[181212.EN.SEA] Maersk Braces For Dock Strike With Contingency Congestion Surcharges

MAERSK LINE, the world's biggest container line, has warned customers to expect congestion surcharges of US$800 per TEU, $1,000 per FEU and $1,266 for 45-footers if American ports become strike-bound.

Maersk first posted its intention in September with the US Federal Maritime Commission as a precaution after contracts talks between the International Longshoremen's Association and employers group, the US Maritime Alliance as negotiations broke down last summer. Since then strike risk has loomed again with resumed talks heading for a December 29 deadline.

"To address the potential risk of significantly increased port congestion as result of any labour-related issues on or after December 29, Maersk Line filed a port congestion surcharge applicable to all shipments to or from ports in the US," said Maersk in a notice to trade.

"This also includes import shipments to the United States that are routed through Canada," the notice said.

The US has already faced severe disruption in its two biggest ports after clerical workers brought Long Beach and Los Angeles container terminal operations to a halt at most big container facilities.

While the west coast dispute moved closer to resolution, east coast contract talks are threatening to erupt into a strike, even though word from the negotiation table is that things are going well - just as word was positive before talks last broke down last summer.

Source : HKSG.