Southern Star Navigation Newsletter – October 2024: Port Strike Resolved, Logistics Updates & Industry Insights

Captain’s Log

The events of the past two weeks have had a profound impact, not only on our industry and businesses but also on our lives as Americans. In the wake of the devastation caused by Hurricane Helene, I do not want the port strike to overshadow the ongoing need for aid and support that our families, friends and co-workers require during this difficult time. My heartfelt prayers are with all those affected by the aftermath of Hurricane Helene. As we work to resume operations and minimize disruption to our clients’ supply chain amid the port strike, I want you to know that we’re here to help you too. Whether it’s providing truck capacity for container pickups from the port or rail, or evaluating your current supply chain and upcoming orders, we are here to be a partner and an extension of your business. Please don’t hesitate to reach out! God Bless America ~Bethany Gabbett Bethany 🌎 Gabbett

Port Strike Resolved: Operations Resume

A major breakthrough has been achieved in the recent port strike that disrupted operations along the East and Gulf Coasts. After reaching a tentative agreement on wages, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have confirmed that workers have returned to the ports as of today; Friday, October 4, 2024.

Here’s what you need to know:

• End of the strike: After days of halted activity, port workers are officially resuming their duties, restoring vital shipping operations across major U.S. ports.
• Tentative wage agreement: While full details of the wage agreement are still being worked out, both sides have reached a compromise that extends the existing contract until January 15, 2025.
• Business back to normal: Import and export activities will restart at key ports from Maine to Texas, bringing much-needed stability to the supply chain.

What’s next?

Although ports are reopening, we can expect delays as operations ramp up and backlogs are addressed. Our team is working closely with port authorities to ensure your shipments are handled as efficiently as possible. We will continue to monitor the situation and provide you with any further updates as negotiations progress. For now, rest assured port operations are resuming and we’re here to support your logistics needs.

Although port operations are resuming, surcharges and additional fees such as Strike/Port Congestion, Work Disruption and GRI’s applied during the strike will remain in place until carriers officially lift them. We’ll notify you as soon as we receive confirmation from our carrier partners about their removal.

Force Majeure in Shipping: Key Takeaways

Force Majeure is a legal safeguard that allows carriers to adapt their operations when unexpected events beyond their control—such as strikes, natural disasters, or political unrest—disrupt normal shipping. While the recent East and Gulf Coast port strike has come to an end, the Force Majeure clause remains relevant for any future unforeseen disruptions.

When invoked, Force Majeure permits carriers to:

• Modify or suspend delivery schedules: Adjust transit times without penalty to account for delays.
• Apply fuel surcharges: Impose fees to cover increased operational costs, such as higher fuel consumption.
• Impose extra handling fees: Charge for diversion to alternate ports or the use of special equipment.
• Reroute shipments: Divert cargo to available ports, though it may result in longer transit times.
• Charge standby fees: Apply fees for vessels delayed at port due to congestion or lack of services.

Although the strike is over, the impacts may linger. It’s essential to remain aware that Force Majeure clauses could still be in effect as carriers work through backlogs and continue to mitigate the aftereffects of the strike. Even after ports reopen, congestion and delays may prompt carriers to maintain temporary surcharges or schedule adjustments. Understanding how Force Majeure may be applied can help businesses better navigate these uncertainties, ensuring they’re prepared to adjust their supply chain strategies accordingly.

Additionally, Force Majeure is not limited to labor strikes. With unpredictable global events such as extreme weather, geopolitical tensions, or other operational disruptions, this provision gives carriers the flexibility to respond quickly and maintain the flow of goods. For businesses, staying informed about Force Majeure clauses and how they are implemented is key to minimizing the impact of any sudden changes in the logistics landscape.

Certified to Keep Your Cargo Moving

At Southern Star Navigation, we are more than just a logistics provider—we are your certified partner in navigating both day-to-day logistics and unexpected challenges. The recent East and Gulf Coast port strike may have ended, but our commitment to keeping your cargo moving efficiently remains unwavering. With numerous industry certifications, we ensure that your supply chain stays resilient and adaptable, no matter the situation.

