As you may have seen in recent news, labor negotiations between the ILA and the USMX remain unresolved. While a tentative agreement was reached in October 2024 to extend the Master Contract until January 15, 2025, key issues are still under negotiation, raising concerns about potential port disruptions.

Despite ongoing efforts to reach a resolution, the risk of disruption is increasing as the deadline approaches, though the situation remains dynamic.

Current Negotiation Status:

• Tentative Agreement: On October 3, 2024, ILA and USMX reached a tentative agreement on wages and extended the Master Contract until January 15, 2025. This extension allows both parties to continue negotiations on outstanding issues.
• Concerns Over Automation: The ILA has expressed strong opposition to any form of automation that could jeopardize jobs. While they support modernization that enhances efficiency, they insist that it should not come at the cost of job losses. The ongoing discussions have become increasingly tense as both sides strive to find common ground.

Potential for Disruption:

As negotiations remain stalled, the risk of disruption at East and Gulf Coast ports is escalating. Stakeholders across various industries are urging both parties to reach a resolution to avoid further economic impacts.

Carrier Surcharges:

Proactively, several carriers, including CMA CGM, Hapag-Lloyd, and ZIM, have announced the implementation of surcharges due to the potential for labor disruptions:

• ZIM: Starting January 10, 2025, ZIM will implement an ILA Strike Surcharge for cargo moving to or from U.S. East Coast and Gulf ports. This surcharge will apply until further notice and is intended to cover additional costs incurred due to potential strikes or labor-related disruptions.

• Hapag-Lloyd: The company has introduced two surcharges—the Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID)—effective January 20, 2025. These surcharges will cover additional costs from labor disruptions and will apply if a strike occurs.

• CMA CGM: Similar measures have been taken by CMA CGM, which has warned clients about potential surcharges for cargo moving in and out of U.S. East and Gulf Coast terminals in light of ongoing negotiations.

As the deadline draws near, it is anticipated that all carriers will implement similar surcharges. As we continue to monitor developments, JAS as well reserves the right to activate the BWL congestion surcharges should any actions be taken by the ILA.

Impact of Previous Strike Action:

The previous three-day strike in October 2024 caused significant delays and operational disruptions, affecting:

• 36 ports handling over half of U.S. container volume.
• Increased fees for freight storage and detention.
• Prolonged transit times due to vessel rerouting.

Mitigating Future Disruptions:

To minimize risks, businesses should consider these strategies:

• Divert shipments to alternate ports, such as those on the West Coast.
• Anticipate congestion at rerouted locations.
• Leverage air freight for time-sensitive cargo.
• Utilize intermodal solutions for inland transportation.
• Be prepared for increased shipping costs and fees.
• Stay informed and work proactively with logistics partners to reduce delays.

Guidance from JAS:

JAS Worldwide continues to support clients during this uncertain period. Businesses are encouraged to prepare for potential disruptions by exploring alternative routing options and staying informed about ongoing negotiations. JAS is available to provide tailored solutions to help mitigate risks associated with these developments.As the January deadline approaches, both parties must work diligently to resolve their differences and secure a stable working environment for longshore workers and businesses alike.

The Lunar New Year, also known as the Spring Festival or Chinese New Year, is a time of celebration, family reunions, and traditions observed across Asia. This year, the holiday begins on Tuesday, January 28, and celebrations typically lasts 7-15 days. It marks the start of a new lunar calendar year and is one of the most significant cultural events in the region. 

While it’s a time of joy and renewal, the holiday also impacts supply chains worldwide. Factory shutdowns, reduced operations, and increased freight demand in the weeks leading up to and following the holiday can result in significant delays if not planned for in advance. 

What to Expect During Lunar New Year 

• Factory Closures: Many manufacturers in Asia will pause operations up to two weeks before the holiday. 
• Congested Shipping Lanes: The weeks leading up to the holiday will see a spike in freight demand, while port congestion may affect cargo movements after celebrations conclude. 
• Space and Rate Volatility: Limited capacity on major transport routes could lead to higher costs and scheduling difficulties. 

To minimize disruptions, JAS urges customers to: 

• Book Shipments Now: Lock in shipping schedules as soon as possible to secure space. 
• Communicate with Suppliers: Confirm production timelines to avoid unexpected delays. 
• Explore Alternatives: Be open to flexible solutions like air freight or multimodal transportation to keep your supply chain moving. 

JAS is Here to Support You 

JAS’s global network is ready to help customers navigate the challenges of this season. Our teams are closely monitoring carrier capacity, port operations, and local developments to provide proactive solutions and minimize disruptions.

Potential for Renewed ILA Strike Over Automation Disputes

Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a critical impasse, primarily due to disagreements over port automation. After walking away from talks in November 2024, the ILA has signaled the possibility of a renewed strike if their demands are not addressed before the January 15, 2025, deadline.

This situation follows a previous three-day strike in early October 2024, which temporarily halted operations at ports along the East and Gulf Coasts. While those ports have since resumed operations, the disruption caused widespread delays and financial strain on the U.S. economy. The recent suspension of strike action was agreed upon for 90 days, ending January 15, 2025, but with negotiations stalled, the risk of further disruption looms large.

Impact of Previous Strike Action

The October strike caused significant delays, cost overruns, and operational disruptions, including:

• Shutdowns at 36 ports handling over half of U.S. container volume.
• Increased fees for freight storage, detention, and other services.
• Prolonged transit times due to vessel rerouting.
• Downstream effects on retailers and supply chains during peak season.

Mitigating Future Disruptions

To minimize risks, businesses should consider these strategies:

1. Divert shipments to alternate ports, such as those on the West Coast.
2. Anticipate congestion at rerouted locations.
3. Leverage air freight for time-sensitive cargo.
4. Utilize intermodal solutions for inland transportation.
5. Be prepared for increased shipping costs and fees.
6. Stay informed and work proactively with logistics partners to reduce delays.

Guidance from JAS

JAS remains committed to supporting clients during these uncertain times. If your operations are at risk of being impacted, we strongly encourage you to reach out to your JAS representative. Our team can provide tailored solutions to mitigate disruptions, streamline supply chains, and optimize freight options. Whether through alternative routing, expedited services, or strategic planning, JAS is here to help you navigate these challenges effectively.

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.

In a significant development, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) issued a joint statement late on October 3, announcing that they have reached a tentative agreement on wages. Both parties have also agreed to extend the Master Contract until January 15, 2025, allowing additional time to negotiate other unresolved issues. Effective immediately after the announcement, all ongoing job actions ceased, and work covered by the Master Contract will resume across the East and Gulf Coast ports.

While this agreement brings temporary relief, the backlog of vessels and congestion at key ports remains a critical challenge for the supply chain. Over the last three days, the disruption has caused significant delays that will take weeks to clear.

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Vessels Stalled and Rising Congestion

Many container ships remain anchored off the U.S. East and Gulf Coasts, with more arriving. Several vessels are also stationed outside Freeport, Bahamas, attempting to offload U.S. East Coast cargo. This situation threatens to create severe congestion at Freeport, Cartagena, Panama, Kingston, and Caucedo. The backlog at these key ports will be challenging to clear, potentially causing delays that ripple throughout the global logistics network.

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Force Majeure & Carrier Adjustments

As of now, major carriers like COSCO, CMA CGM, Evergreen and ONE have declared force majeure for the affected regions, invoking Clause 20 of their Bill of Lading. Despite these declarations, some carriers are still accepting bookings for U.S. East and Gulf Coast ports. This suggests that carriers may be betting on a short-term resolution. However, given the scale of the disruption, vessel cancellations and further delays remain likely, especially if congestion worsens at transshipment hubs. The effects are expected to reach Europe within the next two weeks.

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Global Impacts & Growing Disruptions

Although the strike has ended for now, the three days of halted port activity have already reduced export capacity from Europe, Latin America, and other regions. This shrinkage has caused bottlenecks at origin ports, further disrupting global trade. Additionally, ongoing shipping diversions in the Red Sea, now entering their 292nd day, are compounding delays in other regions, making global supply chains even more fragile.

