The risk of port strikes has intensified, with shipping companies announcing surcharges
In response to the potential risk of strikes by dockworkers on the US East Coast and Gulf of Mexico, some liner companies have announced related surcharges.
On December 24, 2024, Hapag-Lloyd announced that it would impose a Work Disruption Surcharge (WDS) and a Work Interruption Destination Surcharge (WID).
However, Hapag-Lloyd stressed that surcharges would only be imposed if there were disruptions to the supply chain.
In addition, the new fee will not apply to containers already in transit or with gate work completed before January 20, 2025, and will only affect shipments with gate work completed on or after January 20, 2025.
The following are the specific charging requirements for WDS and WID:
WDS rates are $850 /TEU and $1,700 /FEU for all types of containers.
Rates range from Northern Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania and Latin America to U.S. East Coast and Gulf Coast ports, and payment is charged on per sea freight terms.
WID charges are $850 /TEU and $1,700 /FEU for all types of containers.
Charges are collected from Japan, South Korea, China (including Hong Kong, Macao and Taiwan), Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia and the Philippines to US East Coast and Gulf Coast ports.
In addition, the star recently announced that it will impose a Strike Surcharge on all cargo entering and leaving the US East Coast and Gulf of Mexico terminals, effective January 10, 2025 (port of entry date).
The specific fees are $1,000 /TEU and $2,000 /FEU.
In the end, USMX backed down and reached a preliminary agreement on ILA members' salaries, which will increase by 61.5 percent over six years, while extending the main contract until Jan. 15, 2025. However, on sensitive issues such as terminal automation, no decision was taken at that time.
After that, the two sides held several talks, but did not reach a consensus on the issue of terminal automation, and the ILA even said that "negotiations broke down." The ILA believes that USMX has reneged on its original promise not to discuss fully automated or semi-automated terminals. The ILA stressed that the union would continue to work for "a fair contract" and that a strike was a last resort.
Many in the industry believe that if the management does not make concessions on terminal automation, the ILA is highly likely to strike again in January 2025.
On December 24, 2024, Hapag-Lloyd announced that it would impose a Work Disruption Surcharge (WDS) and a Work Interruption Destination Surcharge (WID).
However, Hapag-Lloyd stressed that surcharges would only be imposed if there were disruptions to the supply chain.
In addition, the new fee will not apply to containers already in transit or with gate work completed before January 20, 2025, and will only affect shipments with gate work completed on or after January 20, 2025.
The following are the specific charging requirements for WDS and WID:
WDS rates are $850 /TEU and $1,700 /FEU for all types of containers.
Rates range from Northern Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania and Latin America to U.S. East Coast and Gulf Coast ports, and payment is charged on per sea freight terms.
WID charges are $850 /TEU and $1,700 /FEU for all types of containers.
Charges are collected from Japan, South Korea, China (including Hong Kong, Macao and Taiwan), Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia and the Philippines to US East Coast and Gulf Coast ports.
In addition, the star recently announced that it will impose a Strike Surcharge on all cargo entering and leaving the US East Coast and Gulf of Mexico terminals, effective January 10, 2025 (port of entry date).
The specific fees are $1,000 /TEU and $2,000 /FEU.
In the end, USMX backed down and reached a preliminary agreement on ILA members' salaries, which will increase by 61.5 percent over six years, while extending the main contract until Jan. 15, 2025. However, on sensitive issues such as terminal automation, no decision was taken at that time.
After that, the two sides held several talks, but did not reach a consensus on the issue of terminal automation, and the ILA even said that "negotiations broke down." The ILA believes that USMX has reneged on its original promise not to discuss fully automated or semi-automated terminals. The ILA stressed that the union would continue to work for "a fair contract" and that a strike was a last resort.
Many in the industry believe that if the management does not make concessions on terminal automation, the ILA is highly likely to strike again in January 2025.
