Hapag-Lloyd announces surcharges on imports to U.S. East Coast and Gulf ports
Hapag-Lloyd has announced that imports from several countries would be subjected to Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID) in the event of a strike, effective Jan. 20, 2025.
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 Coast and Gulf Ports pet sea freight terms will be subject to WDS, and all imports from East Asia will be subject to WID surcharges.
The logistics organization said the tariff increase will "help manage the potential impact of ongoing challenges at U.S. East Coast and Gulf ports" and cover 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 dispute between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) about the automation of container terminals and the existing contract terms could send shockwaves through the East and Gulf Coast ports.
On Oct. 2, ILA and the USMX announced the reaching of a tentative agreement on wages. They agreed to extend the Master Contract until Jan. 15, 2025, to return to the bargaining table to negotiate all other outstanding issues.
The surcharges will only apply if the strike is initiated and will not apply to containers already on their way to their destination before the set date.