All eyes are on the International Longshoremen’s Association due to the now very likely strike happening Midnight on October 1st. Per the Journal of Commerce, “this possible strike would tie up roughly 1.7% of global shipping capacity if it lasts an entire week, which could have a similar ripple effect on supply of equipment and vessels like the Red Sea diversions, but on a smaller scale”.
CBP (Customs and Border Protection) has already set measures in place and has an Emergency Operations Command in Washington DC, which will work with Partner Government Agencies and provide ports of entry staff and trade routing cargo processing procedure updates in regards to the effects of the strike on East and Gulf Ports. It is recommended for everyone involved in the trade to consistently monitor Cargo Systems Messaging Service (CSMS) webpage for any updates regarding CBP operations and possible impacts if a strike ends up taking place.
We are seeing vessels from several carriers omitting ports of destination and re-routing cargo to alternate ports in the East Coast as contingency plans. Most carriers are encouraging customers to pick up their import cargo prior to September 30th, especially reefers since these may or may not be monitored while ports are closed during port disruptions.
Maersk has already stated that any equipment they gain possession of that has not sailed will be incurring demurrage charges until it can finally sail to the destination it was booked for. Likewise, any equipment that has been pulled from the port and has not been checked back in before the strike will not be able to be returned, causing detention charges on the container until the ports re-open. In addition to these uncertainty of possible operational costs for cargo that has been already booked, Maersk also announced Peak Season Surcharges effective for October for all East Coast and Gulf Port sailings, and also a possible port disruption charge of $1,500 / TEU that would be taking place on October 21st if a strike happens.
MSC has also announced a GRI for October 15th for cargo destined to the West Coast and East Coast of South America Trades, but will not be implementing any Port Disruption charges. CMA-CGM has already implemented Rate Increases as of October 1st.
On the Transpacific Trade, all major carriers have announced Emergency Port Congestion charges due to the possible effects of the strike that range from $1,000 to $2,400 per 20’ Container and $1,000 to $3,375 / 40/40’HC Container for all cargo to/from US East Coast and Gulf Port for October.
If you have any questions or concerns about booked freight and possible impacts of the strike on your cargo, please reach out to us so we can walk alongside you on this path. We are working diligently with all of our customers to evaluate each situation and help them overcome any possible issues that could arise due to the strike on their operations. As always, we thank you for your loyalty and trusting us to handle your freight. We will keep tracking the situation to make sure we have the best possible solutions and avenues to pursue.
