Competitive Edge
September 25th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
[Labor] U.S. Longshore Negotiations: According to sources close to the talks, three issues have contributed to the lack of progress in contract negotiations: automation; wages; and pensions.
The longshore union, representing some 45,000 dockworkers across U.S. East and Gulf coast ports, has vowed to strike beginning Tuesday (Oct. 1) if a favorable proposal is not offered by maritime employers before the existing contract’s expiration date (Sep. 30).
For the latest chronicle on the U.S. longshore contract cycle, refer to our August issue of Interlog Insights!
[International Holiday] China’s Golden Week Starts Oct. 1: One of China’s main celebratory periods will begin in less than two weeks. China’s annual Golden Week will start Oct. 1 and conclude Oct. 7. During this week-long stretch, millions of Chinese citizens will take off work, including those in the transportation and manufacturing industries. Unless advised otherwise, all major ports and inland depots will be operationally limited, while factories, warehouses, or other relevant businesses will temporarily close.
A “pre-holiday rush” occurs in the weeks leading up to Golden Week, an acceleration in demand which elevates freight rates and tightens space. The impacts of this holiday are regularly expected, but nonetheless can lead to shipping delays and added costs for unprepared U.S. importers.
URGENT BOOKING: If you have ready orders that need to be brought in before Golden Week, InterlogUSA has options available for last-minute bookings. Contact us to see if they work for you.
[Business] CMA CGM Stakes Claim of Brazil Terminal Operator: Ocean carrier CMA CGM has signed a deal to purchase 47.6 percent of Brazil’s largest terminal operator Santos Brasil for $1.2 billion, according to a Sep. 23 press release on the company’s website. The French-based carrier added it will plan to acquire remaining shares over the next couple of months.
Santos Brasil possesses five terminals in Brazil, three of which handle containers. The move will deepen CMA CGM’s roots in the South America market, a growing sphere of trade for both the U.S. and Europe.
[Air Freight] Executives Anticipate ‘Historic Peak Season’: Air carrier executives foretell a record-breaking performance for peak season freight volumes in 2024. With the industry already subjected to flourishing e-commerce demand, executives who spoke to the Journal of Commerce explained that a seasonal surge in online shopping will double down on this growing business to cap out the year.
IMPORT: Asia to North America (Transpacific Eastbound)
Labor Uncertainty: U.S. East and Gulf coast ports are bracing their operations in the event of a longshore strike.
Rates: Major ocean carriers have announced discretionary surcharges in October if a labor strike occurs. The timeline of implementation as well as the amount per increase varies between carriers.
Space: There is typically a tightening in space through late September as U.S. importers book orders prior to China’s Golden Week holiday.
Capacity: Capacity has fatigued over the last several months as routings around Africa sustain.
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.
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.
- 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
Labor Uncertainty: Eastern U.S.-based railroads CSX and Norfolk Southern along with Canadian National have set deadlines for exporters to drop off containers by Oct. 1 (the potential start of the U.S. longshore strike).
Harvest Season: Agriculture exports are picking up at North America’s West Coast ports as North America’s harvest season is underway.
Rates: Rates are strengthening.
Freight News
Now Open: Europe’s Largest Inland Container Terminal in Germany
Alaska Airlines and Hawaiian Airlines Merger Cleared By DOT
The Duisburg Gateway Terminal (DGT) has officially opened in Germany and is already facilitating train traffic between China and Europe. The terminal is operated with 100% climate-neutral status, by renewable energy and hydrogen technologies, another first for the terminal.
The initial phase spans 155,000 square meters, with plans for expansion to 235,000 square meters in two years, the JOC reports. While specific capacity for the first phase has not been disclosed, the terminal aims for an annual handling capacity of 850,000 TEUs in the long-term.
In addition, it is strategically located on the Rhine River, connecting to major ports like Rotterdam and Antwerp, to enhance the Rhine-Alpine corridor for China-Europe rail freight. Duisburg is also close to major highways/national roads, providing trucks with quicker arrival/departure times, which in turn can help decrease times and costs for shippers.
Alaska Airlines is poised to complete its near $2 billion merger with Hawaiian Airlines as soon as Wednesday, following the green light from the U.S. Department of Transportation (DOT), Freightwaves reports. To gain this approval, both airlines pledged to implement various consumer protection measures. Last month, the Department of Justice (DOJ) also granted its approval, making the DOT’s decision the last necessary step.
This merger strengthens Alaska’s position as the fifth-largest airline in the U.S., enhancing competitiveness against major carriers. Under the deal, both airlines plan to operate as separate brands but under a single operating certificate. Additionally, Alaska Airlines has committed to maintain essential services to Hawaii and protecting consumer rewards programs.
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