Hapag-Lloyd Sets Work Disruption Surcharge for US East/Gulf Coast Ports

Hapag-Lloyd announced a Work Disruption Surcharge if the ILA strike begins in January (Hapag)

Published Dec 26, 2024 5:17 PM by The Maritime Executive

 

With the labor contract unresolved and fears increasing for another longshoremen’s strike at U.S. ports on the East and Gulf Coast, Hapag-Lloyd announced plans for surcharges for all containers booked to the ports. The strike could start in just three weeks and the fees would kick in days later should a strike occur.

Hapag, Maersk, and CMA CGM each warned customers last week that the situation remained unresolved and rolled out the start of their contingency plans. The master contract for the International Longshormen’s Association and the US Maritime Alliance was extended during the October strike with a new expiration of January 15, 2025. The ILA says it is at an impasse with the terminal operators over the issue of semi-automation and promises to resume the strike the following day.

“To help manage the potential impact of ongoing challenges at U.S. East Coast and Gulf ports, we are introducing a Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID), effective January 20, 2025, in the event of a strike,” Hapag writes in a customer alert. “This surcharge covers additional costs from labor disruptions, strikes, slowdowns, unrest, congestion, and other unforeseen events that may delay operations and incur extra handling, storage, and feeder service costs.”

The fees would be from ports all around the world for cargo gated-in on or after January 20. The charge will be $850 for a 20-footer and $1,700 for a 40-footer.

Containers gated in prior to that date or already on the water will not incur the surcharge. 

Trade groups have called for the union and employers to again extend the deadline while urging them to resume talks. However, the union received a strong statement from President-elect Trump supporting the stance against automation in the ports. 

Hapag like its peers has urged customers to already begin taking steps to prepare for a possible strike. With no resolution and no reports of new talks, the three carriers last week urged expediting the movement of containers away from the docks in the remaining weeks. They are still accepting bookings but reported they would be exploring diversions or other steps. They have waited out prior strikes but there are fears this one could become a prolonged stoppage.