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Air Freight Demand and Rising Rates

As ocean freight options dwindle, demand for air freight has surged significantly, driving air freight rates sharply upward. This trend particularly impacts time-sensitive shipments, adding new cost pressures for shippers. Companies relying on urgent deliveries should brace for continued rising costs as air freight capacity tightens.

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Worsening Congestion and Long-Term Disruptions

Despite the strike’s resolution the congestion at key ports is expected to take weeks, if not months, to clear. Major transshipment hubs like Freeport, Cartagena, Panama, Kingston, and Caucedo are already experiencing delays, and congestion is expected to worsen. Businesses must continue to prepare for prolonged disruptions, as the backlog will have lasting effects on global trade routes and schedules.

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Mitigation Strategies

• Monitor Key Hubs: Stay informed on congestion levels at Freeport, Cartagena, Panama, Kingston, and Caucedo to anticipate potential delays.
• Review Shipping Contracts: Examine force majeure clauses and carrier agreements to better understand the implications of surcharges and responsibilities, especially considering current disruptions.

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JAS Worldwide Is Ready to Support You

Our people remain fully committed to assisting your business through these challenging times. Our team is not closely monitoring the situation and already delivering tailored solutions and effective contingency plans to keep your supply chain moving smoothly. Whether you require air freight alternatives, rerouting strategies, or expert advice, we are ensuring that disruptions are minimized. Contact your JAS representative today to learn how our proactive approach can help you navigate these challenges and create a logistics plan that meets your specific needs.

As the ILA strike reached its third day, the lack of progress between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) remained apparent. The USMX rejected preconditions for talks, and the ILA stayed silent, leaving negotiations at a standstill.

However, there is growing speculation in the market that discussions between the two sides may now be underway. In a notable shift, the ILA has not posted any updates on its normally active media page, and there have been no public statements from either party today. This uncharacteristic silence suggests that both groups might be working behind the scenes to resolve the dispute.

We will continue to monitor the situation closely and provide updates as more information becomes available.

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Vessels Stalled and Rising Congestion

Nearly 60 container ships are anchored off the U.S. East and Gulf Coasts, with more arriving by the hour. Several vessels are also waiting outside Freeport, Bahamas, likely attempting to offload U.S. East Coast cargo. This will likely lead to severe congestion at Freeport, similar to the growing bottlenecks anticipated at other transshipment hubs such as Cartagena, Panama, Kingston, and Caucedo.

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Force Majeure & Carrier Adjustments

COSCO has joined CMA CGM and ONE in declaring force majeure for the affected regions, invoking Clause 20 of its Bill of Lading. Despite this, some carriers are still accepting bookings for U.S. East and Gulf Coast ports, though vessel cancellations remain a risk. This suggests carriers are hoping for a short-term resolution. However, if the strike continues, backlogs in transshipment hubs will likely trigger widespread congestion, with effects felt in Europe within two weeks.

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Global Impacts & Growing Disruptions

With vessels unable to dock at U.S. ports, export capacity from Europe, Latin America, and other regions is shrinking, potentially creating bottlenecks at origin ports and disrupting global trade. In its 292nd day of ongoing diversions, the Red Sea is also adding to the mounting global disruptions.

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Air Freight Demand and Rising Rates

As ocean freight options become more constrained, the demand for air freight has surged. This spike in demand is significantly increasing air freight rates, making it a more expensive—but crucial—option for businesses needing time-sensitive shipments. Companies relying on urgent deliveries should prepare for higher costs as air freight capacity tightens.

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Key Insights for Businesses

1. Worsening Congestion: The number of anchored vessels is expected to double by the end of the week, and clearing this congestion may take months.
2. Transshipment Hubs Under Pressure: Key hubs in the Caribbean and Latin America are already experiencing growing congestion, with delays expected to worsen.
3. Air Freight Costs on the Rise: The surge in air freight demand is driving up rates sharply, especially for time-critical shipments, adding new cost pressures for shippers.
4. Long-Term Disruptions: Businesses must prepare for prolonged disruptions, as the strike could last for weeks, causing ripple effects across global trade routes.

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Mitigation Strategies

• Alternative Routing: Consider West Coast ports or air freight options, though both incur increased costs and delays.
• Monitor Key Hubs: Keep track of congestion levels at Freeport, Cartagena, Panama, Kingston, and Caucedo to anticipate potential delays.
• Review Shipping Contracts: Review force majeure clauses and carrier agreements to better understand surcharges and responsibilities.

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JAS Worldwide is Ready to Support You

Our people remain fully committed to assisting your business through these challenging times. Our team is not only closely monitoring the situation but is already delivering tailored solutions and effective contingency plans to keep your supply chain moving smoothly. Whether you require air freight alternatives, rerouting strategies, or expert advice, we are ensuring that disruptions are minimized. Contact your JAS representative today to learn how our proactive approach can help you navigate these challenges and create a logistics plan that meets your specific needs.

The strike has entered its second day, and the global impact is growing more pronounced. Yesterday's announcement from the White House confirmed the U.S. administration's support for the International Longshoremen's Association (ILA) in their labor dispute. With no significant concessions from the U.S. Maritime Alliance (USMX) on the horizon, it appears increasingly likely that this conflict will extend beyond just a few days, potentially lasting for an extended period. The prolonged uncertainty in port operations is compounding supply chain disruptions across industries worldwide.

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Key Updates from Major Carriers:

1. CMA CGM Declares Force Majeure: CMA CGM has invoked force majeure due to the strike, citing Term 10 of their Bill of Lading. As a result, operational costs from vessel delays at East and Gulf Coast ports will be charged to cargo on the water as of October 1st, 2024. A Local Port Charge (LPC) will apply to all incoming cargo from October 11th, but this will not include additional operational costs under Term 10(a).
2. ONE's Force Majeure & Route Adjustments: ONE has also declared force majeure, invoking rights under Clauses 17 and 18 of their Bill of Lading Terms. In addition, the carrier has adjusted routes, with the “NYK Demeter” on the AL5 Eur-America service now skipping Port Everglades and discharging USEC cargo in Halifax instead.
3. Montreal Terminal Strikes: Strikes at the Maisonneuve and Viau terminals in Montreal continue, with operations expected to resume by October 3rd. Other terminals are functioning, but the disruption is already causing ripple effects across the supply chain.

What to Expect:

The effects of the strike are beginning to take hold, with growing congestion in Central American hubs and a significant drop in export capacity from Europe and South America. Delays in U.S. vessel arrivals will lead to further congestion across global trade routes, creating additional bottlenecks for shippers worldwide.

1. Export Bottlenecks: As vessels fail to arrive from the U.S., export capacity from Europe and South America will diminish. This will trigger a ripple effect across regions, delaying shipments and complicating global trade flows.
2. Carrier Rate Increases: Along with the operational delays, businesses should expect rising logistics costs. All carriers have already implemented surcharges, and other rate hikes are expected as the strike continues.
3. Air Freight Demand and Rising Rates: With ocean freight options severely constrained, demand for air freight is surging. This increased demand is driving up air freight rates significantly, making it a more costly but crucial option for time-sensitive shipments. Businesses relying on urgent deliveries should prepare for elevated costs in this sector as capacity tightens.

Mitigation Strategies:

1. Explore Air Freight Options: Given the strain on ocean freight, air freight is emerging as the fastest alternative for critical shipments. However, businesses should anticipate higher costs due to skyrocketing demand.
2. Plan for Extended Delays: Even after the strike concludes, a backlog of cargo will take weeks to clear. Businesses must adjust timelines and inventory planning to accommodate extended transit times.
3. Review Carrier Contracts: With force majeure clauses now in play, it is essential to review shipping contracts to understand responsibilities regarding surcharges and rate increases. Clarifying these terms now will help avoid unexpected costs.

JAS Worldwide Is Here to Help:

JAS Worldwide is committed to supporting you through these challenging times. Our team is actively monitoring the situation and is ready to offer tailored solutions, including air freight options and alternative routing strategies, to ensure your supply chain remains operational. Contact your JAS representative today to discuss how we can help minimize the impact of these disruptions and develop a logistics plan suited to your business needs.

