Freightos: East Coast ports extending hours before likely strike
In expectation of a strike at East and Gulf ports starting Monday night, ports, carriers and regulators are getting ready.
According to the weekly international freight update from global freight booking platform Freightos, many of the major container hubs have extended their gate and terminal hours, including over the final weekend before the strike.
Ports and rail operators are also setting deadlines for final pick-up and drop-offs, with particular concern for reefer shipments getting moved from the ports or loaded on vessels before the deadline to avoid going unattended on container yards, the report said.
[READ MORE: Strike deadline draws closer for 36 U.S. ports]
Some ocean carriers have stopped accepting new export bookings in anticipation of the strike. Hapag-Lloyd announced that containers already en route to affected ports will not be rerouted, and many carriers have rolled out surcharges ranging from $400 to $3,000/FEU for all East Coast and Gulf containers starting in October, the report noted.
Key insights from the Freightos Weekly Update are below.
- Five days remain before a likely ILA port strike. Shipper groups are asking the White House to intervene, and though the administration has said it won’t force workers back to ports, it will also face pressure to avoid the economic impact of a prolonged shutdown.
- East Coast ports are extending hours and setting deadlines for final pick ups/drop offs, while carriers have suspended new export bookings and announced significant surcharges – ranging from $400 - $3,000/FEU – for East Coast bound containers in October.
- In light of rule changes following shipper complaints of unfair container storage charges for containers stuck at ports during the pandemic, the FMC is warning carriers and operators against excessive detention and demurrage fees during a strike.
- A strike will shift some traffic to the West Coast where, last month, a record level of container volumes flowed smoothly through L.A./Long Beach. Some of this success is due to adjustments made following the extreme pandemic-era congestion which should allow them to handle a sudden volume surge reasonably well.
- A prolonged shutdown, however, would still result in West Coast congestion and delays, which would contribute to additional upward pressure on rates. It would also eventually lead to capacity and empty container shortages at origin ports in Europe and Asia, spreading the impact to lanes out of those hubs.
