1562 words 6 minute read – Let’s do this!
We are just two days away from June, the time is flying and summer is upon us. The market for the first almost-half of the year has been spotty – Ongoing disruptions such as congestion and equipment shortages in Asia, notably China, plus the problems in the Red Sea, are extending routings and transit times with higher ocean costs. In Canada, ports and rails are dealing with congestion and shortages of rail cars, causing delays out of the ports of Vancouver and Prince Rupert. And the labor dispute at the port of Montreal harbored the possibility of yet another work stoppage disrupting traffic flows. Market specialists suggest that shippers should start securing early capacity for seasonal goods with the threats of more blank sailings out of Asia, little idle capacity, longer transit times around Africa, bad weather in Asia and the upcoming labor contract negotiations that could cause a potential strike at U.S. Gulf and East Coast ports.
Chances of disruption in the Canadian market bumped up another notch when customs and immigration agents voted to strike over their contract negotiations with the Canada Border Services Agency (CBSA). The proposal was supported by 96% of the Border Services group of the Public Service Alliance of Canada (PSAC), and the union noted its members had been without a contract for more than two years.
We have been reporting for weeks about the workers at Canadian National and Canadian Pacific Kansas City voting for strike action at the beginning of May, but the request from the government for the Canada Industrial Relations Board (CIRB) to review if a strike could have a negative impact on the country in regard to public safety has pushed back the potential start date. The union is in a position to strike within 72 hours after the CIRB ruling, expected at the end of this month. However, the government stressed that a strike would be unnecessary, as mediated negotiations were set to commence on June 3rd. The Canadian International Forwarders Association has notified the government arguing that a 72-hour notice period is insufficient, as supply chains need 30 days or more to prepare for work stoppages. As we have seen last year with the International Longshore and Warehouse Union (ILWU) in the West Coast, Unions are pushing for better contracts primarily as it relates to safety issues to protect the workers.
A work stoppage will impact all Canadians – It will halt freight traffic on the Canadian rail network. It would disrupt essential supply chains throughout North America and significantly constrain trade between Canada and the U.S. and Mexico. How can you avoid a pending rail strike? Diverting your cargo away from the rail and choosing Drayage, transloading and trucking. Port X Logistics is the Gold Standard in drayage, transloading and trucking. We track your containers from the time they leave overseas, dray your containers from all port locations and transload with plenty of photos provided and load to outbound trucks for the fastest over the road delivery with a shareable tracking app to track drivers all the way to final destination. Transload orders have been piling up as many shippers have been taking the early initiative to speed up deliveries whether it was an ocean delay or to avoid the rails, but we have all the capacity in the world for you! If you want more information on how you can get your cargo diverted at the port and on the road for a speedy delivery with full visibility contact letsgetrolling@portxlogistics.com
E-Commerce continues to push Air cargo in high demand out of Asia to the U.S., filling up all available air freight capacity out of Asia. Global air freight demand “started Q2 with a solid 11.1% increase,” Willie Walsh, director general of the International Air Transport Association (IATA) said in a statement this week. “While many economic uncertainties remain, it appears that the roots of air cargo’s strong performance are deepening.” One of Asia’s largest air freight carriers, Hong Kong-based Cathay Pacific, last week reported a 10.1% year-over-year increase in cargo volume through the first four months of 2024 alongside a 13% increase in capacity. With air cargo projected to be busy during the summer season, you will be excited to know that our Carrier911 team never slows down and is on the move 24/7/365 to help with all your domestic expedited trucking needs. We can get drivers assigned and on site at the airport in most cases within one hour from the time the order has been dispatched to us. We have access to cargo vans, straight trucks, dry vans and more and every one of our drivers have experience with airport and Container Freight Station pickups and have access to retrieving the proper documentation to make these pickups seamless. Don’t forget we provide shareable tracking links and PODs sent at the time of delivery, so you can relax stress free with your most critical shipments. Contact the Carrier911 team to help with your next shipment success story info@carrier911.com
Import TEUs are down this week 3.2% this week from last, the heaviest volume this week arriving to Long Beach 21.3% of incoming TEU volume, Newark NJ 13.4% of incoming TEU volume and Houston 11.2% of incoming TEU volume. Vessel schedule reliability from Asia to the West Coast jumped 9.6 percentage points month over month to 58.8%, the highest since a reading of 58.7% last November. Reliability to the East Coast climbed 2.5 percentage points to 40.1%, the best for the trade lane since 40.3% last November.
The U.S. Federal Maritime Commission (FMC) revision to detention and demurrage (D&D) rules were implemented on Tuesday, introducing new requirements for billing, timeframes and how to dispute unfair charges. A key provision determines that D&D invoices can only be issued to either the consignee – defined as “the ultimate recipient of the cargo”– the person who contracted with the billing party for ocean transportation or storage of cargo, or the person for whose account this was provided. The FMC said the revision would advance the commission’s goal of promoting supply chain fluidity by ensuring a clear connection between the failure to pick up cargo or return equipment in a timely manner and the appropriate fee and the new rule will provide relief to parties that should never have received a bill for detention or demurrage.
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 on our website – click on the link below
CLICK HERE for Port & Rail Updates
Houston: The holiday closures on Monday, inclement weather and a strong increase of vessel volumes this week calls for potential wait times at both Houston terminals. Current turn times at Barbours Cut Container Terminal are 34/53 minutes and 28/46 minutes at Bayport Container Terminal for single and double transactions. Expect wait times and congestion to increase into next week as idle and incoming vessels are being worked on. Port X Logistics has drayage assets in Houston with the capability of long-haul drayage and we have a transload warehouse in LaPorte that can transload anything from standard pallets, to heavy lumber and industrial coils. We have plenty of capacity if you need help in the Houston area – we got your back. Contact letsgetrolling@portxlogistics.com
LA/LGB: It is projected that national cargo theft volumes will rise by 35% by the end of 2024 – The problem has been particularly prominent in California, which saw 48% of cargo thefts nationwide in 2023, Port of Los Angeles executive director Gene Seroka calling it “organized crime at its finest.” Port X Logistics has a secured yard space near the LA/LGB Ports for your short or long term container storage needs. We also have plenty of drayage capacity and provide drayage/transloading and trucking direct from our West Coast team on site in our Long Beach office. Contact CA@portxlogistics.com
Chicago: Norfolk Southern Landers wait times have improved the past couple weeks, and NS continues to recommend more drivers to consider picking up or dropping off cargo in the morning or evening. Our Chicago asset drayage team has full capacity to get your Chicago containers moving – we have 80 trucks and secured yard space and we are able to obtain special permits to haul heavy containers. For Chicago drayage capacity and supreme customer service contact Danny and the team letsgetrolling@portxlogistics.com
Did you know? Port X Logistics also handles project cargo? Whether it’s out of gauge flat racks, open tops or oversized heavy haul and breakbulk, we can handle it at all Ports in the U.S. and Canada. Let us help you formulate a plan from start to finish, even including arranging a crew on site to load and unload. Contact Jill, Ryan, and Chris D at letsgetrolling@portxlogistics.com To learn about our services and follow our linkedin page to see stories of past, present and future project successes.
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