What we are watching August 2024
- Canadian Rail Labor Talks and Potential Strikes:
- The rail workers serving Canada’s rail have been threatening a strike for some time now. From https://www.ttnews.com/articles/canada-labor-talks-rail-strike, a determination could be made as early as Friday August 9 as to whether or not a strike will occur 3 days later.
- British Columbia ship and dock foreman issued a threat to strike back in early July. The two sides averted a strike at the time, but no evidence of a new contract has emerged.
- LA/Long Beach and Seattle/Tacoma Rail Congestion for intermodal containers:
- LA Status: The August 7 report from the LA port is showing average dwell time as 5.9 days but there are some containers sitting much longer. https://kentico.portoflosangeles.org/getmedia/a9af147a-ace7-4f27-9b2f-b25ecb73dc30/import-container-dwell-report
- Tacoma Status: Berth availability and rail congestion are causing heavy delays. Scroll down on the link to see Tacoma status: https://www.hapag-lloyd.com/en/services-information/operational-updates/north-america.html
- East Coast Port workers contract situation:
- The USEC dock workers contract is set to expire September 30. According to JOC.com, the ILA is “seeking an almost 80% wage increase over the life of it’s next six-year contract.” (1)
- Specific ocean lanes with challenging situations:
- Brazil import rates are soaring. According to the JOC, “general rate increases (GRIs) from Sept. 1 will push rates close to the record highs seen during the COVID-19 pandemic in June 2022.” (2)
- India – USA rates have risen drastically over the past few months and space is at a premium currently. https://www.supplychaindive.com/news/ocean-freight-market-rates-increase-us-east-west-coast-asia-europe/717698/
- Exports to the Middle East have seen a crunch of space and capacity with the Red Sea crisis still in full swing.
- Exporters to New Zealand and Australia – BMSB (Brown Marmorated Stink Bug) fumigation requirements start on September 1.. https://www.mpi.govt.nz/import/vehicles-machinery-parts/brown-marmorated-stink-bug-requirements-for-importers/brown-marmorated-stink-bug-requirements-for-importing-vehicles-machinery-and-parts/
- Golden week in China is Tuesday October 1 through Monday October 7 – Make sure you plan accordingly.
We are constantly monitoring the industry and will continue to do our best to keep our customers informed. Please reach out to us if you have questions or concerns.
JOC Sources not linked in the body of this blog because they require a subscription:
(1): https://www.joc.com/article/ila-seeking-huge-wage-hike-maritime-employers-sources_20240805.html