February 1: Suez Canal Authority Says Stability Returning to Red Sea – gCaptain
Suez Canal Authority Chairman Osama Rabie has told shipping giant AP Moller-Maersk there are signs of stability returning to the Red Sea, and urged the company to take that into account when planning sea routes, according to a statement from the SCA.
“We seek to take into account the positive indicators observed in the Red Sea region when planning maritime schedules in the coming period,” Rabie was quoted as saying.
Several major global shipping companies have suspended Red Sea voyages and rerouted vessels around southern Africa to avoid potential attacks from Yemen’s Houthis.
Egyptian President Abdel Fattah al-Sisi said in December the disruption had cost Egypt around $7 billion in revenues from the Suez Canal in 2024.
February 2: Rubio Calls ‘Status Quo’ at Panama Canal Unacceptable, as Trump Renews Vow to Seize It – The Wall Street Journal on MSN
Secretary of State Marco Rubio arrived on February 2 with an ultimatum from the White House for Panamanian President José Raúl Mulino: Either curtail China’s presence around the Panama Canal or face an unspecified U.S. response.
On his first overseas stop since taking office, Rubio toured the canal after talks at the country’s presidential palace with Mulino, who has rejected President Trump’s threats to take back the waterway as an affront to Panama’s sovereignty.
In a significant concession, Mulino afterward declared Panama wouldn’t be renewing a 2017 infrastructure funding agreement with Beijing and offered “technical-level” talks to clarify Trump’s doubts about Chinese control of the canal. He called the meeting with Rubio “positive” and said he didn’t think Trump’s threats would continue.
But even before Rubio departed the country, Trump appeared to double down on his threats to seize the canal, which the U.S. relinquished to Panama in 1999. “We’re taking it back, or something very powerful is going to happen,” he said, speaking to reporters at Joint Base Andrews outside Washington.
February 4: Panama Court Is Asked to Cancel Hong Kong Firm’s Contract to Run Canal Ports – The Guardian
Two Panamanian lawyers have lodged a lawsuit with the country’s supreme court in an attempt to cancel a Hong Kong-based company’s concession to operate two ports at either end of the Panama canal. Their complaint – filed a day after the U.S. secretary of state, Marco Rubio, told Panama’s president, José Raúl Mulino, to reduce China’s alleged influence on the canal – argues that the contract for the two ports is unconstitutional.
If the case is admitted by the court – and the argument is accepted – it could lead to the swift revocation of the contracts, and a victory for Donald Trump’s campaign to push back against Beijing’s presence in the Central American country.
A subsidiary of CK Hutchison Holdings, owned by the Hong Kong billionaire Li Ka-shing, has operated two of the canal’s five ports since it won the tender in 1997.
“After a detailed analysis of the contract … we decided that an action for unconstitutionality was the appropriate means” to challenge the concession, said Julio Macías, one of the lawyers behind the suit.
Panama’s government is anxious to avoid a scenario in which the U.S. takes the canal by force – or obliges them to meaningfully change the fee structures that are applied equally to ships of all countries and based on market conditions.
February 7: More Blanked Sailings: ‘Carriers Will Not Sit on Their Hands While Rates Collapse’ – The Loadstar
Last week’s Shanghai Containerized Freight Index (SCFI), which collates quotes for the forthcoming week, saw declines across all its trade routes, bar a 10% week-on-week increase on China-Mexico.
The SCFI’s China-North Europe and China-Mediterranean dropped 16% and 5% on the previous week, respectively, while the rates to the U.S. west and east coasts both fell 5% week on week.
“Post-Chinese New Year though to the end of February there are going to be some very attractive spot rates out of Asia – this is a market run purely by supply and demand,” explained Zencargo VP of global ocean freight Anne Sophie Fribourg.
The main lever for carriers to halt the slide in rates is to curtail capacity, and Xeneta head analyst Peter Sand warned recently that the number of blanked sailings was likely to significantly increase.
“Carriers will not sit on their hands while freight rates collapse. They will do everything they can to keep rates elevated, and have got much smarter at capacity management in recent years,” said Sand.
“Will it be enough? Hardly,” he added.
February 10: ILA Wage Scale Committee Signs Off on Tentative ILA-USMX Deal Ahead of Ratification Vote – Logistics Management
Ahead of a ratification vote on a new master contract set to take place on February 25, the International Longshoremen’s Association (ILA) said late last week that its Wage Scale Committee unanimously approved the tentative agreement between the ILA and the United States Maritime Alliance (USMX) that was struck in early January.