Urgent Notice: As of 12:01 AM on October 1st, a major strike involving nearly 50,000 members of the International Longshoremen’s Association (ILA) has disrupted operations at critical East and Gulf Coast ports. This unprecedented work stoppage is already halting the flow of goods through vital cargo hubs from Maine to Texas, significantly impacting U.S. imports and exports. The strike is expected to ripple across the entire supply chain, threatening U.S. businesses with delays, higher costs, and logistical bottlenecks.

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What’s Happening: For the first time in decades, dockworkers at 36 ports along the East and Gulf Coasts have gone on strike over key issues, including wages and the increasing use of automation. This disruption extends beyond U.S. borders, as solidarity actions have also been announced by labor unions in Canada, with the Montreal Longshoremen’s Union planning work stoppages at major terminals. Norfolk Southern has issued a port curtailment schedule, further complicating inland transport, while surging ocean freight rates and growing port congestion loom large for businesses dependent on timely deliveries.

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What’s at Stake:

Operations at 36 key ports—responsible for handling nearly half of all U.S. trade—are at a standstill. The economic impact will be felt across industries:

• Severe Supply Chain Disruptions: Container ports are halted, delaying critical shipments and production schedules.
• Extended Transit Times: Rerouting and bottlenecks will push delivery times beyond standard windows, potentially forcing costly adjustments.
• Higher Freight Rates & Surcharges: Increased demand and storage congestion have already triggered ocean carrier surcharges. Some shipping lines published Force Majeure declarations.
• Global Ripple Effects: Heightened demand for alternate shipping routes and ports may worsen congestion globally, slowing the movement of goods across borders

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Key Impacts for Your Business:

• Port Closures: Expect significant shutdowns at key East and Gulf Coast ports, causing massive delays.
• Shipping Delays: Cargo destined for these regions will face prolonged wait times, even after the strike is resolved.
• Costly Storage Fees: Stranded cargo could incur substantial detention and demurrage charges.
• Industry-Wide Fallout: Retailers and importers—particularly during peak season—are most at risk for severe disruptions.
• Global Shipping Congestion: Anticipate an increase in freight rates as demand for alternative routes skyrockets.

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Proactive Recommendations to Minimize Disruption:‍

1. Prepare for West Coast Congestion: Cargo will likely reroute to West Coast ports, further straining capacity and driving up costs.
2. Expect Docking Delays: Once the strike ends, a backlog of shipments will still cause prolonged delays at East and Gulf Coast ports.
3. Consider Air Freight: For urgent shipments, air freight offers the quickest solution. While demand will likely drive rates up, JAS provides a range of air cargo options.
4. Plan for Increased Costs: Expect rising shipping rates, along with elevated storage, detention, and demurrage fees as congestion intensifies.
5. Review Incoterms: Ensure that all financial responsibilities for delays or rerouting are clear between all parties involved.

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JAS is Here to Support You:

During this critical period, JAS is committed to minimizing the disruption to your business. We’ve developed comprehensive contingency plans, including:

• Alternative Solutions: Air freight and strategic rerouting options for time-sensitive shipments.
• Tailored Logistics: Our team will work closely with you to create customized strategies that maintain supply chain continuity.

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Next Steps:

Reach out to your JAS representative today to discuss tailored logistics solutions and how we can help your business navigate this challenging situation.

JAS Worldwide is dedicated to supporting you through these turbulent times. Rest assured, we’re working diligently to keep your operations running as smoothly as possible.

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There is no resolution in sight: negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have stalled, making a strike by 45,000 dockworkers look inevitable. The strike, which is set to commence at midnight, poses a critical threat to U.S. supply chains, with widespread port closures expected across the East and Gulf coasts.

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What’s at Stake: This disruption could grind operations to a halt at 36 key ports—responsible for handling nearly 50% of all U.S. trade. The ripple effect on businesses could be significant, leading to:

• Severe supply chain delays and halted operations at crucial container ports.
• Extended transit times and the need for costly rerouting.
• Higher shipping rates and additional fees due to cargo congestion and storage.
• Surcharges from carriers already announced, including declarations of Force Majeure by some.
• Global shipping slowdowns as bottlenecks intensify.

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Key Impacts for Your Business:

• Port Closures: Expect major disruptions at East and Gulf Coast entry points.
• Shipping Delays: Prolonged transit times could lead to increased costs for businesses and consumers.
• Costly Storage Fees: Stranded cargo may result in significant detention and demurrage charges.
• Industry-Wide Ripples: Retailers and importers will feel the effects, especially during peak season.
• Global Congestion: Heightened demand for alternative routes and services will drive freight rates higher.

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Proactive Recommendations to Minimize Disruption:

1. Prepare for West Coast Congestion: As cargo reroutes to the West Coast, anticipate delays and increased fees due to congestion.
2. Expect Docking Delays: Cargo destined for East and Gulf Coast ports will experience prolonged wait times, even post-strike.
3. Consider Air Freight: For urgent shipments, air freight remains the quickest option. JAS offers a variety of air cargo solutions, though high demand will likely push rates up.
4. Plan for Increased Costs: Rising demand and delays will lead to higher shipping rates, along with elevated storage, detention, and demurrage fees.
5. Review Incoterms: Ensure that all parties are clear on financial responsibilities for additional costs caused by delays or rerouting.

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JAS is Here to Support You:

To help navigate these challenges, JAS has developed contingency plans. We recommend exploring alternative solutions like air freight for time-sensitive shipments or strategic rerouting to minimize delays. Our team is ready to tailor logistics strategies to keep your supply chain moving.

Contact your JAS representative today to discuss how we can support your business during this critical time.

With key issues such as wages and automation unresolved, talks between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have broken down. If no agreement is reached by September 30, 2024, the ILA plans to initiate a strike on October 1, 2024, which will have significant consequences for businesses relying on U.S. East and Gulf Coast ports.

What This Means for Your Business:

The ILA represents workers at major U.S. container ports, and a strike could result in:

• A halt to container operations at over half of U.S. ports.
• Major delays at East and Gulf Coast entry points.
• Prolonged transit times and rerouted vessels, leading to increased shipping costs.
• Cargo stranded at ports, triggering costly storage and detention fees.
• A ripple effect across industries during the peak season, from importers to retailers.
• Heightened global shipping congestion and elevated freight rates.

Key Updates:

• Vessel Rerouting: Hapag-Lloyd and ONE have already adjusted operations, rerouting 11 vessels to alternative ports. For example, "Alessia" (AN2 service) will offload Houston and New Orleans-bound cargo in Cartagena, Colombia, while "Tempanos" (ANG service) will discharge similar cargo in Altamira, Mexico, on October 1. ONE plans to return the cargo to the U.S. once the strike ends.
• Updated Surcharges: ONE has announced updated strike-related surcharges: CGD (except China) at $2,000/40' and CON (China) at $1,000/40', reflecting different regulatory requirements. MSC has also introduced a $3,000/40' Emergency Operation Surcharge (EOS) from China, Japan, Korea, and Southeast Asia, effective October 27.
• Reefer Cargo: MSC will continue accepting dry container bookings into USEC and USGC but reserves the right to reject reefer bookings and will not assume liability for those left in strike-affected terminals.

Recommendations for Shippers:

• Prepare for West Coast Congestion: As many shippers reroute to West Coast ports, anticipate longer wait times, increased fees, and congestion.
• Expect Delays: In-transit cargo bound for East and Gulf Coast ports will face docking delays, with backlogs persisting even after a strike ends.
• Consider Air Freight: For time-sensitive shipments, air freight remains the fastest alternative. JAS offers multiple air cargo solutions.
• Plan for Higher Costs: Shipping rates will rise due to increased demand, while delays will lead to higher demurrage, detention, and storage fees.
• Review Incoterms: Ensure clarity on financial responsibilities for delays and fees as determined by Incoterms. Be prepared to manage rerouting and storage costs.

To mitigate potential disruption, JAS has contingency plans ready. We recommend exploring alternative logistics solutions, such as air freight for high-priority shipments and can assist with rerouting options. Contact your JAS representative to discuss tailored strategies for keeping your cargo moving smoothly amid these challenges.

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled, with key issues like wages and automation remaining unresolved. If an agreement is not reached by September 30, 2024, the ILA is set to strike on October 1, 2024.

