Across International Shipping: News and Developments
[Labor] Canada Railroad Contract Negotiations: Freight movement across Canada’s rail network is positioned to halt tomorrow, Aug. 22, as both the country’s two Class I railroads and their unionized workers announce respective labor actions.
Over the weekend, railroads Canadian National and Canadian Pacific Kansas City separately notified Canada’s Teamsters union that they would begin locking out their unionized employees at 12:01 a.m. Thursday. Following these announcements, the union issued a 72-hour strike warning to the railroads on Sunday.
[Port] Port of Vancouver: Canada’s largest container port has already implemented measures to mitigate the impacts of a nationwide freight rail strike that is set to start tomorrow.
Vancouver is heavily dependent on rail as two-thirds of the port’s freight volume is moved on tracks, especially exports of grain, potash, and coal.
Last summer, a 13-day longshore strike at Vancouver affected the movement of $800 million of goods a day and spurred on a ship backlog which caused delays for port users.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates from China origins to all U.S. coasts have relaxed over the past two weeks but remain exceedingly high when compared to historical averages. India-U.S. trade remains challenged.
Questions or concerns about a specific trade lane? Contact one of our team members today!
Space: There has been less pressure on space, particularly on sailings from China.
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 fell in August. Ocean carriers will implement peak season surcharges (PSSs) on Sep. 1 in a bid to counteract this trend.
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 August and early September to avoid disruptions if there is a dockworker strike in the fall.
EXPORT: North America to Asia
Rates: Rates have decreased for outbound shipments from all U.S. coasts.
Capacity: As seen during the pandemic, export service is vulnerable in periods when carriers set their focus on a more favorable import market, as prioritizing inbound business is more profitable. With peak import season underway, exporters should be cautious of how this period can impact their cargo.
TIPS:
- Insufficient communication with sailing schedules can lead to higher detention and demurrage fees as well as higher trucking and storage costs. Ensure your logistics partners are not keeping you and your cargo in the dark.