Competitive Edge
September 4th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
[Labor] Canada Railroad Contract Negotiations: Canada’s Teamsters rail union has filed appeals against the country’s labor minister’s order for binding arbitration and the Canada Industrial Relations Board decision to stop the lockout and work stoppage that occurred Aug.22 across Canada’s major freight rail networks.
[Labor] U.S. Railroad Contract Negotiations: Months away from their formal start, negotiations over a new rail worker contract have found early success. U.S. railroads BNSF and Norfolk Southern announced they reached tentative agreements with several unions who represent a large share of their respective labor forces.
While the agreements are promising news, they are by no means a done deal. Hence tentative, unionized rail workers will still hold a vote to ratify the contracts at an unspecified date in the future.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates to all U.S. coasts have fallen on most Asian origins. Despite earlier reports suggesting so, general rate increases (GRIs) did not take effect Sep. 1.
Space: Bookings have been easier to make from India as conditions have softened for the U.S. import market. Hazardous cargoes (hazmat) are an exception and remain challenged for space.
Capacity: Continued routings around Africa as well as port congestion in Asia have led to more instances of blank sailings.
Equipment: Some West Coast ports have reported rail congestion due to a surge in import volumes and a shortage of rail cars.
TIPS:
- Hold your logistics partners accountable for frequent updates regarding current market conditions.
IMPORT: Europe to North America (Transatlantic Westbound)
Rates: Rates have fallen since early summer. Ocean carriers did not implement GRIs Sep. 1.
Space: Space is open.
Labor: A potential longshore strike at East Coast ports in October is a primary concern for transatlantic trade.
TIPS:
- Book at least two weeks prior to the ready date.
- Stay in communication with your logistics providers on anticipated surcharges for this trade lane in September.
- Keep a pulse of ongoing labor tensions between East and Gulf coasts dockworkers and maritime employers. If feasible within your timeline, place inbound bookings in September to avoid disruptions if there is a dockworker strike in the fall.
EXPORT: North America to Asia
Harvest Season: Agriculture exports are picking up at North America’s West Coast ports as North America approaches its annual harvest season.
Rates: Rates are increasing, a healthy sign that the market is strengthening.
Freight News
East Coast/Gulf Coast Labor Contract Expiration Date is Nearing
Port of Portland Terminal 6 Updates
The date when the International Longshoremen’s Association (ILA) contract expires (September 30th) is fast approaching, and so far no resolution has been struck. Automation and wage issues continue to be at the forefront of negotiations.
On August 22nd USMX was notified that the ILA filed a Notice to Mediation Agencies with the Federal Mediation and Conciliation Services (FMCS) on August 19th. Thus, prompting the USMX to file their own notice on August 22nd, per a USMX statement. This essential means, the parties have informed the FMCS that they are in a dispute, and they do not represent an agreement for mediation.
In the USMX statement, they mention that they still have not been able to get a meeting with the ILA leadership to continue negotiations on a new master contract.
This week on Wednesday (September 4th) and Thursday (September 5th) the ILA will be conducting a “wage scale” meeting to review financial contract demands and to gather strike committees should a potential strike happen, Maritime-Executive reports.
In April, the Port of Portland stated they would be closing Terminal 6 due to significant financial losses, lack of funding, and failure to find a permanent third-party operator. However in May, Oregon Governor Tina Kotek got involved and said the state would provide $40 million in funds to help keep the terminal open. Of course, there were some stipulations, including the port must submit a plan to the Governor on how they would remain financially viable.
The proposed funding for the terminal is pending approval by legislators in September and throughout the 2025 Legislative Season, Freightwaves reports.
In their proposal, the port hopes to have an agreement with a third-party operator to handle their container terminal by January next year, the JOC reports. They also said they have renegotiated a contract with T6’s outside manager Harbor Industrial Services and secured new terminal fees from ocean carriers.
The port also predicts that the terminal will handle 58,900 containers in its 2025 fiscal year. But are hopeful that their current volume of containers per year will go up to 120,000 annually by 2032, the JOC reports.
Which country was the top trading partner of the U.S. in 2023?
Answer: D (Mexico)
Johnny Cargo sure knows a lot! Other than fun facts, Johnny also can provide insight into InterlogUSA’s many service and pricing options. He is always available for a quick conversation.
Click HERE to chat with Johnny Cargo.
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