PRESS ROOM

Container shipping consultancy Xeneta has advised shippers to act now to avoid any supply chain disruption caused by potential striking dockers on the US East Coast.

And this is certainly a message that we are sending to customers that use portfolio of international ocean freight operations to and from the US East Coast, which include LCL and FCL import and export operations.

The warning comes after the International Longshoremen's Association (ILA) threatened that its 85,000 members will strike on October 1 if a new contract is not agreed ahead of that date.
 
"With a port-to-port sailing time of 24 days on a typical transatlantic trade from Genoa to Savannah, plus around 10 days land operations at either end, shippers must act now if they wish to utilise alternative supply chain options," warned a Xeneta briefing.

It added that some transpacific shippers have already missed the boat: "With port-to-port sailing times of 50 days between Shanghai and New York, plus land operations, there are already containers on the ocean which will arrive on the US East Coast after September 30 - deal or no deal."

Shipper expectations that rates would collapse with the flood of newbuildings expected this year were dashed by the Middle East conflict and the absorption of much of the new tonnage into diverted Asia to Europe services, which now take the far longer route around the Cape of Good Hope.

Disruption of supply chains caused by the effective closure of the Suez Canal have diminished as additional tonnage was injected, but shippers according to both Xeneta and Drewry Shipping Consultants have brought forward much of their Christmas shopping, traditionally saved for Q3, in an effort to avoid the rush.

U-Freight notes from media reports that as the contract expiration date nears, there are still no clear conclusions in the ongoing negotiations.

We remain committed to helping clients manage the difficult situations facing container shipping at present and mitigate where possible additional costs incurred. Our ocean freight team will endeavour to keep in close contact with all clients to provide updates on specific movements.

For more information about our ocean freight forwarding and logistics services, please visit the relevant pages of this website, or contact your local office, which can be seen here: https://www.ufreight.com/en/location