Consider Supply Chain Pivots as ILA strike looms.
The threat of port strikes have been looming over East Coast and Gulf Coast ports for months now, with a particular threat to perishable cargo. The International Longshoremen’s Association (ILA), with over 85,000 members, has threatened to go on strike as soon as Oct 1, 2024 if they do not reach a deal with the United States Maritime Alliance, which represents over a dozen major ports. As of this writing, the strike appears imminent as the Biden Administration has also confirmed that they do not intend to intervene.
Cargo on vessels bound to affected ports will likely be stranded onboard ship until the industrial action can be resolved. Major shipping companies are taking a number of different responses to manage the situation and resulting risk of delay and/or cost. Some are implementing “work interruption destination surcharges” while others are simply refusing to accept perishable freight.
MSC is stating that booking adjustments (roll to other vessels or cancellations) may be required; they have also stated the right to refuse refrigerated bookings at affected ports if a strike breaks out. Click here for MSC cargo booking policy in case of strike.
Hapag-Lloyd has provided notice of a Work Disruption Surcharge (WDS) of $1,000 USD per TEU.
Maersk has announced a labor dispute surcharge starting at $1,500 per TEU ($3,000 per 40’ FCL and $3780 per 45’ FCL).
ONE (Ocean Network Express) has confirmed they will decline all perishable and hazardous bookings originating from Latin America on the FLX service and all cargo on the ANG1 and AN2 services.
The list goes on, but at the end of the day what we know is that supply chain stability, especially for cargo inbound through West Coast and Gulf Coast ports is under severe risk.
West Coast Supply Chain Routing Alternatives
One clear option to avoid supply chain disruptions along the East Coast and Gulf Coast ports is diversion of freight to West Coast ports including the Ports of Los Angeles/Long Beach.
For over 20-years, Global Freight Solutions, Inc. (GFS) and our recently renamed food-facing division, Mar Pacific Consolidations & Food Services, has served as a port adjacent warehouse offering a variety of services to US importers and exporters. Today our services include:
- Dry transload & crossdock services
- Perishable transload & crossdock services
- Frozen transload & crossdock services
- Food grade warehouse services
- Storage & fulfillment services at all temps
- USDA FSIS iHouse inspection services
- Supply chain project management
- Over the road trucking, including LTL, FTL and temp control
- 4PL project management
If you need to divert freight to the Western US, GFS/Mar Pacific has options available for you. We are here to provide you with reliable options for import and support along the Western U.S. Please contact us for freight diversion options along the West Coast.
Contact:
Ron Tan, Director of Account Services
[email protected] | [email protected]
Mobile: 562.350.5713