Shipping Logistics

Market Update Q3 2024: No.11

September 30, 2024

Hi All,

It is the last day before the looming strike on the US East Coast - I left the previous market update here for everyone as well.

ILA issued a statement that they will update the public and media on any new developments today at 11 am (presumably indicating USEC timezone). Still, I just checked and have not seen anything yet...

Barring any last-minute surprises, we are heading for a shut-down in a little less than 15 hours.

Just a quick update to re-iterate most of what has already been said and flesh out some details. Of course we are here to help in any way we can with your individual situations be it through pickups, transloading, and/or any other improvisation that might make a difference.

Here is on of the better articles on potentially what happens next

https://www.freightwaves.com/news/where-ila-strike...

Expect Houston to also be affected and the WC to be congested as well per earlier email
Immediately below is the surcharge table for all the carriers delivering cargo to the EC - also attached the first of what will be many Force Majeure announcements - this is critical because it voids all contracts and service agreements. This means carriers can discharge cargo wherever they want and charge whatever they want. Demurrage and detention will be an issue as well and you should not expect logical applications such as "I was unable to pickup or return my cargo so I should not be charged."

So here is the short version on what to expect and how to navigate:

1. EC ports will strike, likely re-open for arbitration for 90days and then we'll see what happens. Cargo moving through the port will be very slow
2. Port congestion and demurrage/detention will be a major issue as terminals and carriers will see dollar signs here - pay close attention, early bird gets the worm.
3. Expect continued vessel adjustment and removal from calling the EC - this means more unreliable schedules, rolls etc.
4. Expect rates to be adjusted to the higher side in the short term

Author
Matthew Crocker
CCO

Source Image: Socialist Alternative