11 October 2024Article
Update : ILA Surcharges Suspended

Following the strike resolution ILA and USMX, associated surcharges have been suspended.

Following the strike resolution between International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) through a tentative agreement on October 3 2024, associated surcharges have been suspended.

This agreement effectively ended the strike that had impacted ports along the US East Coast (USEC) and Gulf Coast (USGC). As a result, operations have resumed, and many shipping companies have canceled previously planned surcharges.

Despite the strike being over, some delays and residual disruptions are expected as ports work to clear the backlogs. Some shipments may still be subject to additional costs incurred from the impacts of the strike action, though shipping companies are actively trying to minimize any additional costs for customers by rerouting cargo and negotiating leniency on demurrage and detention charges.

Since the strike suspension, carriers have resumed accepting export bookings for all cargo again. However, due to efforts to manage congestion at ports and terminals, these bookings may be subject to longer lead times.

Carriers have announced they will not be charging emergency congestion surcharges originally announced on import cargo to the USEC and USGC. In tackling the backlog, truckers are imposing congestion fees for collecting containers from USEC ports, applied in accordance with terms on bill of lading.

Overall, this resolution provides temporary stability as negotiations continue for a final long-term contract, which is expected to be finalized in the coming months.

Our Woodland Group team throughout the United States are working diligently to minimize additional costs and appreciate your understanding. Should you have any questions, please contact your local Woodland representative or contact us here.

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