In a pivotal development for global logistics, the International Longshoremen's Association (ILA) and the U.S. Maritime Alliance (USMX) jointly announced late on October 3 that they reached a tentative wage agreement. The Master Contract, governing work at East and Gulf Coast ports, has been extended until January 15, 2025, allowing further negotiations on unresolved issues. As a result, all job actions have ceased, and port operations will resume immediately under the Master Contract.
While this agreement averts a prolonged crisis that could have severely impacted global supply chains, the three-day strike has already caused significant operational disruptions. It is anticipated that full port recovery will take between 2-3 weeks, depending on how swiftly dockworkers manage the backlog of vessels waiting to unload billions of dollars worth of goods. However, it is important to note that not all terminals have reopened immediately. Some port gates will only reopen on October 7, and vessel operations have staggered reopening times, further complicating the situation.
Vessels Anchored and Congestion Worsening
Even though operations have restarted, many container ships remain anchored off the U.S. East and Gulf Coasts, and new vessels continue to arrive. Several ships have diverted to ports such as Freeport, Bahamas, to offload U.S.-bound cargo. This diversion risks creating bottlenecks at critical transshipment hubs, including Cartagena, Panama, Kingston, and Caucedo. Clearing the backlog at these ports may take time, potentially leading to delays across global supply chains.
Spike in Freight Rates Linked to Strikes
Recent data indicates that freight rates have surged, with shippers feeling the direct impact of the strikes. On the most affected routes, such as North Europe to the U.S. East Coast, average spot rates have increased by 58% since the end of August. This highlights the immediate financial strain on businesses that rely on stable shipping rates.
Force Majeure, Surcharges, and Carrier Adjustments
Before the agreement, most major carriers, including COSCO, ONE, CMA CGM, and Evergreen, declared force majeure, which could result in additional charges for shippers in the coming weeks. Even though the strike has ended, it forced carriers to divert containers to alternative ports outside the U.S., creating further complications.
With the reopening of ports, shippers should stay vigilant regarding potential detention and demurrage fees, as the "stopping the clock" that applied during the strike no longer holds. Congestion over the next several weeks will only compound the situation.
Many carriers have also announced disruption surcharges, expected to come into effect by mid-October. However, it's worth noting that carriers often announce such fees but rarely communicate when they are rescinded. Shippers should not be surprised if these surcharges do not fully materialize. Businesses are advised to review shipping contracts, particularly force majeure clauses, to understand better how surcharges and additional costs may apply.
Global Disruptions Ripple Across Markets
While the strike has concluded, its after effects will likely be felt globally. A temporary reduction in export capacity from Europe is expected in about two weeks, which could apply upward pressure on freight rates. This pattern may also play out in other regions with a longer lag. The global logistics network will take time to normalize, and rates are expected to remain volatile.
Air Freight Surge as Shippers Seek Alternatives
With ocean freight options constrained, demand for air freight has skyrocketed, driving rates higher. Time-sensitive shipments are particularly affected, with shippers facing increased costs as air freight capacity tightens. Businesses relying on urgent deliveries should prepare for continued cost increases in the near future.
JAS Worldwide: Here to Support You
In these challenging times, JAS Worldwide remains dedicated to supporting your business. Our teams are actively monitoring the situation and delivering customized solutions to minimize disruptions. Whether you need air freight alternatives, rerouting options, or expert logistics advice, JAS Worldwide is ready to help you navigate these complexities. Reach out to your JAS representative today to develop a strategic plan that ensures your supply chain remains resilient and efficient.
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Once again, Parker Hannifin has recognized JAS with its International Freight Forwarder of the Year award for 2025. Parker Hannifin, a Fortune 250 global leader in motion and control technologies, serves a wide range of industries including aerospace, climate control, filtration, and automation. The company highlighted JAS’s cybersecurity and sustainability efforts, on-time delivery, and commitment to continuous improvement as key reasons for selecting JAS as this year’s recipient.
This marks the third time JAS has been honored with this award, having previously received the recognition in 2017 and 2020. Being named International Freight Forwarder of the Year once again underscores JAS’s ongoing commitment to delivering customer value, consistent partnership, and excellence in global logistics solutions.
We would like to remind our customers of the implementation of the Import Control System 2 (ICS2), the European Union’s enhanced pre-arrival safety and security program for cargo entering or transiting through EU Member States, as well as Norway, Switzerland, and Northern Ireland. Effective 1 September 2025, ICS2 became mandatory across all modes of transport—air, ocean, road, and rail. This regulation requires the submission of detailed shipment data via an Entry Summary Declaration (ENS) prior to cargo arrival at the EU border.
What You Need to Know ICS2 is designed to:
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:
Filing Responsibilities
Non-Compliance Risks Failure to comply with ICS2 requirements may lead to:
Recommended Actions to prepare for ICS2 compliance:
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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JAS has been awarded a Silver Medal in the EcoVadis sustainability assessment, achieving a score of 75 points. This marks a 15-point improvement from last year’s Bronze rating and places JAS among the top 15% of companies assessed globally.
EcoVadis is one of the world’s most trusted providers of business sustainability ratings, evaluating over 130,000 companies across four categories: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.
In the latest assessment, JAS received particularly strong recognition in the Environment category (91/100), reflecting our focus on decarbonization, responsible resource use, and advancing sustainable logistics solutions. JAS also recorded solid progress in Labor & Human Rights, Ethics, and Sustainable Procurement, showing how JAS is working to embed responsible practices across its global operations and supply chain.
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.”
With a score of 75 points, JAS now ranks in the 92nd percentile of all companies assessed by EcoVadis. This performance not only supports many of our customers’ supplier selection and evaluation processes, but also highlights the steady progress we are making year over year.
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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