Hapag-Lloyd announces surcharge on potential strikes along the US East Coast and Gulf Coast

Hapag-Lloyd, the German shipping giant and the world's fifth largest shipping company, recently announced on its official website that if a labor strike occurs on the East Coast and Gulf Coast of the United States in January 2024, the company will impose two surcharge on related routes. This initiative aims to cover additional costs caused by labor disruption, strikes, deceleration, riots, congestion and other unforeseen events, including operational delays, additional handling, storage and feeder service charges.

Surcharge Details

These two surcharge rights are essentially the same, but they apply to different regions. The specific charges are: $850 per 20-foot standard Container and $1,700 per 40-foot standard Container, covering all types of equipment. The fees will take effect from Jan. 20, the day the new president takes office.

Background Introduction

Last October, tens of thousands of East Coast and Gulf Coast dockworkers went on strike, which didn't come to an end until the two sides reached a preliminary agreement on wages. A Exp-Date date was also set at the time-January 15-to resolve all other outstanding issues, especially the automation dispute. US President-elect Trump publicly supported the dockworkers' side in early December against the American Maritime Employers Association (USMX).

Reactions from other shipping companies

Although only Hapag-Lloyd has clearly stated its plan to charge surcharge, during the first strike in October, many shipping companies such as Maersk, CMA CGM and Japan Ocean Network Shipping (ONE) have also taken similar measures. With the increasing possibility of a new round of strikes, Container freight rates on the east and west sides have begun to rise. Last week, freight rates in Los Angeles Port increased by 26% and New York Port increased by 17%.