Key Certifications That Benefit You:

• CTPAT (Customs Trade Partnership Against Terrorism): This certification grants us priority inspections and streamlined customs processing, allowing your shipments to clear ports faster, even in congested conditions.
• SmartWay Transport Partnership: Recognized for sustainable and reliable transport, SmartWay enables us to manage reroutes effectively, reducing delays when regular routes are impacted by disruptions.
• FMC – Ocean Transportation License (NVOCC): Our NVOCC status offers flexibility to reroute shipments across multiple carriers, ensuring we can always find the fastest and most efficient path when port operations are slowed.
• ISO 9001 Certification: Our certified quality management systems allow us to handle disruptions with precision, keeping your supply chain moving without compromising on accuracy or reliability.
• Air Freight Certifications (IATA and Indirect Air Carrier Approval): In cases where port delays are unavoidable, we offer air freight as a quick and reliable alternative to ensure your time-sensitive shipments arrive on schedule.
• UFSTP Certifications: This certification enables us to seamlessly shift between truck, rail, and sea transport, providing maximum flexibility to avoid congested routes and minimize delays.

Our certifications equip us with the tools and agility to manage complex logistics challenges, whether it’s a strike or any other unexpected event. Even now, as the ports return to full capacity, we are prepared to navigate any remaining backlogs or future disruptions. From rerouting your cargo to providing alternative transport solutions, Southern Star Navigation is committed to keeping your operations running smoothly.

Let’s work together to create a tailored plan that ensures your supply chain remains resilient, even during unpredictable times. Reach out to us today to learn more about how we can support you.

Post-Hurricane Helene Disruptions Continue to Impact Southeast U.S.

As the Southeast U.S. begins to recover from Hurricane Helene, major disruptions are still ongoing, especially in terms of road closures and power outages. Many critical highways, including Interstates 26 and 40 between Asheville, NC and eastern Tennessee, remain closed due to flash flooding and washouts. This is significantly affecting transit times, as traffic is being diverted around these damaged areas.

Truckload (TL) Shipping Impact

The storm’s aftermath continues to disrupt trucking operations across the region. Numerous road closures and ongoing power outages are limiting fuel and truck stop availability, making it difficult for drivers to refuel and rest. This is tightening available capacity and slowing down delivery schedules. Carriers and shippers alike are working on contingency plans and exploring alternative routes to ensure freight moves with minimal delays.

Less Than Truckload (LTL) Shipping Impact

LTL operations have also taken a hit, with several terminals in the storm’s path either closed or running at limited capacity. This is causing significant delays for shipments moving in and out of the Southeast as terminals face a backlog of freight that has yet to be processed. Businesses should anticipate delays and plan for slower-than-usual delivery times as terminals slowly get back to full capacity.

Intermodal Update

On the intermodal side, all hubs affected by the storm have reopened and are operational. However, congestion is still an issue as freight that was held up during the storm is gradually being cleared. Minor transit delays can still be expected as shippers return to regular operations, but overall, intermodal services are moving towards normalcy.

State Road Condition Resources

To stay updated on specific road conditions and closures in the Southeast U.S., use the following resources:

• Florida Road Closures
• Georgia Road Closures
• South Carolina Road Closures
• North Carolina Road Closures
• Tennessee Road Closures

As recovery continues, it’s critical to stay updated on conditions in the affected areas and plan accordingly. Expect delays in the coming days as infrastructure and transportation systems are repaired and cleared for normal operations. Southern Star Navigation is committed to keeping you informed and offering support during these disruptions.

