The International Longshoreman’s Association (ILA) for the US East Coast and Gulf ports are threatening strike action.
If the strike goes ahead shippers can expect additional charges in the form of a Port Congestion Surcharge (PCS) to be implemented.
The dispute concerns overtime rules and container royalties, which are payments to union workers based on the weight of cargo received at each port. Talks broke down last week, and both sides said no new discussions had been scheduled. Although it is not yet certain that there will be a strike or lockout at the affected ports however carriers have filed a tariff for a PCS that will come into effect on 26 September 2012 if the dispute cannot be resolved by that time. The PCS will be US$800/20ft and US$1000.40ft or high cube. Charges are also likely to be applied to LCL consignments of around US$100/m3.
In addition to the extra charged it is likely that industrial action will cause considerable delays. Shippers are advised to inform customers accordingly.