Just 3 days remain for negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), and the potential of the looming strike seems to be inevitable at this point. There is still time for the direction to change and although our optimism is faltering, we are still hopeful that the two sides will come together to avoid a complete shutdown of the East and Gulf Ports.
As we head into the weekend, we felt it important to provide a recap of what we know.
Known Updates:
– As of today, ports are operating at capacity but have planned a slow shutdown on Monday September 30th if there is no sign of resolution prior. And full closure earlier than the midnight deadline.
– Vessel Operators still do not have a clear strategy as to what their course of action will be. Current indications show there will be some slowing of vessels still in transit and anchoring offshore for the time being.
– USMX has filed an unfair labor practice with the National Labor Relations Board (NLRB) requesting an “immediate injunctive relief –requiring the union to resume bargaining”.
– The Taft-Hartley Act could potentially be invoked but the White House has indicated that as of today it is not under consideration. The goal is to get them back to negotiations and come to a fair agreement.
OCEANAIR – What are we doing?
– All shipments are being processed and tracked as per usual.
– Where possible we are providing Delivery Orders ahead to any carriers to ensure we are giving visibility to the carriers now so that if there is a strike we are already planned in their rotations.
– Our ops staff is in the process of identifying any high visibility shipments that are immediately impacted showing vessel arrival September 30 – October 3.
– Customs entries are prepped for submittal.
– We have been in contact with US CBP to review potential compliance situations and will be working with them as well as other Government agencies to maintain proper standards with all groups.
– We know that communication will be important. We will have prepared communication daily.
– Our Team will be prepared to manage questions but please be patient with them as this will impact a significant amount of our clients and we will be doing everything we can to support you.
Carriers Contingency Plans:
– Halting inland cargo movement
– Announcement of new Emergency Operations Surcharges (EOS).
- Maersk said it will implement a ‘local port disruption surcharge’ for all cargo moving to and from the US East and Gulf coast terminals beginning October 21st, “depending on the impact of the disruption to the supply chain”, of $1,500 per TEU and $3,000 per FEU.
- Hapag-Lloyd announced beginning October 19th, they will be implementing a Work Interruption Destination Surcharge(WID) for imports to the US East and Gulf coast from East Asia and a Work Disruption Surcharge (WDS) from the rest of the world on October 18th,both at $1,000 per TEU.
- CMA CGM’s advises that on October 11th, a surcharge will be $800 per TEU and $1,000 per FEU for all exports from US East and Gulf coast ports, and an import surcharge of $1,500 per TEU. As well they will be applying a $500 rate per TEU‘ restoration initiative’ on all transatlantic shipments effective October 1st.
- MSC on September 1st, notified customers it would apply a $1,000 per TEU and $1,500 per FEU Emergency Operations Surcharge (EOS) from October 1st, (the date set for the strike to begin) on all shipments from Europe to the US east and Gulf coasts, as well as to ports in the Caribbean, Mexico, and Canada.
- ONE has not yet announced surcharges but did warn that booking adjustments, including rolls to other vessels or cancellations, may be needed from this week.
– ONE has declared Force Majeure on shipments that were scheduled to discharge East/Gulf ports that are on the following vessels:
AL6 VIENNA EXPRESS 0099E/ 0099W
EC1 YM WARRANTY 0022E /0022W
EC1 HONG KONG EXPRESS0046E / 0046W
EC2 AIN SNAN EXPRESS0033E / 0033W
EC2 ROME EXPRESS017E/017W
EC5 ONE SWAN 028E/028W
WIN ONE REINFORCEMENT 0002E / 0002W
We will be closely monitoring our sources all weekend, if anything should develop, we will be certain to share it immediately.
Please look for another update on Monday afternoon.
