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Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business

By
September 30, 2024
Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business
Negotiations Stall Between ILA and USMX: Urgent Impact on Your Business

With key issues such as wages and automation unresolved, talks between the International Longshoremen鈥檚 Association (ILA) and the United States Maritime Alliance (USMX) have broken down. If no agreement is reached by September 30, 2024, the ILA plans to initiate a strike on October 1, 2024, which will have significant consequences for businesses relying on U.S. East and Gulf Coast ports.

What This Means for Your Business:

The ILA represents workers at major U.S. container ports, and a strike could result in:

  • A halt to container operations at over half of U.S. ports.
  • Major delays at East and Gulf Coast entry points.
  • Prolonged transit times and rerouted vessels, leading to increased shipping costs.
  • Cargo stranded at ports, triggering costly storage and detention fees.
  • A ripple effect across industries during the peak season, from importers to retailers.
  • Heightened global shipping congestion and elevated freight rates.

Key Updates:

  • Vessel Rerouting:聽Hapag-Lloyd and ONE have already adjusted operations, rerouting 11 vessels to alternative ports. For example, "Alessia" (AN2 service) will offload Houston and New Orleans-bound cargo in Cartagena, Colombia, while "Tempanos" (ANG service) will discharge similar cargo in Altamira, Mexico, on October 1. ONE plans to return the cargo to the U.S. once the strike ends.
  • Updated Surcharges:聽ONE has announced updated strike-related surcharges: CGD (except China) at $2,000/40' and CON (China) at $1,000/40', reflecting different regulatory requirements. MSC has also introduced a $3,000/40' Emergency Operation Surcharge (EOS) from China, Japan, Korea, and Southeast Asia, effective October 27.
  • Reefer Cargo:聽MSC will continue accepting dry container bookings into USEC and USGC but reserves the right to reject reefer bookings and will not assume liability for those left in strike-affected terminals.

Recommendations for Shippers:

  • Prepare for West Coast Congestion:聽As many shippers reroute to West Coast ports, anticipate longer wait times, increased fees, and congestion.
  • Expect Delays:聽In-transit cargo bound for East and Gulf Coast ports will face docking delays, with backlogs persisting even after a strike ends.
  • Consider Air Freight:聽For time-sensitive shipments, air freight remains the fastest alternative. JAS offers multiple air cargo solutions.
  • Plan for Higher Costs:聽Shipping rates will rise due to increased demand, while delays will lead to higher demurrage, detention, and storage fees.
  • Review Incoterms:聽Ensure clarity on financial responsibilities for delays and fees as determined by Incoterms. Be prepared to manage rerouting and storage costs.

To mitigate potential disruption, JAS has contingency plans ready. We recommend exploring alternative logistics solutions, such as air freight for high-priority shipments and can assist with rerouting options. Contact your JAS representative to discuss tailored strategies for keeping your cargo moving smoothly amid these challenges.

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JAS recognized by Flowserve for excellence in global logistics.

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.

Celebrating the grand opening of JAS Beijing's new office, marking a milestone in our growth in China.

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.

JAS is proud to participate in the 2025 Paris Air Show at Le Bourget Airport. Visit us at Booth AB190 to discover how our aerospace logistics solutions are helping the industry soar.

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

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

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

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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