What This Means for Your Business

The ILA represents maritime workers at container ports across the U.S. East and Gulf Coasts. A strike would result in:

• A halt to container handling at over half of U.S. container ports.
• Severe delays at East and Gulf Coast entry points.
• Significant delays for cargo already en route to these ports.
• Rerouted vessels, leading to extended transit times and higher costs.
• Stranded cargo at ports, adding storage and detention fees.
• A ripple effect on importers, retailers, and others during the peak season.
• Increased global shipping costs and freight congestion.

Recommendations for Shippers and Clients

1. Prepare for Congestion at West Coast Ports: Many shippers have already redirected cargo to the West Coast, leading to heavy congestion. Expect extended transit times, higher fees, and longer wait times for unloading.
2. Expect Delays for In-Transit Cargo: Ships bound for East and Gulf Coast ports will face docking delays. Even after the strike, expect backlogs at ports before operations normalize.
3. Use Air Freight for Urgent Shipments: Air freight is the fastest alternative for time-sensitive shipments. JAS offers multiple air cargo solutions.
4. Prepare for Higher Shipping Rates: Costs will rise dramatically due to increased demand for freight capacity.
5. Expect Higher Container Fees: Delays will trigger higher demurrage, detention, and storage fees. 
6. Review Financial Responsibilities: Incoterms determines who bears the cost of delays and fees. Shippers and importers must be prepared to address storage and rerouting costs.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible. To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can also assist with rerouting options.

Please be advised that Golden Week in China, from October 1st to 7th, will impact logistics operations across the region. During this holiday, many businesses, including factories, suppliers, and transportation companies, will pause their operations, potentially affecting the shipping schedules.  

Key Things to Consider:  

• Delays Expected: Port, airfreight, and land transportation services may experience delays before, during, and after the holiday week as businesses close or reduce capacity.  
• Capacity Challenges: There may be an increase in demand for space on vessels and flights leading up to Golden Week, potentially limiting availability.  
• Planning Ahead: We encourage our customers to plan shipments early to avoid disruptions. Bookings and arrangements made in advance can help mitigate the impact.  

Our team is here to assist you with any questions and ensure minimal disruption to your supply chain. Please don’t hesitate to reach out to your local JAS contact for support.  

As you are likely aware, there is a significant risk of a strike by the International Longshoremen’s Association (ILA) if negotiations with the United States Maritime Alliance (USMX) do not resolve before the current contract expires on September 30, 2024. This could lead to major disruptions at ports across the East and Gulf Coasts, which handle roughly 43% of U.S. imports. With the potential for a work stoppage as early as October 1, we are prepared to proactively manage and execute contingency plans.

If you have any concerns or would like to explore alternative solutions, please reach out to your JAS representative. We have a range of contingency options ready to be implemented immediately to ensure your shipments continue moving as smoothly as possible.

Operational Considerations:

If the strike occurs, disruptions across the supply chain are very likely, potentially leading to delays and increased costs. While surcharges may be anticipated, we are keeping a close watch on developments and will keep you informed as more information becomes available.

Alternative Solutions – Airfreight and Routing Options:

To minimize potential delays, we recommend exploring alternative logistics solutions, such as airfreight, for high-priority shipments. Our team can assist with re-routing options, including shifting to West Coast ports where feasible, though we are aware of potential congestion in those areas as well.

Potential Disruptions:

In the event of a full strike, operations at affected ports could come to a standstill, leading to significant delays for inbound and outbound shipments. We are prepared to assist you in mitigating these disruptions and will provide regular updates as the situation evolves.

Update - September 4, 2024 

We are happy to report that all essential systems to our operations have been restored following the recent incident. JAS SmartHub is now functioning, so customers are able to track their shipments in real time. The vast majority of customers and vendors are being serviced as usual, and any backlogged requests continue to be worked through by our dedicated team. For any customers still dealing with specific issues, we are working to resolve those as quickly as possible.

While our operations have been restored, we continue to remain vigilant and closely monitor any potential risks. We are continuing to work with cybersecurity experts to finalize our investigation and further enhance the security of our systems.  

We are extremely appreciative of the patience and support that our customers and vendors have provided as we have worked to resolve this issue. Given our restoration progress, at this time, we are no longer anticipating posting additional updates on this page. We will continue to work with customers directly to resolve any issues. For any specific questions that you may still have regarding this incident, please reach out to your regular JAS contacts and they will support you.

‍

Update - September 3, 2024 

Our central operating systems and all core functions are operating as normal. With most customers and vendors doing business with JAS at the pre-incident level, we are approaching full recovery while staying vigilant, closely monitoring potential risks, and enhancing our security measures to mitigate potential future disruptions. We conducted a global password reset and have taken additional measures to enhance our cybersecurity posture.

Backlogged requests are at a manageable level, and many local-specific functionalities are safely coming back online. Our US Customs data flows are also back online, with a couple of exceptions, which are still undergoing restoration and are not critical to our operations. Customers should reach out to their regular JAS contacts with any specific questions about their shipments.

We remain fully committed to supporting our customers during this period and will continue to provide updates on this page as we have additional information to share.

‍

Update - September 2, 2024 

Our central operating systems are working well, and all core functions are operating. We are approaching full recovery, and most of our customers and vendors have resumed doing business with JAS at the pre-incident level across most geographies. We are staying vigilant, closely monitoring potential risks, and implementing additional security measures to mitigate future disruptions.
 
Any remaining backlogged requests and local-specific functionalities are being tackled and resolved methodically and professionally.
 
We remain fully committed to supporting our customers during this period and will continue to provide updates on this page as we have additional information to share.

‍

Update - September 1, 2024 

We are progressing steadily toward full restoration while remaining vigilant. Our team continues to closely monitor any potential risks and implement additional security measures to mitigate future disruptions.

Our central operations are fully operational, customers are being served, billing and payment systems are operational, and data integration with customers' and vendors' systems has been restored in most cases. Our team continues to work through any remaining backlogged requests, and local-specific functionalities are being tackled and resolved.

We remain fully committed to supporting our customers during this period and will continue to provide updates on this page as we have additional information to share.

‍

Update - August 31, 2024

Our dedicated team has been working tirelessly through the weekend, around the clock, to restore services and provide support to our customers. Our central operations systems have been up and running since yesterday, our team is working through backlogged requests, and more functionalities are being released over the coming days. Our customers and vendors have been communicating safely, continuously, and promptly with JAS via our email system and website, which were never impacted as a result of this incident, and we are also pleased to report that our primary customer facing portal, JAS SmartHub, is safely back online as well.  
 
We are on the path of stability and approaching full recovery. As we continue to work to restore all impacted systems, we will communicate specific workarounds on a case-by-case basis. We are taking a careful and step-by-step approach while closely monitoring any potential risk and implementing additional security measures to mitigate future disruptions.
 
We remain fully committed to supporting our customers during this period and minimizing disruptions wherever possible. We will continue to provide updates on this page as we have additional information to share.

‍

Update - August 30, 2024

We are pleased to share that we have reached a significant milestone in our system restoration. C1, our central operations system, is back up and running, and the system is ready for use worldwide.

Our dedicated team is working tirelessly as we continue to restore services and provide support to customers while implementing additional security measures to mitigate future disruptions. As we move forward, we are taking a careful, step-by-step approach to ensure a stable recovery. Services will be restored gradually, and some functions may take longer to return to full operation. We remain fully committed to supporting our customers during this period and minimizing disruptions wherever possible. We will continue to provide updates on this page as we have additional information to share.

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Update - August 29, 2024‍

We are making significant progress in our recovery efforts, with our dedicated JAS team members working tirelessly to restore our services and provide support to our customers. While we continue our thorough investigation and cautionary measures, we have a path forward. Our email system and website remain secure, so it is safe to communicate with our team as usual.

We appreciate the tremendous support from our customers and the industry community. We remain committed to transparency and will continue to provide updates on this page as we reach new milestones in our recovery process.

