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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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Seasonal measures for Brown Marmorated Stink Bug (BMSB)

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

The 2024/25 Brown Marmorated Stink Bug (BMSB) season is now underway, which means strict import regulations are implemented by Australia and New Zealand, with the United Kingdom a target risk country.

The BMSB is an agricultural pest native to China, Japan, the Korean peninsula, and Taiwan, and is renowned for the widespread damage it may cause to fruit and vegetable crops.

Accidentally introduced into the United States twenty years ago, the BMSB is now also established in South America and Europe.

Seasonal measures are crucial to protect agricultural industries from the significant biosecurity threat posed by BMSBs, which are known to damage over 300 plant species and can cause serious economic and ecological harm.

From the 1st September 2024 to 30th April 2025, Australia and New Zealand are enforcing seasonal measures on goods originating from 41 target risk countries.

This year, China and South Korea have been added to the heightened vessel surveillance list, alongside existing risk countries like the United Kingdom, which is subject to random inspections of shipments. Australia will randomly inspect UK-origin goods between 1st December and 30th April, while China-origin shipments will face inspections between 1st September and 31st December.

The BMSB measures apply to high-risk goods, including those shipped in break bulk, open containers, or on flat racks. These goods must undergo mandatory offshore treatments, such as fumigation or heat treatment, to mitigate the BMSB threat before arrival.

Treatment and packaging regulations
Both Australia and New Zealand require that all high-risk goods be packaged to allow for effective treatment. Packaging must permit fumigants or heat to reach all surfaces, meaning plastic wrapping may need to be adjusted or slashed to ensure proper infiltration. The regulations apply only to the goods themselves, not to packaging materials like cardboard or pallets, though these materials must still meet general non-commodity requirements.

To comply with these requirements, importers must ensure that their goods are treated by approved offshore BMSB treatment providers, registered with the relevant authorities. Australia’s AusTreat system and New Zealand’s Ministry for Primary Industries (MPI) offer lists of authorised treatment providers.

Minimising delays and non-compliance risks
Non-compliance with BMSB regulations can lead to severe delays, additional costs, or even exportation of the shipment. To avoid these complications, importers are strongly encouraged to complete BMSB treatments offshore before the goods arrive in Australia or New Zealand. Accurate and early documentation, including treatment certificates, is essential for expediting inspections and clearing shipments.

By staying updated with these regulations and ensuring compliance, importers can minimise potential disruptions to their supply chains during the BMSB risk season.

Dedicated staging facilities
Metro has established dedicated staging facilities at origin and destination ports to comply with seasonal measures for the Brown Marmorated Stink Bug (BMSB).

These facilities are sterilised to meet quarantine and inspection standards, such as those set by the Australian Quarantine and Inspection Service (AQIS), providing a controlled environment for the inspection, cleaning, and fumigation of high-risk cargo.

By ensuring that cargo is treated and transported within a sterile environment, it bypasses quarantine checks upon arrival and moves directly to the destination staging facility for unloading and further distribution, thus streamlining the delivery process and meeting BMSB compliance standards.

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