We are approaching the deadline for a new contract between the ILA and USMX on October 1. What does this mean for you?
I have a container already at an East or Gulf Coast port:
If the cargo is at or already off of the vessel at an East Coast or Gulf Coast port, there is still the possibility of getting it loaded and on its way prior to any work stoppage.
However, as we have been reporting, be wary of increased congestion at the local terminals as shippers race to get their product picked up ahead of the deadline.
It can take multiple days to pull a container from a local terminal even with normal scheduling, and customs clearance is always a factor.
I have a container at or expected to arrive at an East or Gulf Coast port this week:
Time will be of the essence, but it could still be possible to get your container out and on its way if it is arriving this week.
However, continue to be wary of increased congestion at the local terminals as shippers race to get their product picked up ahead of the deadline.
Ports are still going full steam ahead with “normal” import operations and preparing for “an orderly shutdown of the ports…”.
“[A]ll activity involving loading and unloading cargo containers and automobiles,” will cease once the strike notice is released.
Again, the above factors such as congestion, pull times, and customs clearance are still factors even after the container is unloaded from the vessel.
I have a container expected to arrive at an East or Gulf Coast port next week or beyond:
Most likely, your container will be impacted by a significant delay.
If the strike were to happen, even one day of work stoppage will result in multiple days of cascading impacts, leading to rapidly compounding delays across the ports and their terminals.
If a vessel arrives or is scheduled to arrive close to October 1, vessels are expected to moor at designated sites offshore to wait out the strike or just slow down their travel, loitering as they continue to their destination and wait out the strike.
Local port authorities will coordinate with the coast guard, and U.S. Customs and Border Protection to "restart" normal operations and get vessels into port once work is resumed.
It appears that many ports and carriers worldwide have discussed and developed alternate plans and routes, in light of the looming work stoppage threat – though these contingencies will vary by port and carrier.
All contingency plans – regardless if they are diverting to a West Coast Port or packing extra patience and staying with an East Coast port – will likely result in additional fees, and are not available in all circumstances.
Geodis has compiled a list of potential impacts, fees, and steps that we have echoed in pervious posts.
“The US Federal Maritime Commission (FMC) has warned carriers and terminal operators against profiteering from unfair detention and demurrage (D&D) charges amid the disruption from an east and Gulf coast port strike.”
If you have concerns or questions about how this could impact your project, a specific container, etc. please reach out to your Freight Manager. We are keeping a very close eye on this situation as it continues to evolve.
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