The International Longshoremen’s Association (ILA) initiated a coast-wide strike on October 1 shutting down port terminals up and down the U.S. East and Gulf Coast. This strike, which affected 45,000 dockworkers, lasted three days. The strike ended October 3 after the ILA and United States Maritime Alliance (USMX) reached a tentative agreement.

The ILA’s contract with USMX expired on September 30, 2024. USMX represents major shipping lines, as well as terminal operators and port authorities on the U.S. East and Gulf Coast. Despite last minute negotiations, the two parties failed to agree on wage increases and automation. ILA requested a significant wage increase, improved benefits, and stricter protections against labor automation.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” ILA head Harold Daggett said in a statement on October 1.

The strike affected terminals at the following 14 ports:  Boston, Massachusetts; New York and New Jersey; Philadelphia, Pennsylvania; Baltimore, Maryland; Norfolk, Virginia; Wilmington, North Carolina; Charleston, South Carolina; Savannah, Georgia; Jacksonville, Florida; Miami, Florida; Tampa, Florida; Mobile, Alabama; New Orleans, Louisiana; and Houston, Texas.

On October 3, the two parties announced a deal. USMX and the ILA agreed to extend the current contract through January 15, 2025. The parties tentatively agreed on wage increases but are still negotiating automation restrictions.

This was the first ILA coast-wide strike since 1977. That strike reportedly lasted 44 days.

The ILA and USMX will now return to the bargaining table to reach a final agreement by January 15, 2025.

The U.S. Federal Maritime Commission (FMC) issued an Industry Advisory reminding the industry that all FMC regulations remain in full effect during terminal closures at ports in the U.S. East and Gulf Coast. Regulated entities must continue to comply with all FMC regulations. The FMC’s rules governing tariffs, service contracts, MTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed remain in effect.

The Commission advised it will scrutinize any demurrage and detention charges assessed during terminal closures. Under the FMC’s regulations demurrage and detention must serve as legitimate financial incentives to encourage cargo movement. Pursuant to the Commission’s new rules on detention and demurrage invoicing, invoices that do not include all required information, or that are sent to the wrong entity, are not valid.

Additionally, the Commission directed its Bureau of Enforcement, Investigations, and Compliance to investigate any reports of unlawful conduct. The FMC stressed that it would prosecute violators to the fullest extent of the law.

To report unlawful actions or to file a complaint with the FMC, individuals or entities can take the following actions.

• File a complaint proceeding for adjudication before the FMC’s Office of Administrative Law Judges.
• Submit a Charge Complaint requesting refund or waiver of an erroneous or unlawful charge assessed by a common carrier for rapid review.
• Request informal assistance to resolve a dispute. The Commission’s Office of Consumer Affairs and Dispute Resolution Services (CADRS) can facilitate communications to resolve disputes between shippers and common carriers or MTOs.
• Report allegations of violations to the Commission for review and possible investigation.
• Send concerns and information to the Commission at complaints@fmc.gov.

For additional information about options for raising and addressing disputes visit the FMC’s website at www.fmc.gov.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective October 15, 2024, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and ZIM. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The October 15th GRIs will be the twentieth GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 3000 per 40ft container for dry cargo, and USD 3000 per reefer container. GRI amounts for all other container sizes are as per formula.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective November 1, 2024, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and Zim. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The November 1st GRIs will be the twenty-first GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 3000 per 40ft container for dry cargo, and USD 3000 per reefer container. GRI amounts for all other container sizes are as per formula.

Each carrier maintains its own tariffs and controls its own pricing.

The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.