Important ACAS Updates: Enhanced Air Cargo Screening Requirements

Starting on September 23, 2024, the Air Cargo Advance Screening (ACAS) program introduced updated requirements aimed at improving the security and efficiency of air cargo shipments. The new guidelines call for the early submission of key data such as the Air Waybill number, shipper and consignee information, and detailed cargo descriptions. By submitting this information prior to loading, U.S. Customs and Border Protection (CBP) can assess potential risks earlier, reducing the likelihood of delays at customs.

The update also emphasizes the importance of including both mandatory and recommended data elements in your ACAS filings. These elements are critical for risk assessments, and failure to provide accurate data could result in shipment holds, such as “Do Not Load” (DNL) notices, which can cause significant delays. Carriers, freight forwarders, and other logistics providers must ensure they comply with these updated requirements to avoid operational disruptions.

As a trusted provider, Southern Star Navigation, working with Landstar’s certified entities, is committed to adhering to all ACAS regulations and ensuring that our clients’ cargo moves smoothly through U.S. customs. With certifications like ISO 9001, IATA, CTPAT, and SmartWay Transport Partnership, we are fully equipped to handle the latest security protocols. Whether your goods are transported via air, land, or sea, our extensive certification portfolio guarantees compliance with the highest safety and security standards.

At Southern Star Navigation, our priority is to keep your shipments on track and compliant with the latest regulations. For more information on the updated ACAS guidelines, you can read the full guide here.

Mexico’s Interoceanic Corridor: Easing Global Shipping Bottlenecks

Mexico’s Interoceanic Corridor, a $7.5 billion infrastructure project, is designed to complement global shipping by providing an alternative route across the Isthmus of Tehuantepec. This 188-mile railway will connect the Gulf of Mexico and the Pacific Ocean, offering a solution to growing congestion and toll increases at the Panama Canal. Rather than a competitor, this project seeks to ease international shipping delays and provide a faster option for companies transporting goods between the two oceans.

Freight operations on the corridor began in September 2023, and passenger services followed in December. By 2025, the corridor is expected to be fully operational for heavy freight, with the capacity to handle bulk goods and double-stack container trains. The Mexican government has invested in upgrading the ports at Coatzacoalcos and Salina Cruz to facilitate smoother and faster shipping, positioning the country as a critical hub for global logistics.

Despite the promise of economic growth, the project has faced opposition from Indigenous communities concerned about land rights and cultural impacts. However, the Mexican government remains committed to ensuring that the corridor benefits both local regions and the international trade community, with security and management overseen by the Mexican military and navy. The long-term goal is to boost Mexico’s role in the global supply chain while reducing the strain on the Panama Canal.

For a closer look at how Mexico’s Interoceanic Corridor aims to transform shipping and global trade, check out this video by The Wall Street Journal: Watch here.

FMC Upholds New Rules on Container Billing

The U.S. Federal Maritime Commission (FMC) has rejected a request from the Ocean Carrier Equipment Management Association (OCEMA) to delay new rules on billing for container storage fees. These rules, which took effect on May 28, 2024, restrict ocean carriers to billing only the party who originally contracted for the transportation, such as the cargo owner or receiver. This change aims to reduce confusion and protect truckers and other intermediaries from unexpected fees.

OCEMA sought a 90-day delay, citing uncertainty caused by a last-minute correction to the rule. However, the FMC rejected the petition on September 17, 2024, stating that the statutory language is clear, and a delay would only create more confusion. This decision underscores the FMC’s commitment to enforcing the Ocean Shipping Reform Act of 2022, which aims to bring transparency and fairness to shipping practices.

Let’s Keep Your Supply Chain Moving Forward! At Southern Star Navigation, we are committed to providing you with the latest industry updates and innovative solutions to tackle any logistics challenge. Whether it’s overcoming post-strike delays, navigating new shipping routes, or ensuring compliance with updated regulations, we’re here to support your business every step of the way. Reach out to our team today to discuss how we can create a tailored plan that keeps your supply chain running smoothly, no matter the obstacles ahead. Call us at 833-782-7628 Ext. 1 and let’s ensure your success in an ever-evolving logistics landscape!