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US East Coast dockworker strike: Temporary resolution but risks remain for January

Oct 4, 2024 | , , , , , , , , , , , , ,

While a tentative agreement between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) has paused the strike, a final resolution must be reached in January 2025, or further disruption could occur.

The recent US East and Gulf Coast dockworker strike, which began on 1st October 2024 and lasted three days, caused significant disruptions across 36 key ports, including New York, Savannah, and Houston.

During the strike, over 50 vessels were anchored offshore, impacting approximately 1.4% of the global container shipping fleet. Carriers including CMA CGM, ONE, and APL declared force majeure, leading to potential rerouting, delays, and added costs for shippers. This has highlighted the importance of securing comprehensive marine insurance to mitigate risks such as unexpected storage costs, rerouting, and delays.

Though some cargo was rerouted to alternative ports in Canada and Mexico, these measures provided limited relief due to limited capacity and congestion at those facilities.

With another 100 vessels en-route the length of time required to clear the backlog remains uncertain, and the resulting congestion could persist well into Q4. Additionally, carrier surcharges are expected to remain in place on all cargo to and from the US, further increasing costs for shippers.

If the ILA and USMX fail to reach a final agreement by January, the resumption of the strike could lead to significant global supply chain disruptions. Nearly 50 vessels were affected during the initial strike, and this number could rise, with an estimated 2.22 million TEU of cargo capacity tied up by the end of the month if no resolution is found

To discuss the current situation and how Metro can protect your supply chain, please EMAILAndrew Smith, Chief Commercial Officer.

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US East coast port strikes underway

Oct 2, 2024 | , , , , , , , , , ,

At 12:01 a.m. ET on Tuesday 1st October 2024, dockworkers along the US East and Gulf Coasts began a major strike, marking the first significant work stoppage in nearly 50 years, threatening major supply chain disruption across the US and beyond.

Nearly 50,000 members of the International Longshoremen’s Association (ILA) have walked out, grinding operations at 36 key ports, threatening to unleash significant supply chain disruption, severely delaying both imports and exports.

Affected ports on the East Coast and Gulf of the US include Boston, New York/New Jersey, Philadelphia, Wilmington, Baltimore, Norfolk, Charleston, Savannah, Jacksonville, Tampa, Miami, Port Everglades, New Orleans, Mobile and Houston.

The strike comes after negotiations between the ILA and the United States Maritime Alliance (USMX) broke down, with the union rejecting USMX’s latest offer of a nearly 50% wage increase over a six-year period. The ILA has remained firm in its demands, pushing for higher pay and stronger job security guarantees in response to the automation plans that threaten longshoremen jobs.

With goods sitting idle in containers as ships pile up offshore and the potential for shortages high, particularly for perishable goods. Industrial materials are also caught in the disruption, impacting businesses reliant on components and raw materials to keep production lines running.

Shippers who depend on steady supply flows in the lead-up to the critical holiday season, have implemented contingency plans, with some shipping orders ahead of the strike to avoid delays. Some shippers may opt to move goods through other ports, but such measures could come at an additional expense and many businesses may struggle to find alternatives, especially as other ports lack the capacity to absorb redirected cargo.

Shipping lines and port operators have responded by activating emergency plans, rerouting ships where possible, anchoring to wait out the strike and issuing surcharges to cover additional costs. Emergency Operations Surcharges for shipments to the affected ports have already been introduced, with fees ranging from $800 to $3,000 per container, depending on size and carrier.

Most carriers and terminals have stopped demurrage and detention accrual – but that relief does not extend to cargo already accumulating charges.

Despite calls from industry leaders for government intervention, the Biden administration has signalled it will not invoke the Taft-Hartley Act, which could enforce an 80-day cooling-off period.

Both sides of the dispute remain far apart and the union’s president, Harold Daggett, has made it clear that the ILA is prepared to strike for as long as necessary to secure an agreement that addresses their concerns.

Looking ahead
With Sea-Intelligence calculating that it would take six days to clear the backlog from one day of strike action, it could quickly lead to significant logistical challenges and the likelihood of severe backlogs is growing.

Container bottlenecks, equipment shortages, and soaring costs for trucking and rail services are becoming inevitable as the strike enters its second day, with no clear resolution in sight.

