Carriers are ramping up preparations for a potential strike at U.S. East Coast and Gulf Coast ports, with the situation between the International Longshoremen’s Association and the U.S. Maritime Alliance showing no signs of resolution. In response, shipping companies are introducing surcharges to mitigate anticipated disruptions while maintaining expectations of strong demand during the peak season, amid ongoing global congestion.
CMA CGM and Hapag-Lloyd have joined MSC Mediterranean Shipping Company in notifying customers of new surcharges on imports and exports from affected ports. The Federal Maritime Commission mandates a 30-day notice for any additional fees.
MSC has termed its charge an “Emergency Operations Surcharge,” effective October 1, coinciding with the expected onset of the strike. This surcharge ranges from $1,000 for a standard 20-foot container to $1,500 for a 40-foot container. CMA CGM announced charges between $800 and $1,500 for exports based on container specifications, with a flat fee of $1,500 for all imports destined for U.S. East and Gulf Coast ports, starting October 11.
Hapag-Lloyd has introduced a “Work Disruption Surcharge (WDS)” of $1,000 per TEU for all imports, set to begin on October 18. They advise export customers that bookings will remain open as long as rail providers and terminals accept containers, while urging importers to expedite documentation and customs clearance to ensure timely retrieval of cargo.
Amid these developments, Maersk has reported considerable uncertainty regarding Q4 volumes, despite an earlier forecast indicating demand growth of 4 to 6 percent. They noted a year-over-year increase of 6.6 percent in global container volumes for Q2 2024, driven by robust imports to North and Latin America, along with strong exports from Far East Asia. However, Maersk also warned of ongoing congestion at various ports, particularly in the Mediterranean and East Asia.
All carriers emphasize the fragility of the supply chain, with Maersk highlighting that even a short disruption could lead to significant backlogs and delays lasting weeks. Analytics firm Sea-Intelligence estimates that U.S. ports could face a 13 percent excess capacity in October, projecting that a one-week strike could cause delays extending into mid-November, while a two-week strike could disrupt operations well into 2025.
The surcharges introduced by carriers are described as “indefinite” in duration, reflecting the uncertain outlook ahead.