ALERTS & ​ADVISORIES

Strike Update: Day 3 of East and Gulf Coast Port Closures

By
October 3, 2024
Business impact and mitigation strategies for the ILA strike.
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.

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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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