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As the International Longshoreman’s Association (ILA) strike commenced yesterday morning, our team received word from a source with knowledge of operations at the Port of New York and New Jersey (NYNJ) that, one by one, NYNJ terminals decided to “freeze the clock” on detention and demurrage (D&D) charges for the duration of the ILA strike. To the extent that these reports are accurate and that NYNJ exerts influence within the seaport community, other ports could follow, especially as ocean carriers lobby key decisionmakers on D&D charges.

While a pause in D&D fees potentially would be a welcome development for shippers, there is no guarantee that the benefits would flow through to importers and exporters. Terminals often charge ocean carriers directly, and those charges are then usually passed through to shippers; however, ocean carriers may also charge importers/exporters D&D in amounts greater than what they are being charged by terminals.

Since the enactment of the Ocean Shipping Reform Act of 2022 (OSRA), D&D charges received added scrutiny as OSRA shifted some of the burden onto carriers for justifying D&D fees and provided shippers with better options to contest these charges. Carriers will surely consider this new standard for D&D in the context of the ILA strike; however, the intersection of OSRA with a dockworker strike is a novel circumstance, and it remains to be seen how certain key provisions of the Act will be construed by the Federal Maritime Commission. Our team will continue to follow key developments that will impact the supply chain and logistics community during the strike.

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Photo of Julie Maurer Julie Maurer

With a career-long emphasis on supply chain and complex commercial litigation issues, Julie provides a full suite of legal services to clients, with a special focus upon the transportation, cargo, and logistics industries. With 20+ years as a transportation logistics attorney and litigator…

With a career-long emphasis on supply chain and complex commercial litigation issues, Julie provides a full suite of legal services to clients, with a special focus upon the transportation, cargo, and logistics industries. With 20+ years as a transportation logistics attorney and litigator, Julie handles all legal matters for transportation/transportation-adjacent companies, including contract drafting and analysis, day-to-day legal consultations, regulatory advice, and complex litigation, often involving lost, damaged, or delayed cargo.

Photo of Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Carlos Rodriguez Carlos Rodriguez

A member of the Technology, Manufacturing & Transportation team, Carlos concentrates his practice in international and domestic transportation law. He skillfully navigates his maritime clients through the complexities of regulation and compliance in matters administered by U.S. Customs and Border Protection (CBP), the…

A member of the Technology, Manufacturing & Transportation team, Carlos concentrates his practice in international and domestic transportation law. He skillfully navigates his maritime clients through the complexities of regulation and compliance in matters administered by U.S. Customs and Border Protection (CBP), the Transportation Security Administration (TSA) and other governing bodies. He also coordinates global and U.S. acquisitions and mergers of multinational companies.