News
Potential US East Coast strike – Further update
Attention: Shipping Manager
Further to our previous broadcasts, we would like to advise you on the current situation regarding the potential US East Coast strike.
The deadlock continues between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) as a dock strike appears certain. USMX reported that it remains unable to schedule a meeting to continue negotiations on a master contract. Unless the Biden administration invokes a cooling-off period, the ILA has said there will be no extension, and the strike will begin on 1st October from Maine to Gulf of Mexico. It will impact roughly half of the containers and a large portion of the Ro-Ro volume in the United States.
The Biden administration has advised that they “encourage all parties to remain at the bargaining table and negotiate in good faith.” President Joe Biden won’t intervene to prevent a strike according to a published report.
In the event of a strike from 1st October shipping lines will not be able to divert vessels bound for the US East Coast to West Coast ports as the ILA has made clear it would picket such a move. This means the vessels now on their way to the East Coast will have to sit and wait until the industrial disruption is resolved. Some carriers expect to anchor vessels temporarily with a daily review of the situation to determine port calls and adjustments.
One of the shipping lines has warned customer that the strike will have impacts on supply chains, leading to delays in cargo movement, increased costs, and logistical challenges for businesses relying on U.S. East Coast and Gulf ports. The longer strike durations may exacerbate disruptions, affecting import and export activities, container availability, and overall operational efficiency.
Shipping lines are starting to announce their charges (congestion / disruption charges) and the highest we have seen so far is US$1500 per TEU for shipping via EC and Gulf ports. Please note that LCL will also incur these charges accordingly.
We do expect congestion surcharges to follow on the West Coast from all carriers. Unfortunately, we will have no choice but to pass on all charges associated with the strike action.
(Source: The Maritime Executive/Seatrade Maritime News)
