September 26, 2024: US Port Strike Updates
Featuring key insights and trends related to the potential port strikes on the US East and Gulf Coasts, and their expected impact on shipping, freight logistics, and supply chain operations. Explore contingency plans, alternative shipping routes, and how businesses are preparing for possible disruptions.

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Greetings!With the potential U.S. East Coast and Gulf Coast port strike looming on October 1st, 2024, the impact on global supply chains could be significant. Whether you're a logistics company, freight forwarder, or business reliant on imports and exports, it's crucial to be prepared for the disruptions this strike may cause. Here’s a simple guide to understanding what’s at stake and how you can mitigate risks to your supply chain.

From the Editor’s Desk

The International Longshoremen's Association (ILA), responsible for dockwork at major East and Gulf Coast ports, is negotiating with the United States Maritime Alliance (USMX) for a new master contract. If no agreement is reached by October 1st, 2024, a strike is likely, potentially halting operations at major ports such as:<ul><li>New York/New Jersey</li><li>Savannah</li><li>Charleston</li><li>Houston</li><li>Miami</li><li>Port Everglades</li></ul>

What’s Happening?

Ports are critical to the U.S. economy, acting as vital gateways for imports and exports. If port workers strike, we face significant delays and higher costs across multiple sectors. Unlike supply chain issues caused by demand spikes (such as during the COVID-19 pandemic), this disruption is caused by reduced port capacity—a more serious and long-lasting issue that can affect not just your current shipments but future supply flows.<h3>Key Impacts of the Strike:</h3><ol><li>Delays in Import/Export Operations: With major ports shutting down, goods won't move in or out, causing severe backlog.</li><li>Congestion at Other Ports: As businesses redirect their shipments to West Coast or Canadian ports, these alternative routes may quickly become overwhelmed.</li><li>Price Hikes: With limited shipping capacity, the cost of transportation will likely surge. Surcharges like the recently announced Maersk Port Disruption Surcharge will add to operational costs.</li><li>Demurrage and Detention Charges: Cargo sitting idle at terminals during the strike will lead to increased storage costs, exacerbating financial pressures.</li></ol>

Why Does This Matter?

Here are some proactive steps to minimize potential impacts on your operations:<h4>1. Move Goods Early</h4><ul><li>If possible, expedite the shipment of goods ahead of the potential strike. Many terminals are extending hours to help clear out containers before the deadline. For example, Port of Virginia is encouraging importers to remove their cargo by September 30th to avoid unnecessary demurrage charges.</li></ul><h4>2. Explore Alternative Ports</h4><ul><li>Consider using West Coast or Canadian ports to reroute your shipments. Ports such as Vancouver or Los Angeles may offer viable alternatives for shipments bound for the Midwest or Eastern U.S. However, these ports could also face congestion as more shippers seek alternatives.</li></ul><h4>3. Leverage Air Freight</h4><ul><li>For high-value or time-sensitive shipments, consider air freight as an alternative, especially for industries like automotive, pharmaceuticals, or retail. Although air freight costs are higher, it can provide a temporary solution for urgent shipments.</li></ul><h4>4. Work Closely with Partners</h4><ul><li>Maintain open lines of communication with your shipping and logistics partners. Shipping lines like Maersk and ZIM have already issued advisories, and regular updates will help you stay informed of operational changes. For example, Maersk has introduced a Port Disruption Surcharge effective October 21st, which could affect your costs.</li></ul><h4>5. Prepare for Longer Lead Times</h4><ul><li>Adjust your logistics and inventory strategies to account for potential delays. Implement a buffer in your inventory to avoid stockouts and service disruptions.</li></ul><h4>6. Understand the Contingency Plans</h4><ul><li>Many ports are developing contingency plans. For example, Port of Virginia and Port of New Orleans have outlined schedules for halting and resuming operations. Understanding these plans will help you make informed decisions for your cargo.</li></ul><h4>7. Monitor for Federal Intervention</h4><ul><li>The U.S. government has the power to intervene under the Taft-Hartley Act, which allows the President to halt strikes for 80 days in the interest of national security. While the White House has not indicated plans to do so yet, the political calculus could change as the situation evolves.</li></ul>

What Can You Do to Avoid Supply Chain Disruptions?

