JAS IN ASIA PACIFIC

News From JAS Worldwide - Asia Pacific Focus

JAS APAC HQ

111 Somerset Road, #06-20

​TripleOne Somerset

Singapore

Empowering Futures: JAS Indonesia Celebrates International Literacy Day

By
JAS Staff
September 18, 2023
JAS Indonesia Team at the Local School, Sharing Books and Smiles on International Literacy Day 2023.
JAS Indonesia Team at the Local School, Sharing Books and Smiles on International Literacy Day 2023.

JAS Indonesia, in partnership with the Bruni Foundation, marked International Literacy Day (ILD) by organizing the "Book Donations for World Literacy Day" event on September 8, 2023. Led by JAS Sustainability Ambassador Sigit Yulianto, this event exemplified the team's dedication to championing literacy as a fundamental human right and their commitment to positively impacting the community.


Held at a local school, the ILD event showcased the incredible potential of collective community action. Its success was driven by a joint effort: prior to the event, the JAS office initiated a book donation campaign among its employees, and a group of JAS Indonesia colleagues volunteered to represent JAS at the local school. However, the event went beyond mere book donations; the team also shared food, drinks, and moments of joy, fostering an atmosphere of unity that enriched the day.


The teams' actions serve as a reminder that when individuals and organizations unite for a common purpose, they can create positive change. Literacy is not merely about reading; it is a pathway to a brighter future for all.  


The Sustainability Ambassadors at JAS play a key role in spearheading and executing sustainability initiatives. They are driven by a passion for creating a more sustainable organization and work closely with the Worldwide sustainability team and key stakeholders. Their expertise and influence serve as catalysts for transformation, inspiring and guiding others to contribute to a greener and more inclusive future.  


International Literacy Day has been observed globally on September 8 since 1967, emphasizing the significance of literacy as a basic human right. It also serves as a call to advance progress towards achieving Sustainable Development Goal 4 (SDG4) on education and lifelong learning.

Linkedin Logo

Asia Pacific

NEWS

Stay in the know with JAS
Asia Pacific
news.

Latest News

East and Gulf Coast Strike is Over: ILA and USMX Reach Tentative Agreement Amidst Supply Chain Disruptions

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.

Business impact and mitigation strategies for the ILA strike.

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.

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.

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.

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.

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.

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.

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.

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.

Business impact and mitigation strategies for the ILA strike.

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.

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.

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.

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.

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.

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.

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.

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.

Our Sites use cookies for analytics purposes. For more information about the cookies we use on our Sites or how you can disable them, please see our Cookie Policy.