1,118 words 4 minute read – Let’s do this!
Soo crazy – November is less than a week away, 2 more months and 6 days until 2024. We want to thank everyone that takes the time to read our Market Updates and remind everyone to subscribe to our Linkedin page. 2023 has been a huge year of growth for Port X Logistics on the asset side and we are still growing! We want to keep you as updated as possible with our future growth through social media. Follow Here
It has also been a crazy year within the industry. Volumes have dipped to pre-covid years and rates stumbled so low that even a lot of companies haven’t been able to hold it together. Big companies too. Seattle based Technology focused Convoy shut down last week. Convoy aimed to increase efficiency in the $800 billion trucking industry through technology that connected shippers directly to truckers, bypassing the old system of relying on people to broker the deals. However, this industry still depends on humans with experience, expertise and flexibility to manage the unpredictable variables that arise. What other factors helped to push Convoy into a downward spiral? Container rates on eight major shipping routes worldwide had fallen 75% in July from the last year as lower consumer spending lowered demand for goods. A sharp decline in freight volume with excess capacity and with plentiful truck capacity also yields better rates, and shippers have been choosing to go to the bigger trucking firms rather than independent truckers and smaller companies. Ultimately the combination of technology and human industry experts that withhold strong customer service promises, will remain supreme in this industry.
The shaky U.S. economy still hasn’t had a monumental effect on the United Auto Worker’s contract settling. The United Auto Workers Union (UAW) reached a “tentative” labor deal yesterday with Ford Motor. The striking Ford autoworkers were told to return to work at Ford facilities while a tentative agreement was in the process of being ratified. More than 16,000 UAW auto workers were set to start working again at Ford’s Michigan Assembly Plant, Kentucky Truck Plant, and Chicago Assembly Plant. The proposed agreement, which UAW’s leadership must still approve, provides a 25% wage hike over the 4-1/2-year contract, starting with an initial increase of 11%. The Ford deal, which could help create a template for settlements of parallel UAW strikes against General Motors and Chrysler parent Stellantis, would amount to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in. The strike would continue at General Motors and Stellantis until those companies also reached a deal with the union. It isn’t immediately clear just how soon that could happen, though both sides have expressed their eagerness for the strike to end for good. More than 29,000 of the UAW’s 146,000 autoworkers were still on strike at more than 40 GM and Stellantis facilities nationwide, including assembly plants and parts distribution centers.
Import TEU volumes are up .896% (yes less than 1 percent) this week from last week.
The hopes of a volume boom seems rather grim at this point in the last quarter. Volumes have been picking back up in the LA and Long Beach ports. Some carriers are considering switching their volumes back into the LA and Long Beach ports as efficient improvements are being made at the ports such as with the port appointment systems and the International Longshore’s Association (ILA) upcoming contract negotiations to replace the six-year master contract that expires in September 2024. The ILA handles cargo as far west as Houston and along the Gulf Coast and up the East Coast to Maine. Shippers want to avoid any delays and backlog associated with the contract negotiations much like what happened with the ILWU this past year.
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
Port & Rail Updates
Montreal : The Port of Montreal has secured a C$150 million investment from Canada’s federal infrastructure fund to help it undertake land development of a new container mega-terminal – a 1.15-million-TEU container terminal with intermodal service that would be located about 43 miles northeast of Montreal on the St. Lawrence River. Did you know Port X logistics handles all ocean and road cargo into, across and out of all of Canada? We have offices in Toronto and Vancouver and we can provide drayage, and transload warehouses that can get your cargo on the road in 1-2 days, and can even truck them cross border into the U.S. Contact our team Canada@portxlogistics.com
Vessels currently in port: 34 Expected Arrivals: 26
Seattle/Tacoma: Husky Terminal has had “technical” issues all week and closed at 9:45 am on Wednesday. Their fiber optic cables were cut and we could expect shortened hours or closing for the next couple of weeks until the issues are resolved. This will potentially cause backlogs. Can they get other terminals to take some of the cargo???? TBD. Be on the lookout for delays. Here is where we can step in and help! We have a warehouse in Seattle with 240k square feet and operates 24/7 – we have competitive rates and unmatchable service in the area, 40 trucks and drivers, 110 x 40′ private chassis and 18 super chassis/tri axles for overweight containers and more –Whether you need these containers transloaded or straight drayage, once cargo becomes available and appointments can be made, we will recover cargo immediately to help expedite that containerized cargo. Contact us for capacity and killer rates Letsgetrolling@portxlogistics.com
Vessels currently in Port Seattle: 453 Expected Arrivals: 33
Vessels currently in Port Tacoma: 87 Expected Arrivals: 22
Memphis: Slight congestion at the BNSF, wait times around 1-2 hours to secure containers. Port X Logistics has a HUGE yard, trucks and private chassis and chassis hub and lift capabilities for yard storage in Memphis. We have immediate capacity and can cover all the Memphis railyards. Contact us today for competitive rates and for urgent drayage coverage letsgetrolling@portxlogistics.com
Did you know? There was an accident on Wednesday near the Houston ports that trickled into excess congestion back up Thursday morning, but the ports seem to be running clear now. Did you also know Port X Logistics has a drayage operation in Houston and Dallas and a full service warehouse in Houston that can transload and store heavy and unusual cargo loads. If you have major drayage or transload woes in Texas we should be your first call. Contact our team of professionals letsgetrolling@portxlogistics.com
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