1911 words 7 minute read – Let’s do this!
Port X Logistics turned seven on October 2nd and we have our awesome employees and amazing customers to thank. Although seven years went by in the blink of an eye, we are blessed to have made it through a worldwide Pandemic and now a historic port strike. We have had our share of market ups and downs, but nothing has ever stopped us. The Port X founders and Leadership Team want to thank you for seven great years, and cheers to seventy more! BK, Tim, Jill, Tom, Pat, Tyler, Adam, Arsh, Dionne
Long lines of container ships are lined up outside major U.S. East and Gulf Coast ports as the biggest dockworker strike in nearly half a century (or as our South Atlantic team in Savannah calls it “Container-geddon”) entered its third day preventing unloading and threatening shortages of consumer goods and commodities. At least 45 container vessels that have been unable to unload had anchored up outside the strike-stricken East Coast and Gulf Coast ports on Wednesday, up from just three before the strike began on Sunday, and the vessel backlog could double by the end of the week – the resulting congestion could take weeks, if not months, to clear. The Port X Market Update has covered the weeks leading up to the contract expiration resulting in a union strike, and to stay informed of what is to come of all the disruption, follow the Port X Logistics LLC LinkedIn page for up to date news and solutions for your supply chain, and to get on the list for this weekly Market Update Newsletter and future industry related news sent direct to your inbox email Marketing@portxlogistics.com
The nearly 50,000 members of the International Longshoremen’s Association (ILA) on strike remain at odds with the contract offer from the United States Maritime Alliance (USMX) and have voiced real concerns about the future of their industry. The strike also comes at a crucial time for the U.S. elections. The National Retail Federation (NRF) on Wednesday, along with 272 other trade associations, called on Biden’s administration to use its federal authority to halt the strike, saying the walkout could have “devastating consequences” for the economy. Biden’s administration has repeatedly said it will not use federal powers to halt the strike. ILA President Harold Daggett stated on Tuesday in an interview with CNN: “If we have to be out here a month or two months, this world will collapse. Go blame them (the USMX). Don’t blame me, blame them.”
The ILA is now demanding a 77% wage increase over the duration of the new contract, with a $5 per hour raise each year. Under their proposal, workers would earn $44 per hour in the first year, $49 in the second, and up to $69 by the final year. The USMX offered a nearly 50% increase, which the ILA rejected.
The strike could also prove an issue for American farmers and U.S. agricultural exports, leading to an overabundance of American-grown commodities domestically. More than 75% of U.S. bananas arrive at ports handled by the ILA, according to the farm bureau. Beyond the perishable fruit, nearly 90% of imported cherries, 85% of canned foodstuffs, 82% of hot peppers and 80% of chocolate that arrive via waterborne vessels are offloaded from containers at these ports.
If you have noticed the grocery store aisles starting to sell out of essentials like bottled water and paper products, beware. Although many experts or fact check sites state things like most toilet paper being manufactured in the U.S., most factories rely on overseas shippers for machinery parts and packaging. Many commodities such as base metals, plastics and machine parts, pass through U.S. East and Gulf Coast ports. Choosing Port X Logistics to help formulate a plan if you choose to divert your cargo to the West Coast and non-Union 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 22.6% from this week from last week – with the volume coming into Los Angeles at 19%, Long Beach 13.3% and Newark NJ 10.4%. According to S&P Journal of Commerce (JOC) carriers have made minimal changes to vessel schedules due to the strike. Hapag-Lloyd advised shippers Tuesday that two vessels in its Caribbean Express Service (CES) that would have called the Port of Virginia this month will now call Canada’s Port of Saint John. The carrier’s US Gulf-South America (GS1) service that calls Houston and New Orleans will instead discharge at the Mexican ports of Altamira or Veracruz over the next two weeks. Maersk advised shippers Tuesday that it has “mapped out specific possible vessel-level contingencies that will be actioned depending on the duration of the labor dispute.” Maersk has not outlined specific diversions yet, but one of the vessels in its Asia-US East Coast TP16 service, the Seroja Lima (Which holds 8,540 TEUs) is currently adrift outside the New York-New Jersey port, will now head to the Bahamas Port of Freeport, with an expected arrival of October 8th, according to the vessel’s latest schedule update from Maersk. CMA CGM declared force majeure at the outset of the strike, which in many bills of lading allows carriers to discharge cargo wherever is most convenient. If the strike continues, carriers will likely have to make new routing decisions by the end of the week, according to Sea-Intelligence Maritime Analysis. The backlog will equate to approximately 400,000 TEUs, or 1.4% of global capacity, the loss of which would “push up freight rates, not just on the trades to the US, but likely across all major deep-sea trades,” Sea-Intelligence CEO Alan Murphy said in a report released Wednesday.
Air freight volumes are expected to increase this month as the strike continues during China’s Golden Week holiday (October 1st – 7th). In the coming months, air freight rates are also expected to rise quickly due to the peak season combined with port strikes and could have a huge impact on supply chains. “September is already old news. October is a whole new ballgame,” said Xeneta chief airfreight officer Niall van de Wouw. “We could see rates rising very quickly on some trade lanes because of the fear-of-missing-out effect as air cargo capacity leaves the market for the winter, U.S. port workers go on strike, and conflict is escalating in the Middle East, potentially bringing further Red Sea disruption for ocean freight.” He added that supply chains could take four-six weeks to recover from just a one-week U.S. ports strike, which would mean disruption continuing into November. “It’s a difficult situation. Covid was worse but this is an accumulation of many events and things can change very quickly,” he said. Airfreight demand is very strong and will continue to pick up from October through December. Are you starting to feel your airfreight piling up in the wake of the upcoming strike possibility? Let our Carrier911 team help manage your domestic urgent shipments coming into the airport – We can get your drivers assigned and on site at the airport in most cases within 1 hour. We have access to cargo vans, straight trucks, dry vans and more. All of our drivers have experience with airport and CFS 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 all of your most critical shipments. Contact the Carrier911 team 24/7/365 info@carrier911.com
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
Montreal: A three-day strike by unionized Montreal port workers that shut down two container traffic terminals ended early on Thursday as scheduled, the port authority said in a statement. “All Port of Montreal terminals are now open, and cargo can be picked up or dropped off as usual … clients waiting to import or export goods can expect delays in the coming weeks,” it said. The partial strike hit the Viau and Maisonneuve terminals, which account for about 40% of the port’s container traffic. Talks between the employer and union remain in a deadlock over wages. If you have or are planning to have diverted containers arriving at the Canadian ports to avoid the U.S. East and Gulf union ports work stoppage, our Canadian team has a wealth of experience and knowledge of drayage, transloading and cross border deliveries and are ready to help answer your questions and support your needs. Contact Canada@portxlogistics.com
LA/LGB: Rail dwell times have gradually been increasing and many shippers have been seeing their containers getting stuck on-dock pending rail movement at the LA and Long Beach ports for weeks. On-Dock Rail dwell at the Port of Los Angeles is 8.1 days on average. We have immediate capacity to pull your diverted containers for transload to avoid the rail, capacity is tendered to on a first come first serve basis. 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.
Did you know? VMA24 is next week? Did you also know our CEO and Founder Brian Kempisty will also be a guest speaker?
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
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