Ocean container carrier Hapag-Lloyd announced two surcharges ahead of a potential strike by unionized longshore workers at U.S. East and Gulf Coast ports in January.
The Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID) are effective Jan. 20, 2025, in the event of a strike, the German company said in an announcement on its website.
“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 announcement stated.
The surcharges take effect on Jan. 20, the same day President-elect Donald Trump will be inaugurated and just after the current longshore contract extension expires Jan. 15.
Trump earlier this month publicly backed the International Longshoremen’s Association (ILA) in its contract dispute with port employers represented by the United States Maritime Alliance (USMX).
After bargaining resumed following a three-day strike in October, the union broke off negotiations in November, charging ocean carriers and terminal operators were trying to eliminate union jobs by forcing provisions for automated container-handling into a new contract. Employers fired back, saying semiautomated container cranes were desperately needed to improve efficiency and make U.S. ports globally competitive, which they claim will create more dockworker jobs.
“We want to avoid another strike, and hope that our employers represented by United States Maritime Alliance will respect our demands for a fair and decent contract,” wrote ILA President Harold Daggett in a Christmas message to members posted on the union’s website.
The WDS is $850 per 20-foot container and $1,700 per 40-foot box, covering all equipment types. The surcharge covers imports from all ports in North Europe, the Mediterranean, Africa, the Middle East, the Indian Subcontinent, Oceania and Latin America to the U.S. East and Gulf Coast ports.
The WID is also $850 per 20-foot, and $1,700 per 40-foot, containers of all types. It applies to imports from all ports in East Asia-Japan, South Korea, Taiwan, Hong Kong, China, Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia and the Philippines to the U.S. East and Gulf Coast ports.
Hapag-Lloyd said the surcharges will be waived if no disruptions take place. They do not apply to containers already on the water or in terminals before Jan. 20.
Find more articles by Stuart Chirls here.
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