The longer the strike continues, the greater the risk of long-term disruptions to global supply chains reliant on US ports.

We have contingency plans in place to avoid the ports affected by strikes, as well as alternative routes and entry points.

To discuss the current situation and how Metro can protect your supply chain, please EMAIL Andrew Smith, Chief Commercial Officer.

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Australia follows US and Canada with stricter air cargo security measures

Oct 2, 2024 | , , , , , , , ,

In response to heightened security concerns, the US, Canada, and now Australia have implemented stricter security protocols for air cargo originating from Europe and the CIS, to minimise potential risks after incendiary devices were discovered within European parcel networks.

Australia’s Department of Home Affairs introduced the most recent restrictions on 26th September 2024, aligning with similar measures already enacted by the US and Canada.

The Australian regulation stipulates that air cargo from 55 countries must meet Established Business Relationship (EBR) criteria if destined for the country on passenger aircraft, and unknown senders’ consignments weighing more than 500g are prohibited from flying on passenger planes.

These measures follow incidents in which incendiary packages caused fires in European parcel networks, prompting authorities to raise concerns about cargo security.

The US, under its Air Cargo Advance Screening (ACAS) programme, has introduced stricter regulations that demand more detailed information from shippers and consignees and only cargo from a Known Consignor or a shipper with an established relationship with a regulated agent or carrier is permitted to fly.

Similarly, Canada has rolled out new rules through Transport Canada, for air cargo originating from Europe, the CIS, and Central Asia. Canadian regulations also require that cargo from these regions be tendered only by shippers with an EBR with freight forwarders or air carriers.

To meet these criteria, shippers must have maintained an active account for at least 90 days and completed a minimum of six shipments during that time. Air Canada Cargo, for example, mandates that all air waybills include specific messaging confirming the relationship between the shipper and their logistics partner, in line with these new requirements.

These new regulations come in the wake of several security incidents, including a fire at a logistics hub in Leipzig, Germany, believed to have originated from a package sent from the Baltic region. Authorities suspect potential interference by Russian actors, further emphasising the need for heightened scrutiny across global supply chains.

Metro’s air exports to North America and Australia continue to fly without issue, or delay. Inbound consignments are processed through customs and associated border agencies by our local network partners.

EMAIL Elliot Carlile, Operations Director, for insights, prices and advice. 

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Enhanced groupage services to France and Germany

Oct 2, 2024 | , , , , , , , ,

In our continued efforts to provide exceptional trans-European logistics solutions, we have recently upgraded our groupage services to France and Germany, offering greater speed and efficiency, alongside competitive rates and our top-tier customer care.

Our French groupage services continue to excel, offering regular, efficient departures and seamless distribution throughout the country. In addition, we have expanded our reach in Germany, a vital hub for European trade. With frequent departures, including into the Ruhr area, one of Germany’s most important industrial regions, we ensure that goods are swiftly distributed across the country thanks to our trusted network of partners.

In today’s fast-paced and ultra-competitive markets, it’s not just about speed and cost—it’s about communication, reliability, and trust. By carefully selecting carrier and network partners in France and Germany, who share our customer-first mindset, we ensure that our clients benefit from smooth communication, timely updates, and a full door-to-door (DDP) solution. Our goal is to make European shipping as hassle-free as possible, providing a service that values our customers’ time and business.

However, businesses shipping to and from Germany should be aware of some potential changes that may impact the logistics landscape. Recently, Germany has enforced stricter border controls aimed at curbing migrant activity. While the long-term effects on freight traffic remain unclear, it is a development that could impact trucks entering and leaving the country.

Additionally, as of November 2024, UK passport holders will be required to register their biometric details, such as fingerprints or a photo, when entering the Schengen area, which could cause some delays for trucks crossing from the UK into the EU.

Despite these challenges, our French and German groupage services remain reliable and dependable, ensuring that goods are delivered efficiently while providing the highest level of customer care.

Metro’s road transport solutions incorporate dedicated vehicles moving on set routes for security, with defined delivery deadlines and GPS tracked trucks, to provide full transparency on transit schedules throughout the UK and continental Europe.

Our road freight teams are located close by major manufacturing and transport hubs across the UK. To explore the potential of our German and other European services EMAIL Richard Gibbs to begin a conversation.

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