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DGX - Dependable Global Express
10/1/2024
NEWS UPDATE
October 1, 2024
Dear Valued Customer,
The following is provided for your information:
Holiday Schedules
The offices listed below will be closed for the holidays as follows:
Australia | Labour Day (Sydney, Adelaide, Canberra) | October 7 |
Japan | Sports Day | October 14 |
New Zealand | Labour Day | October 28 |
Please remember that certain offices are across the International Dateline. The dates above are their dates, not the actual U.S. date.
International Longshoremen’s Association (ILA) Strike
As of this morning at 12:01 a.m., the Longshoremen’s Association (ILA) dockworkers have begun a strike establishing picket lines along the U.S. East and Gulf Coast ports. This work stoppage halts operations at 36 ports which handle approximately 50% of the containerized ocean volumes in the nation.
Points of contention between the ILA and the United States Maritime Alliance (USMX) include pay and protections against terminal automation. Among other benefits, the USMX proposed wage increases of roughly 50% falling short of the ILA’s original demand of 77 % which may have dropped to now 61.5%. As of now, the Biden administration has declared there are no plans to invoke the Taft-Harley Act. Presidential intervention would allow for an 80-day cool-off period during which workers would be required to report to work while both parties negotiate.
Port closures will have a significant impact on imports and exports including cargo flow delays and increased ocean freight and trucking rates. Depending on the length of the strike, it can lead to increased congestion at West Coast ports with cargo diversions either by shippers or vessel operators. For businesses and consumers, a prolonged strike could raise goods costs and lead to shortages ahead of the holidays.
The FMC has declared that any violations of the FMC detention and demurrage invoicing regulations will be prosecuted. However, there is no guidance as of now on what actions would be considered violative or whether assessing detention and demurrage during the strike is allowed. Do note that some terminals and vessel operating carriers have issued advisories indicating that they will not assess detention and demurrage charges during the labor stoppage.
Freight surcharges related to the ILA strike have started to be implemented and are to remain in place until Supply Chain operations stabilize. Additional costs stemming from strike disruptions including, but not limited to, re-routing, additional handling, chassis, storage, demurrage, and detention charges will be passed through per the Bill of Lading Terms.
Please get in touch with your DGX team for the latest information and planning assistance to minimize disruptions to your supply chain.
Port of Montreal Strike
Dockworkers kicked off a three-day strike at the Port of Montreal on Monday, shutting down two terminals that handle more than 40 per cent of the container traffic at Canada's second-largest port.
Some 350 longshore workers walked off the job at the Viau and Maisonneuve Termont terminals at 7 a.m. Monday, part of a limited strike amid contract talks. The strike is expected to last until Thursday morning.
The union local, affiliated with the Canadian Union of Public Employees, says the pressure tactic aims to lend weight to demands around regular scheduling and higher wages.
On Sunday, the Maritime Employers Association (MEA) said it had tried "all possible means" of avoiding a strike, including in mediation and at an emergency hearing before the Canada Industrial Relations Board that afternoon.
Source: CBC News
Should you have any questions, please contact your local DGX office or representative, or call us at 888-488-4888 or 310-669-8888.
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