Congestion & ILWU Motion Hurting Shippers
Expensive Valued Buyer,
As a result of steady work slowdown affecting the port of Seattle, which prevented the CMA CGM Dalila Voyage USA91E from working, we’ve got had no alternative however to depart the terminal together with your container(s) remaining onboard.
We sincerely remorse the inconvenience brought on by this power majeure occasion, and sadly haven’t any different however to order our rights to invoke clause 10 of our invoice of lading.
We’re at the moment engaged on contingency plans to ship cargo as shortly as potential and can talk it as quickly as particulars are finalized.
Thanks on your understanding,
Such “inconveniences” for shippers means not solely are they not receiving their cargo as scheduled, but in addition seeing additional charges on their shipments.
Clearly, the unhealthy congestion downside being made worse by ILWU actions shouldn’t be solely an issue for importers, however exporters as properly. Shippers concern, with good cause, that they’ll be seeing much more price will increase to their shipments.
Again in June, we shared in a delivery information alert that carriers introduced and filed Port Congestion Surcharges (PCS) contingent upon congestion by issues like an ILWU strike or PMA lockout.
The PCS quantities that carriers filed and have able to cost are or are within the ball park of $800; $1,000; and $1,125 per 20′, 40′, and HQ containers, respectively.
The choice to implement PCS which were filed shall be made individually from service to service. Up to now, these PCS haven’t been carried out. Nevertheless, the nervousness stage of shippers is up as the everyday service announcement about PCS learn like the next from Maersk:
“…within the occasion there may be congestion, inflicting important disruption to our regular operations, this surcharge shall be utilized to all shipments destined for or originating in the USA (together with these shipments transiting via Canada or Mexico).”
With ships anchored and ready to get serviced by the ports or departing from terminals just like the CMA CGM Dalila Voyage USA91E, shippers’ nervousness could be very justified.
An essential lobbyist in Washington for shipper teams such because the Agriculture Transportation Coalition and Coalition of New England Corporations for Commerce, Peter Friedmann, stated, “I’m getting calls from shippers questioning if the carriers nonetheless have their tariff on file to impose these disruption penalties.”
The easy reply to those shippers query is sure.
The scenario might get even worse as Teamsters working with truckers are ready to launch one other truckers strike on the Ports of Los Angeles and Lengthy Seaside. There’s nothing in place to maintain the ILWU from refusing to cross such picket strains, ought to they seem, and inflicting shutdowns in United States’ largest ports by quantity.
That, nevertheless, is a narrative for one more weblog. We right here at Common Cargo Administration are monitoring the scenario on the ports and dealing exhausting to maintain your imports and exports transferring. Examine again in at our weblog for extra updates. We submit new blogs each Tuesday and Thursday.