‍

Update - August 28, 2024‍

Our investigation and necessary actions to recover continue to progress. JAS team members are working around the clock to restore and resume services to our customers and vendors. Although we still do not have a definite time frame, in many countries we have successfully activated contingencies locally to serve urgent needs, and we are happy to report that the majority of our contract logistics business and a few of JAS entities have not been impacted. We remain committed to transparency and will provide further updates on this page as we have additional information to share.

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August 27, 2024

JAS is experiencing technical disruptions impacting our ability to operate and provide services to our customers. Upon identification of this issue, we immediately secured our systems and commenced an investigation with assistance from external cybersecurity experts. Based on our investigation to date, we have determined that this cybersecurity incident was the result of ransomware.

At this time, we do not have an estimated time frame for restoration, but we are working around-the-clock to restore access to our systems and provide services to our customers and vendors.

Our investigation is ongoing and in its early stages. We will provide further updates on this page as we have additional information to share.

Dear Valued Customer, 

Due to the recent collapse of the Francis Scott Key Bridge in Baltimore, we are raising awareness that our services and contracts are affected by this situation.  

Therefore, in conjunction with similar actions taken by ocean carriers, Blue World Line hereby provides this notice, in accordance with the clauses 11 and 12 of its bill of lading, of the necessary re-routing of some vessels currently sailing to and from the Port of Baltimore. 

Cargo currently at the terminals in Baltimore will remain at the port until further notice and imports originally set to call the port of Baltimore have been rerouted to other US East Coast ports.  

JAS Worldwide, as agent for Blue World Line, is taking all necessary steps to preserve its transportation services for our customers and to mitigate the impact of this situation on your shipments. 

Lastly, this disruption will continue to impact our services along the east coast of the United States and drive booking and routing changes on both imports and exports calling the port of Baltimore.  We will continue our best efforts to keep you updated on the status of your shipments and any developments as they happen.  

We appreciate your understanding and cooperation in this difficult situation, and we will keep you updated on any additional developments. Please check back often at www.jas.com for the latest news. 

For any questions and concerns, please contact your local JAS office.  

Current Situation  

The ongoing Red Sea container shipping crisis, now in its fifteenth week, has not changed much since the last update, and a clear normalcy timeline remains uncertain; as we have witnessed, attacks have continued throughout this past week. Shippers and industry stakeholders should brace for continued disruptions and higher costs and adapt strategies accordingly. The coming weeks will be crucial for interpreting the outcome of the IMO meeting and its potential impact on the situation. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI Spot Index shows a continuing decline in rates week over week. However, Asia to Europe rates have not decreased as fast as in previous weeks. 
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, as well as drones on land before they are ever utilized. In the last few days, four more drones have been shot down. 
• Houthis claimed attacks on multiple vessels during the last week; however, vessel operators have refuted these claims from the Houthis and said no container vessels have been attacked directly.  
• Sea-Intelligence is showing a small improvement in schedule reliability and delays, however performance is still poor. The new normal of transiting around the Cape of Good Hope is becoming more stable, and further improvements are expected in the coming months. 
• As per the IMO’s Maritime security update on the Red Sea crisis and international response efforts dated March 29th, the IMO continues down the path of diplomacy to help stabilize the situation. The IMO reports they are actively involved in a long-term capacity building project in the Red Sea and that the EU is funding a 4-year project aimed at enhancing port security and fostering regional dialogue to address the underlying security concerns.  ‍

Our Commitment‍

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office. 

Current Situation  

The ongoing Red Sea container shipping crisis, now in its fourteenth week, shows tentative signs of potential progress through diplomatic efforts and the IMO meeting. However, concrete actions and a clear normalcy timeline remain uncertain; as we have witnessed, attacks have continued throughout this past week. Shippers and industry stakeholders should brace for continued disruptions and adapt strategies accordingly. The coming weeks will be crucial for interpreting the outcome of the IMO meeting and its potential impact on the situation. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI Composite Index shows a continuing decline of 5% week over week. Drewry also recognized a trade specific decline from Asia to North Europe and the Mediterranean of 8%, whereas freight rates on transatlantic registered a 2% increase West and Eastbound this past week.  
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, as well as drones on land; before they are ever utilized. Avoiding the launch of attacks has become the new 'normal.’' 
• US Maritime Administration outlined the most pressing threats for US affiliated vessels in their latest advisory, accounting for 47 attacks and one seizure during the crisis. The advisory also warns that the geographical scope for threats is much larger in scale than the Red Sea.  
• UKMTO (United Kingdom Maritime Trade Operations) reported various vessel attacks as well as attempts in the past week.  
• Media reported widely today that potential deals being worked on between the Houthis with Russia and China. While details are not clear nor substantiated, this would heighten the geopolitical distress. 
• The International Maritime Organization (IMO) convened a virtual emergency meeting on March 18th to discuss potential solutions for safe passage through the Red Sea. Specific details and proposed actions are still pending. The Marine Environment Protection Committee (MEPC), addressing environmental issues under IMO's remit, also discussed the challenging efforts finding angles to assist regarding the sunken MV 'Rubymar'.  

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation  

The Red Sea crisis enters its thirteenth week with escalating concerns about extended delays and widespread disruptions impacting the global container shipping network. Terminations of voyages and congestion surges at regional port terminals are happening with short notice, further complicating logistics. The underlying geopolitical tensions continue to cloud the situation, hindering a swift resolution. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index shows a further but slowed decline of 4% this week. Drewry expects spot rates ex-China to continue declining in the coming weeks, whereas freight rates on transatlantic will remain stable.  
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are being utilized. While successful engagement is cited, the past week has seen one of the largest and heaviest number of attacks from the Houthi militia. 
• UKMTO (United Kingdom Maritime Trade Operations) reported today that a vessel has been struck by a missile causing damage, the vessel continued its voyage and the crew reported being safe.  
• This past week has seen the highest number of attacks on commercial merchant vessels, container and breakbulk/conventional ships alike.  
• The European Union (EU) expresses growing concern about the impact of the Red Sea Crisis on global supply chains and calls for a diplomatic solution. 
• The Yemeni government accuses the Houthi militia of obstructing potential solutions to ensure safe passages in the Red Sea. 
• Industry reports highlight a rise in insurance premiums for vessels traveling the Cape of Good Hope route due to the increased voyage time.  
• The Houthi militia has today stated their intent to increase the geographical scope of attacks and in addition, potentially use hypersonic missiles, which they claim to have access to. If true, this would lead to further escalation of the current situation.  

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation  ‍

This week, the Red Sea crisis and geopolitical situation in the region worsened. Week 12 saw the first sunken vessel, MV 'Rubymar', leaking fuel and fertilizer, along with the tragic deaths of 3 seafarers that served on the MV 'True Confidence' when the attack occurred in the Gulf of Aden. Industry associations are urging vessel diversions until safe passage is guaranteed. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index has dropped another 6% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index now witnessing an even further drop at 27% against its peak seven weeks ago, and the Asia to Mediterranean index experiencing another few points bringing the decrease from last week's 24% to 30% this week. 
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are utilized. Yet, nothing has led to a decrease in attacks.
• UKMTO (United Kingdom Maritime Trade Operations) reported an incident 50 miles southeast of Yemen today, fortunately, the vessel involved
  was not struck and continued its journey safely.
• The MV' MSC Sky II' was attacked by two missiles on March 4th and continued its passage to Djibouti.
• The MV 'True Confidence', a bulk carrier, remains at drift in the neighboring Gulf of Aden with no crew on board since the hit by an anti-ship ballistic missile (ASBM) on March 6th.

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  
While eleven weeks have passed since the Red Sea crisis began, the immediate situation remains tense and unpredictable. We continue to see a concerting uptick in attack frequency, highlighting the region's dynamic and volatile nature. The first vessel incident with an oil leak also impacting the environment has been registered.

