Across International Shipping: News and Developments
[Labor] U.S. Longshore Strike: Unionized dockworkers across U.S. East and Gulf coast ports are indefinitely on strike, effectively shutting down cargo handling operations at impacted points.
The lasting effects of the work stoppage depend, especially as it relates to its duration, but such an action, over any length of time, will strain the overall capacities of U.S. freight handling and transportation networks.
InterlogUSA will continue to provide updates to and discuss contingencies with clients as it relates to any current or future cargo in transit.
EVALUATE YOUR OPTIONS: If you have cargo that is necessary to bring in as soon as possible, we encourage a broader discussion of service options, whether that’s an alternative mode or routing.
[Labor] Port of Montreal Also Hit by a Strike: Unionized dockworkers at the Canadian port are on the final day of a three-day strike launched Sep. 30. The ongoing labor dispute is separate from the one afflicting U.S. ports and involves a local union (unaffiliated with ILA).
The strike targeted two of the Port of Montreal’s five container terminals.
[International Holiday] China’s Golden Week Underway: Ports and other distribution points across China will be operationally limited and/or closed until Oct. 7 as the country celebrates Golden Week, a national holiday.
After Golden Week, it is not unusual for there to be a temporary crunch to space as U.S. importers typically queue bookings in the week following the holiday.
[Freight Rail] Service Disruptions Due to Hurricane Helene: Railroad Norfolk Southern is working on restoring several lines in the U.S. Southeast following last week’s Category 4 hurricane.
While NS crews have resumed service on major routes, including lines through Atlanta, there remains sections of their network out-of-service. In the latest update on its website, routes from Georgia to West Virginia are still being tended towards. Most notably this includes service east and west of Asheville, North Carolina—a city which experienced historic flooding from Helene.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Major ocean carriers intend to implement surcharges related to the longshore strike onto their services. The timeline of implementation as well as the amount of each surcharge varies between carriers.
Space: U.S. West Coast bookings are now an attractive option for U.S. importers routing away from the East and Gulf coasts. Expect USWC space to tighten in the coming weeks if holiday demand remains resilient.
Capacity: Capacity has fatigued over the last several months as routings around Africa sustain.
TIPS:
- Keep in close contact with your transportation providers. Have bookings queued with the flexibility to move back ready dates depending on the length of the U.S. longshore strike.
IMPORT: Europe to North America (Transatlantic Westbound)
Rates: Rates are positioned to increase.
Space: Space is generally open at this time.
TIPS:
- Keep in close contact with your transportation providers. Have bookings queued with the flexibility to move back ready dates depending on the length of the U.S. longshore strike.
EXPORT: North America to Asia
Longshore Strike: Eastern U.S. railroads CSX and Norfolk Southern are not accepting export containers due to the longshore strike.
Harvest Season: The peak season for U.S. agriculture exports is underway. Outbound rail and barge volumes to U.S. ports surge.
Rates: Rates are strengthening.
Space: U.S. West Coast ports are subject to more traffic from inland points as agriculture exporters avoid the East and Gulf coast.