1453 words 5 minute read – Let’s do this!
“Short and sweet” is the theme for this week’s market update as we recap some of the key industry news that has been taking place over the last few weeks that could be potential disruptions, especially as we march into peak season. To keep up with the most up to date industry news, we urge you to follow our LinkedIn page and email Marketing@portxlogistics.com to sign up for this weekly Market Update Newsletter.
Labor negotiations are continuing to add another layer of potential volatility to U.S. trade lanes and International Longshoremen’s Association (ILA) President Harold Daggett said in a statement that the union’s 45,000 members “are ready to hit the streets if our demands are not met.” There are a few pressing items that need to be addressed by the United States Maritime Alliance (USMX) before the September 30th contact expiration date, such as port automation and the ILA is believed to be seeking an almost 80% wage increase over the life of its next six-year contract with maritime employers.
Maersk CEO Vincent Clerc said in a statement on Wednesday: “If a strike were to happen, the impact could be quite significant in terms of the congestion it would create [and] the delays and the absorption of capacity it would suddenly create would be a big bottleneck in a well-traveled route,” he said.
Anxiety over a strike by some 9,300 employees at Canadian National Railway (CN) and Canadian Pacific Kansas City Ltd. (CPKC) has already cost the companies business after some customers started to reroute cargo following approval of a strike mandate by union members on May 1st. The Canada Industrial Relations Board (CIRB) is examining whether there are critical shipments — chlorine for water and gasoline for cities, for example — that must continue in the event of job action, putting any potential work stoppage on pause until a ruling is made.
Steven MacKinnon, (Seamus O’Regan’s replacement as federal labor minister) met Monday morning with leaders from the two main railways and the Teamsters Canada Rail Conference (TCRC) union to discuss the consequences for the economy and supply chain. All parties say they want to continue negotiating, but each blames the other side for the communication breakdown. CN and CPKC are bargaining separately with the Teamsters union toward distinct collective agreements, though two strikes could happen simultaneously.
Teamsters spokesman Christopher Monette said members are growing increasingly “frustrated and impatient” with the two railways — and with the suspension of workers’ right to strike while the Canada labour board writes up a decision. “Absent the threat of a work stoppage, neither company appeared willing to compromise or show any flexibility in their demands,” he said in an email. Observers say the possibility of a strike will likely remain on the table after the decision — expected this Friday — as players in industries ranging from agriculture to big-box retail fret over the fallout.
A work stoppage that drags on for five or six days can take ports up to a month or more to return to normal performance. 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 down this week 20.6% this week from last, the heaviest volume this week arriving to Los Angeles 21.2% of incoming TEU volume, Long Beach 19.3% of incoming TEU volume and Newark 13.8% of incoming TEU volume. Import TEUs arriving in California increased 7.4% from the first quarter to the second quarter and came in 11.3% higher than in Q2 2023. East-to-west diversion takes some of the credit: Los Angeles/Long Beach’s share of inbound North American TEUs was 33.9% in June — 2.5% higher than in June of 2023. It is predicted that the percentage of import TEUs arriving in California and departing as domestic transloads to rise significantly in the third quarter and could persist through the balance of the year depending on whether things change in the Red Sea and whether and when a settlement is reached with the ILA and maritime employers.
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: Starting September 1, 2024, the Traffic Mitigation Fee (TMF) will increase by 6% to align with recent wage and assessment rate hikes in the coast wide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.
New TMF Rates:
$37.71 per TEU (twenty-foot equivalent unit)
$75.42 for other size containers
Exemptions: Empty containers, import/export cargo transiting the Alameda Corridor, transshipment cargo, empty chassis, and bobtail trucks.
The TMF supports the OffPeak program, which has diverted over 63 million truck trips since 2005, reducing congestion and air pollution. The program includes night and weekend shifts for container handling at the 12 terminals, managed with appointment systems. Transload orders have been piling up as many shippers have been taking the early initiative to avoid the East and Gulf Coast ports, but we have all the transload capacity in the world for you! We also have 66 trucks and a huge amount of yard space to take on your LA and Long Beach drayage moves. Contact CA@portxlogistics.com for all your West Coast drayage, transloading and trucking needs.
Oakland: Port congestion is still an issue at the Oakland terminals, We have seen driver wait times up to 8 hours per day this week. If you are looking for capacity, we encourage you to get your orders in early for the most guaranteed capacity. Send all orders and requests to our Oakland team at Oakland@portxlogistics.com
Savannah: Hurricane Debby caused a lot of grief in the Southeast this week, shortening Savannah Port terminal hours on Monday, closing the port on Tuesday with terminals resuming regular hours on Wednesday, but with a lot of clean up and container backups still at play. If you have containers that contain cargo on the verge of being extra urgent, we have a full service transload warehouse in Savannah and can handle any last-minute urgent transloads and cross docks. Our South Atlantic operation also has a drayage fleet of 12 trucks with service to and from Savannah, Charleston and Jacksonville ports as well as container yard space. Contact the team sav@portxlogistics.com for great rates and supreme customer service.
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 8th-10th, 2024 in Norfolk, VA. For more information and to register, visit VMAsymposium.com
SONAR Import Data
