US Port Strike Threat Prompts Shipping Lines to Impose Surcharges

US Port Strike Threat Prompts Shipping Lines to Impose Surcharges

Shipping companies are preparing for a potential strike at US ports along the East and Gulf Coasts as negotiations between the International Longshoremen’s Association (ILA) and the US Maritime Alliance remain at a standstill.

Major carriers, including Hapag-Lloyd, CMA CGM, and Mediterranean Shipping Company (MSC), have announced surcharges in anticipation of the disruption.

These companies expect continued strong cargo traffic during the peak season but are warning of global port congestion if the strike occurs.

Sea-Intelligence, a leading think tank, has analyzed the potential impact, suggesting that a one-week strike in early October could lead to backlogs until mid-November, while a two-week strike could extend operational issues into 2025.

In compliance with Federal Maritime Commission rules, carriers are providing a 30-day notice of additional fees.

MSC has labeled its surcharge as an “emergency operations surcharge,” which will take effect on October 1, the anticipated strike start date.

The surcharge will range from $1,000 for a standard 20-foot container to $1,500 for a 40-foot container on shipments from Europe.

CMA CGM will impose surcharges ranging from $800 to $1,500 for exports starting October 11, depending on container size.

It will also charge a flat fee of $1,500 per TEU (twenty-foot equivalent unit) on all imports headed for US East and Gulf Coast ports.

Hapag-Lloyd has announced a work disruption surcharge of $1,000 per TEU on all imports, effective October 18.

The company advised exporters that it will accept bookings as long as rail providers and terminals continue to handle containers.

Importers have been urged to expedite documentation and customs clearance to ensure cargo retrieval before the strike begins.

As the situation evolves, shipping lines are bracing for potential widespread congestion and delays in the event of prolonged industrial action.

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