While the full impact of the U.S. port strike remains to be seen, proactive planning can help you mitigate the worst effects. Whether rerouting shipments, speeding up delivery schedules, or utilizing air freight, these steps will help keep your business running smoothly during the disruption.<h3>Key Resources:</h3><ul><li>U.S. Government Updates: Stay updated on federal intervention and strike developments.</li><li>Port Contingency Plans: Regularly check the websites of major ports for updates on operational hours and changes.</li><li>Logistics Partners: Keep close contact with your freight forwarders and logistics companies to ensure you are prepared for any shifts in operations.</li></ul>By staying informed and planning ahead, you can ensure your supply chain weathers this storm with minimal disruption.

Final Thoughts

 101 Guide to Understanding the U.S. Port Strike and How to Avoid Supply Chain Disruption

September 19, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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Greetings!Our objective is to make your shipping experience easier by offering you the latest and most informative details and insights regarding the freight market. We aim to provide accurate and relevant content that brings benefits to your business.We highly value your feedback as we continuously strive to improve the quality of our weekly market updates. We value your thoughts on our current content and encourage you to suggest specific topics that you would like us to cover in more depth.We wish to create the most informative newsletter possible. We appreciate your continued readership and subscription, and we thank you for taking the time to provide us with your valuable feedback, which will help us enhance our future performance.

<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Global shipping lines have announced significant changes ahead of February's alliance reshuffling.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">MSC, leaving its 2M agreement with Maersk, will largely run standalone services, operating five East-West trades with 34 loops, offering routes via the Suez Canal and Cape of Good Hope.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">A potential dockworker strike on October 1 is approaching, which could impact major U.S. East and Gulf Coast ports.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Operations at major East and Gulf Coast ports will halt, with ships anchored offshore and Container Freight Station (CFS) facilities facing backlogs.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Warehouses and transportation hubs will experience delays, but these would likely be manageable in the short term.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">In the first half of 2024, Portugal’s port of Sines, Spain’s ports of Valencia and Barcelona, France’s HAROPA complex, Germany’s Bremerhaven port, Italy’s port of Gioia Tauro, and Poland’s port of Gdansk saw significant increases in container volumes compared to the previous year, according to PortEconomics.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Belgium’s Antwerp-Bruges saw a 4.1% growth, reducing the gap with Rotterdam, which grew by 2.2%.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Tropical storm BEBINCA is anticipated to further impact Eastern China in week 38, exacerbating the situation.</li></ul>Read on for more in-depth updates.

Key takeaways for the US

Ocean Freight Market Updates

Freight market update - 19 September 2024

September 12, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Dockworkers on the U.S. East and Gulf Coast may strike unless a contract is reached by September 30.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Talks between the dockworker’s union, the International Longshoremen’s Association (ILA), and port owners, represented by the United States Maritime Alliance (USMX), have stalled since June.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Ocean freight rates from Asia-Europe, which experienced an early peak season starting in April, are now decreasing as European import demand slows.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Asia-North Europe rates have dropped by $2,700 per FEU since July, though they remain four times higher than last year.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">With talks still not producing results, a potential ILA strike on October 1st poses a serious threat to US East and Gulf Coast ports.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The strike would impact major East and Gulf Coast ports, including key hubs such as New York/New Jersey, Savannah, Charleston, Houston, Miami, and Port Everglades.</li></ul>Read on for more in-depth updates.

Freight market update - 12 September 2024

September 5, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">In a Xeneta and Tiaca webinar, it was reported that dynamic load factors in July from Asia Pacific to Europe reached 86%, and 88% to North America, which is unusually high for this time of year.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Canadian truck rates have remained high following the brief shutdown of the country's freight railroads, which pushed more freight into trucks.</li><li style="background-color:transparent;color:#0e101a;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Spot market rates saw double-digit increases in lanes between U.S. West Coast ports and Central Canada, while spot market load volumes spiked by over 30%.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">A planned strike at India's major ports was averted after workers accepted a new five-year contract, canceling the walkout scheduled for August 28.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Nearly 20,000 workers were set to strike, but unions agreed to an 8.5% pay raise over five years, lower than their initial 10.6% demand.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Seattle's average IPI dwell time is 10 days before departure from the port of discharge, similar to Los Angeles and Long Beach, where a surge in imports is causing delays.</li></ul>Read on for more in-depth updates.

