Container lines roll out US East Coast surcharges as port strike looms

New York, NY, 19 SEPT, 2024 – Port executives have begun preparations for a potential complete work stoppage by the International Longshoreman's Association, the largest union in North America. The ILA represents over 85,000 longshoremen and a strike would shut down five of the 10 busiest ports in North America, and a total of 36 ports along the East and Gulf Coasts, on October 1. Between 43%-49% of all U.S. imports and billions of dollars in trade monthly are at stake as the union moves closer to the Oct. 1 deadline for a new contract. Cruise operations would continue.

As the possibility of strike action at ports on the US east and Gulf coasts draws nearer by the day, container shipping lines serving the region have begun to announce disruption surcharges.

On 1 September, MSC notified customers it would apply a $1,000 per 20ft and $1,500 per 40ft Emergency Operations Surcharge (EOS) from 1 October (the date set for the strike to begin) on all shipments from Europe to the US east and Gulf coasts, as well as to ports in the Caribbean, Mexico and Canada.

Under US Federal Maritime Regulations, new price hikes and surcharges must be notified to the trade at least 30 days before implementation.

That was followed by a CMA CGM advice that US east and Gulf coast local port charges for import shipments of $1,500 per teu would be applied from 11 October, while export shipments would be subject to local port charges of $800 per 20ft and $1,000 per 40ft on the same date.

The French carrier has also advised customers that it would apply a $500 per teu rate 'restoration initiative' on all transatlantic shipments from 1 October.

Hapag-Lloyd became the latest carrier to announce a port strike surcharge, revealing it would apply a Work Disruption Surcharge of $1,000 per teu from 18 October on container shipments to the US east and Gulf coasts.