe and South America will diminish. This will trigger a ripple effect across regions, delaying shipments and complicating global trade flows.
2. Carrier Rate Increases: Along with the operational delays, businesses should expect rising logistics costs. All carriers have already implemented surcharges, and other rate hikes are expected as the strike continues.
3. Air Freight Demand and Rising Rates: With ocean freight options severely constrained, demand for air freight is surging. This increased demand is driving up air freight rates significantly, making it a more costly but crucial option for time-sensitive shipments. Businesses relying on urgent deliveries should prepare for elevated costs in this sector as capacity tightens.

Mitigation Strategies:

1. Explore Air Freight Options: Given the strain on ocean freight, air freight is emerging as the fastest alternative for critical shipments. However, businesses should anticipate higher costs due to skyrocketing demand.
2. Plan for Extended Delays: Even after the strike concludes, a backlog of cargo will take weeks to clear. Businesses must adjust timelines and inventory planning to accommodate extended transit times.
3. Review Carrier Contracts: With force majeure clauses now in play, it is essential to review shipping contracts to understand responsibilities regarding surcharges and rate increases. Clarifying these terms now will help avoid unexpected costs.

JAS Worldwide Is Here to Help:

JAS Worldwide is committed to supporting you through these challenging times. Our team is actively monitoring the situation and is ready to offer tailored solutions, including air freight options and alternative routing strategies, to ensure your supply chain remains operational. Contact your JAS representative today to discuss how we can help minimize the impact of these disruptions and develop a logistics plan suited to your business needs.

Urgent Notice: As of 12:01 AM on October 1st, a major strike involving nearly 50,000 members of the International Longshoremen’s Association (ILA) has disrupted operations at critical East and Gulf Coast ports. This unprecedented work stoppage is already halting the flow of goods through vital cargo hubs from Maine to Texas, significantly impacting U.S. imports and exports. The strike is expected to ripple across the entire supply chain, threatening U.S. businesses with delays, higher costs, and logistical bottlenecks.

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What’s Happening: For the first time in decades, dockworkers at 36 ports along the East and Gulf Coasts have gone on strike over key issues, including wages and the increasing use of automation. This disruption extends beyond U.S. borders, as solidarity actions have also been announced by labor unions in Canada, with the Montreal Longshoremen’s Union planning work stoppages at major terminals. Norfolk Southern has issued a port curtailment schedule, further complicating inland transport, while surging ocean freight rates and growing port congestion loom large for businesses dependent on timely deliveries.

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What’s at Stake:

Operations at 36 key ports—responsible for handling nearly half of all U.S. trade—are at a standstill. The economic impact will be felt across industries:

• Severe Supply Chain Disruptions: Container ports are halted, delaying critical shipments and production schedules.
• Extended Transit Times: Rerouting and bottlenecks will push delivery times beyond standard windows, potentially forcing costly adjustments.
• Higher Freight Rates & Surcharges: Increased demand and storage congestion have already triggered ocean carrier surcharges. Some shipping lines published Force Majeure declarations.
• Global Ripple Effects: Heightened demand for alternate shipping routes and ports may worsen congestion globally, slowing the movement of goods across borders

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Key Impacts for Your Business:

• Port Closures: Expect significant shutdowns at key East and Gulf Coast ports, causing massive delays.
• Shipping Delays: Cargo destined for these regions will face prolonged wait times, even after the strike is resolved.
• Costly Storage Fees: Stranded cargo could incur substantial detention and demurrage charges.
• Industry-Wide Fallout: Retailers and importers—particularly during peak season—are most at risk for severe disruptions.
• Global Shipping Congestion: Anticipate an increase in freight rates as demand for alternative routes skyrockets.

