OCEAN carriers are skipping calls and unloading cargo at alternate ports, longshoreman are racking up overtime and working through the weekend, and importers are racing to get their cargo off the terminal grounds at US east and Gulf coast ports.

It’s all part of a mad dash to move boxes in the final days before the strike deadline of the International Longshoremen’s Association.

The ILA has vowed to go on strike at 12:01am on October 1. There have been no signs of progress on negotiations as the deadline approaches.

Containerships make last-minute schedule changes

Containerships that are close to finishing rotations at affected ports are rushing to unload all their boxes before work halts. They’re doing so by cancelling one or two of the scheduled calls and unloading boxes destined for skipped ports at another terminal.

CMA CGM told customers “import shipments may be impacted due to vessel omissions or change of rotations”. Hapag-Lloyd has released information on the route changes of The Alliance, listing 12 rotations that omitted calls prior to the strike deadline. 

A few examples from services of The Alliance: Rome Express (IMO: 9447861) skipped a call in Norfolk and dropped that cargo in Wilmington, North Carolina on Saturday. Vienna Express (IMO: 9450416) skipped Savannah and Miami and unloaded in Norfolk instead on Saturday. Ain Snan Express (IMO: 9525869) omitted calls in Norfolk and Wilmington and is scheduled to unload that cargo in Charleston on Monday.

The east and Gulf coast rotation changes of The Alliance also show how carriers could use Canada and Mexico if the strike proceeds. Tempanos (IMO: 9447897) and Tokyo Bay (IMO: 9629380) are cancelling calls in New Orleans and Houston and dropping off US-bound cargo in Altamira, Mexico. Puerto Limon Express (IMO: 9434943) and Caucedo Express (IMO: 9434931) skipped Norfolk and unloaded that cargo in St. John’s, Nova Scotia.

Carriers urge importers to get boxes off terminals

Despite the war of words between the employers’ group and the ILA, port operations have remained highly productive. Terminals have remained open for extended hours and through the weekend, with longshoremen working overtime.

Carriers have pushed shippers with import cargo at the terminals to get it through the gates and off the yards before the strike deadline. MSC has “urged customers to move equipment before October 1, with many terminals offering extended gate hours”.

There could be negative consequences if shippers don’t move fast enough.

There is a particular urgency to get reefer containers off terminals. “Labour disruptions will impact terminal operators’ ability to monitor reefer containers…[creating] the risk of loss or damage to temperature-controlled cargo,” warned Maersk.

“Reefer shipments will not be monitored during the port disruption,” asserted CMA CGM.

Other consequences could involve detention and demurrage charges. The Federal Maritime Commission put out a special advisory last week in advance of the strike deadline, warning: “FMC regulation requires that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement.” It said it “will prosecute violators to the full extent of the law”.

The pre-strike detention and demurrage language in customer advisories differs between carriers.

Zim urged customers “to hasten/expedite their customs clearance and remove [import] cargoes from terminals before September 30. We recommend making every effort to move the containers in order to avoid any unnecessary demurrage and detention charges.”

Zim said it will “align detention and demurrage charges with those of the terminal where the container is located at the time the strike takes effect”.

MSC said it will “stop the clock” on detention, demurrage and per diem charges when the strike begins, and restart the clock when it ends. That raises the question of how much congestion there could be after a strike, given expected offshore ship queues, and how difficult cargo movements could be when the detention and demurrage clock resumes.

Carriers file fees to compensate for strike costs

Carrier cost-recovery plans are yet another matter of urgency as the strike deadline nears.

Shipping lines cannot start levying new surcharges until 30 days after they are announced, so the faster they file, the quicker they can start recovering costs in the wake of a strike. (It is theoretically possible to start charging earlier if the FMC provides a “special permission” application, as it did after the Houthi attacks in the Red Sea.)

Most surcharges that have been filed come to around $3,000 per feu, equating to around 50% of the current Asia-US east coast spot rate based on the Drewry World Container Index.

The surcharges being filed by carriers are mostly directed at imports en route to US east and Gulf coast ports during or after labour unrest, or exports loaded from those ports after work resumes.

In some cases, they will apply more widely: Cosco will charge an import fee covering all US ports. Yang Ming will charge a fee for all imports and exports from all US and Canadian ports, and MSC to will charge an import fee for cargo to all US and Canadian ports.

The implementation date varies widely because some carriers have been quicker to file notice than others. Disruption fees of Cosco will have immediate effect, because its tariff was filed to coincide with potential west coast labour disruptions last year and remained on the books. Disruption fees of Zim will begin October 8, while those of MSC and Ocean Network Express are not effective until October 26.