Competitive Edge
November 20th, 2024
Stay Current with InterlogUSA
Latest Industry Happenings and Market Updates:
Across International Shipping: News and Developments
[Labor] ILA-USMX Talks: A setback has paused negotiations for a new East/Gulf longshore contract. The two parties resumed talks in early November after reaching a partial tentative agreement last month. For more information, refer to the freight news section further below in the newsletter.
[Labor] Canada Labor Dispute Enters Binding Arbitration: Ordered to end by federal officials on Nov. 12, a dispute related to a new dockworker contract at Canada’s largest ports is entering binding arbitration, a legal process where an independent party determines the terms of a settlement. In the meantime, unionized labor and maritime employers are prohibited from staging further labor actions.
For the foreseeable future, freight handling operations at Canada’s ports of Vancouver, Montreal, and Prince Rupert have resumed as unionized dockworkers are ordered back to work.
IMPORT: Asia to North America (Transpacific Eastbound)
Rates: Rates have decreased in the back half of November.
Capacity: In the new year, ocean carriers could begin to implement blank (cancelled) sailing programs to trim excess capacity expected in the market.
Congestion: Rail container dwell times are elevated at the ports of Los Angeles and Long Beach.
TIPS:
- As the year reaches its end, Q4 can be the right time to get a head start on your 2025 transportation and logistics strategies. While business needs can vary, in most cases, a discussion and evaluation of service providers (carriers, forwarders, Customs brokers, etc.,) should be top of mind, especially as it relates to any potential shortcomings in existing providers throughout 2024.
IMPORT: Europe to North America (Transatlantic Westbound)
2025 Services: Major carriers continue to unveil upcoming changes to their transatlantic offerings, including additional options to the Caribbean and South America.
Rates: Aside from a traditional round of peak season surcharges (PSSs), rates have generally shown little change since August.
Capacity: Available capacity at Europe ports have shown some signs of strain.
EXPORT: North America to Asia
Rates: Outbound rates to Asia from the U.S. East Coast have decreased slightly. Meanwhile, U.S. West Coast to Asia services remain at steady rate levels.
Space: Increased rail container dwell times at U.S. West Coast ports have challenged timely pickups of exports.
Freight News
Automation Remains a Key Sticking Point in ILA-USMX Negotiations
CMA CGM Reverses Decision, Keeps Indamex Service on Cape of Good Hope Route
After just a couple of days negotiating a new master contract, the ILA and USMX have not made significant progress on discussion involving automation issues reports have said.
According to a press release by the USMX, they aren’t looking for technology that would take away jobs. “What we need is continued modernization that is essential to improve worker safety, increase efficiency in a way that protects and grows jobs, keeps supply chains strong, and increases capacity that will financially benefit American businesses and workers alike.”
According to a press release by the ILA, they strongly believe automation/technology should not replace workers. “Together, we’re standing up to USMX and the shipping lines, who are pushing automation and new technology that threaten our jobs and the livelihoods of working people,” ILA President Harold J. Daggett said.
As a reminder, the parties extended the master contract till January 15th, it is uncertain what exactly will take place if no agreement is reached, but a strike would be a likely possibility.
Just days after revealing plans to reroute its key India-US Indamex service through the Suez Canal, CMA CGM has reversed its decision and will continue using the longer route around the Cape of Good Hope in southern Africa.
In a customer advisory issued last Tuesday and reported by the JOC, “CMA CGM has decided to continue the Indamex service via the Cape of Good Hope routing with the same service schedule.” This comes after the ocean carrier was set to return to the Suez Canal on the Indamex service on November 13th, but things have since changed.
CMA CGM is not the only carrier to rule out the Suez Canal. The Gemini Cooperation (Maersk and Hapag-Lloyd) will also be opting for the Cape of Good Hope route.
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