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Proactive Recommendations to Minimize Disruption:‍

1. Prepare for West Coast Congestion: Cargo will likely reroute to West Coast ports, further straining capacity and driving up costs.
2. Expect Docking Delays: Once the strike ends, a backlog of shipments will still cause prolonged delays at East and Gulf Coast ports.
3. Consider Air Freight: For urgent shipments, air freight offers the quickest solution. While demand will likely drive rates up, JAS provides a range of air cargo options.
4. Plan for Increased Costs: Expect rising shipping rates, along with elevated storage, detention, and demurrage fees as congestion intensifies.
5. Review Incoterms: Ensure that all financial responsibilities for delays or rerouting are clear between all parties involved.

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JAS is Here to Support You:

During this critical period, JAS is committed to minimizing the disruption to your business. We’ve developed comprehensive contingency plans, including:

• Alternative Solutions: Air freight and strategic rerouting options for time-sensitive shipments.
• Tailored Logistics: Our team will work closely with you to create customized strategies that maintain supply chain continuity.

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Next Steps:

Reach out to your JAS representative today to discuss tailored logistics solutions and how we can help your business navigate this challenging situation.

JAS Worldwide is dedicated to supporting you through these turbulent times. Rest assured, we’re working diligently to keep your operations running as smoothly as possible.

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There is no resolution in sight: negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have stalled, making a strike by 45,000 dockworkers look inevitable. The strike, which is set to commence at midnight, poses a critical threat to U.S. supply chains, with widespread port closures expected across the East and Gulf coasts.

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What’s at Stake: This disruption could grind operations to a halt at 36 key ports—responsible for handling nearly 50% of all U.S. trade. The ripple effect on businesses could be significant, leading to:

• Severe supply chain delays and halted operations at crucial container ports.
• Extended transit times and the need for costly rerouting.
• Higher shipping rates and additional fees due to cargo congestion and storage.
• Surcharges from carriers already announced, including declarations of Force Majeure by some.
• Global shipping slowdowns as bottlenecks intensify.

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Key Impacts for Your Business:

• Port Closures: Expect major disruptions at East and Gulf Coast entry points.
• Shipping Delays: Prolonged transit times could lead to increased costs for businesses and consumers.
• Costly Storage Fees: Stranded cargo may result in significant detention and demurrage charges.
• Industry-Wide Ripples: Retailers and importers will feel the effects, especially during peak season.
• Global Congestion: Heightened demand for alternative routes and services will drive freight rates higher.

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Proactive Recommendations to Minimize Disruption:

1. Prepare for West Coast Congestion: As cargo reroutes to the West Coast, anticipate delays and increased fees due to congestion.
2. Expect Docking Delays: Cargo destined for East and Gulf Coast ports will experience prolonged wait times, even post-strike.
3. Consider Air Freight: For urgent shipments, air freight remains the quickest option. JAS offers a variety of air cargo solutions, though high demand will likely push rates up.
4. Plan for Increased Costs: Rising demand and delays will lead to higher shipping rates, along with elevated storage, detention, and demurrage fees.
5. Review Incoterms: Ensure that all parties are clear on financial responsibilities for additional costs caused by delays or rerouting.

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JAS is Here to Support You:

To help navigate these challenges, JAS has developed contingency plans. We recommend exploring alternative solutions like air freight for time-sensitive shipments or strategic rerouting to minimize delays. Our team is ready to tailor logistics strategies to keep your supply chain moving.

Contact your JAS representative today to discuss how we can support your business during this critical time.

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.

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.

Please be advised that Golden Week in China, from October 1st to 7th, will impact logistics operations across the region. During this holiday, many businesses, including factories, suppliers, and transportation companies, will pause their operations, potentially affecting the shipping schedules.  

Key Things to Consider:  

• Delays Expected: Port, airfreight, and land transportation services may experience delays before, during, and after the holiday week as businesses close or reduce capacity.  
• Capacity Challenges: There may be an increase in demand for space on vessels and flights leading up to Golden Week, potentially limiting availability.  
• Planning Ahead: We encourage our customers to plan shipments early to avoid disruptions. Bookings and arrangements made in advance can help mitigate the impact.  

Our team is here to assist you with any questions and ensure minimal disruption to your supply chain. Please don’t hesitate to reach out to your local JAS contact for support.