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Friday, 03/01/2025, 15:48 (GMT +7)
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Shipping Lines Adopt Surcharges Ahead of East Coast Strike Threat
Container shipping lines are imposing emergency surcharges ahead of strikes at US East Coast ports, forecasting sharp increases in freight rates in the coming weeks.
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Container shipping lines are imposing surcharges in anticipation of workers at US East Coast ports resuming their strike on January 15, 2025.
According to a Linerlytica report this week, the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX) – which represents US East Coast port operators – have yet to reach an agreement in wage negotiations.
The report states: "Stakeholders are gearing up for another port strike on 15 January 2025. Various carriers have already issued advisories to their customers on contingency actions in the event of a strike, with expectations of a coast-wide closure of ports and container depots across the US East and Gulf coasts expected to cause transpacific freight rates to spike."
Surcharges imposed by shipping lines
Maersk Line applies surcharges:
- $1,500 per TEU,
- $3,000 for a 40-foot container,
- $3,780 for a 45-foot container, depending on the level of supply chain disruption.
CMA CGM applies:
- Surcharges of $800 per TEU and $1,000 per FEU for exports from ports on the US East Coast and Gulf Coast.
- Import surcharges of up to $1,500 per TEU.
Hapag-Lloyd applies:
- Work Disruption Surcharge of USD 850 per TEU and USD 1,700 per FEU for imports from Northern Europe, the Mediterranean, Africa, the Middle East, the Indian Subcontinent, Oceania and Latin America.
- Work Interruption Destination Surcharge of USD 1,000 per TEU for imports from East Asia.
Freight Markets Rising
On December 27, 2024, the Shanghai Container Freight Index (SCFI) showed significant increases in trans-Pacific freight rates:
- Shanghai - US West Coast increased by 9% week-on-week to USD 4,581/FEU.
- Shanghai - US East Coast increased by approximately 8% to USD 6,074/FEU.
"China-to-US freight rates have recovered all of their losses from the previous six weeks, with further strength expected in the coming weeks, ahead of a potential US East Coast port strike. Carriers will be imposing emergency US East Coast surcharges of US$1,000 to US$2,000 per FEU if the strike goes ahead, with US West Coast rates also expected to spike due to cargo diversions," Linerlytica said.
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Source: Phaata.com (via Container-News)
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