Across International Shipping: News and Developments
[Labor] Canada Railroad Contract Negotiations: Canada’s major freight rail networks are required to resume operating following a formal order from government officials.
The Canada Industrial Relations Board has formally ordered binding arbitration between railroads CN and CPKC and Canada’s Teamster rail union. The labor board also ordered no further disruptive actions, whether a lockout or strike, can occur during the legal process.
Binding arbitration is a legal process where both union and employer parties mutually appoint an arbitrator, an independent third-party, to decide the terms of their collective bargaining agreements.
[International Holiday] Vietnam’s National Day: The Southeast Asia country will celebrate its independence from France on Monday, Sep. 2. Parallel to practices during Labor Day in the U.S., many Vietnamese businesses will be closed from Aug. 30 to Sep. 3. Over the holiday weekend, port operations will be limited.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates are down to all U.S. coasts from an early-July peak, but general rate increases (GRIs) are anticipated to take effect Sep. 1.
Volume: Container imports are forecasted for a strong performance in August.
Relevant Content: “U.S. Container Imports May See Near-Record Highs in August”
Space: Space out of India ports remains tight, but bookings are becoming more available.
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
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 picking up, a healthy sign that the market is strengthening.
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