We are writing to provide you with an important update on the situation surrounding labor negotiations at U.S. East Coast and Gulf Coast ports, as well as adjustments to previously announced surcharges.
Ongoing Negotiations:
The International Longshoremen’s Association (ILA) has reached a tentative agreement with the United States Maritime Alliance (USMA). However, key points such as healthcare and the limited implementation of automation are still under negotiation. The deadline to finalize these discussions is set for January 15, 2025. Until then, there remains a possibility of disruptions, including a potential strike if the remaining issues are not resolved by the deadline.
Impact on Surcharges:
In light of these developments, previously announced surcharges and increases including USD 1,500 per TEU as well as an LCL emergency congestion surcharge of USD 35 per CBM, have been cancelled. Additionally, the Strike Diversion Surcharge has also been cancelled.
Looking Ahead:
While the cancellation of these surcharges brings some short-term relief, we encourage our customers to remain prepared for potential disruptions should negotiations fail by mid-January. If a strike were to occur, it could once again impact cargo movement, leading to port congestion, delays, and further changes to surcharges.
Our team will continue to monitor the situation closely and provide timely updates on any developments. In the event of future disruptions, we remain committed to offering alternative solutions, such as airfreight services and inland repositioning, to mitigate delays.
Should you have any questions or require additional information, please don’t hesitate to contact your local Kerry representative.
Thank you for your continued support and understanding.
