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NCBFAA Guidance to Request Port of Entry Change for Diversions
Thursday, September 26, 2024 

With the possibility of an Oct. 1 East-Gulf Coast port work stoppage, the NCBFAA Customs Committee has developed guidance for members that will assist them with requesting a port entry change for diversions with Customs and Border Protection (CBP). This guidance may also be used in the case of other supply chain disruptions, including severe weather events in the ports.

Click here to read this guidance.

If there are any scenarios that this guidance does not currently cover, or you have any issues to address, please send those to NCBFAA Communications Director Christopher Gillis at cgillis@ncbfaa.org and he will forward them to the NCBFAA Customs Committee.

Disclaimer: This communication is provided by the NCBFAA for educational and informational purposes only and does not constitute the rendering of legal counsel or other professional services. We do not assume legal liability for the accuracy, completeness or validity of the information contained in this communication. While NCBFAA has made every attempt to ensure credibility of all information included in the communication, we do not bear the legal liability for its content or that of any hyperlinks or other websites to which the communication refers. Before you act on any information provided in this communication, you should seek professional advice regarding its applicability to your specific circumstances.

CBP Prepares for Impending Oct. 1 East-Gulf Coast Port Work Stoppage
Thursday, September 26, 2024 

Customs and Border Protection (CBP) said during an 11 a.m. ET call today with the trade that it will be closely monitoring the impacts on cargo at the U.S. East-Gulf Coast ports, if a work stoppage by the International Longshoremen’s Association (ILA) should commence at midnight on Oct. 1.

CBP officials noted that they have already stood up an Emergency Operations Command at headquarters in Washington, D.C., which will work with the PGAs and provide CBP ports of entry staff, as well as the trade, with routine cargo processing procedure updates pertaining to the impacted East and Gulf Coast ports.

The agency also said the trade should monitor the agency’s Cargo Systems Messaging Service (CSMS) webpage for communications regarding CBP operations and any import-export procedural updates before and during the potential strike, and after port operations resume.

In addition, CBP officials welcomed trade members to email its Office of Trade Relations at tradeevents@cbp.dhs.gov with any questions, input, or concerns regarding the port strike.

While some regulatory flexibility will be considered by the agency, CBP expects carriers, customs brokers, freight forwarders, NVOCCs, importers, and exporters to maintain compliance with import and export trade regulations and requirements before and during a strike. The strike will impact containerized cargo handled by the ILA in the East and Gulf Coast ports.

CBP said it will host future calls with the trade, if the port strike begins on Oct. 1 and becomes prolonged. According to CBP, an East-Gulf Coast port strike will cost the nation's economy approximately $5.3 billion a day.

Meanwhile, container terminal operations up and down the East and Gulf Coasts are issuing advisories to the trade on what to expect as the potential Oct. 1 strike date nears. Check your local port authority websites for more details.

The NCBFAA Transportation Committee continues to monitor and provide timely information to our members regarding the potential Oct. 1 East-Gulf Coast port work stoppage

Sen. Cassidy Letter to White House Urging Action to Avert Oct. 1 Port Strike
Tuesday, September 24, 2024 

Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bill Cassidy (R-LA) sent a letter this morning to President Biden and Vice President Harris urging the administration to use its authority to avert a possible East-Gulf coast-wide port work stoppage on Oct. 1.

Under the Taft-Hartley Act, Cassidy noted the White House can establish a board of inquiry and seek a court injunction grant to allow both parties to continue negotiations. So far, the Biden-Harris administration has refused to use its authority under Taft-Hartley to resolve the labor dispute between the ILA and USXM.

“This situation requires leadership. However, your administration has not encouraged the parties to resolve the collective bargaining process prior to the end of the current contract,” Cassidy said in his letter. “Instead, your administration seems more interested in cementing its ‘pro-union’ legacy rather than being pro-worker. This callous attitude is insensitive to hard-working Americans who will bear the brunt of this unnecessary hardship.”

Cassidy’s letter further explained that a one-day strike will hold up $5 billion worth of goods and could take up to five days to clean up the supply chain, while a two-week strike could take six months to correct the supply chain.

Container terminal operations up and down the East and Gulf Coasts, such as the Port of New York and New Jersey and Port of Virginia, are issuing advisories to the trade on what to expect as the potential Oct. 1 strike date nears. Check your local port authority websites for more details.

The NCBFAA Transportation Committee, meanwhile, continues to closely monitor the ongoing activities of the ILA and USMX on behalf of our members.

