In anticipation of significant labor disruptions on the US East and Gulf Coasts, Maersk has joined other major shipping lines in announcing a Port Disruption Surcharge. This surcharge, effective from October 21, 2024, aims to address the increased costs expected due to the ongoing dispute between the International Longshoremen Association (ILA) and the United States Maritime Exchange (USMX).
Why the Port Disruption Surcharge Matters
The negotiations between the ILA, representing around 85,000 dockworkers, and the USMX have reached a stalemate over a new six-year labor contract. If no agreement is reached, the ILA will threaten a coastwide strike starting on October 1, 2024. As a result, shipping lines are preparing for the potential disruption of cargo handling at key US ports.
Maersk has set the following surcharge rates:
- $1,500 per TEU (Twenty-foot Equivalent Unit)
- $3,000 for 40-foot containers, including high-cube units
- $3,780 for 45-foot containers
These charges are used to cover the increased operational expenses that may arise due to delays, rerouting, or additional handling of cargo during this period.
How This Surcharge Affects Shippers
For businesses relying on shipping services to and from the US East and Gulf Coasts, this surcharge means potentially higher costs. What’s worse, cargoes arriving during the strike could see delays, as vessels might wait offshore until the dispute ends.
Maersk stated, “This surcharge is necessary to manage the higher operational costs caused by potential disruptions, ensuring we can continue to support our customers’ supply chains.”
Other Shipping Lines Following Suit
Maersk isn’t the only carrier bracing for potential labor disruptions. Other major shipping companies, including MSC, Hapag-Lloyd, and CMA CGM, have also implemented similar surcharges to safeguard their operations and continue meeting customer demands.
The ILA’s strike threat has pushed shipping companies to take preemptive measures to minimize financial losses and ensure their customers’ goods are delivered as efficiently as possible during this uncertain period.
What Shippers Should Expect
With the strike looming and no clear resolution in sight, companies should prepare for possible delays, increased costs, and even rerouting of cargo. It’s crucial to stay informed about the situation and maintain clear communication with your logistics provider to mitigate the impact on your supply chain.
- Plan Ahead: If your cargo is scheduled for delivery around the strike period, consider alternatives or work closely with your freight forwarder to find the best solutions.
- Expect Delays: With port operations potentially halting, cargo might face extended waiting periods offshore, impacting delivery timelines.
- Monitor Updates: Stay in touch with your shipping company for the latest updates and potential changes to your shipment’s route or delivery time.
How ASLG Can Help
ASLG can help businesses navigate potential disruptions caused by labor disputes with a range of strategic solutions:
- Customizable Logistics Plans: ASLG offers flexible routing options to avoid congested ports, minimizing delays during strikes.
- Real-Time Updates: ASLG provides up-to-the-minute information on port conditions, helping clients make informed decisions and plan accordingly.
- Cost Optimization: By leveraging its global network, ASLG can help reduce the impact of surcharges, finding cost-effective alternatives to keep supply chains moving.
- Risk Mitigation: ASLG works closely with freight forwarders and carriers to ensure proper contingency planning, safeguarding goods from disruptions.
