2109 words 8 minute read – Let’s do this!
Welcome back from a short holiday week, can you believe we are already approaching the middle of July? There is a lot going on at the rails, ports and with the weather – truly the summer of 2024 has been operating on a different level in this industry! The devastating hurricane in Houston is a sign that hurricane season is upon us and is no joke this year, and the potential Canada rail strike and U.S. East and Gulf Port International Longshoremen’s Association (ILA) contract outcome is playing a huge part in what Q4 into early 2025 could look like. To stay ahead of the game and learn how Port X Logistics can help you with solutions to any disruptions, follow our Linkedin Page and email Marketing@portxlogistics.com to sign up for this weekly Market Update Newsletter. We had a tornado touch down yesterday here in Buffalo NY, that goes to show you that you never know what chaos can happen!
At an urgent hearing this past weekend, the Canada Industrial Relations Board (CIRB) determined the strike notice issued by International Longshore & Warehouse Union (ILWU) Canada Local 514 against DP World (Canada) Inc. is in contravention of the Canada Labour Code. “The CIRB found that the union failed to bargain in good faith when it conducted a strike vote amongst employees of only one member employer of the British Columbia Maritime Employers Association (BCMEA) and issued a strike notice based on that strike vote. Accordingly, the CIRB directed the union to rescind the strike notice of July 5, 2024 and advise members that it is rescinded.”
The ILWU Canada has an issue with how DP World Canada proposes to implement remotely controlled Rail Mounted Gentry (RMG) cranes for the rail operation at its Vancouver terminal. The union claims DP World Canada “put the Union on notice in mid-December, 2023, that it was unilaterally going to introduce automation with respect to the loading and unloading of cargo containers at their Rail Intermodal yard at Centerm.” This is a reference to five ZPMC RMGs with TMEIC drives and automation at the Centerm rail yard that are equipped for operation by remote control. The cranes were delivered in 2021.
DP World Canada had earlier reached a “manning agreement” with ILWU Local 500 regarding these cranes, “but refused to do so directly with Local 514” Frank Morena, President of ILWU Local 514 said in a statement. While Local 500 represents longshoremen/equipment operators, Local 514 represents foremen. “Following this refusal, the Union tabled a manning proposal during collective bargaining with the BCMEA, which continued to refuse to negotiate a meaningful manning proposal. Notwithstanding that, another BCMEA employer, GCT, successfully negotiated a manning agreement with the Union years ago when it introduced automation,” Morena said. GCT operates remotely controlled RMGs over its rail yard at the Deltaport Terminal. After the ILWU held a strike vote for DP World only employees the BCMEA responded with an industry-wide lockout notice. Both the strike and the lockout notice have now been withdrawn following the CIRB ruling.
The CIRB ruling removes the threat of immediate industrial action. The CIRB hearing to address the BCMEA’s complaint that the union is illegally trying to introduce a manning proposal specific to DP World Canada into the collective bargaining process is now scheduled to be held in early August.
Just as the ILWU Canada is pushing back on automation with DP World Canada, port automation is also a big issue with the U.S. East Coast and Gulf Coast ports, adding to the fuel of negotiation items with their pending contract expiring in September.
On June 29th, Members of the Teamsters Canada Rail Conference (TCRC) voted to reauthorize strikes at Canadian Pacific Kansas City (CPKC) and Canadian National (CN). Overall, 89.5% of union members participated in the vote, with 98.6% voting to reauthorize the strike, the union said. At CN, conductors, engineers, and yard workers voted 98.4% to authorize the strike, with a 90.1% turnout. At CPKC, that same group voted 99.2% in favor of reauthorization, with an 88.6% turnout. CPKC rail traffic controllers, also represented by the TCRC, voted 95.7% to reauthorize the strike, with an 88.5% turnout.
CPKC said in a June 28th statement that, with the decision from the Canada Industrial Relation Board (CIRB) still to come, it believes “it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later.” A minimum of 72 hours’ notice is required by law. CPKC said it has asked the CIRB to extend the cooling-off period for 30 days after the board issues its decision to “help provide stability and predictability” regarding a potential work stoppage and “allow all stakeholders to plan for such an eventuality.” The railroad also said its offer of binding arbitration, as well as two collective bargaining proposals, remain on the table.
A Canada rail strike looms as mid-July is just a few days away. Work stoppage will impact all Canadians – It will halt freight traffic on CPKC’s Canadian rail network. It would disrupt essential supply chains throughout North America and significantly constrain trade between Canada and the U.S. and Mexico.
The ILWU Canada will not strike, however rumor has it that they will slow down, and that a $1M check was issued to the West Coast ILWU from the East Coast Union, shoring up support, should the East Coast ILWU strike. Knowledge is key. Understanding the nuances of the market will help ask the easy questions. What if? Do you have a contingency plan? Port X Logistics is here to help. Did you know? We have an office in British Columbia who can assist with tracking the vessel, assist with the bonded transload, assist with manifesting the bond, and delivering to final destination.
