Notice of Force Majeure – ILA Strike

by | Oct 1, 2024

container ship on the water

ILA Strike Advisory

As of October 1, 2024, the existing contract between the United States Maritime Alliance, Ltd. (USMX) and the International Longshoremen’s Association (ILA) is expired, and the ILA members have gone on strike. As a result, all major terminals on the U.S. East and Gulf Coasts will remain closed for the duration of the strike, which is unknown at this time.

Mitra Shipping Trade proactively implemented contingency plans and remains fully committed to support customers by addressing potential disruptions through flexible and effective solutions.

Impacts of the ILA Strike

Due to the impacts of the strike, some carriers are invoking their Bill of Lading terms and may charge any additional operational costs associated with vessels delayed due to the strike to cargo on the water as of October 1, 2024 with a U.S. East or Gulf Coast port of discharge.

As a reminder, for all cargo received on or after October 11, 2024, a Local Port Charge (LPC) might apply as per the governing tariff(s). Cargo received on or after October 11, 2024 will may or may not be subject to additional operational costs depending on the specific carrier.

Free time

Additionally, pursuant to some carrier’s tariffs, for the duration of the strike during any time the terminal is closed free time and demurrage will be calculated and assessed as follows:

  • Free time may or may not be extended for containers within free time at the time of strike for a period equal to that of the terminal closure.
  • Demurrage may or may not be suspended for containers in demurrage at time of strike for the duration of the terminal closure and will resume assessment at the rate tier level in which assessment was suspended.

Detention free time may or may not be extended for containers within free time at the time of strike for a period equal to that of the terminal closure, and detention will be suspended for containers already in detention at the time of strike for the duration of the terminal closure and will resume assessment at the rate tier level in which assessment was suspended.

Daily charges

Notwithstanding the foregoing, customers could be subject to the below daily charges in the event the assessment of demurrage or detention charges has been suspended:

  • Charges for refrigerated containers remaining on terminal during the strike which remain plugged in or connected to a carrier-supplied genset, a daily reefer power and monitoring fee will be assessed.
  • In the event that a carrier has supplied a chassis to the customer, a daily chassis provision charge will be assessed.

Thank you for your continued support. Should you have any questions or concerns regarding the above, please contact your local Mitra Shipping Trade team. For current schedule activity please visit our website: Mitra Shipping Trade.