Shipping Lines Brace for January 15 Disruption

The looming January 15, 2025, strike by US East Coast dockworkers is sending shockwaves through the logistics industry, driving up freight rates and triggering surcharges from major shipping lines. Negotiations between dockworkers and terminal operators remain deadlocked, prompting industry stakeholders to prepare for significant supply chain disruptions.

Read also: East Coast Port Strike Looms as Contract Talks Stall, Carriers Brace for Impact

Surcharge Rollouts by Leading Carriers

To mitigate potential impacts, carriers like Maersk, CMA CGM, and Hapag-Lloyd have announced surcharges across various shipping routes.

• Maersk: $1,500 per TEU, rising to $3,780 for 45-foot containers.
• CMA CGM: $800 per TEU for exports and $1,500 for imports.
• Hapag-Lloyd: A Work Disruption Surcharge applicable across multiple regions, with additional fees for East Asia imports.

Freight Rate Increases Across Key Routes

Freight rates are climbing sharply, reflecting the uncertainty surrounding the strike. The Shanghai Containerized Freight Index (SCFI) reports:

• A 9% increase in the Shanghai-US West Coast rate, now at $4,581 per FEU.
• An 8% rise in the Shanghai-US East Coast rate, reaching $6,074 per FEU.

These figures mark a recovery from prior losses and indicate further gains if the strike proceeds.

Outlook: Rising Costs and Supply Chain Shifts

Industry analysts at Linerlytica predict that freight rates on China-to-US routes will continue rising, with emergency surcharges of $1,000 to $2,000 per FEU likely if port closures occur. Cargo diversions to the US West Coast are also anticipated, potentially driving rates higher as capacity tightens.

As the deadline approaches, the industry braces for widespread disruptions that could ripple across global trade, underscoring the critical role of stable port operations in supply chain continuity.