Port Disruption Anticipated

Advisory for Freight Clients: Anticipated Disruptions and Surcharges for U.S. East Coast & Gulf Ports

Due to stalled negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), a strike at East Coast and Gulf Coast ports is expected to begin on October 1, 2024.

In response, several steamship lines have announced the implementation of Port Congestion and Disruption Surcharges to offset the operational challenges anticipated during the strike. These surcharges will take effect in mid-October and may significantly impact shipping costs.

Key Surcharges and Timeline:

·         Maersk: Surcharge of up to $3,000 per forty-foot equivalent unit (FEU), starting October 21, 2024.

·         Hapag-Lloyd: “Work Interruption Destination Surcharge” of $1,000 per TEU, effective October 18, 2024.

·         CMA CGM: Export surcharges of up to $1,500 per TEU, starting October 11, 2024.

These surcharges will be passed on to customers and could lead to higher costs, particularly for industries such as retail, automotive, and manufacturing.

Biden Administration Stance:

Despite the looming strike, President Biden has stated he will not invoke the Taft-Hartley Act to delay or prevent it. "No," Biden told reporters Sunday, September 29th 2024, “Because it’s collective bargaining, and I don’t believe in Taft-Hartley”​. Without government intervention, the strike is increasingly likely, exacerbating potential delays and surcharges.

Recommended Action:

We encourage you to contact your JMC representative to discuss possible re-routing options and strategies to navigate this evolving situation effectively. Your JMC representative can provide tailored insights and support to help manage any disruptions and costs associated with these anticipated changes.