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Local Information > Local News > 2012 > ILA strike risk Eastcoast USA
Local News
December 12, 2012

As negotiations between the ILA and USMA do not appear to be moving towards an early resolution, we need to prepare for the possibility that operations at ports on the U.S. East and Gulf coasts will shut down on December 29.

 

In the event of an ILA strike, please note the following will be implemented for TAT EB above and beyond any current rate negotiations:

 

·         Port Congestion Surcharge: This will be implemented on all cargo received in the United States (TAN and TAG) from the first day of the strike onward. The PCS will not apply on cargo received in Canada or Mexico, or on any contract cargo that has a ‘no new surcharge’ clause. The PCS will remain in effect until such time as congestion at the ports has eased back to normal levels following the conclusion of the strike.

 

$800 per 20’ container

$1000 per 40’ container

$1265 per 45’ container

 

For Westbound it is important to note this charge will be applied on any inbound cargo at North American port on or after December 29, on collect basis, irrespective of cargo receipt date.

 

·         TAG Booking Cancellation Fee: To discourage parties from blocking out space on our TAG vessels during the strike period, we will assess a Booking Cancellation Fee of $100/cntr for customers cancelling a total of five or more containers within 3 working days of cutoff on any given vessel. This total can cover several bookings, i.e. if a customer cancels five individual bookings of 1 container each on one sailing, they will be assessed the Cancellation Fee.

 

·         Alternative Routings: If a strike occurs, customers’ options will be limited with all major U.S. ports on the East and Gulf coasts shut down. We will be unable to receive or release boxes at the ocean terminals, and we expect at the inland railheads the same will apply. This will lead to pressure for carriers to provide alternatives via Canada or the West Coast, but place strains on the supply of traction and rail car space on these alternative routes. We therefore will only offer customers the option to pick up and return boxes at the West Coast ports and TAG CY points, any other inland transportation will have to be arranged by the customer.

 

We will keep you advised of any additional details as we get closer to the actual potential strike date.

Thank you for your continued support.

Kind Regards
OOCL Switzerland AG

 

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