Choosing a customs broker is an important decision for any business or individual importing goods into the United States. Your broker can help prepare your customs entry, classify your goods, calculate duties, manage documentation, and communicate with U.S. Customs...
Shippers may soon face higher costs as the Panama Canal fees continue to rise. Over the last few months, various scenarios have driven transit fees higher. Major carrier companies have begun raising their Panama Canal Surcharge from $100 per TEU to $130 and nearly...
Tariffs remain an issue in the US, with President Trump’s new tariffs facing lawsuits. Following the expiration of Trump’s Section 122 tariffs, the Office of the US Trade Representative (USTR) imposed new tariffs under Section 301 of the Trade Act of 1974. Starting...
Tariffs on imports into the US remain a constant issue, with President Trump continuing to impose tariffs on various countries. On July 15, the Trump Administration announced a 25% tariff on numerous imports from Brazil. The levies will be effective on July 24...
Hapag-Lloyd and CMA CGM announced new charges as strike nears on U.S. East and Gulf Coast ports. The International Longshoreman Association (ILA) plans to protest on October 1st as their six-year contract ends. Unresolved negotiations with the United States Maritime Association (USMX) regarding automation, wage increases, and higher pensions are causing the protest. ILA president Harold Daggett said in an ILA-released video over a week ago, “Mark my words, we’ll shut them down.” The Biden Administration said it will not intervene and invoke the Taft-Hartley Act for a cool-off period. As a result of the strike, two top container lines revealed new surcharges effective mid-October.
Starting October 11th, CMA CGM will charge an extra $1,500 per TEU importing to East and West Coast ports. CMA CGM will also impose a surcharge of $800 per twenty-footer, $1,000 per forty-footer, and $1,266 per forty-foot container for dry and tank exports from the ports. Reefer export surcharges will be $1,000 per twenty-footer and $1,500 per forty-foot container. CMA CGM will also apply a $500 per rate restoration initiative on transatlantic shipments beginning October 1st. Hapag-Lloyd has announced a Work Disruption Surcharge (WDS) starting October 18th. The WDS will be $1,000 per TEU for imports into the U.S. East and West Coast ports from:
The new surcharges are due to the effect a potential protest can have on the industry. East and Gulf Coast ports handle approximately 55.5% of year-to-date U.S. container imports, accounting for 8% of container volume globally. Containers going to the East and West Coast ports will particularly feel the impact of port closures. Port closures for one week could take six to eight weeks to recover from. Container lines are adding extra surcharges to protect against the probable scarcity in the market. Vessels arriving at East and Gulf Coast ports after October 1st will get stuck for weeks, resulting in limited capacity.
Along with the new surcharges, the East and Gulf Coast terminals are implementing emergency strategies due to the strike. Port Everglades, Florida International Terminal (FIT) announced a contingency plan for port operations including:
With the potential strike having significant implications for international and domestic shipping, shippers must be ready for what’s to come. This can mean constantly being informed of the situation by checking the news and planning. Contacting a third-party Logistics provider (3PL) can also be helpful. Reach A1 Worldwide Logistics at 305-425-9456 or info@a1wwl.com to stay up-to-date with any occurrences in the shipping industry. Along with educating you on what to expect, we find solutions for protecting your shipments from disruptions.
📍1035 NE 125th St #320, North Miami, FL 33161, USA
🕒 Hours: 8AM – 5PM
