September Update

Is there a Strike on the Horizon?  East and Gulf Coast Port Strike potential: The union says they will strike if no agreement is reached.  The contract expires September 30.

• Today’s article from Politico.com covering all things transportation reports no good news in the effort to avoid a strike of the East Coast port workers. https://www.politico.com/newsletters/weekly-transportation/2024/09/09/industry-concerns-grow-as-port-strike-inches-closer-00177887
• This union represents ports from Maine to Texas.
• These ports handle up to 60% of all containerized traffic in the United States.
• While many big importers front loaded their supply chain in order to avoid the chaos, if the strike happens, there will be major supply chain disruption.
• To date, the union has given no indication that they will relent in their pursuit of higher wages. https://theloadstar.com/ila-doubles-down-on-strike-threat-as-shippers-brace-for-port-chaos/
• One last tidbit also being echoed in the JOC – thanks to the supply chain chaos following the COVID 19 pandemic, steamship lines now know they make higher profits when disruptions happen. They are in no rush to self-correct disruptions.
• Click here to read the Maersk advisory issued September 9, 2024 

Disruptions in rail and traffic at US West Coast ports continue to be an issue. According to JOC.com, both Seattle/Tacoma and LA/Long Beach ports have had heavy increases in containerized imports in recent months. 

• Rail delays and vessel unloading times are longer.
• Seattle port volumes were up 51% in July 2024 compared to 2023.
• BNSF rail out of Seattle/Tacoma into the Midwest is overloaded causing up to 2-week delays.

Our Export team has noticed increased delays and rate increases from US to the Middle East and Latin America.  Some factors are:

• Continued equipment and vessel issues due to the Suez Canal shut down caused by rebel hostility in the Yemen peninsula.
• The East Coast is the major supplier to these destinations. Getting the cargo on vessels is paramount before a potential strike.

Brazil continues to experience high rates and space pressure.        

• Freight rates have soared over the past few months and the pressure is still on for containerized traffic. Some outlets reporting up to 400% rate increases.  https://www.datamarnews.com/noticias/maritime-freight-rates-skyrocket-by-400-in-six-months-impacting-brazilian-ports/

Upcoming China Holidays:

• Mid-Autumn Festival – Sept 15-17
• National Day – October 1-7