985 words 4 minute read – Let’s do this!
We just wrapped up our attendance at the 2023 Breakbulk Americas and what a rush. It’s so amazing to see this many players in an industry that has been near and dear to my heart for more than 20 years. Although the market has been vastly different than it has in the past 3 years, 2024 looks to be a promising and exciting year of growth and positive industry changes. Project freight is no joke, it’s exciting to plan and witness and it’s the freight that powers the world. Solar powered and EV are the waves of the future with a strong focus on the environment and sustainability. Port X Logistics is driven to step into the future of Project cargo and being at this week’s event was motivational and fun.
This week has been a landslide of heavy hitter conferences. Port X Logistics’ own Pat, Steve, and Tom also attended the Automotive Logistics and Supply Chain Global this week in Michigan, amidst crazy labor contract disputes and strikes…
United Auto Workers Union could strike additional Detroit Three automotive facilities on Friday if there is no serious progress in labor negotiations. So far, the union and the companies remain far apart on key economic issues. UAW President Shawn Fain has stuck with current demands to include a 46-percent pay increase over a 4 year contract; a 4-day work week with overtime pay beyond 32 hours; union representation at new electric battery plants; and to eliminate the two-tier wage system, under which new hires earn far less than veterans. So far the companies have countered with offers of about 20%. If Fain triggers walkouts at more plants starting at noon on Friday, the UAW is expected to continue more work stoppages until a new contract is ratified. The union has already shut down one assembly plant at each of the Detroit Three, and 38 parts distribution centers at GM and Stellantis.
About 18,300 UAW members are on strike, but that is only about 12% of the total number of union members working at the three automakers. Strikers are getting $500 a week from the UAW’s strike fund. The union has said negotiators at Ford are making the most progress toward an agreement. But Ford has said wide differences remain over key issues.
The UAW’s list of potential next strike targets includes engine and transmission facilities, as well as factories producing large pickup trucks and SUVs. A strike that shuts down production of large trucks and SUVs could cost the automakers billions of dollars in revenue and profit. Analysts estimate GM, Ford and Stellantis earn as much as $15,000 per vehicle on each of their respective large pickup truck models. The union on Sept. 22 expanded its strikes against GM and Stellantis, but kept its Ford walkout limited to a single plant. It is unclear whether Ford will be targeted in the next round of actions.
Inbound TEUs are down 27.65% from last week. Port X Logistics’ Danny and Adam attended JOC inland 2023 and a big topic has been the rising costs of labor, real estate, employment, insurance and fuel in the US is definitely contributing to the market slow down. The cost of doing business continues to increase. 2023 was a year of trying to normalize inventories for all the post Covid inventory spikes. Here’s to hoping 2024 starts to become a more promising market. With the growing need for solar panels and EV vehicles and EV auto plants being built we expect to see some prosperity.
What’s happening at the ports and rails?:
You can find all the information on the below link where we cover port congestion, chassis issues and capacity lead times weekly at all U.S. and Canada Ports and rail heads
Houston: It is hot hot hot down here! Having traveled to Houston this week I have a much greater appreciation for Texas residents. You are all saints. There’s a little bit of gate congestion in Houston due to the port piloting a new ticketless exit gate transaction process, but nothing too terrible. We have an abundance of drayage capacity in Houston and our warehouse can do it all. I’m currently on site at the warehouse and our warehouse and drayage operations staff are incredible. We will make all your Houston ocean freight an easy one stop shop. Contact the team at Letsgetroling@portxlogistics.com to learn more
Vessels currently at port: 341 Expected Arrivals: 145
LA/LGB: Yusen Terminals LLC is implementing a new Pilot Program to reduce the overall grace period of truck appointments from 2 hours down to 90 minutes by eliminating the 30 minute “early” arrival window. The program will start October 9th and will run 60-90 days until the terminal has enough data to see if the shortened grace period will have any impact on terminal efficiency and appointment Availability.
Vessels currently at port LA: 138 Expected Arrivals: 53
Vessels currently at port LGB: 83 Expected Arrivals: 64
Oakland: Oakland is running smoothly and we have more capacity than ever. Yard space is starting to get limited but we have plenty of container storage space and a cross dock warehouse for your transload needs. Contact JP and the team for great rates and if you need help covering all your last minute containers. Oakland@portxlogistics.com
Vessels currently at port: 70 Expected Arrivals: 12
Did you know? that amidst the rising concerns over supply chain disruptions, our widespread offices, assets, and real-time tracking services in LA and Long Beach ensure reliable drayage, transloading, and trucking solutions? Contact Jackie and the team at ca@portxlogistics.com to get you first in line and avoiding all potential disruptions and with it’s no demurrage guarantee – ask about it today!