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index has dropped another 2% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index witnessing a 20% drop from its peak six weeks ago, and the Asia to Mediterranean index experiencing a 24% decrease. 
• Sea-Intelligence reliability data releasing January data points now indicated 51.6% of vessels are on time only. While expected, it is the lowest since September 2022. This results in an average delay of 6.01 days. 
• While CMA-CGM continues to route select vessels via the Suez, alliance partner COSCO Shipping also seems to be planning to resume using the Suez routing, given their latest schedule updates on upcoming voyages. 
• US CENTCOM reported successful engagement and destruction of a variety of drones, missiles, and drone boats before they were utilized.  
• UKMTO (United Kingdom Maritime Trade Operations) reported multiple vessel attacks in the Bab al-Mandeb Straight in the past 48 hours. 
• The Yemeni Houthi militia claimed responsibility for the attack on the MV 'Rubymar' (dating back to February 18th). As of February 24th, the vessel remained anchored in the Red Sea, continuing to leak oil. The recorded oil slick was measured at 18 miles (29 kilometers) at the time. With the commodity being identified as fertilizer, environmental concerns and the risk of combustion and further pollution increased. Salvage options and the future of the vessel remain unclear.  

Our Commitment
JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  

Two and a half months into the crisis, the immediate risk situation in the Red Sea has not improved, and multiple new attacks with high frequency have been witnessed in the region this past week. The long-term impact on container shipping remains uncertain. Continued geopolitical tensions, logistical challenges, and potential for disruptions contribute to an environment of volatility. Shippers and industry stakeholders are advised to remain informed and adjust their strategies accordingly. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry’s WCI composite index, indicates a further 2% decline compared to last week. It is important to note that although the Index has decreased, it is still significantly higher than pre-pandemic levels and the 10-year average.  
• Spot rates from the US East Coast to Asia begin to rise, mirroring the earlier increases observed on European and Mediterranean routes reported last week.  
• Both MSC and Maersk announced additional vessels to be deployed on their Transpacific service due to the extended Cape of Good Hope route. 
• Hapag Lloyd reported two days ago that the Red Sea and Suez Canal routes continue to be avoided. A shuttle service connecting Red Sea cargo via Jeddah, Saudi Arabia, to Europe, North America, and Latin America has been implemented.  
• CMA-CGM had one 16,000 TEU vessel complete its southbound transit two days ago with others clearly intending to plan to transit in the coming week. The same information seems to be reflected in the carriers’ official schedules.  
• Industry experts again urge shippers to review their insurance coverage for transit, cargo loss and General Average.  
• US CENTCOM successfully continued to conduct strikes against missile launchers on land, preventing use this past week. Counter activities included intercepting a drone submarine launched by the Houthis. 

Our commitment 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and/or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  

Eight weeks into the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups.

Industry Insights, Facts & Market Developments
Below are some additional key facts and market developments surrounding the situation.  

• Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions.
• US CENTCOM successfully intercepted seven missiles and four drone boats before they could be used to target the shipping industry.
• Two attacks on commercial vessels occurred in the Gulf of Eden and Bab al-Mandeb since our last update, causing minor damage but no injuries.
• EU Operation Aspides expands under Italian leadership, adding a German frigate. They focus on intelligence, logistics, air warning, cyber, and communication support due to the "Information Warfare" dimension.
• Eastbound spot rates to North Europe and the Mediterranean continue softening slowly, while backhaul rates to Asia see a delayed increase. Rates remain above pre-crisis levels with surcharges in effect. Expect continued volatility.

Our commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Seven weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community started to announce network changes with more permanent routing changes around the Cape of Good Hope, with new transit times and an alteration of port calls. As more carriers get organized daily, we will see more of those actions being taken, which should bring a more consistent approach for the time being.  

• Since our last update, there have been several attacks carried out by the Houthis, as well as an increased risk of piracy attacks from Somalia to add to this crisis. The latest attack occurred on February 1^st on a UK flag tanker vessel, the “Marlin Luanda.”
• The conflict has also moved into land where US troops have been attacked, which causes further instability and uncertainty in the region. So far, the attacks from US and UK armies have not slowed down the attacks by the Houthis.
• US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen, and this is expected to continue. 
• Leading maritime security firm Ambrey advised that Maritime security concerns continue to escalate in the Red Sea, Gulf of Aden, Arabian Sea, Gulf of Oman, and the Indian Ocean, with threats growing significantly more complex and widespread.  

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

• Carrier Hapag Lloyd, given the on going dangerous situation and current security concerns, will continue to divert all vessels until further notice.  
• Maersk Line Limited still states that transit through the Red Sea will be suspended until further notice. 
• Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that may continue to transit on the same vessels.
• Ocean Network Express (ONE) CEO Jeremy Nixon stated earlier this week that the ongoing attacks against commercial shipping will have a material impact on transit times on the Asia – Europe and Asia – US East Coast trade lanes at least through the second quarter of 2024.  
• Rate levels continue to be higher than pre-crisis with new charges being announced such as Equipment Imbalance surcharges, however minor softening on spot rates has also been seen in certain pockets. Rate development remains dynamic and volatile.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Six weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community continues to reroute, with very few exceptions, their vessels around the Cape of Good Hope. The situation and the future direction of this conflict remain dynamic.

• Since our last update, no attacks were noted until Tuesday this week when two US flag vessels came under attack, which then turned around discontinuing their passage.  
• This was followed by a Liberian flagged bulk carrier, which was attacked on Wednesday.  
• We continue to witness that the frequency of the attack has no pattern.  
• According to media outlets, the Iranian Revolutionary Guard, as well as Hezbollah forces, are on the ground in Yemen, working jointly with the Houthis, directing attacks on shipping in the Red Sea. 
• US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen. 

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

• Carrier Hapag Lloyd announced two days ago that, given the ongoing dangerous situation and security concerns, they will divert all vessels until further notice. 
• The 2M alliance announced yesterday that network changes for Asia – Europa and Asia – Transpacific Services are being announced.  
• Maersk Line Limited announced today that transit will be suspended until further notice. 
• Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that, therefore, may continue to transit on the same vessels.
• On the Asia-Europe trade market rates only increased a marginal 1% this past week. Industry experts have pointed out that the rate difference between destinations in North Europe and the Mediterranean is at almost USD 1500.00 / 40’ container. 
• Backhaul rates to Asia from North Europe should equally be monitored closely as benchmarking platforms report +130% increases in rates compared to pre-crisis levels.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Five weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. Given the situation has again worsened in recent days, various maritime research and consulting firms, as well as one global ocean carrier CEO, have communicated an outlook that carriers resuming Suez Canal transits seem more like months than weeks away until the risks of attacks are eliminated.

• Every day this past week, media reported on attacks being carried out, with both the frequency of the attacks and ‘hit ratios’ increasing.
• US forces attacked 14 locations in Yemen during a nighttime operation earlier this week, targeting the location of missile launchers. US officials acknowledged that airstrikes against Houthi militants in Yemen will not deter the group from attacks, yet it does not mean the military campaign will stop anytime soon.
• Today, Maritime Unions urged TRANSCOM for enhanced communication in the Red Sea, pointing out that the severe attacks represent the biggest threat to commercial shipping in over 50 years. At the same time, they expressed gratitude for the support to date to safeguard ships and crew.

Key Facts & Market Developments: 

Below are some key facts and market developments because of the situation.

• In the first two weeks of 2024, transits around the Cape of Good Hope have increased from 77 to 206. Reflecting an increase of 168%. With a few exceptions, all major containership ocean carriers are participating largely in this routing option. CMA-CGM is amongst those that transit, escorted by French warships.
• The market spot rates featured in directly impacted East-West trades, as per the World Container Index, saw a weekly increase from Asia to North Europe of 12% and into the Med of 21%, respectively. While a smaller increase week over week, it is still significant. Backhaul rates to Asia have climbed 50%.
• Global benchmarking and market intelligence platform Xeneta reported yesterday that some carriers make up for the longer transit time by omitting port calls at the start of round trips. Northern-most ports in Asia are affected by this, as services starting in Tianjin or Dalian, now seem to begin in Shanghai or Ningbo.

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website will be updated once per week, every Friday. 

For any more detailed and/or shipment-specific information, please contact your local JAS office. 

Current Situation: 

Four weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The world’s largest container carriers (VOCC’s)continue to reroute, with a few exceptions, their vessels around the Cape of Good Hope. 

