USA – Potential Strike Surcharges

Further to previous notifications please note the following.

Unfortunately the negotiations for a new contract between the Int’l Longshoremens Association (ILA) and the employers represented by the US Maritime Alliance (USMX) abruptly broke off in the USA Tuesday afternoon.

While both sides are open to further talks to get a new contract signed, each is unwilling to a few of the proposed concessions.  Because of this and the fact that we need to anticipate a potential US East Coast / US Gulf strike, Brennan/Mondiale is doing everything we can to ensure the timely and safe movement of your cargo both from the USA into NZ and from NZ into the USA.   Our contingency plan will involve moving all LCL and necessary FCL (where required) across the West Coast for shipping.  This is going to be put enormous stress on infrastructure regarding rail and equipment availability and also getting space on vessels.

We will keep you updated as the situation develops and we are hopeful that they can get resolve to avoid the strike which if it happens will start on 30th December 2012. 

Brennan/Mondiale need to make you aware of the following charges, which will be applicable if the strike goes ahead.

FCL Port Congestion Surcharge                    
FCLs and groupage cntrs entering and exiting the USA will have a Port Congestion Surcharge (PCS) applied by shipping lines.     This will be charged by the shipping lines and will vary from line to line.  An indication of these charges is USD 800 per 20ft and USD 1000 per 40ft.   Brennan/Mondiale are forced to pass this on at cost.   This is scheduled for all cntrs entering/exiting the USA on/after 30th Dec 2012.

LCL PortCongestion Surcharge                    
Due to all FCLs and groupage cntrs entering and exiting the USA having a Port Congestion Surcharge (PCS) applied by shipping lines on them, Brennan/Mondiale are forced to announce if a Strike goes ahead a PCS of USD 20 per w/m will be charged on top of your base ocean freight on all LCL in/out of the USA, ie ; to/from all ports/depots.  This is scheduled for all cargo received on/after 30th Dec 2012.

Emergency routing of all LCL via the West Coast               
Brennan/Mondiale have put an infrastructure in place to ensure that we are able to move all LCL from the USA out via the US West Coast if the strike goes ahead.      The only origin points which will be affected with an Emergency Routing Surcharge (ERS) will be the receiving points of ; Boston / Philadelphia and New York.  Cargo from these origin points will have an ERS of USD 45 per w/m placed on top of the normal base ocean rate from these stations to get cargo to Los Angeles.  All other cargo from all other origins points within the USA will move via Los Angeles at the normal quoted ocean rates with no ERS charged.  

One point to note is that all cargo will attract the LCL PCS of US$ 20 per w/m.

NOTE : all the above will only apply if the USA East Coast / US Gulf strike goes ahead.

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