Ocean carriers are imposing significant surcharges on the North Europe to US trade lanes, starting mid-January, amid potential disruptions from a second longshore strike on the US East and Gulf coasts and restructuring in liner alliances.

MSC will implement an "Emergency Operational Surcharge" on Jan. 18, tied to its trans-Atlantic network restructuring as it exits the 2M Alliance with Maersk.

Zim Integrated Shipping will introduce an "ILA Strike Surcharge" on Jan. 10, covering East and Gulf Coast ports. The fee will be removed if no strike occurs.

Ellerman Lines will enforce a "Labor Interruption Surcharge" on Jan. 16 due to potential labor disruptions.

CMA CGM has announced a "peak season surcharge" effective Jan. 1.

These changes coincide with a Jan. 15 deadline for the International Longshoremen's Association (ILA) and US Maritime Alliance (USMX) to finalize a contract, with a strike looming if no agreement is reached.

Additionally, February marks the launch of new alliances, including the Gemini Cooperation (Maersk and Hapag-Lloyd) and the Premier Alliance (ONE, HMM, Yang Ming).

Industry analysts criticized MSC’s surcharge, noting it stems from its internal restructuring rather than external factors like strikes or weather. Meanwhile, carriers like Maersk are preparing contingency plans for potential strike-related disruptions.

The Ports of Los Angeles and Long Beach are experiencing record-breaking activity in 2024, driven by a strong and early peak season.

The Port of Los Angeles expects its busiest December ever, handling over 900,000 TEUs and reaching 10 million TEUs for the year, marking only the second time it has achieved this milestone. The Port of Long Beach is set to move 9.6 million TEUs in 2024, its highest annual total.

The surge in traffic is partly due to businesses rerouting goods through California to avoid disruptions from an October labor dispute on the East and Gulf Coasts.

Additionally, companies are rushing to import goods ahead of potential tariffs from President-elect Donald Trump, which may impact trade in 2025.

Despite uncertainty about the scope and timing of these tariffs, the ports have seen significant year-over-year growth, with the Port of Los Angeles reporting a 19% increase in TEUs compared to 2023.

The Uyghur Forced Labor Prevention Act (UFLPA), enacted in 2021, bans U.S. imports of goods linked to forced labor in China's Xinjiang Province. However, experts warn that China could exploit loopholes by routing these goods through Canada and Mexico, which lack comparable legislation.

These countries' limited enforcement and oversight create vulnerabilities that could allow Xinjiang-linked goods to enter U.S. markets indirectly.

American lawmakers are urging Canada and Mexico to adopt UFLPA-like laws to strengthen North America's stance against forced labor.

Meanwhile, global enforcement varies; Norway has stringent measures, but the European Union and many nations lag behind.

U.S. importers face risks if their supply chains are not fully transparent. Only about 20% of companies have thoroughly mapped their supply chains to verify compliance, leaving room for violations through complex multi-tier networks. China's history of using third-party countries to evade trade restrictions further complicates enforcement.

While Canada and Mexico are unlikely to adopt strict measures soon, U.S. importers must proactively conduct due diligence and map supply chains to mitigate risks under UFLPA. Experts predict that, as with past U.S. legislation like the Foreign Corrupt Practices Act, other countries will eventually follow suit, setting a global standard against forced labor.