1,338 words 5 minute read – Let’s do this!
We will make this Market Update a quick one as The Port X Leadership team is currently in Montana on our annual Leadership retreat this week brainstorming on how we can make the experience for our customers even better. We always have entertaining stories of the annual retreat, including a super fun team building Buffalo “Wing off” so be on the lookout and follow our Linkedin Page and email Marketing@portxlogistics.com to sign up for this weekly Market Update Newsletter.
The Canada Industrial Relations Board aims to make a ruling by Aug. 9 on the question of essential services that has put a potential Canadian rail strike or lockout on hold, Canadian National Railway says.
The railroad said that the board will provide another update in the event another decision is not made by that time. CPKC said in an update that the board had advised it would issue its decision without holding oral hearings.
Canada’s Minister of Labour, Seamus O’Regan Jr, asked the board on May 9 to determine if some critical shipments might be required to continue even in the event of a work stoppage. That move prevents the start of any strike or lockout until after the board makes a ruling. Members of the Teamsters Canada Rail Conference had authorized strikes against both railroads that could have begun as soon as May 22.
“We recognize that the prolonged negotiations are creating uncertainty,” CN said in its statement, “and we are working toward providing as much predictability as possible to our employees, customers, and partners.”
With the threat of a strike looming over U.S. East Coast and Gulf Coast ports, the International Longshoremen’s Association (ILA) is increasing its rhetoric and digging in, pointing out that there are only 80 days left on the current contract. Talks remain stalled after the union alleged that Maersk’s APM Terminals was using an auto gate system and may be encroaching on its jurisdiction.
The union’s strategy was to resolve all local jurisdiction contracts and then commence negotiations for the master contract. They however canceled the negotiations which had been scheduled to start a month ago citing the automation issue and said they would not start the talks until the dispute of the system in Mobile is resolved.
“Only 80 days remain before the end of our current contract and we are waiting on USMX,” said ILA President Harold J. Daggett. “The actions of violating our current Master Contract by some of their members caused us to cancel scheduled negotiations with USMX in early June.”
He wanted in the latest statement that negotiators for the union and the employers represented by the United States Maritime Alliance (USMX) “are running out of time” to avoid a coastwide strike on October 1, 2024. The union is now saying that it is “growing more likely” that there will be a strike. In addition to blocking automation in the ports, the ILA has said it is looking for recognition of the longshore workers’ efforts at keeping the ports functioning during the pandemic. The West Coast union, the International Longshore and Warehouse Union (ILWU).
A work stoppage caused by a potential strike 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. How can you avoid a pending rail strike and a possible ILA port strike? Planning ahead is crucial and choosing Port X Logistics to help formulate a plan is you choose to divert your rail cargo to the Ports and move it 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 29.43% this week from last, the heaviest volume this week arriving in Long beach 20.5% of incoming TEU volume, Newark 17.3% of incoming TEU volume and Los Angeles 13.8% of incoming TEU volume. Spot ocean rates for Asia to the US West Coast appear to have peaked after edging lower over the past week, forwarders and carriers say, reflecting the capacity recently injected on the trade to handle what US retailers are calling their strongest volumes in two years. The West Coast spot rate as of Tuesday was $8,000 per FEU, down 2% from $8,133 per FEU last week, and the current rate is double the $4,000 per FEU level from May 1. according to Platts, a sister company of the Journal of Commerce within S&P Global.
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
LA/LGB: Business is up more than 14% for the first 6th months, driven mainly by the strength of the U.S. There is also a dock workers’ negotiation on the East Coast, the drought in Panama Canal, and security issues in the Red Sea leading up to the Suez Canal. Many importers and exporters have shifted some of their allocation our way to hedge against any worsening in those three areas. The most recent tariffs that the Biden administration put in were on $18 billion worth of goods – a very narrow, targeted approach to tariffs, which should have minimal impact to the Port of Los Angeles. The Port of Los Angeles portfolio with China is now down to about 45% (from 57% three years ago) . A lot can happen that can affect the volumes and capacity coming into LA/LGB ports in the next few months with peak season in effect and the ILA contract decision in late September. Our West Coast team is preparing for whatever comes at us and we are ready now to help plan for a shift away from the East and Gulf coast. We have open capacity for drayage and transloading contact Jackie and the team ca@portxlogistics.com
Chicago: Our Capacity is booming and our team is incredible. On August 1st we are upping our game and forming an even larger elite Chicago team to include 80 trucks, yard space, and transloading and specialized equipment. There is nothing we can’t do in Chicago including overweight and hazmat containers – contact Danny and the team letsgetrolling@portxlogistics.com, we are eager to work with you!
Did you know? The Empire State Ride, a unique and life-changing cycling event celebrating its 10th anniversary, is just around the corner! The ride starts on July 20th and lasts 7 whole days as riders make their way from Staten Island to Niagara falls. You might not have heard, but the ESR organization just reached an unbelievable milestone – they’ve hit their goal of raising $10 million for cancer research in just ten years since their creation! Here at Port X Logistics, a proud sponsor of the event, we’re beyond excited to cheer on the riders as they cross the finish line in Niagara Falls, right near our Buffalo HQ. We’ll make sure to keep you updated on the event and share pictures from the party at the falls to celebrate another amazing & successful year!
SONAR Import Data Images
Coming soon.