JAS Worldwide
6195 Barfield Rd.
Atlanta, GA 30328
Reduced global air cargo capacity, blank sailings, carrier solvency, increasing port congestion, and last-mile delivery delays are adding to an ever-growing riskier global environment that threatens supply chains.
Uncertain times often require creative measures. As shippers look to replenish inventory levels as well as budget logistics costs in such an unpredictable environment, partnering with a freight forwarder such as JAS helps to reduce such risks and cost concerns.
JAS has always worked closely with shippers to offer solutions that balance planning with responsiveness and agility. The COVID-19 pandemic highlights this need as shippers continue to benefit from the expertise of JAS during this crisis.
For several years, JAS Italy has worked with several Italian Government institutions by serving their logistics requirements. The relationship has become even closer during the pandemic as JAS took charge of a certain Italian Government institution’s import/export distribution process to obtain and distribute Personal Protective Equipment (PPE) commodities.
JAS initially arranged shipments from China, Brazil, and South Africa mainly through general cargo urgent flights. However, as demand dramatically increased, JAS recognized that the available market capacity was not meeting the needs of its customers. As a result, JAS ramped up the use of charter flights to better meet customer requirements.
Since February, JAS has moved millions of masks along with protective suits, visors, gloves, respirators, pulmonary ventilators, test tubes, and swabs.
By chartering flights, JAS was able to help other customers as well. For example, a German-based provider of medical and hygiene products turned to JAS to supply N95 masks to the governments of Germany, Belgium, Luxembourg, and the Netherlands. JAS utilized multiple chartered flights from Shanghai to Frankfurt to distribute not only to the governments involved but also to pharmacies for wider distribution to non-governmental organizations and the public at large.
JAS was able to support customers in Peru, Colombia, and Mexico building southbound connections with the charter flights arriving to the USA from Asia.
The ability to rapidly charter flights between countries could not have been accomplished in such a quick and efficient manner without the expertise of the JAS World Air Freight Team (WAT) whose close relationship with a number of aircraft owners allowed JAS to find the right equipment, mostly 747-8 and 747-4 cargo planes, at the right time and in the right location for its customers.
Collaboration with JAS China was crucial as requirements for moving Personal Protection Equipment changed almost on a daily basis. Communication was a key success factor with JAS China establishing a daily communication channel to keep the whole JAS network up to date with the latest information.
JAS has now implemented full scheduled flight operations in the transatlantic corridor. Offering weekend flights from Chicago to Frankfurt and back.
JAS is also continuing special charter flights both with cargo aircraft or ghost flights from Shanghai to Chicago and from Hong Kong to Los Angeles.
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October 2024 – Santiago, Chile – JAS Chile is proud to announce that it has been named a Great Place to Work for the second year in a row. This prestigious recognition highlights the company's commitment to fostering an inclusive, collaborative, and empowering work environment that prioritizes employee well-being and growth.
The Great Place to Work award is based on employee feedback, recognizing organizations that promote a strong company culture, trust, and engagement. JAS Chile’s continuous efforts to enhance its workplace culture have been instrumental in achieving this honor. The company places a high value on creating an environment where employees feel respected, heard, and motivated to contribute to the company’s success.
“We are incredibly proud to be recognized again as a Great Place to Work,” said Rodrigo Bustos, Managing Director of JAS Chile. “This achievement is a testament to our team’s dedication and our ongoing commitment to creating a workplace where every employee can thrive. We believe that when our people succeed, our business succeeds.”
JAS Chile continues to invest in initiatives that promote employee development, diversity, and inclusion, as well as programs focused on mental and physical health. The company strives to maintain a culture that supports work-life balance, innovation, and open communication, making it a rewarding place to work for all team members.
By receiving this award for the second consecutive year, JAS Chile reaffirms its status as a leading logistics company not only in terms of operational excellence but also as an employer of choice. The company remains committed to nurturing its talented workforce as it continues to grow and expand its global footprint.
With job actions suspended and ports resuming operations, efforts are now focused on clearing the significant backlog caused by the three-day strike. Full recovery is expected to take most of October, as dockworkers manage the accumulated vessels and cargo.
Carrier Actions: Force Majeure and Surcharges
In response to the disruption in the past days, major carriers like COSCO, ONE, CMA CGM, and Evergreen declared force majeure, which could lead to additional fees for shippers in the coming weeks. As the strike forced many carriers to divert containers to alternative ports, delays and added complications may persist.
With port operations now resuming, shippers should remain alert to detention and demurrage fees, as the previous suspension of these charges during the strike has ended, with trucks waiting outside the gates also those charges are to be expected. The ongoing congestion is expected to exacerbate these costs. Many carriers have also announced disruption surcharges, set to take effect by mid-October. However, shippers should not be surprised if these charges do not always materialize, as carriers often announce such fees without clarifying when they will be withdrawn. Shippers are encouraged to review their contracts and force majeure clauses to better understand potential additional costs.