- Dray in bond
- Transload in bond
- Remanifest the bond to the OTR driver
- Moves in bond to the border
- Customers customs broker clears the shipment.
- Deliver to final delivery with GPS tracking
What’s the plan if there are East Coast and gulf disruptions? We have already seen a “slowdown” in New Jersey. As a national drayage, transloading, and trucking provider we can provide versatility and contingency options for every port and rail ramp in the USA and Canada.
- All information is one spot no matter what port location
- Tracking the vessel
- Provide drayage, transloading, and trucking operations no matter the port or ramp.
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 “Make drayage, transloading, and trucking part of your supply chain solution.”
Import TEUs are down 41.13% this week from last, the heaviest volume this week arriving in Los Angeles 20.3% of incoming TEU volume, Long Beach 14.2% of incoming TEU volume and Newark NJ 13.3% of incoming TEU volume. There was a large influx of import volume last week 642,891 TEUs, the heaviest volume this week arriving to Long Beach 22.3% of incoming TEU volume, Los Angeles 16.3% of incoming TEU volume and Newark NJ 14.8% of incoming TEU volume. According to Portoptimizer.com, the Port of Los Angeles handled 117,608 twenty-foot equivalent units (TEUs) between July 7–13, 2024, which is a 3.47% increase from the previous week and a 40.76% increase from the previous year. The port is expected to handle 99,986 TEUs between July 14–20, 2024, and 114,133 TEUs between July 21–27, 2024.
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 Houston Ports were closed on Monday and Tuesday due to the impact of Hurricane Beryl widespread flooding, debris and power outages. The Port of Houston resumed operations at the normal start time on Wednesday with extended gate times for its container terminal. The extended gate hours are as follows:
- Thursday July 11th: Terminal gates will remain open from 6 a.m. to 8 a.m. Central Time, with the ingate set to close at 7 p.m.
- Friday July 12th: Terminal gates will stay open between 6 a.m. to 7 p.m., the last entrance allowed at 6 p.m.
- Saturday July 13th: Opening hours will be cut down to 8 a.m. to 5 p.m.
Houston is still dealing with power outages and intermittent cell services. The port is getting back to normal operations but experiencing delays and many backlogs. If you have an urgent Houston dray or need a transload warehouse asap – We have you covered. We have immediate capacity for drays and transloading contact letsgetrolling@portxlogistics.com
Charleston: The South Carolina Ports Authority has eliminated the backlog of container ships that numbered between 15 and 20 just a few weeks ago, but says it is likely some inbound vessels will have to sit at anchor over the next few months because Charleston’s Wando Welch Terminal will be operating with two berths instead of three through November owing to construction work. The port was able to clear all the recently anchored vessels, helped by a temporary reopening of all Wando Welch’s berths last week amid a 10-day pause. Leatherman terminal will reopen before the end of the year, according to port officials, but an official date has not been announced. If it happens before the work at Wando Welch is completed, it will put Charleston back at three operating berths again. Port X Logistics South Atlantic team is built to help support your Charleston shipments, we have drayage fleet of 12 trucks with service to and from Charleston, Savannah 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
Kansas City: Kansas City is running smoothly and we have a HUGE announcement. We are the area’s largest Bonded container Freight Station with 13,000 feet of dock space, 25+ Dock doors, and dry vans for local deliveries. We can transload anything from standard pallets, floor loaded and heavy cargo within our Bonded CFS. We have a large drayage fleet of 59 trucks and 58 acres of yard space and equipped with lift capabilities. We are welcoming new transload projects and have immediate drayage capacity – contact letsgetrolling@portxlogistics.com we are eager to work with you!
Did you know? Our CEO and Founder Brian Kempisty will be speaking at VMA24! Hosted by Virginia Maritime Association, VMA24 is the East Coast’s premier conference on shipping, ports, logistics, and trade. Gain insights into current issues and trends in today’s maritime industry, hear industry experts, government officials, and business leaders discuss a wide range of topics related to international trade, transportation, and logistics, and network with other professionals in the industry.
This year’s theme, “Harnessing the New Normal,” directs attention to the paradigm shift occurring in the global shipping market. Change has become the norm, propelled by uncertainties in trade lanes, environmental regulations, and geopolitical dynamics. To prosper in this evolving landscape, companies must prioritize supply chain flexibility and preparedness. Emphasizing resilience and adaptability is crucial to navigating these challenges and ensuring not just survival, but success in the new normal.
In addition to the symposium, VMA24 will include the highly anticipated maritime mixer, the prestigious maritime banquet, and attendee favorite, golf. Join us for VMA24 on October 8-10, 2024 in Norfolk, VA. For more information and to register, visit VMAsymposium.com
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