FMC Industry Advisory for Possible East-Gulf Coast Port Work Stoppage on Oct. 1
Tuesday, September 24, 2024 

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.

The FMC has directed its Bureau of Enforcement, Investigations, and Compliance to investigate any reports of unlawful conduct of regulated entities and will “prosecute violators to the fullest extent of the law.”

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.

FMC regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. The FMC said it will “scrutinize any demurrage and detention charges assessed during terminal closures.”

“Demurrage and detention invoicing must be lawful. The Commission’s rule on such invoicing, implementing provisions of the Ocean Shipping Reform Act of 2022, became effective on May 28, 2024. Invoices that do not include required information, or that are sent to the wrong entity, are not valid,” the FMC said.

The FMC has provided the following instructions to report unlawful actions or to file a complaint:

  • File a complaint proceeding for adjudication before the FMC’s Office of Administrative Law Judges.
  • Submit a Charge Complaint requesting refund of waiver of an erroneous or unlawful charge assessed by a common carrier for rapid review by the Commission.
  • Request informal assistance to resolve a dispute. The Commission’s Office of Consumer Affairs and Dispute Resolution Services (CADRS) will facilitate communications and seek to quickly resolve disputes between a shipper and a common carrier or MTO. Unlike an order issued in a legal proceeding, resolutions reached through CADRS are voluntary.
  • Report allegations of violations with the Commission’s Bureau of Enforcement, Investigations, and Compliance at beic@fmc.gov. Based on the information received, a formal investigation may be launched.
  • Provide concerns and information for the benefit of the Commission’s knowledge at complaints@fmc.gov.

Additional information about options for raising and addressing disputes can be found in this instructional video.

House Republicans Urge White House to Use Authority to Prevent ILA Work Stoppage
Friday, September 20, 2024 

House Republicans, led by Transportation and Infrastructure Committee Chairman Sam Graves (R-MO) and Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster (R-FL), on Friday, Sept. 20, sent a letter to the White House urging the administration to use its authority to prevent a work stoppage in the East and Gulf Coast ports on Oct. 1 or risk “dire impacts to our supply chains, our economy, and the American consumer.” The letter was signed by 69 House members.

Earlier this week, NCBFAA joined with more than 175 trade organizations by signing a letter that was sent to President Biden, also urging the administration to aid in facilitating continued master contract negotiations between the United States Maritime Alliance (USMX) and International Longshoremen’s Association (ILA). If a new contract is not reached before the end of this month, the ILA leadership is prepared to strike container terminals from Maine to Texas.

Meanwhile, container terminal operations up and down the East and Gulf Coasts, such as APM Terminals in Elizabeth, New Jersey, and the Georgia Ports Authority in Savannah, are starting to issue advisories to the trade on what to expect as the potential Oct. 1 strike date nears.

The NCBFAA Transportation Committee will continue to monitor the ongoing activities of the ILA and USMX on behalf of our members.

More than 175 Trade Groups Urge White House to Engage ILA-USMX Negotiators
Tuesday, September 17, 2024

More than 175 trade organizations, including NCBFAA, signed a letter that was sent to President Biden on Tuesday, Sept. 17, urging the administration to aid in facilitating continued master contract negotiations between the United States Maritime Alliance (USMX) and International Longshoremen’s Association (ILA). If a new contract is not reached before the end of this month, the ILA leadership is prepared to strike container terminals from Maine to Texas, starting Oct. 1.

The trade organizations warned the Biden administration that a “strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend.”

The last time the ILA collectively struck in the East and Gulf Coast ports was in 1977.

“With two weeks left until the ILA-USMX contract expires and the ongoing threat of a coastwide strike beginning on October 1, it is imperative that the administration engage with the parties to quickly negotiate a new deal or agree to continue negotiations while keeping the ports open and cargo flowing,” the trade organizations wrote.

The letter praised the administration for its earlier work to resolve differences between labor unions and employers, such as the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) on the West Coast, Class I railroads and their unions, and UPS and the Teamsters. “While there was an ongoing threat of disruptions during these negotiations, the administration helped to ensure the parties remained at the negotiating table to achieve a final contract. All without a major disruption to the supply chain,” the trade organizations said.

If a strike should occur on Oct. 1, the trade organizations asked the Biden administration to “immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity if a new contract is not reached by the expiration date.”

The NCBFAA Transportation Committee, meanwhile, continues to monitor the ongoing activities of the ILA and USMX on behalf of our members.