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It’s going crazy! A large cabinet costs an extra $2,000!

Samira Samira 2024-12-30 09:38:48

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

 

As the January 15 deadline for strikes at ports on the East Coast and Gulf Coast of the United States approaches, the entire shipping industry is enveloped in a tense atmosphere. Shipping companies are closely monitoring developments and are worried about potential operational disruptions and sharp rises in costs.

 

Recently, many shipping companies, such as MSC, Maersk, Hapag-Lloyd, ZIM, Yang Ming, etc., have issued notices announcing plans to impose work interruption surcharges, port congestion surcharges, etc., up to US,000.

 
 
ZIM
 

 

Recently, ZIM Lines (ZIM) announced that starting from January 10, 2025, ILA strike surcharges will be levied on all cargo entering and leaving the US East Coast/US Gulf ports until further notice.

 

The tax collection standards are: USD 1,000 for small cabinets and USD 2,000 for large cabinets.

 

ZIM added that this surcharge is the result of additional costs and expenses incurred by ZIM due to strikes, lockouts, work slowdowns or other workforce-related operational disruptions at U.S. East Coast and U.S. Gulf ports, as well as potential congestion resulting from such disruptions..If no disruption occurs, the strike surcharge does not apply.

 

 
Hapag-Lloyd
 
 

On December 24, Hapag-Lloyd issued an announcement stating that in order to deal with the potential impact of continued challenges at ports in the Eastern United States and the Gulf of Mexico, it plans to impose a work interruption surcharge (WDS) and a work interruption destination surcharge (WDS) in the event of a strike. WID), in the event of a strike, the new surcharge will come into effect on January 20, 2025.

 

The surcharge covers additional costs incurred from workforce disruptions, strikes, lockouts, riots, congestion and other unforeseen events that may cause operational delays and incur additional processing, storage and feeder service costs.
 
The surcharge will only be charged if an outage occurs, if no outage occurs the surcharge will be waived.
 
 
The specific charges are as follows:

 

Work interruption surcharge (WDS)
  • Cost: US0/20ft box and US00/40ft box
  • Device Type: All device types.
  • Scope of application: Import from all ports in Northern Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania and Latin America to the US East Coast and Gulf of Mexico ports.
  • Validity: Applies to shipments on or after January 20, 2025, in the event of a strike, until further notice.
     
Work Interruption Destination Surcharge (WID)
  • Cost: US0/20ft box and US00/40ft box
  • Device Type: All device types.
  • Scope of application: Import from all ports in East Asia - Japan, South Korea, China, Taiwan, Hong Kong, Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia and the Philippines to the East Coast of the United States and Mexico bay port.
  • Validity: Applies to shipments on or after January 20, 2025, in the event of a strike, until further notice.
 
 
mediterranean shipping
 
 
 
On December 18, Mediterranean Shipping Company (MSC) issued an announcement stating that given that the transatlantic route network will undergo major adjustments in early 2025, the company expects that operations will be disrupted in the early months of next year. The emergency operating surcharge (EOS) will be increased effective today.

 

The EOS charges for NWC routes to the United States, Bahamas and Puerto Rico will double, that is, the EOS charges for 20-foot containers will soar from US0 to US,300, an increase of 260%; the charges for 40-foot containers will rise from US,000 to US,000-2,500. , an increase of 200%-250%.

 
 
Evergreen, Yang Ming Marine
 
 
 

Recently, a freight forwarder revealed that Evergreen and Yangming have issued notices that if the labor contract at the US East Terminal expires on January 15 next year, the two parties will not be able to sign a new contract. Once it is determined that the US East Terminal will strike or slow down from January 16, Cargo imported and exported from the United States/Canada will be subject to a port congestion surcharge of US0 per 20-foot container and US,000 per 40-foot container. The above dates are all local receipt days in the United States and Canada.

 

Yang Ming pointed out that the United States is celebrating the Christmas holiday and it is expected that both labor and management will not be able to return to the negotiating table this week or in early January 2025. There is a tight deadline before the contract expires on January 15. It is uncertain whether a consensus will be reached before and after Trump takes office. Concerns remain high, and Yang Ming's shipping alliance has developed countermeasures to respond to the strike, striving to minimize the impact on customers.

 
 
Maersk
 

At present, Maersk has not announced the surcharges for disruptions caused by the strike at the East US ports.

 

However, the company said that if ILA strikes, it is expected that U.S. East Coast and Gulf of Mexico ports will adopt the same closure measures as during the previous strike in October, and will not accept the return of empty containers. It also advises customers to be prepared before the strike begins and move containers out. pier.

 

Once a strike occurs at a port, it will not only lead to extended ship berthing time and cargo backlog, but may also trigger a series of chain reactions, such as transportation delays and increased warehousing costs.

 

Previously, Trump’s public statements had a huge impact on the strike in the East United States and aroused widespread concern in the industry.

 

Facing challenges such as situational uncertainty, relevant companies need to pay close attention to market dynamics and developments and take corresponding measures to ensure the continuity and stability of operations.