Container shipping companies introduce strike surcharges.
Starting from October 1st
In the container shipping industry to and from the eastern United States, the first special surcharges are being announced due to the potential expansion of port strikes next month. For example, the German container shipping company Hapag-Lloyd is introducing the so-called Work Disruption Surcharge (WDS).
The WDS will have a standard rate of $1,000 per teu and will apply to imports into US East Coast and Gulf of Mexico ports from all ports in northern Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania and Latin America. Hapag-Lloyd will start levying the new surcharge from 18 October.
CMA CGM: higher rate
The French container shipping company CMA CGM has introduced a strike surcharge called the Local Port Charge. For import containers from all destinations to U.S. East Coast and Gulf Coast ports, they have set a higher rate of $1,500 per TEU, which is more expensive than their German competitor's surcharge.
Unlike Hapag-Lloyd, CMA CGM has also announced surcharges for export containers. The surcharge will be $800 per TEU for standard and tank containers, $1,000 per 40-foot container, and $1,266 per 45-foot container. For reefer containers and other special equipment, the export surcharge will be $1,000 per TEU and $1,500 per 40-foot container. The CMA CGM surcharges will take effect from October 11.
Unhappy with proposals
The logistics sector is preparing for possible strikes starting October 1, as the current port labor agreement in the affected seaports will remain in effect until then. Workers and unions are dissatisfied with the new labor agreement proposals made by employers so far, as well as with port automation, and plan to increase pressure through strikes. The White House stated earlier this week that it does not intend to intervene to stop strike actions at the ports.
Source: NT