Rail operators draw up emergency measures in response to port strikes in eastern United States
With just a week to go before a strike at U.S. Eastern and Gulf Coast ports looks increasingly likely, shipping lines are scrambling to make contingency plans, including pre-emptively halting inland cargo shipments and announcing new congestion-related surcharges.
Maersk said it would impose a "local port outage surcharge" on all shipments to and from U.S. Eastern and Gulf Coast terminals starting Oct. 21, "depending on the impact of the supply chain disruption," at $1,500 per TEU and $3,000 per foot.
"The surcharge was introduced to cover higher operating costs due to service disruptions," the Danish airline explained.
Effective October 19, Hapag-Lloyd will impose a Work Interruption Destination surcharge (WID) on imports from East Asia to the eastern United States and Gulf Coast, and a Work Interruption destination surcharge (WDS) on imports from the rest of the world, both at a cost of $1,000 per TEU, effective October 18.
Effective October 11, CMA CGM ships will impose a surcharge of US $800 per TEU and US $1,000 per foot container on all cargoes exported from eastern and Gulf Coast ports, as well as an import surcharge of US $1,500 per TEU.
It will also impose a peak season surcharge of US $1,000 per unit on imports from the Indian subcontinent and the Middle East from October 1, a policy postponed until November 1.
Japanese shipping company ONE has not announced the surcharge, but warned it may need to adjust bookings from this week, including switching to other vessels or cancelling orders.
North American intermodal operator CSX said that in the event of a strike, it would "work port by port to handle cargo shipments... As long as it can safely enter the dock "and will accept imported cargoes" before the port strikes."
However, the company yesterday suspended exports to Canada through the hub it operates with Canadian National Railway until further notice, explaining that if goods get stuck on the tracks, they will be impassable en route.
Maersk also noted that the ability of terminals to monitor reefer containers during the strike would be affected and encouraged exporters to "plan accordingly" to avoid damage to temperaturecontrolled cargoes.
ONE similarly encouraged customers to pick up imported cargoes before Sept. 30, advising that "reefer ships may not be monitored during port closures."
The Japanese shipping company will suspend accepting new U.S. refrigerated cargo export bookings for ships departing on or after Oct. 1, while Hapag-Lloyd will also no longer accept refrigerated cargo reservations for its inland terminals after Sept. 26.
Hapag-lloyd will also stop loading East Coast export cargoes from Sept. 29 and will park all export cargoes at its inland terminals from Sept. 30 to Oct. 1.
"On October 1, 2024, we will reassess whether we need to cancel the booking," it said
"Our main goal is to transport cargo for as long as possible, but at the same time be careful not to put refrigerated cargo transport at risk." The purpose of leaving export cargoes at their place of origin from September 30 is to avoid any cargo being stranded outside the terminal and causing damage to the loaded cargo."
Sara Dandan, founder of FourOneOne, a detention, demurrage and maritime disputes company, said: "I feel that any freight forwarder worth his salt will have contingency plans in place to mitigate any problems caused by these port strikes.
"I think we've had too many warnings and most shippers and freight forwarders have made alternative plans and routes. Or at least they should, "she concluded.
Maersk said it would impose a "local port outage surcharge" on all shipments to and from U.S. Eastern and Gulf Coast terminals starting Oct. 21, "depending on the impact of the supply chain disruption," at $1,500 per TEU and $3,000 per foot.
"The surcharge was introduced to cover higher operating costs due to service disruptions," the Danish airline explained.
Effective October 19, Hapag-Lloyd will impose a Work Interruption Destination surcharge (WID) on imports from East Asia to the eastern United States and Gulf Coast, and a Work Interruption destination surcharge (WDS) on imports from the rest of the world, both at a cost of $1,000 per TEU, effective October 18.
Effective October 11, CMA CGM ships will impose a surcharge of US $800 per TEU and US $1,000 per foot container on all cargoes exported from eastern and Gulf Coast ports, as well as an import surcharge of US $1,500 per TEU.
It will also impose a peak season surcharge of US $1,000 per unit on imports from the Indian subcontinent and the Middle East from October 1, a policy postponed until November 1.
Japanese shipping company ONE has not announced the surcharge, but warned it may need to adjust bookings from this week, including switching to other vessels or cancelling orders.
North American intermodal operator CSX said that in the event of a strike, it would "work port by port to handle cargo shipments... As long as it can safely enter the dock "and will accept imported cargoes" before the port strikes."
However, the company yesterday suspended exports to Canada through the hub it operates with Canadian National Railway until further notice, explaining that if goods get stuck on the tracks, they will be impassable en route.
Maersk also noted that the ability of terminals to monitor reefer containers during the strike would be affected and encouraged exporters to "plan accordingly" to avoid damage to temperaturecontrolled cargoes.
ONE similarly encouraged customers to pick up imported cargoes before Sept. 30, advising that "reefer ships may not be monitored during port closures."
The Japanese shipping company will suspend accepting new U.S. refrigerated cargo export bookings for ships departing on or after Oct. 1, while Hapag-Lloyd will also no longer accept refrigerated cargo reservations for its inland terminals after Sept. 26.
Hapag-lloyd will also stop loading East Coast export cargoes from Sept. 29 and will park all export cargoes at its inland terminals from Sept. 30 to Oct. 1.
"On October 1, 2024, we will reassess whether we need to cancel the booking," it said
"Our main goal is to transport cargo for as long as possible, but at the same time be careful not to put refrigerated cargo transport at risk." The purpose of leaving export cargoes at their place of origin from September 30 is to avoid any cargo being stranded outside the terminal and causing damage to the loaded cargo."
Sara Dandan, founder of FourOneOne, a detention, demurrage and maritime disputes company, said: "I feel that any freight forwarder worth his salt will have contingency plans in place to mitigate any problems caused by these port strikes.
"I think we've had too many warnings and most shippers and freight forwarders have made alternative plans and routes. Or at least they should, "she concluded.
