Dear Customer,

In response to potential labor disruptions, should the ongoing negotiations between the International Longshoreman Association (ILA) and United States Maritime Alliance, Ltd. (USMX) not be resolved, ocean vessel operators are beginning to introduce new surcharges for all cargo moving to and from the U.S. East Coast and Gulf Coast terminals.

This charge may be imposed as of October 21, 2024, depending on the impact of the disruption to the supply chain.

Additionally, the U.S. Federal Maritime Commission (FMC) has issued an industry advisory stating that all FMC statutes and regulations remain in “full effect,” if a work stoppage should occur at the East and Gulf Coast ports starting Oct. 1.

“Regulated entities are reminded that all statutes and regulations administered by the Federal Maritime Commission remain in effect during any terminal closures related to potential work stoppage at ports in the East Coast and Gulf of Mexico regions,” the FMC said in the advisory posted Sept. 23.

During the work stoppage, common carriers and marine terminal operators (MTOs) must still comply with all statutory and regulatory requirements, including rules governing tariffs, service contracts, MTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed. Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose, the FMC said.

Mallory Alexander International Logistics LLC and Mallory Transportation System LLC, as a non-vessel operating common carrier (“NVOCC”), follow all rules and regulations regarding pass-through of these surcharges, as per our terms and conditions stated in our rate agreements with our clients. We will provide transparency to these disruption/congestion surcharges, as they are announced.

Please feel free to contact your local Mallory representative with any questions or concerns you may have.