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UPDATE: 7/10/2024
We are happy to report that negotiations took place at the end of last week, resulting in the suspension of the strikes while both sides attempt to reach an agreement (further action is likely to occur in early 2025 if an agreement cannot be reached).
Even though the strike only lasted a few days, it is expected to have caused a minimum 3-week delay affecting shipments waiting to berth or at quayside. It will likely take a couple of weeks before business returns to normal.
We will keep clients informed about how their individual shipments are affected. Please feel free to contact your Bournes Account Manager if you have any concerns.
October 1st 2024
On the 1st October 2024 the USA Longshoremen (port workers) began a strike over failure to reach an agreement in labour negotiations.
This led to the closure of all U.S. East and Gulf Coast ports and is likely to cause severe delays and disruptions. The strike includes major ports such as Baltimore, Boston, Charleston, Houston, Jacksonville, Miami, Mobile, New Orleans, New York/New Jersey, Norfolk, Philadelphia, Savannah, Tampa and Wilmington.
Likely impact:
- Delays in transport for both imports and exports.
- Shipping lines are applying a 'Work Disruption Surcharge' which may add in excess of US$1000 per 20' container to freight costs.
- Extended dwell times for shipments already in transit are expected, which may result in additional storage charges.
- Cargo already in demurrage (port storage) at the commencement of the strike will continue to accrue demurrage through the established tiers for the duration of the strike until the cargo is removed after resolution. However, cargo still within free time at the start of the strike is likely to have free time frozen until operations are resumed.
- Backlogs are expected after the strike is resolved as ports catch up on impacted shipments.
- Congestion in alternative ports (Canada and U.S. West Coast) as shipments are re-routed.
- Knock-on effect on shipments around the world due to increased pressure on capacity and a container imbalance of empty containers as ships are held in port.
What are Bournes doing?
- We are contacting all customers with effective shipments and liaising directly to develop contingency plans and solutions to meet individual needs.
- We are closely monitoring the situation and reviewing alternative routes/carriers on a case-by-case basis to minimise disruption as far as possible.
We are committed to full transparency and will keep our customers fully updated with the latest developments.
Read more:
CNN: Massive port strike begins across America’s East Coast, threatening shortages and rising prices
