We wanted to bring you the latest on what we’re hearing concerning the ILA/USMX discussions and the potential, now probable, strike at east and gulf coast ports from October 1st, 2024.
The two sides are trading barbs as to who’s to blame for the other not coming to the negotiating table, and as of right now, the government is not planning to step in. And while there have been some informal discussions between the two sides, no scheduled meetings are planned before the current ILA contract ends on September 30th, 2024. We have to assume the strike will take place. More ocean carriers are issuing notices on surcharges that will come into effect for shipments to and from the affected ports – here’s what we’ve seen so far:
ZIM recently issued an updated surcharge program effective 10/23/24 that will supersede it’s initial program commencing 10/1/24.
Summarizing some of the available information, we have some recommendations:
- Remove all cargo and equipment from east and gulf coast ports before end-of-day on 9/30/24. It is extremely unlikely that there will be any port operations while a strike is in effect – cargo and equipment not removed from affected ports will have to remain there indefinitely. Reefer containers may not be monitored and charges for required power will still accumulate
- Some ports are extending hours of operation coming into the final days of September. Alba is working with affected customers to resolve cargo availability by leveraging these extended hours, but if you have a specific shipment you believe can take advantage of these times, please contact your local Alba office
- Most carriers will be considering weekdays and weekends during any active strike as ‘shut out’ days where detention and demurrage will not be calculated. This situation is fluid and you’ll need to consider that expected backlogs when ports reopen will accumulate D&D fees
- Embargos for accepting export cargo at some inland ports are now in effect
- Each day of the strike will compound the amount of time to clear the backlogs, and the knock-on effects of vessels being delayed for future voyages will cause additional delays to future shipments
- Ships enroute to affected ports but unable to make it before 10/1/24 will likely slow steam and then hold-up at anchor near the port for the short-term. Vessel operators may then consider vessel reroute options if an end to any strike action does not appear to be close
- Capacity into west coast ports, Canada, and Mexico will now be at a premium and you should also expect delays as the ports become congested
- Utilize airfreight for your most urgent shipments where feasible. This isn’t practical for large volumes but maybe must-ride orders make sense to fly
- The US Federal Maritime Commission has issued an industry advisory stating all statutes and regulations remain in full effect – read the full advisory here.