Freight market update - 5 September 2024

August 29, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Concerns over possible new tariffs on Chinese products, looming strike threats from ILWU workers, and the upcoming holiday season are driving US import volumes to surge.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The looming threat of a strike at US East and Gulf Coast ports could strain the already pressured US air freight network.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The US air freight network is currently grappling with heavy eCommerce traffic from APAC hubs, significantly consuming available capacity.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Mediterranean Shipping Company will relaunch its North Asia-ANZ Wallaby service on August 19, using the MSC Tania, a 2,732 TEU vessel, beginning its route from Hong Kong.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The Ningbo Beilun Phase III Terminal has reopened and is operating normally.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Ningbo-Zhoushan is China’s second busiest container shipping port, handling more than 100,000 TEUs daily.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Maersk and Hapag-Lloyd's Gemini aims for 90% schedule reliability, but there are questions about whether this is achievable.</li></ul>Read on for more in-depth updates.

Freight market update - 29 August 2024

Explore the essential guide on effective inventory management for e-commerce businesses. Learn how to optimize operations, reduce costs, and enhance customer satisfaction.

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&nbsp;<figure class="image image_resized" style="width:100%;"><img src="https://strapi-us-images.s3.eu-central-1.amazonaws.com/3pl_fullfilment_35359d23bf.jpg" alt="3pl-fullfilment.jpg" srcset="https://strapi-us-images.s3.eu-central-1.amazonaws.com/thumbnail_3pl_fullfilment_35359d23bf.jpg 245w,https://strapi-us-images.s3.eu-central-1.amazonaws.com/small_3pl_fullfilment_35359d23bf.jpg 500w,https://strapi-us-images.s3.eu-central-1.amazonaws.com/medium_3pl_fullfilment_35359d23bf.jpg 750w,https://strapi-us-images.s3.eu-central-1.amazonaws.com/large_3pl_fullfilment_35359d23bf.jpg 1000w," sizes="100vw" width="1000px"></figure>&nbsp;

How Effective Inventory Management Can Transform Your Business

August 21, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The recent explosion on the Yang Ming vessel YM Mobility at Ningbo Port, China, has raised serious concerns about disruptions to global supply chains, especially on major trade routes from Asia.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Hapag-Lloyd CEO Rolf Habben Jansen has raised concerns about the increasing likelihood of a longshore strike that could shut down ports along the U.S. East and Gulf coasts, noting that the risk has grown since earlier in the year.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">The potential strike is centered around the expiration of the current contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) on September 30.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">U.S. retailers are not expecting a slowdown in imports for the second half of 2024, driven by a near-record surge in August as they fast-track shipments ahead of potential longshore labor strikes at East and Gulf Coast ports.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">According to Sea Intelligence, June saw a significant increase in global container demand, with volumes growing by 6.3% year-on-year.</li></ul>Read on for more in-depth updates.

Freight market update - 21 August 2024

August 14, 2024, freight market updates, featuring key insights and trends from the US, Turkey, China, and other global regions in cargo and shipping.

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<ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">In June 2024, ocean container shipping demand from China to North America and North Europe reached record levels.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Oslo-based Xeneta reported that 1.36 million TEU were shipped to North America and 800,000 TEU to North Europe.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Peter Sand, Xeneta's Chief Analyst, noted that shippers have been willing to pay premium prices to ensure the safety of their supply chains.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Ocean carriers on the trans-Atlantic route have announced peak season surcharges (PSSs) set to take effect on September 1, 2024.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Mediterranean Shipping Co. is imposing a $1,000 per FEU surcharge, while Hapag-Lloyd is setting theirs at $800 per FEU.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have stalled.</li><li style="background-color:transparent;color:#000000;font-family:Georgia,serif;font-size:12pt;font-style:normal;font-variant:normal;font-weight:400;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1">Indian freight forwarders handling shipments to North America are increasingly frustrated as carriers deny gate openings for containers, even with confirmed bookings.</li></ul>Read on for more in-depth updates.

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