ALERTS & ​ADVISORIES

Customer Advisory: ILA Strike Update 2

By
December 31, 2024
Customer Advisory: ILA Strike Update 2
Customer Advisory: ILA Strike Update 2

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.

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What You Need to Know ICS2 is designed to:

  • Strengthen EU border security
  • Enable early risk assessment
  • Facilitate legitimate trade
  • Prevent delays and penalties due to non-compliance

Your Responsibilities as a Shipper or Cargo Owner

To ensure compliance and avoid disruptions, please take note of the following obligations:

Data Submission Requirements

You must provide:

  • A complete and accurate commercial description of each item
  • A valid Harmonized System (HS) code, consisting of at least six digits—though in many cases, EU customs may require eight digits or the full tariff code.
  • A valid Economic Operator Registration and Identification (EORI) number for the EU consignee/importer (and for other parties in the EU where applicable)
  • Full details of all parties involved (seller, buyer, consignor, consignee)

Filing Responsibilities

  • Freight Forwarders/NVOCCs: File ENS at the house bill level.
  • Carriers: File ENS at the master bill level.
  • Consignees: Provide valid EORI numbers to ensure accurate filing.

Non-Compliance Risks Failure to comply with ICS2 requirements may lead to:

  • Shipments being delayed, rejected, or held at EU borders
  • Customs inspections and possible administrative penalties
  • Additional costs related to storage or missed deliveries

Recommended Actions to prepare for ICS2 compliance:

  • Audit your product master data for HS codes and descriptions
  • Standardize commercial invoices and packing lists
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  • Establish clear communication protocols with your logistics partners
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Technology & Support

In response to the EU’s Import Control System 2 (ICS2) requirements, we want to reassure our customers that our experienced staff and systems are fully prepared to manage the necessary data submissions and compliance procedures on your behalf. To support this service and ensure the smooth processing of your shipments, a compliance handling fee will apply. This fee covers the administrative effort and data validation to meet the latest EU regulations efficiently and accurately.


We are also investing in digital tools and customs platforms to automate data validation and submission, reducing manual errors and ensuring timely compliance. If you have any questions or would like guidance on preparing your shipment data, please contact your JAS account representative.

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Andrea Goeman, SVP Sustainability, JAS, commented:

“We are proud to see our progress recognized with the EcoVadis Silver Medal. This achievement reflects the collaboration across our global teams and our strong commitment to building a more sustainable future for our customers, partners, and communities. While this is an important milestone, we will continue to strengthen our practices to further improve our performance in the years ahead.”

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As JAS continues its sustainability journey, the company remains focused on driving measurable improvements across its operations and working closely with customers and partners to reduce environmental impact and achieve shared sustainability goals.

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