Global Market Disruptions Ripple On
Although the strike is over, its effects are expected to ripple across global markets. In about two weeks, there may be a temporary reduction in export capacity from Europe, further driving up freight rates. This disruption could spread to other regions with a delayed impact. Global logistics networks will take time to fully stabilize, and rate volatility is likely to continue.
Air Freight Surge as Ocean Capacity Tightens
With ocean freight constrained, shippers are turning to air freight, causing rates to rise sharply. Time-sensitive shipments, in particular, are facing higher costs as air freight capacity is stretched. Businesses relying on fast deliveries should brace for continued increases in air freight costs.
JAS Worldwide: Supporting Your Supply Chain Needs
JAS Worldwide remains committed to helping businesses navigate these challenges. Our teams are actively monitoring the situation and are ready to provide customized solutions to minimize disruptions. Whether you need alternative air freight services, rerouting assistance, or expert advice, JAS Worldwide is here to support your supply chain. Contact your JAS representative today to create a strategic plan that ensures your operations remain resilient and efficient.
In a pivotal development for global logistics, the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) jointly announced late on October 3 that they reached a tentative wage agreement. The Master Contract, governing work at East and Gulf Coast ports, has been extended until January 15, 2025, allowing further negotiations on unresolved issues. As a result, all job actions have ceased, and port operations will resume immediately under the Master Contract.
While this agreement averts a prolonged crisis that could have severely impacted global supply chains, the three-day strike has already caused significant operational disruptions. It is anticipated that full port recovery will take between 2-3 weeks, depending on how swiftly dockworkers manage the backlog of vessels waiting to unload billions of dollars worth of goods. However, it is important to note that not all terminals have reopened immediately. Some port gates will only reopen on October 7, and vessel operations have staggered reopening times, further complicating the situation.
Vessels Anchored and Congestion Worsening
Even though operations have restarted, many container ships remain anchored off the U.S. East and Gulf Coasts, and new vessels continue to arrive. Several ships have diverted to ports such as Freeport, Bahamas, to offload U.S.-bound cargo. This diversion risks creating bottlenecks at critical transshipment hubs, including Cartagena, Panama, Kingston, and Caucedo. Clearing the backlog at these ports may take time, potentially leading to delays across global supply chains.
Spike in Freight Rates Linked to Strikes
Recent data indicates that freight rates have surged, with shippers feeling the direct impact of the strikes. On the most affected routes, such as North Europe to the U.S. East Coast, average spot rates have increased by 58% since the end of August. This highlights the immediate financial strain on businesses that rely on stable shipping rates.
Force Majeure, Surcharges, and Carrier Adjustments
Before the agreement, most major carriers, including COSCO, ONE, CMA CGM, and Evergreen, declared force majeure, which could result in additional charges for shippers in the coming weeks. Even though the strike has ended, it forced carriers to divert containers to alternative ports outside the U.S., creating further complications.
With the reopening of ports, shippers should stay vigilant regarding potential detention and demurrage fees, as the "stopping the clock" that applied during the strike no longer holds. Congestion over the next several weeks will only compound the situation.
Many carriers have also announced disruption surcharges, expected to come into effect by mid-October. However, it's worth noting that carriers often announce such fees but rarely communicate when they are rescinded. Shippers should not be surprised if these surcharges do not fully materialize. Businesses are advised to review shipping contracts, particularly force majeure clauses, to understand better how surcharges and additional costs may apply.
Global Disruptions Ripple Across Markets
While the strike has concluded, its after effects will likely be felt globally. A temporary reduction in export capacity from Europe is expected in about two weeks, which could apply upward pressure on freight rates. This pattern may also play out in other regions with a longer lag. The global logistics network will take time to normalize, and rates are expected to remain volatile.
Air Freight Surge as Shippers Seek Alternatives
With ocean freight options constrained, demand for air freight has skyrocketed, driving rates higher. Time-sensitive shipments are particularly affected, with shippers facing increased costs as air freight capacity tightens. Businesses relying on urgent deliveries should prepare for continued cost increases in the near future.
JAS Worldwide: Here to Support You
In these challenging times, JAS Worldwide remains dedicated to supporting your business. Our teams are actively monitoring the situation and delivering customized solutions to minimize disruptions. Whether you need air freight alternatives, rerouting options, or expert logistics advice, JAS Worldwide is ready to help you navigate these complexities. Reach out to your JAS representative today to develop a strategic plan that ensures your supply chain remains resilient and efficient.
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