Planning for the USA / Gulf Port Strike

Everything indicates that the impasse affecting new contract negotiations between the International Longshoremens Association and United States Maritime Alliance will continue. The latest written exchanges between the two sides appear to indicate that there is a strong probability of industrial action disrupting supply chains via U.S. East Coast & Gulf ports when the current contract expires on September 30th, 2012. The Federal Mediation and Conciliation services in Washington D.C. has issued the below news release on September 6, 2012. "Upon the request of the Federal Mediation and Conciliation Service (FMCS), the parties have agreed to resume negotiations under our auspices during the week of September 17, 2012. Due to the sensitivity of this high profile dispute and consistent with the Agencys longstanding practice, we will not disclose either the location of the meeting or the content of the substantive negotiations that will take place. Toll Global Forwarding has already worked with a number of customers to prepare & implement contingency plans in the event that industrial action does, in fact, occur. While there is no contingency plan that can cater for diversion of all cargo from U.S. East Coast & Gulf Coast to alternate ports of entry, we are recommending to our customers whose inventory is at risk and who have not already diverted a portion of their freight via the West Coast ports, to accelerate any contingency planning and to make decisions this week to protect appropriate inventory levels. We would also advise that nearly all ocean carriers have filed Port Congestion Surcharges for all shipments received on or after October 1st, 2012 due to labor unrest, including but not limited to strikes, lock-outs, work stoppages or slowdown at any U.S. port(s). Port Congestion Surcharge of Carriers This summary of carriers who announced a Port Congestion Surcharge so far is applicable for all shipments to/via the United States and Canada once/if a strike occurs. Carrier UASC Maersk Cosco EMC NYK Hanjin K Line YML HMM Matson Item Port Congestion Surcharge Congestion Surcharge Congestion Surcharge Congestion Charge At POD Port Congestion Surcharge Port Congestion Surcharge Congestion Surcharge Port Congestion Charge Port Congestion Surcharge Port Congestion Surcharge 20' $800 $800 $800 $800 $1,000 $800 $800 $800 $1,000 $500 40' $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $500 40'HC $1,125 $1,125 $1,125 $1,125 $1,000 $1,125 $1,125 $1,125 $1,000 $500 45'HC n/a $1,266 $1,266 $1,266 $1,000 $1,266 $1,266 $1,266 $1,000 $500

Toll Global Forwarding will continue to monitor this critical situation and provide you with regular updates. If you are concerned to know what options & potential solutions might be available to you now & in the event of a strike, please contact : mersaidee.soules-dodge@tollgroup.com We have also included two links with recent updates from both the ILA and USMX US Maritime Alliance (employers) - http://usmxlaborupdates.com/news-and-updates/ ILA (labor) - http://ilaunion.org