Maersk: Customers are advised to pick up heavy containers and return empty containers by that date
Maersk has released an update on the negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX).
"As of now, there are no new developments in the negotiations," Maersk said. Given the current negotiating situation, Maersk strongly recommends that customers pick up heavy containers and return empty containers at U.S. East Coast and Gulf Coast terminals by January 15, 2025.
It is worth noting that in response to the potential risk of strikes by dockworkers on the US East Coast and Gulf of Mexico, some liner companies have recently announced related surcharges.
On December 24, 2024, Hapag-Lloyd announced that it would introduce a stoppage surcharge (WDS) and stoppage surcharge (WID) at the port of destination. However, the fee will only be charged if there is a disruption to the supply chain. At the same time, this fee only affects goods whose gate operation is completed on or after January 20, 2025, and does not apply to containers that are already in transit or have gate operation completed before January 20, 2025.
In addition, the star recently announced that it will charge a Strike Surcharge for all cargo entering and leaving the US East Coast and Gulf of Mexico terminals, which will be implemented from January 10, 2025 (the date of entry), and the fee will be $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 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.
"As of now, there are no new developments in the negotiations," Maersk said. Given the current negotiating situation, Maersk strongly recommends that customers pick up heavy containers and return empty containers at U.S. East Coast and Gulf Coast terminals by January 15, 2025.
It is worth noting that in response to the potential risk of strikes by dockworkers on the US East Coast and Gulf of Mexico, some liner companies have recently announced related surcharges.
On December 24, 2024, Hapag-Lloyd announced that it would introduce a stoppage surcharge (WDS) and stoppage surcharge (WID) at the port of destination. However, the fee will only be charged if there is a disruption to the supply chain. At the same time, this fee only affects goods whose gate operation is completed on or after January 20, 2025, and does not apply to containers that are already in transit or have gate operation completed before January 20, 2025.
In addition, the star recently announced that it will charge a Strike Surcharge for all cargo entering and leaving the US East Coast and Gulf of Mexico terminals, which will be implemented from January 10, 2025 (the date of entry), and the fee will be $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 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.
