Line Launches New Surcharge To Mitigate Supply Chain Disruption

Hamburg container line Hapag-Lloyd has announced a work disruption surcharge WDS of 1000 for Americas Atlantic seaboard routes, including ports on the Gulf Coast, heralding the implementation of a new cost impact while potential strike action looms.

According to Lars Jensen, founder and CEO of consultancy Vespucci Maritime It will apply to imports from all ports in North Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania and Latin America.

He said WDS would be valid from October 18 until further notice.

Curiously, it does not mention imports from the Far East.

Jensen added that it should furthermore be noted that Hapag-Lloyd had simultaneously announced a general rate increase of 1000 per container from October 17 for cargo from the Indian subcontinent and Middle East to the US East and Gulf Coasts.

He said that unless labourers and employers, represented respectively by the International Longshoremen's Associationand the United States Maritime Alliance, could find some common ground, or extend the deadline for a new deal beyond October 1, a strike was now just 12 days away.

This means that all cargo which might be stuck in vessels waiting off the US coastline, or inside strike-impacted ports, is already on the water when related to deep-sea services, including the Atlantic.

Any shipper with inbound cargo on vessels, therefore, should by now also have a contingency plan for dealing with this.

Shippers with cargo in vessels due to arrive next week would want to gate out incoming cargo prior to crunch time, which will be Monday, September 30.

He cautioned against the likelihood of capacity consequences on the land side.

As it relates to exporters from the East Coast, we are basically also coming up to crunch time very shortly as it pertains to getting containers stuffed, gated into the terminals and loaded on vessels.