1524 words 6 minute read – Let’s do this!
Winter is here! Winter weather uncertainties have begun and a reminder that it is also snow chain season – A lot of people reading this newsletter often inquire about the need for a snow chain charge. Preventative measures need to be made to protect drivers, passengers and your freight – that is where snow chains come in. Just like putting snow tires on your own vehicles doesn’t happen with the snap of a finger or without a labor charge, it takes a lot of effort for drivers to chain their tires to conquer the conditions ahead, while being outside braving the elements in the most unsafe conditions. If you have further questions on the topic of snow chains, our Midwest, Denver and Oakland teams are full of knowledge and are always available to share their expertise! We encourage you to subscribe to the Port X Logistics LLC LinkedIn page for more helpful industry information and 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
Yesterday, the International Longshoremen’s Association (ILA) warned that a breakdown in negotiations with the United States Maritime Alliance (USMX) over the contentious issue of automation and semi-automation could lead to another coastwide strike within six weeks. The impasse arose after a tentative agreement on wage increases was reached in early October, ending a three-day strike at the U.S. Atlantic and Gulf Coast ports.
“USMX-ILA negotiations ended when management introduced their intent to implement semi-automation – a direct contradiction to their opening statement where they assured the ILA that neither full nor semi-automation would be on the table,” said ILA President Daggett. “The ILA has always supported modernization when it leads to increased volumes and efficiency. We embrace technologies that improve safety and efficiency, by only when a human being remains at the helm. Our fight in these current negotiations is not just to protect our current ILA workforce, but future generations of longshore workers,” the ILA leader added. “Automation, whether full or semi, replaces jobs and erodes the historic work functions that the ILA fought hard to protect. The ILA said it was prepared to strike again if an agreement is not reached by January 15th, 2025. “Our ILA members are ready to make the ultimate sacrifice to win this battle against automation,” said Daggett. “They understand it’s a fight for their very survival.”
The ILA statement is being issued a day after USMX argued that “modernization and investment in new technology” should be core priorities in the bargaining of the new master contract with ILA. The employers believe that in order for the U.S. ports to evolve and improve performance they need to “embrace modern technology”.
“Due to the lack of available new land in most ports, the only way for U.S. East and Gulf Coast ports to handle more volume is to densify terminals – enabling the movement of more cargo through their existing footprints. It has been proven this can be accomplished while delivering benefits to both USMX members and to the ILA,” USMX said in a statement.
USMX insists that new technology would not jeopardize jobs but create “new opportunities for the ILA”, noting that further restrictions on the matter would only be to the detriment of the U.S. economy. Needless to say, the situation remains “iffy” over the next few weeks. A strike at the East and Gulf Coast ports could wreak havoc on Q1 and will put even more pressure on the new administration that takes office on January 20th.
This is a pretty serious situation that could lead to more congestion, rail delays and equipment shortages very quickly and even at ports and rails outside of the East and Gulf coast. Whenever supply chain disturbances directly affect the market like union uncertainty, remember Port X Logistics can play a role in helping to improve the flow of your supply chain – We are 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 34.5% from this week from last week – with the highest volumes coming into Los Angeles at 16%, Long Beach at 14% and Newark at 12%. According to an article in JOC, U.S. shippers are finding it more difficult to secure refrigerated (reefer) containers for Asian exports as volumes surge by double-digit percentages ahead of a potential US port strike next month. U.S. reefer imports from Asia surged 10% year over year in October and have been steadily climbing since March, according to PIERS. In September, seafood imports from Asia increased by nearly 30% compared with the same month in 2023, according to the National Fisheries Association. Ahead of the potential interruption, some U.S. exporters have reported difficulties in securing empty reefer containers and related generator equipment at East and Gulf coast ports, particularly the Port of Houston. Bill Duggan, North American advisor at reefer market consultant Eskesen Advisory, said shippers can expect better reefer equipment availability in the Americas next year as equipment from Asia is repositioned, along with stronger volume growth across the board.
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: Rail container dwell times still remain high at 5 days average at the Port of LA and it has been affecting many inland ramps alike. Rail dwell times in LA/LGB will likely remain elevated through January amid higher-than-normal import volumes driven in part by cargo diversions from the U.S. East and Gulf coasts. If you have hot containers that need to get moving we recommend diverting your hot rail containers to the port for transloading. 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. Interested in learning how to expedite diverted containers or looking for LA/LGB dray capacity? contact letsgetrolling@portxlogistics.com
Vancouver/PRR: Staying on the topic of rail delay, Canadian National Railway (CN) Rail dwell time is on the higher side in Vancouver and word is that the CN mechanics and clerks have voted overwhelmingly in favor of a strike mandate that could see workers walk off the job as early as January 1st. Unifor, the union that represents the mechanics and clerks, reported that 97% and 96% of the two groups, respectively, cast their ballots in favor, paving the way for potential job action. One group comprises 2,100 mechanics, technicians, crane operators, machinists, and electricians; and the other includes 1,500 administrators and customer support staff. These delays can greatly affect the transit time of your rail shipments and we can help mitigate those transit times and get your hot shipments moving. By having your containers diverted to the port prior to hitting rail status, we can pull your containers out of Vancouver, transload into dry vans and have them on the road in 1-2 days, and we can even truck them cross-border into the U.S. Contact our team Canada@portxlogistics.com
Oakland: Volumes are slowly increasing and TRAPAC has been seeing a lot of congestion and appointment cancellations on a daily basis. OICT now requires a license plate to be registered an hour before a driver can arrive to the port gates for container retrieval. Our Oakland team has immediate capacity for your local and long haul drays as well as a crossdock facility for transloads. Send your orders and rate requests to Oakland@portxlogistics.com
Did you know? Port X Logistics can move your project cargo! Whether it’s out of gauge flat racks, open tops or oversized heavy haul and breakbulk, we can handle it at all ports in the U.S. and Canada. Let us help formulate a plan from start to finish, even including a team on site to load or unload. Contact the team at projects@portxlogistics.com to experience the best!
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