US EAST COAST PORTS FACE IMMINENT DOCKWORKERS STRIKE
United States East coast ports are expected to close their activities entirely as they face a potential dockworkers’ strike on 1st October, which have been called by the International Longshoreman’s Association (ILA), representing over 85,000 dockworkers over a labour agreement dispute. Around 36 ports from New Jersey to Puerto Rico including five of the ten busiest ports in North America, would be paralysed.
Around 43-49%, of monthly US imports are set to be affected, amounting to several billion dollars. Currently, an estimated USD 34bn in cargo is heading to these ports on 147 ships. This situation could affect other regions of the world as shipping companies are rerouting cargo, blank some services and imposing surcharges, adding delays and costs: HSBC estimates that 15% of the world’s container fleet could be impacted due to congestion and increased freight rates.
Another issue faced by users of shipping services is the imposition of detention and demurrage fees during the strike period, with no possibility to move containers on and off terminals. On 23rd September, the US Federal Maritime Commission (FMC) has warned carriers and terminal operators against profiteering from unfair D&D charges: the FMC reiterates that D&D fees “must be reasonable, clearly defined and serve a specific measurable purpose”, and that they should serve as incentives to encourage cargo movement. The Commission will keep a close eye on any D&D charges assessed during terminal closures.
Source: ShippingWatch, FMC