ALERTS & ​ADVISORIES

Strike Alert: Day 2 of East and Gulf Coast Port Shutdown & Escalating Global Disruptions

By
October 2, 2024
Strike Disrupting East and Gulf Coast Ports—Immediate Business Impact
Strike Disrupting East and Gulf Coast Ports—Immediate Business Impact

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.

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.

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Parker Hannifin has recognized JAS with its International Freight Forwarder of the Year award for 2025

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.

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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:

  • 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
  • Validate and integrate EORI numbers into your systems
  • Establish clear communication protocols with your logistics partners
  • Ensure complete shipment data is provided to your freight forwarder in time for ENS filing (e.g., at least 24 hours before vessel loading for ocean freight).

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.

JAS has been awarded a Silver Medal in the EcoVadis sustainability assessment, achieving a score of 75 points.

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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