• Three days ago, the Houthis launched their biggest attack yet, with very little overall impact. It has demonstrated the effectiveness of the coalition’s presence in executing area defense operations. 
• Yesterday, the RAF and US Navy launched the first counterattack by the coalition in response to Houthi aggressions since this conflict started. Over one dozen vessels in the area made instant route changes, based on AIS data, to reach safe points or pursue the Cape of Good Hope.  
• The situation and the future direction of this conflict remain dynamic and therefore unclear; however, expectations are that rerouting will continue. 

Carrier Responses: 

Below is a recap of the current situation as announced by carriers this week; however, the situation is very fluid and continues to evolve. 

• Carriers at large continue to reroute vessels with scheduled services from the Suez Canal around the Cape of Good Hope. Vessel sharing agreements (VSA) need to be carefully monitored, as the vessel operator’s choice will include alliance partners. 
• Several ocean carriers have stopped offering new long-term rate agreements in Asia to Europe and Mediterranean trade, as well as India Sub-continent services via Suez to the US East Coast. The reasons cited include the need to assess additional cost factors, a lack of clarity based on long diversions and rerouting, as well as equipment imbalance and berthing window impact. 
• Global benchmarking platform Xeneta has reported space guarantee/premium surcharge offers being presented by ocean carriers up to $1500 per container to ensure priority services prior to Chinese New Year holidays, starting February 10th. 

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website will be updated once per week, every Friday. 

For any more detailed and/or shipment-specific information, please contact your local JAS office. 

Ao entrarmos em 2024, é fundamental que as empresas estejam cientes de dois feriados que podem afetar as operações. Dois grandes eventos, o Ano Novo Chinês e o Carnaval, estão programados para coincidir, afetando as cadeias de suprimentos em todo o mundo.  
 
O Ano Novo Chinês, um feriado tradicional chinês que marca o início de um novo ano no calendário lunar chinês, começa em 10 de fevereiro e é observado em muitos países asiáticos. Durante essa semana, fábricas e empresas fecharão, pois o feriado traz uma semana de folga para os funcionários viajarem e comemorarem o início de um novo ano com suas famílias. No entanto, espera-se que a desaceleração das fábricas ocorra no início ou em meados de janeiro, com a retomada das operações normais no final de fevereiro.  
 
Simultaneamente, o festival de Carnaval estará em pleno andamento, especialmente no Brasil, onde as festividades ocorrerão de 9 a 17 de fevereiro. Assim como no Ano Novo Chinês, as consequências das comemorações podem ser sentidas em todas as cadeias de suprimentos no Brasil e no exterior, pois muitos fabricantes e fornecedores reduzirão as horas de trabalho ou interromperão as atividades, já que os funcionários tirarão folga para comemorar.  
 
Com duas grandes economias, a China e o Brasil, comemorando feriados importantes simultaneamente, é fundamental que as empresas planejem e se preparem adequadamente, pois a sobreposição dessas festividades deverá impactar as cadeias de suprimentos globais.  
 
Para mitigar efetivamente o impacto dessas comemorações em sua cadeia de suprimentos, recomendamos as seguintes medidas proativas:

• Planeje com antecedência: Antecipe o aumento da demanda por serviços de logística e planeje as remessas com bastante antecedência para reduzir possíveis atrasos. Para evitar interrupções desnecessárias e aumentos de preços, é recomendável fazer as reservas com bastante antecedência, de preferência quatro a seis semanas antes do Ano Novo Chinês.  
• Diversifique as rotas e os métodos de remessa: Explore rotas de remessa alternativas para evitar congestionamentos e possíveis interrupções nas rotas tradicionais. Além disso, considere o uso de várias formas de transporte caso um método sofra interrupções durante esse período.  
• Ajuste os cronogramas: Seja flexível com as programações de produção e entrega para acomodar a desaceleração temporária das operações durante os feriados.
• Mantenha-se informado: Monitore regularmente as atualizações e avisos de autoridades relevantes e fontes do setor para se manter informado sobre quaisquer mudanças ou desenvolvimentos que possam afetar as operações.  
  

A ocorrência simultânea do Ano Novo Chinês e do Carnaval este ano ressalta a importância de medidas proativas e de uma abordagem bem coordenada. Ao integrar esses insights à sua estratégia de planejamento, as empresas podem garantir uma transição mais tranquila durante esse período e manter a eficiência operacional. Para obter mais informações, entre em contato com o escritório local ou com o representante da JAS.

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Current Situation  

Two weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

• The US led 10-nation coalition of navy’s named “Operation Prosperity Guardian” continues their efforts to protect the selective voyages transiting the Suez Canal. 
• While there have been no reported vessel attacks in the Red Sea in the last 48 hours, it is crucial to understand that the situation remains dynamic, and the risk of attacks remains high based on credible sources.  
• In addition to the extra operational cost for carriers going around the Cape of Good Hope, this will also affect the cost of the recently advised ETS surcharges due to longer routes resulting in higher emissions. Same surcharge is valid from last non-EU port to first EU port (and vice versa) 

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

Carrier Responses

Below is a recap of the current situation as announced by carriers today; however, the situation is very fluid and continues to evolve.

• The carriers continue to re-route vessels with scheduled services from the Suez Canal around the Cape of Good Hope.  
• Maersk and CMA-CGM are currently devising plans for the gradual increase of vessels transiting the Suez Canal, carefully monitoring the security situation for safe passage.  
• A variety of surcharges have been announced by carriers in directly and indirectly impacted trade lanes, ranging from Peak Season to Operational Recovery to Contingency Adjustment surcharges to name a few.  

Going Forward

This conflict continues to have significant implications for Global trade. The global carrier community is citing impact to the equipment pool, balance as well as a potential vessel shift to facilitate operational network needs. JAS will continue to monitor the situation and keep you appraised accordingly.  

For any questions and concerns, please contact your local JAS office.

Current Situation  

The Red Sea is a vital waterway for global trade, connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have occurred that have disrupted the maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict which sees attacks on commercial vessels thought to be headed for Israel.  

• A 10-nation coalition of navies are currently operating in the Red Sea to protect the waterways.  
• Attacks are still occurring from Yemen on vessels in the Bab el-Mandeb strait and are expected to continue.  
• Approximately 12% of global trade passes through the Suez Canal, which includes 30% of all container trade, making this a significant portion of all cargo shipped in containers being affected.  

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the largest container carriers (VOCC’s) in the world to mitigate the risk for their employees and vessels operating in these waters.  

Carrier Responses  

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and continues to evolve.  

• All major carriers (excluding OOCL and Cosco) have officially announced that they have ceased vessel operations in the Red Sea and passage through the Suez Canal. Vessels are either waiting in safe waters or being re-routed around the Cape of Good Hope. All vessel re-routings via the Cape will add on average 10-14 days of transit time unless the vessels significantly increase their speed.  

• Evergreen, COSCO and OOCL has stopped accepting cargo to Israel with immediate effect and until further notice. 

• No official statements yet from Cosco or OOCL on suspending service through the Red Sea; however, they both do appear to have stopped, as well, as per news outlet Caixin Global. Official notifications are expected later today.  

• Most major carriers are announcing rate increases on the affected Trade Lanes at various but significantly increased levels.

Going Forward

This conflict will have massive implications on global trade, and all shippers should expect serious delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of the implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.  

For any questions and concerns, please contact your local JAS office.

Thank you.  

Current Situation

The Red Sea is a vital global trade waterway connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have disrupted maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict, which sees attacks on Commercial vessels thought to be headed for Israel.

• At the beginning of December, several attacks happened on both Navy vessels and commercial vessels in the Red Sea. This has evolved into targeted attacks on commercial Container carriers in the last week.
• On December 14th, Maersk Gibraltar, a Hong Kong-flagged Container vessel owned by Maersk, was involved in a near-miss missile attack in the Bab al-Mandab strait in the Red Sea
• On December 15th, Al Jasrah, a Liberian-flagged Container vessel owned by Hapag Lloyd, was attacked and hit by a missile fired from Yemen in the Bab Al-Mandab strait. The vessel sustained damage on the port side, and at least one container fell overboard. No crew was reported injured in this incident.
• On December 15th, the MSC Alanya, a Liberian-flagged Container vessel owned by Mediterranean Shipping Company, was also involved in a near-miss missile attack.
• On December 15th, the MSC Palatium III, a Liberian-flagged Container vessel, sub chartered to Messina Line, was struck by a missile attack, causing limited fire damage. All crew members are reported safe, and the vessel has been removed from service.
  

