Across International Shipping: News and Developments
[Labor] Canada Railroad Contract Negotiations: Canada’s Teamsters rail union has filed appeals against the country’s labor minister’s order for binding arbitration and the Canada Industrial Relations Board decision to stop the lockout and work stoppage that occurred Aug.22 across Canada’s major freight rail networks.
[Labor] U.S. Railroad Contract Negotiations: Months away from their formal start, negotiations over a new rail worker contract have found early success. U.S. railroads BNSF and Norfolk Southern announced they reached tentative agreements with several unions who represent a large share of their respective labor forces.
While the agreements are promising news, they are by no means a done deal. Hence tentative, unionized rail workers will still hold a vote to ratify the contracts at an unspecified date in the future.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates to all U.S. coasts have fallen on most Asian origins. Despite earlier reports suggesting so, general rate increases (GRIs) did not take effect Sep. 1.
Space: Bookings have been easier to make from India as conditions have softened for the U.S. import market. Hazardous cargoes (hazmat) are an exception and remain challenged for space.
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 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.
- 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 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 increasing, a healthy sign that the market is strengthening.