As the port strike ensues, we are first and foremost focused on supporting and navigating our client's shipments through any disruptions. We will share our own insights and those of trustworthy experts in global shipping such as the one linked here. Delays have started and costs across all major carriers are on the rise.
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Day 2 of the USEC strike and day 291 of the Red Sea diversions The strike continues and the official announcement from the US White House yesterday shows the administration is siding with the ILA in the conflict. Unless USMX backs down and fulfills ILA’s requirements there appears to be little chance of a short-term resolution. I might of course be wrong, but my take on this is that it is now more likely we are looking at weeks rather than days as a duration for the conflict. MSC has announced a further increase in their Emergency Operation Surcharge (EOS) from N.Europe to N.America. The new level is 2500 USD/40’ from Nov.1st, up from the EOS of 1500 USD/40’ applicable from Oct.1st. In addition, MSC will also have a PSS of 2000 USD/40’ on the same trade from Nov.1st, up from the current level of 1000 USD/40’. CMA CGM has declared force majeure on account of the strike. Explicitly they state:” CMA CGM is invoking Term 10 of its Bill of Lading and may charge any additional operational costs associated with vessels delayed due to the strike to cargo on the water as of October 1, 2024 with a U.S. East or Gulf Coast port of discharge.” And furthermore: “for all cargo received on or after October 11, 2024, a Local Port Charge (LPC) will apply as per the governing tariff(s).?Cargo received on or after October 11, 2024 will not be subject to additional operational costs under Term 10(a) as described above.” ONE has also declared force majeure and writes: ”ONE reserves all rights under ONE’s Bill of Lading Terms including under Clauses 17 and 18.” ONE updated their overview of alternative cargo destinations, now with “NYK Demeter” on the AL5 Eur-America service omitting Port Everglades and discharging the USEC cargo in Halifax. HMM announced a 3000 USD/40’ GRI for TP Eastbound to both US and Canada from Nov.1st. Applies to all destinations, not just East Coast. The strike in the Maisonneuve and Viau terminals in Montreal is continuing, and is presently expected to last until October 3rd at 06:59 in the morning. Other terminals are operating as usual. The ripple effects we will see unfold in coming weeks will include congestion in Central American hubs, sharp drop in export capacity out of all regions starting with Europe and S.America as the planned vessels do not arrive from the US in a couple of weeks. This will lead to congestion issues in Europe and S.America as local export cargo might arrive in ports destined for the US but with no vessels to pick up the cargo. This will then gradually spread to other regions as well. No new attacks from the Houthies. The reported attacks Sunday were against the crude oil tanker “Cordelia Moon” which suffered a punctured ballast tank and bulk carrier “Minioan Courage” which was reported as having sustained damage. Oil tanker “Sounion” which was attacked some 6 weeks ago is now being reported in a status where some fires are extinguished and others under control.