The International Longshoremen's Association (ILA) is approaching a potential strike on October 1st due to ongoing negotiations with the United States Maritime Alliance (USMX) over a new contract. The ILA has been clear about its intentions to strike if a deal is not reached by the September 30th deadline.
As the possibility of strike action at ports on the US east and Gulf coasts draws nearer by the day, container shipping lines have begun to announce disruption surcharges ranging from $1,000/20’ upwards to $3,000/40’. MSC, CMA CGM, and Hapag-Lloyd have all announced additional fees for shipments to the affected regions, effective October 1st or later. Other carriers are expected to make similar announcements.
What You Need to Know:
- Container shipping lines have begun to announce disruption surcharges ranging from $1,000/20’ upwards to $3,000/40’.
- In advance of the expiration date of the Master Contract, many terminals are either offering extended gates or advising of their plan on receiving cargoes up to the September 30, 2024, deadline.
- Even a short disruption could require weeks to fully resolve, leading to significant backlogs and delays.
Recommendations:
- Contact your Laufer Import and Export Booking and Operations Representatives to review potential impact to existing and future bookings and shipments.
- Conduct a review of your inventory, sales forecasts, and upcoming shipments.
- Evaluate whether to delay or expedite shipments based on inventory levels and sales potential.
- Consider alternative routes and modes for critical shipments, orders and SKUs.
Have Questions?
This is a fluid situation, and it is our hope that an agreement is reached between the USMX and ILA prior to the contract expiration on September 30. We will continue to keep you updated with information as we receive it.
Please contact your local Laufer customer service or sales representative to discuss contingency options for your current and future bookings and shipments.