June, 14th 2023
Stay Current with InterlogUSA
We are excited to announce our guest speakers for our June webinar, Cowan Logistics.
Cowan Logistics will be coming on to discuss drayage service and how we work together.
A little bit about our special guests…
Ben Tschirgi is the VP of Sales at Cowan Logistics. He has been with the company for 9 years and helps lead a sales team of 40 rock star reps. Cowan Logistics is uniquely positioned to help companies with domestic truckload and drayage moves.
Alex Cabrera is the Director of Strategy and Innovation at Cowan Logistics. He has been with the company for 3 years, and works to assess and integrate modern applications and tools into the sales cycle across the entirety of the brokerage division for domestic drayage shipments.
Direct updates can be hard to come by, however InterlogUSA continues to monitor the situation closely and will inform our clients of any developments or potential disruptions with their cargo. We discuss the latest updates in the Freight News section below.
Please contact us for further information on how these negotiations may impact your shipments.
IMPORT: Asia to North America (TPEB)
- West Coast ports are back open as the ILWU and maritime employers had a meeting to take a step back on work actions.
- Possible port congestion surcharge for cargo scheduled to arrive at any U.S./Canada port on or after July 5, 2023.
- Slow steaming joins the mix as another tactic from carriers to regain some control over the market.
Rates: Rates remain low, June 1 GRI was $400-500, which dropped $100 off after one week.
Space: Space is open.
Capacity: Open but carriers are aggressive with managing their excess capacities.
Equipment: Available at virtually all inland and coastal points, however, remain diligent with planning as shippers are still reporting demurrage blunders mainly on weekends from a lack of equipment access. Many equipment lessors are only open Monday through Friday.
- Keep a pulse on inventory and be sure to have a logistics game plan in place for when you’re ready to take on orders.
- Pay special attention to how carriers are reacting to this lull in the market.
- Hold your logistics partners accountable for frequent updates regarding blank sailings, rate increases, or any other forms of market maintenance.
IMPORT: Europe to North America (TAWB)
Rates: Rates are continuing to fall heading into June.
Space: Space is open.
Capacity: Capacity is open.
Equipment: Availability on both origin and destination sides, unless advised otherwise.
- Book at least three weeks prior to ready date.
- Rates, while falling, are still high compared to other trades. Carriers still possess a degree of power in the transatlantic over the shipper (as opposed to the transpacific). Keep these dynamics in mind.
- Premium add-ons (i.e., no-roll options and improved cargo reliability) remain assurances shippers should consider with transatlantic service.
EXPORT: North America to Asia
Rates: Rates are low and level.
Space: Space is open but tighter on U.S. Gulf Coast
Capacity: Capacity is widely available for all services however blank sailings are not out of the question for this trade.
Equipment: Availability at virtually all inland points and seaports. However, chassis access remains posing challenges for intermodal movement.
- Book at least two weeks prior to the time of departure.
- Shippers with high volume projects should take advantage of the carriers’ receptiveness to take on these opportunities. Space is wide open with a high acceptance rate.
A Podcast by InterlogUSA: FreightFM Episode 9
Check out our latest episode where some of our team took a company outing to Top Golf, for some team bonding. Listen as some of our team shares what their favorite summer activity is!
FreightFM features short-form video interviews with InterlogUSA’s industry experts offering insights into breaking news, market trends, our company’s history, and more!
Did You Know: Diesel Prices Continue to Fall
Recent data from the Energy Information Administration shows average diesel prices dipping to $3.794 a gallon.
Since January 30th, average diesel prices have fallen 82.8 cents a gallon.
Interestingly enough, gasoline has seen a national average rise of 5.4 cents a gallon at $3.595, which is a little less than 20 cents cheaper than diesel.
Read More: Transport Topics
What Has Happened Out In The USWC the Past Week.. What Are Things Currently Looking Like?
In early June, job-related actions by union members started to increase at USWC ports, citing fears of potential supply chain disruptions throughout the USWC.
Last week a number of terminals in Los Angeles and Long Beach were closed, which created a bit of a vessel backlog.
Additionally, this past weekend, the Pacific Maritime Association (PMA) said the Port of Seattle was shut down entirely, due to a planned labor disruption. The ILWU disputes that, saying, the PMA is using the media to “leverage one-sided information in an attempt to influence the process.”
For what it’s worth, the Port of Seattle is one of the top ports in North America that U.S. agriculture exporters rely on when they ship their commodities. The Agriculture Transportation Coalition has concerns that these disruptions are hurting Agriculture exporters as a reliable trade partner.
As of Tuesday this week, the ILWU and maritime employers agreed to a cooling off period, in a joint meeting with Julie Su, acting Labor Secretary.
The main hang up in these negotiations has been reported to be involving wage increases.
Of course, this is an on-going situation, so things can change rather quickly, as we have seen in the past couple of weeks… let alone throughout the past year when the ILWU contract expired.
We’ll be discussing this topic a bit more in detail in our upcoming webinar, next week on June 21st at 10am CST. If you’d like to attend, sign up today.
ILWU in Canada Votes in Favor of Supporting a Strike
Last week members of the International Longshore and Warehouse Union (ILWU) in Canada issued a strike vote.
Yesterday, those results were announced.. and the union members have voted in favor of a strike. With over 99 percent of the union members voting in favor of a strike.
The earliest a strike could happen would be on June 24th, after a 72 hour notice that would be announced on June 21st – which would be the end of the “cooling off” period mandated by the FMCS.
How could this potentially impact Canadian and U.S. trade?
- 90 percent of the cargo that moves through the Port of Vancouver is Canadian trade.
- Around 15 percent of U.S. inbound and outbound laden and empty containers move through the Port of Vancouver – per the port authority.
- Two-thirds of containerized import volumes that come into the Port of Prince Rupert are on headed to the U.S. via rail.
- Three Class 1 railways operate at these Canadian ports.
Again, it’s important to note that a strike has NOT yet happened. But it’s important to be aware of what the potential impact could be if an agreement does not come together, and strike action occurs.
Blogs of the Week
Watch Our May Webinar!
Topics: Transatlantic Trade Lane Updates, Technology: the difference between technology visibility and qualified industry experts to fix/improve each shipment, In the News and Market Updates!
Sign Up For Our June Webinar!
Our next webinar is on Wednesday, June 21st, at 10am CST!
We will be having Cowan Logistics as our special guests to discuss a variety of topics:
- About Cowan Logistics and domestic transportation.
- First and final mile communication and visibility.
- Adapting to market changes and understanding the importance of having a contingency plan to handle these situations.
- Current events.
What is Coffee & Cargo? Every month, our experts sit down to discuss what’s currently happening in the shipping industry. Every so often we are joined by special guests, who share their specific expertise and experiences.
In last week’s insights we discussed peak season outlooks and FAQs, wildfire updates, and Trans-Pacific GRIs.
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