AIR FREIGHT ALERT: Strike Actions in Germany Halt Rail and Air Operations

This past Monday, union-led strikes of transport workers in Germany halted rail and air operations. Major German rail companies had to cancel train services, while flights at key airports, like Munich and Frankfurt, were cancelled on Sunday and Monday as result of these strike actions. The workers represented by unions are demanding pay increases to curb the country’s high inflation rate. Meanwhile, unrest continues in France having its own unique impacts on logistics. Please refer to our Freight News section below for more details.

IMPORT: Asia to North America (TPEB)

Recent Developments:

• West Coast contract negotiations (between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA)) remain active. The existing labor contract between the two parties expired July 1, 2022. Transport stakeholders, including shippers, have urged the Biden Administration to intervene in the negotiations citing the lack of progress made over the last ten months between the two parties.

• Carrier aggression is showing its teeth again as instances of general rate increase (GRIs) become more common heading into April. Blank sailings are still in play as well.

Rates: Rates to all US coasts remain low and in the ballpark of pre-pandemic levels.
Space: Space is open.
Capacity: Capacity is open. However, blank sailings remain a factor.
Equipment: Unless advised otherwise, availability is open at inland and coastal ports.
TIPS:
• Book at least two weeks prior to the ready date.
• Blank sailings will be routine through Q1 2023.

IMPORT: Europe to North America (TAWB)

Rates: Rates remain falling, but are still twice what they were pre-pandemic.
Space: Space is open to all U.S. coasts. Congestion is still an odd factor.
Capacity: Capacity continues to loosen as the market sees more ships, including larger ones, entering the market. It is set to increase even more with congestion having subsided.
Equipment: Availability has improved on both sides of the trade.
TIPS:
• Book at least three weeks prior to ready date.
• Even as market conditions become more fair, premium services (i.e., no-roll options and improved cargo reliability) should still be considered.

EXPORT: North America to Asia

Rates: Rates continue a steady dip downward.
Space: Space is wide open.
Capacity: Capacity is widely available for all services and will remain unperturbed going into Q2 2023.
Equipment: Availability at virtually all inland points and seaports. However, chassis can be hard to come by in pockets.
TIPS:
• Book at least two weeks prior to the time of departure.
• Blank sailings have not been routine for the market but remain in close contact with providers to be aware of any developments.
• Shippers with high volume projects should take advantage of carrier receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.