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

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Carrier Responses

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and can change quickly:

• Maersk announced on Friday, December 15th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• CMA CGM announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• HAPAG-LLOYD announced on Friday, December 15th, that it suspended all sailings through the Red Sea until further notice.
• MSC announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• Other Carriers have made similar statements about bypassing or avoiding the Red Sea and Suez Canal, Like ONE, ZIM, yang Ming, and HMM.
• Evergreen, COSCO, and OOCL have stopped accepting cargo to Israel with immediate effect and until further notice; however, there are no statements yet on suspending service through the Red Sea.

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Going Forward

This conflict will have massive implications on Global trade, and all shippers should expect severe delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.
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For any questions and concerns, please contact your local JAS office.

Thank you.

At JAS Worldwide, we understand the critical role supply chain and logistics companies play in shaping the present and future of sustainable transportation. As the global community comes together to celebrate World Sustainable Transport Day, we are proud to share our commitment to helping reduce the industry's environmental footprint by providing customers with sustainable solutions when transporting goods.

The Importance of Sustainable Transport

Sustainable transport is more than a buzzword; it is a responsibility that the Transport and Logistics industry has, as it contributes significantly to the global carbon footprint. With the world facing challenges such as dwindling fossil fuel resources, climate change, and the resulting impact on various communities, the need for sustainable transport solutions has never been more critical. As a global logistics and supply chain provider, we recognize our responsibility to lead by example and contribute to more sustainable operations.

A Cleaner Way Forward

Our partnership with GoodShipping showcases our dedication to sustainable transport solutions. By providing clients with the option to inset sustainable marine biofuel, we empower them to make eco-conscious choices for their shipping needs. These biofuels are produced from renewable sources and have a significantly lower environmental impact than conventional options, making them a responsible and sustainable choice for ocean freight.

Another step we've taken in our journey towards sustainability is the incorporation of electric trucks into our fleet. Electric trucks such as the type JAS uses are known for their low emissions, energy efficiency, and reduced environmental impact, aligning seamlessly with our eco-conscious approach. In fact, when evaluating the entire Well-To-Wheel (WTW) cycle, an electric truck can achieve up to a 92% reduction in CO2 emissions compared to traditional diesel trucks, marking a significant step toward more sustainable operations.

Network optimization is another way we reduce transport emissions, for example by embedding rail and ocean transport into the supply chain wherever possible, choosing the most efficient route for each stage of the journey, and maximizing freight utilization thereby reducing the need for additional trips. We consult with our customers to make informed decisions based on their business priorities and help them track their progress in reducing their emissions.

A Holistic Approach to Sustainability

Sustainability isn't just about implementing a single solution; it's about embracing a holistic approach. At JAS, we integrate sustainable practices into every aspect of our business, from our daily operations to the choices we make in selecting partners and suppliers who share our commitment to sustainability.

We continually look for new technologies and practices that will further reduce our carbon footprint and improve the well-being of our people and the communities where we operate. Our commitment to sustainability is not a one-time effort but an ongoing journey toward a more responsible future.

Join Us in Celebrating World Sustainable Transport Day

As we commemorate World Sustainable Transport Day, we invite our partners, clients, and the global community to join us in embracing sustainable transport solutions. We are excited about the journey ahead and are committed to further innovations that will make the world of logistics more sustainable. Happy World Sustainable Transport Day!

Supply chain management is a complicated process even under the best of conditions. When a tropical storm occurs, the process is made even more complex as the extreme weather can not only wreak havoc on homes and buildings; but, the subsequent high winds and flooding, can disrupt and delay freight transportation, potentially causing supply chain delays and failures. As tropical storm season begins, it is important to plan ahead for adverse weather events to minimize potential repercussions.

1. Know How to Prioritize Your Freight: The severe weather associated with tropical storms can shut down ports and ground flights. When operations do begin, capacity may be reduced, and extensive backlogs are possible. By understanding which freight is most important to maintaining business continuity, you can help prevent further disruptions downstream.
2. Plan for Inventory Disruptions: During the peak of tropical storm season, it can be wise to plan for additional inventory to be on hand in case your supply chain is disrupted due to significant port and airport closures and delays.  
3. Keep an Eye on the Sky: Taking a proactive approach to monitoring the weather during tropical storm season is vital. It allows you to stay well-informed of impending severe weather that might impact shipment delivery. While the forecast may change at a moment’s notice, it is essential you are aware of the weather forecast and any precautionary measures taken locally, such as port and airport closures and shelter-in-place orders.
4. Utilize Technology to Increase Supply Chain Visibility: In the event of severe weather, maintaining supply chain visibility and real-time access to information about paused and canceled shipments is vital. By maintaining supply chain visibility, you can more readily identify potential problems and areas of concern, allowing informed decisions on things such as expediting time-sensitive cargo to be made early on minimizing disruptions.
5. Maintain a Line of Communication: When severe weather occurs, it is important to maintain a clear line of communication with your service providers. This means ensuring that your provider knows which cargo is of the highest priority and giving as much notice as possible about a needed shipment as canceled flights and closed ports can delay shipments and reduce capacity.

With the start of tropical storm season having arrived, it is important to be prepared for whatever disruptions severe weather might bring. Whether it is developing a contingency plan long before extreme weather conditions occur or rerouting cargo and utilizing air cargo options when severe weather occurs, JAS can help keep your supply chain running smoothly. To make sure you are ready for tropical storm season, contact your local JAS office.

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Even before the Suez Canal blockage the shipping industry was facing extreme congestion levels in many ports across the globe, including those in the USA, Canada, South Korea, China, Singapore, and the United Kingdom. With demand remaining high, port congestion challenges will continue for months to come with increased volumes, restrictions due to COVID-19 requirements, and missed berthing windows.

Even if the Suez Canal is now open, the operational impact of a week blockage will have a ripple effect lasting for weeks:

• A further deterioration of schedule reliability and additional equipment unbalance is to be anticipated even on Trade-Lanes not directly related to the Suez Canal.
• Some steamship lines have stopped accepting new bookings from Europe to USA until end of April.

Marine terminals at the U.S. ports of Los Angeles and Long Beach are experiencing some of the worst congestion, with anchorage times often exceeding a week. In March, the United States passed another stimulus bill, while at the same time, COVID-19 infection rates are decreasing, multiple states are relaxing COVID-19 restrictions, and the number of people vaccinated continues to grow. Consumer spending and retail imports are predicted to remain high, and even increase, throughout the spring and summer months, providing the ports with no relief when it comes to congestion.

While it can be challenging to avoid port congestion, there are some ways to minimize the impact of port congestion and plan for success.

1. Explore alternative gateway ports that face less congestion. With the congestion on the U.S West Coast, many are exploring other port options such as the Port of Seattle. Alternatively, some are choosing to bypass the U.S. West Coast altogether in favor of going through the Panama Canal and up the East Coast.
2. Plan ahead. At this time, planning ahead is key and booking shipments as soon as possible can help keep your supply chain moving. With the current equipment shortages and severe congestion at ports, some levels of delays are almost unavoidable. Therefore, it is important to build extra time into your schedule to account for the current conditions.
3. Consider utilizing other shipping methods. As in non-pandemic times, ocean freight affords the opportunity for cost reductions when compared to airfreight. However, the lead time is much longer than airfreight. When facing time constraints, air freight may be a more viable option. Another option to consider is LCL Ocean freight, smaller but more frequent shipments can keep your supply chain moving. While LCL also faces congestion issues it is much easier to be flexible and by splitting product on more vessels, better chance that cargo gets moved using multiple vessel/ports to get product through. Talk to your JAS representative for options on alternative shipping methods that fits your needs.
4. Stay in contact with your JAS representative. With the increased port congestion, it is more important than ever to stay in contact with your local representative so that you are aware of arrival times, equipment availability, and market conditions.

For more information on how to navigate the current port congestion, contact a JAS representative.

For more information about current ocean market conditions, read our most recent ocean market update: https://www.jas.com/market.

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