Surcharges Applied As US Port Strike Looms
We are less than two weeks away from the potential of a crippling US port strike, as carriers announce contingency surcharges for ocean freight shipments to and from North America.
As we get nearer to the planned action from October 1st, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) seem no nearer reaching an agreement, with the current contracts due to expire on September 30th.
The ILA union represent over 85,000 workers and a strike would effectively halt operations at 36 ports on the US East and Gulf Coast, crippling ocean freight services in and out of the country.
While wages are at the heart of the dispute, the union are staunchly opposed to any form of semi or full automation, arguing that USMX members should have seeked agreement with the union before investing in new equipment.
This week, the White House said it would not invoke its legal powers to intervene, after receiving a letter from 177 trade associations urging the US government to act if negotiations with the ILA do not resume.
Meanwhile, the Port of New York/New Jersey, the largest on the East Coast, confirmed yesterday that they have started preparations for a complete work stoppage from October 1st.
Atlantic Pacific have now received several notices from carriers outlining plans to introduce emergency surcharges for shipments moving from October to or from US East and Gulf Coasts, as well as ports in the Caribbean, Mexico and Canada.
The level of these surcharges vary from carrier to carrier and range between $500 and $1000 per TEU based on what we have seen so far.
Naturally, we are very much hoping that something can be done to avoid this action in the next few days, and will be monitoring developments closely.
