USMX-ILA STRIKE UPDATE-PORT CONGESTION SURCHARGES

As reported previously, there is a possible port strike on the US East Coast from January 15, 2025. Talks have been set to resume on January 7, 2025 but carriers are still planning to collect PORT CONGESTION SURCHARGES for all cargo moving to or via US East Coast/US Gulf ports effective in the middle of January. 

At least five container lines are preparing to implement surcharges in anticipation of potential disruptions to service networks on the US East and Gulf coasts, as the Jan. 15 deadline for a possible longshore strike approaches and new carrier alliances take effect.

CMA CGM, Yang Ming, and Hapag-Lloyd have announced surcharges ranging from $1,125 to $1,700 per FEU in response to the expected disruption if 45,000 dockworkers from the International Longshoremen’s Association (ILA) go on strike in less than two weeks.

These carriers join Mediterranean Shipping Company (MSC) and Zim Integrated Shipping, which revealed in December that they might impose similar surcharges by mid-January. Zim attributed its decision to the potential ILA strike, while MSC tied its charges to the reorganization of its trans-Atlantic network, set to take effect on Feb. 1 as the carrier transitions to operating independently following its departure from the 2M Alliance with Maersk.

CMA CGM announced a $1,500 per unit “Peak Season Surcharge” (PSS) starting Jan. 15 for cargo originating from the Indian Subcontinent, Middle East, Red Sea, and Egypt destined for the US East and Gulf coasts.

Sources indicate that other carriers are also planning to implement surcharges, details are unclear at this time.

To discuss your cargo details or solutions on particular lanes, please contact your South East World Wide (Chicago), Ltd. Sales Representative.