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 on 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.
[Weather] Storm Shuts Down U.S.-MEX Crossing: Over the weekend, the World Trade Bridge in Laredo, Texas was temporarily closed following a severe storm Saturday night. The border crossing reopened Monday.
The brief closure still posed freight delays, including for U.S. imports coming through Mexico. The World Trade Bridge is the busiest commercial crossing between the U.S. and Mexico.
[Air Freight] Executives Anticipate ‘Historic Peak Season’: Air carrier executives foretell of 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)
Rates: Rates to all U.S. coasts have softened. Carrier-imposed rate increases are still a possibility through early fall.
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: Continued routings around Africa as well as port congestion in Asia have led to more instances of blank sailings.
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. Ocean carriers did not implement GRIs Sep. 1.
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
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.