Across International Shipping: News and Developments
[Labor] Port of Montreal Labor Saga Continues: Unionized dockworkers at the Port of Montreal voted to hold another strike scheduled to begin 11 a.m. EDT Thursday. The decision comes promptly after they waged a one-day strike on Sunday. In addition to stoppages, since Oct. 10, dockworkers have also refused overtime work at the port’s facilities.
The dockworker union and maritime employers remain at an impasse over issues of wages, scheduling, and work-life balance.
[Regulation] FMC Cites Progress in Shipper Per Diem Disputes: The U.S. Federal Maritime Commission announced ocean carriers have waived or refunded about $3.2 million in disputed per diem charges imposed against shippers since early 2020.
The figure is relatively modest when compared to the overall charges collected by major carriers, but nonetheless, it still marks a $1.7 million improvement in FMC-assisted refunds and waivers from the same time a year ago.
Increased regulatory monitoring and enforcement is one of the legacies of the pandemic-era shipping crisis.
[Labor] U.S. Longshore Contract Negotiations Resume November: The International Longshoremen’s Association (ILA) and maritime employers at U.S. East and Gulf coasts ports announced they will resume negotiations towards a new dockworker contract in November.
While a tentative deal has already been reached regarding wages, other issues remain at large, including labor assurances against automation. In the meantime, unionized dockworkers will remain working under the terms of their existing labor contract which the two sides agreed to extend through Jan. 15.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates have relaxed from the beginning of October.
Congestion: Mild congestion related to the longshore strike in early October has diminished. Cargo handling operations at USEC/GC ports are presumed normal.
Space: Post-Golden Week bookings have not strained vessel space on China-U.S. services.
TIPS:
- As the year reaches its end, Q4 can be the right time to get a head start on your 2025 transportation and logistics strategies. While business needs can vary, in most cases, a discussion and evaluation of service providers (carriers, forwarders, Customs brokers, etc.,) should be top of mind, especially as it relates to any potential shortcomings in existing providers throughout 2024.
IMPORT: Europe to North America (Transatlantic Westbound)
2025 Services: Major carriers continue to unveil upcoming changes to their transatlantic offerings, including additional options to the Caribbean and South America.
Rates: Aside from a traditional round of peak season surcharges (PSSs), rates have generally shown little change since August.
Capacity: Available capacity at Europe ports have shown some signs of strain.
EXPORT: North America to Asia
Strong Harvest Season Demand: According to PIERS, a sister product of the Journal of Commerce within S&P Global, in August, the most recent data available, US containerized agricultural exports were up 12.5 percent year over year.
Rates: Outbound rates to Asia from the U.S. East Coast have decreased slightly. Meanwhile, U.S. West Coast to Asia services remain at steady rate levels.
Space: Rail service to the U.S. West Coast has been challenged as increased dwell on import containers delay the pickup of time-sensitive agriculture exports.
Equipment: Slowdowns in equipment placement are being reported at several inland gateways, including Minneapolis and Omaha.