1796 words 5 minute read – Let’s do this!
We are inching closer to Q3 and peak season – complete with supply chain disruptions on the horizon. With all the recent Union contract agreements, there is no backing down for those with contracts set to expire this year. Strike threats are looming – workers and Union heads protest “If it’s a fight they want, It’s a war they’re going to get”. What will happen this summer my friends? Follow our LinkedIn page for the most up to date industry news and topics and if you want to talk more about what is in store for the remainder of 2024 email us for more information about Port X Logistics and how we can help be an industry knowledge tool for you and your team Marketing@portxlogistics.com
The Teamsters Canada Rail Conference’s (TCRC) second strike vote began last Friday, June 14th , and will end June 29th , as the current strike mandate is set to expire on June 30th. Canadian labor laws prohibit unions from declaring a strike unless its members have approved walking off the job in the previous 60 days. The union represents more than 9,000 Canadian National Railway (CN) and Canadian Pacific Kansas (CPKC) workers.
If the Canada Industrial Relations Board (CIRB) rules that a strike would not cause a serious threat to public safety, the earliest a strike could occur would be mid-July, according to CPKC.
“It is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later. In any event, a legal strike or lockout cannot occur until at least 72 hours after the CIRB renders a decision,” CPKC said in a June 14th statement.
TCRC said it has sent the CIRB written submissions and attended a pair of in-person meetings with railroad officials but has received “no indication” as to how long the negotiation process could last.
“We have no indication how long this process will take, or what an outcome could possibly look like,” the union said. “The result is a frustrating process. Both carriers have completely withdrawn any commitment to negotiate since the referral was issued, which already was almost non-existent since the sessions began last fall.”
“CPKC aims to gut the collective agreement of all safety-critical fatigue provisions,” TCRC said. “CN has offered the union to keep some of its language around fatigue contingent on the acceptance of a scheme where workers would be forced to relocate across the country for several months at a time to fill labor shortages in remote areas of the country.”
CPKC and CN rail workers are seeking higher wages, as well as bargaining over crew scheduling, hours of work and fatigue management. Union workers include conductors, engineers, yard workers, and traffic controllers.
The prospect of work stoppages at both of Canada’s major railways has a number of industries concerned about potential economic impacts. For example, the Canadian Manufacturers and Exporters advised that a disruption in rail service would delay shipments and, as a result, lower sales while raising expenses. The industry group said 225 of its members would lose an average of $275,000 per day due to a stoppage.
The International Longshoremen’s Association (ILA) means business in 2024 as it seeks to negotiate a new agreement with United States Maritime Alliance (USMX) before the current Master Contract expires in less than four months, on September 30th of this year.
“While our ILA members are battling inflation, trying to pay their mortgages, and send their children to college, our employers and companies are enjoying record profits,” said ILA President Harold Daggett.
“The ILA will not take one step back off our demands,” continued the ILA leader. “It’s our ILA members that work in one of the most dangerous environments, under all sorts of conditions, keeping America’s commerce moving through our nation’s ports, and helping the companies make those multi-billion-dollar profits we are exposing.”
“When negotiations resume, the union expects to demand salaries and other benefits for ILA members that are as lucrative as the profits of USMX member companies,” the union said. “The threat of a coast-wide strike on Oct. 1, 2024, is becoming more likely.” Daggett warned.
As negotiations proceed, the stakes are high. The outcome will determine whether the ILA can successfully safeguard its historic roles against what it sees as an aggressive push by employers to reshape the industry to their advantage. For now, port tensions remain high, with dockworkers resolute in their fight to maintain their livelihoods and secure a just agreement.
Some shippers have already began shifting their cargo from the East and Gulf Ports into the West Coast to ensure that they have vessel allocation and empty containers ready for their imports to the U.S. but West Coast routing options are limited by the current surge in import volumes combined with inadequate vessel and container equipment capacity, which has led to spot rates in the eastbound trans-Pacific to triple to over $7,000 per 40-foot container since mid-April.
What are the next steps before it’s too late down the line into peak season? Choosing Port X Logistics to move your West Coast cargo via 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
Import TEUs are up 4.51% this week from last, the heaviest volume this week arriving to Los Angeles with 22.4% of incoming TEU volume, Long Beach 20.7% of incoming TEU volume and Newark NJ 14.6% of incoming TEU volume. As we discussed last week, the National Retail Association and Hackett Associates released an updated Global Port Tracker report that indicated monthly inbound cargo volumes at the U.S. container ports is expected to reach its highest level in nearly two years this summer.
Hackett Associates founder Ben Hackett said an expected seven-month string of import levels above 2 million TEU—a level reached only twice since October 2022—is partly due to changes in the annual “peak season” for shipping. Imports of containerized goods at U.S. ports are booming, with particularly strong growth on the West Coast,” Hackett said. “In the last couple of years, we have witnessed a flattened peak season that has stretched out the volume of imports over extra months versus the strong, consolidated surge seen in the past. Reasons range from retailers restocking following strong sales after the pandemic to trying to get ahead of increased tariffs on goods from China set to take effect in August and ensuring sufficient inventories for the holiday season amid strong consumer demand.”
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 Southern Coast of Texas is under a warning for torrential rain and possible tornadoes as Tropical Storm Alberto weakened to a depression over northern Mexico. Much of the Gulf Coast from southern Texas to Louisiana and Alabama remains under flood advisories as high winds threaten to push water into coastal communities. Although Houston is not being largely affected by the storms, Galveston and Freeport are experiencing flooding as well as much of the surrounding areas. It has not yet affected Houston port operations but could affect traffic and lead to road closures and shipment delays. Port X Logistics has drayage assets in Houston 32 trucks 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. If you need help in the Houston area we got your back, we also have a drayage network with 19 trucks and yard space servicing the Dallas area contact letsgetrolling@portxlogistics.com
Savannah: Ocean Network Express (ONE) Modern, the first ship on the ocean carrier’s West India North America (WIN) service, called on the Port of Savannah this past Tuesday, establishing the latest connection between India and Georgia Ports. “This new offering from ONE is a recognition of India’s growing role as a manufacturing hub,” said Georgia Ports Authority President and CEO Griff Lynch. Lynch said deliveries from India to the U.S. East Coast are more efficient than U.S. West Coast routes. Even with current vessel diversions around Africa, GPA reaches inland markets across the U.S. Southeast and Midwest three to five days faster than U.S. West Coast ports. More cool Savannah news: Port X Logistics Savannah also has a drayage fleet of 12 trucks with service to and from Savannah, Charleston and Jacksonville ports as well as container yard space. We also have a full service transload warehouse in Savannah and can handle last-minute urgent transloads and cross docks. Contact Kyle and the team sav@portxlogistics.com
Chicago: The Norfolk Southern in Landers continues to have lift issues causing wait times of 3-4 hours. The NS is putting up signs telling drivers they cannot pay for lift operators for faster lift service. Even with all that wait time, 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 secure permits to haul heavy containers. For great rates, capacity and supreme customer service contact Danny and the team at letsgetrolling@portxlogistics.com
Did you know? Our Founder BK will be an industry expert guest speaker at East Coast’s Premier Conference on Shipping, Ports, Logistics, and Trade? BK will be a part of VMA24 International Trade Symposium’s lineup for the 2024 program, “Harnessing the New Normal” October 8th through the 10th in Norfolk VA. https://lnkd.in/eVzr4nP2
If you are attending this year and would like to set up a meeting with the Port X Logistics team, contact marketing@portxlogistics.com
SONAR Import Data
