In a significant development, the International Longshoremen鈥檚 Association (ILA) and the U.S. Maritime Alliance (USMX) issued a joint statement late on October 3, announcing that they have reached a tentative agreement on wages. Both parties have also agreed to extend the Master Contract until January 15, 2025, allowing additional time to negotiate other unresolved issues. Effective immediately after the announcement, all ongoing job actions ceased, and work covered by the Master Contract will resume across the East and Gulf Coast ports.
While this agreement brings temporary relief, the backlog of vessels and congestion at key ports remains a critical challenge for the supply chain. Over the last three days, the disruption has caused significant delays that will take weeks to clear.
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Vessels Stalled and Rising Congestion
Many container ships remain anchored off the U.S. East and Gulf Coasts, with more arriving. Several vessels are also stationed outside Freeport, Bahamas, attempting to offload U.S. East Coast cargo. This situation threatens to create severe congestion at Freeport, Cartagena, Panama, Kingston, and Caucedo. The backlog at these key ports will be challenging to clear, potentially causing delays that ripple throughout the global logistics network.
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Force Majeure & Carrier Adjustments
As of now, major carriers like COSCO, CMA CGM, Evergreen and ONE have declared force majeure for the affected regions, invoking Clause 20 of their Bill of Lading. Despite these declarations, some carriers are still accepting bookings for U.S. East and Gulf Coast ports. This suggests that carriers may be betting on a short-term resolution. However, given the scale of the disruption, vessel cancellations and further delays remain likely, especially if congestion worsens at transshipment hubs. The effects are expected to reach Europe within the next two weeks.
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Global Impacts & Growing Disruptions
Although the strike has ended for now, the three days of halted port activity have already reduced export capacity from Europe, Latin America, and other regions. This shrinkage has caused bottlenecks at origin ports, further disrupting global trade. Additionally, ongoing shipping diversions in the Red Sea, now entering their 292nd day, are compounding delays in other regions, making global supply chains even more fragile.
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Air Freight Demand and Rising Rates
As ocean freight options dwindle, demand for air freight has surged significantly, driving air freight rates sharply upward. This trend particularly impacts time-sensitive shipments, adding new cost pressures for shippers. Companies relying on urgent deliveries should brace for continued rising costs as air freight capacity tightens.
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Worsening Congestion and Long-Term Disruptions
Despite the strike鈥檚 resolution the congestion at key ports is expected to take weeks, if not months, to clear. Major transshipment hubs like Freeport, Cartagena, Panama, Kingston, and Caucedo are already experiencing delays, and congestion is expected to worsen. Businesses must continue to prepare for prolonged disruptions, as the backlog will have lasting effects on global trade routes and schedules.
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Mitigation Strategies
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JAS Worldwide Is Ready to Support You
Our people remain fully committed to assisting your business through these challenging times. Our team is not closely monitoring the situation and already delivering tailored solutions and effective contingency plans to keep your supply chain moving smoothly. Whether you require air freight alternatives, rerouting strategies, or expert advice, we are ensuring that disruptions are minimized. Contact your JAS representative today to learn how our proactive approach can help you navigate these challenges and create a logistics plan that meets your specific needs.
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JAS has once again been honored by Flowserve Corporation, a global leader in flow control solutions, securing the Freight Forwarder of the Year 2024 award. This marks the second year in a row JAS has been recognized by Flowserve, reinforcing its position as a trusted logistics partner in Flowserve鈥檚 supply chain.
JAS鈥檚 2024 recognition builds on its exceptional 2023 performance, which included Customs Broker of the Year and Best Account Management of the Year awards, with a special commendation for Regional Account Manager Katarina Cook. Flowserve annually awards five logistics partners across three freight forwarding and two non-freight categories (e.g., trucking, small packages), making JAS鈥檚 multi-year success a testament to its operational excellence and client-centric approach.
鈥淲e are proud to receive this award; it is a testament to the dedication and passion of every JAS team member across the globe. It proves that at JAS, it鈥檚 our people who truly make the difference,鈥 Manuele Mazzacurati, EVP Global Sales and Marketing, JAS.
鈥淛AS plays a vital role in keeping our operations in motion. Their dedication to operational excellence, collaborative approach and innovative adoption of new technologies have been instrumental in supporting our mission to deliver reliable flow control solutions worldwide,鈥 said Matt Dowgill, Flowserve鈥檚 Vice President of Global Supply Chain. 鈥淭his award reflects not only their performance but also their commitment to helping Flowserve develop and mature our logistics function.鈥
About JAS
JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.
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This month JAS proudly celebrated the grand opening of its new Beijing branch office, marking another important step in the company鈥檚 growth in China. The event welcomed Mr. Marco Civardi, CEO of JAS China; Ms. Cathy Yu, North China Area Manager of JAS China; and Mr. Marco Midolo, First Counsellor & Head of the Economic and Commercial Office at the Italian Embassy in China.
In their remarks, Mr. Civardi and Mr. Midolo reflected on the importance of strengthening ties between Italy and China, and shared their optimism for the continued development of the Beijing branch. A ribbon-cutting ceremony and celebratory toast followed, setting a warm and festive tone for the day.
鈥淭his new office is more than just a space鈥攊t鈥檚 a foundation for the future,鈥 said Cathy Yu. 鈥淎s a key logistics hub in North China, it positions us to deliver even greater value to our clients and deepen our role in the ongoing partnership between China and Italy.鈥
Guests joined in creative activities, including the Wishing Pot game and a Wishing Tree, where they shared personal hopes for the success of the new branch鈥攁dding a meaningful and memorable touch to the celebration.
With deep roots in Milan and a growing presence across China, JAS remains committed to supporting cross-border collaboration, especially as trade and cooperation between China and Italy continue to evolve. The Beijing office will play a vital role in delivering tailored logistics solutions, strengthening customer partnerships, and driving growth throughout the region.
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JAS, a global leader in logistics and supply chain solutions, is pleased to announce its participation in the 2025 Paris Air Show, one of the most prestigious events in the aerospace and aviation industries. The event will take place at Le Bourget Airport in Paris, France, from June 16-22, bringing together key industry players to explore the latest advancements in aerospace technology and supply chain solutions.聽
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JAS will be exhibiting at Booth AB190, where its team of experts will be available to discuss the company鈥檚 comprehensive aerospace logistics services, including AOG (Aircraft on Ground) solutions, just-in-time deliveries, oversized cargo handling, and end-to-end supply chain management. With decades of experience in managing the complex, time-sensitive needs of the aerospace sector, JAS provides customized solutions that keep supply chains moving efficiently and reliably.聽
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鈥淭he Paris Air Show is a premier event for the aerospace industry, and we are excited to be part of it once again,鈥 said John Brennan, Senior Vice President- Aerospace, at JAS. 鈥淎s supply chain demands continue to evolve, our focus remains on providing tailored, innovative solutions that help aerospace companies around the world optimize their logistics operations and reduce downtime.鈥澛
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Visitors to the JAS booth will have the opportunity to meet with industry specialists, learn about the company鈥檚 latest innovations, and explore solutions designed to address the challenges faced by aerospace manufacturers, suppliers, and operators.
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