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.
The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a tentative agreement on a new six-year Master Contract, helping to provide stability for East and Gulf Coast ports. The agreement, announced on January 8, 2025, prevents a potential work stoppage scheduled for January 15.
In a joint statement, the ILA and USMX highlighted the agreement's importance: "This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong."
The contract, which is subject to ratification by both parties, supports job creation and port efficiency while helping sustain the U.S. economy's role in global trade. Further details will remain confidential until the review and approval process is complete.
This milestone agreement marks a collaborative step forward for the maritime industry, ensuring stability and growth in the years to come.
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Buenos Aires, Argentina –– JAS Worldwide is proud to announce that its Argentina office has been recognized as a Great Place to Work for the fifth consecutive year. This award highlights the teams commitment to creating a positive and inclusive workplace culture where employees feel valued, supported, and empowered to thrive.
The recognition as a Great Place to Work is based on direct feedback from employees and reflects JAS Argentina’s dedication to upholding the highest standards in workplace excellence.
“We are honored to receive this recognition for the fifth year in a row,” said Patricio Pranzetti, Managing Director of JAS Argentina. “Our team is the heart of our success, and this achievement reflects their passion, dedication, and commitment to building a workplace where everyone can excel. Together, we will continue to create a culture of innovation, trust, and excellence.”
JAS Argentina’s recognition underscores the company’s broader global vision to create a unified, inclusive, and engaging work environment across all its offices. By investing in people, processes, and technology, JAS Worldwide empowers its employees to deliver exceptional service and innovative solutions to customers around the world.
JAS Argentina is honored to celebrate this milestone alongside its talented team and looks forward to continuing its legacy of excellence in the years ahead.
JAS Projects and JAS Sweden are proud to share an exciting achievement in heavy transport, executed deep in northern Sweden near the Polar Circle. This unique project involves the movement of oversized cargo through challenging winter conditions, where temperatures plummet as low as minus 15 degrees Celsius.
The cargos dimensions are impressive:
Transporting such massive loads requires meticulous planning, technical expertise, and flawless teamwork—all of which were on full display as our team worked tirelessly to ensure safe and efficient delivery through the icy terrain.
Luiz Dos Santos, Project Coordinator at JAS Projects, accompanied the operation and shared his firsthand experience. For Luiz, this was his first opportunity to be on-site for a heavy-lift transport, and it proved to be both thrilling and educational:
"A thrilling mission in the far north. I accompanied the heavy transport from start to finish through the icy winter landscape of northern Sweden. It was an extraordinary and impressive experience to see the required precision and flawless teamwork with my own eyes. The execution, as well as the planning, are significantly more complex than they often appear from the desk. So, it was all the more helpful to have experienced the entire process firsthand."
This operation is a testament to the team's commitment to excellence, even in extreme environments. From intricate planning to navigating unpredictable Arctic conditions, the success of this transport highlights our ability to deliver solutions tailored to every challenge.
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