As the ILA strike reached its third day, the lack of progress between the International Longshoremen鈥檚 Association (ILA) and the U.S. Maritime Alliance (USMX) remained apparent. The USMX rejected preconditions for talks, and the ILA stayed silent, leaving negotiations at a standstill.
However, there is growing speculation in the market that discussions between the two sides may now be underway. In a notable shift, the ILA has not posted any updates on its normally active media page, and there have been no public statements from either party today. This uncharacteristic silence suggests that both groups might be working behind the scenes to resolve the dispute.
We will continue to monitor the situation closely and provide updates as more information becomes available.
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Vessels Stalled and Rising Congestion
Nearly 60 container ships are anchored off the U.S. East and Gulf Coasts, with more arriving by the hour. Several vessels are also waiting outside Freeport, Bahamas, likely attempting to offload U.S. East Coast cargo. This will likely lead to severe congestion at Freeport, similar to the growing bottlenecks anticipated at other transshipment hubs such as Cartagena, Panama, Kingston, and Caucedo.
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Force Majeure & Carrier Adjustments
COSCO has joined CMA CGM and ONE in declaring force majeure for the affected regions, invoking Clause 20 of its Bill of Lading. Despite this, some carriers are still accepting bookings for U.S. East and Gulf Coast ports, though vessel cancellations remain a risk. This suggests carriers are hoping for a short-term resolution. However, if the strike continues, backlogs in transshipment hubs will likely trigger widespread congestion, with effects felt in Europe within two weeks.
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Global Impacts & Growing Disruptions
With vessels unable to dock at U.S. ports, export capacity from Europe, Latin America, and other regions is shrinking, potentially creating bottlenecks at origin ports and disrupting global trade. In its 292nd day of ongoing diversions, the Red Sea is also adding to the mounting global disruptions.
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Air Freight Demand and Rising Rates
As ocean freight options become more constrained, the demand for air freight has surged. This spike in demand is significantly increasing air freight rates, making it a more expensive鈥攂ut crucial鈥攐ption for businesses needing time-sensitive shipments. Companies relying on urgent deliveries should prepare for higher costs as air freight capacity tightens.
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Key Insights for Businesses
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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 only closely monitoring the situation but is 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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