“I believe our work here today moves us to the ratification vote on Tuesday, February 25, 2025, when ILA rank-and-file members will vote on what I believe is the greatest ILA contract, and the greatest contract negotiated by a labour organization,” said ILA President Harold J. Daggett. “Our collective strength helped produce the richest contact in our history.”
ILA officials said that the new contract and its benefits are retroactive to October 1, 2024, and, if ratified by ILA members, will stay in effect until September 30, 2030. And they added that ILA rank-and-file members will receive details of the contract (which are not being made public) approved by the ILA Wage Scale Committee at local meetings over the next two weeks, leading up to the February 25 ratification vote date.
February 11: HMM, ONE, Yang Ming Alliance Now Effective, FMC Says – Supply Chain Dive
HMM, Ocean Network Express – known as ONE – and Yang Ming Marine Transport’s Premier Alliance took effect on February 9, the U.S. Federal Maritime Commission said in a press release last week. The alliance will be in effect for five years.
The alliance was originally slated to go into effect on December 12, 2024, but the FMC halted implementation on December 6 after determining the operational agreement lacked details about its potential competitive impacts.
HMM, ONE and Yang Ming complied with the agency’s request to deliver additional documentation clarifying matters not addressed in the original agreement, according to the release.
“The information provided by the Premier Alliance Agreement was deemed by the Commission as responsive on December 26, 2024,” the FMC said in the release.
February 15: MSC Containership Grounds in Storm off Newfoundland – The Maritime Executive
Multiple teams from Canada responded on February 15 after an MSC containership issued a mayday call during a strong winter storm. A helicopter from the Canadian SAR team was able to rescue the 20 crewmembers despite the severe conditions.
The MSC Baltic III (33,767 dwt) reported that it lost power and was unable to anchor due to the strong storm. Winds were up to 75 mph and seas were running at up to 6 metres (20 feet) along the west coast of Newfoundland. The vessel was scheduled to be in Corner Brook, Newfoundland departing for Saint John and then Freeport in the Bahamas.
February 20: Congestion at Vancouver Worsens – But It’s Not All the Port’s Fault – The Loadstar
Congestion at Canada’s west coast gateway of Vancouver is set to worsen in the coming weeks due to a combination of restricted access to inland rail links and deteriorating liner schedule reliability as the alliance reshuffle continues.
German carrier Hapag-Lloyd told customers on February 19: “Both CPKC Rail and CN Rail have implemented tiered operating restrictions in response to severe winter weather across Canada. These measures include shorter trains and reduced speeds, which have resulted in minor delays.
“These conditions are expected to last another 10-14 days, resulting in increased Import dwell times,” it added.
The carrier said utilization at Vancouver’s GCT Delta terminal had reached 102% and vessels were “experiencing berth delays of nine days,” while utilization at DP World Centerm was at 83%, with berthing delays of between four and nine days.
February 23: U.S. Targets China Ships, Operators with Millions of Dollars in New Port Charges – American Shipper
In a major retaliatory move against China, the United States is proposing expensive charges that could add millions of dollars in costs for ocean container lines and other carriers calling U.S. ports.
The proposal by the office of the United States Trade Representative (USTR), published on February 21 in the Federal Register, sets fees as high as $1.5 million per U.S. port call for ships built in China and $500,000 for a vessel operator with even a single Chinese-built ship in its fleet, or on order with a China shipyard.
The plan will send tremors through the maritime supply chain serving the world’s largest market, where major ocean carriers operate in a complex network of cooperation ranging from service routes to berthing arrangements and sharing of vessels. Carriers will likely pass on the expensive new fees to shippers in the form of surcharges and higher rates, who in turn will pass them on as higher prices for imported goods.
February 26: ILA Ratifies 6-Year Labour Contract – Supply Chain Dive
The International Longshoremen’s Association voted to ratify a six-year contract agreement with the United States Maritime Alliance on February 25, according to a Facebook post shared by the union.
The union, which represents roughly 85,000 longshore workers at 100 seaports across the East and Gulf Coasts, said its members voted nearly 99% in favour to approve the tentative contract agreement that was reached in January.
The ILA said in a statement the contract became retroactively effective on October 1, 2024 and will expire on September 30, 2030. The contract will be formally signed by both the ILA and USMX on March 11.
February 27: Stranded MSC Baltic III Cannot Be Safely Refloated Reports Coast Guard – The Maritime Executive
Twelve days after the containership MSC Baltic III lost power and was driven ashore in Canada during a winter storm, the Canadian Coast Guard reports the vessel cannot be safely refloated. Weather continues to hamper the efforts of the Coast Guard and a private salvage team, with the latest update reporting they are focusing on the fuel and other possible contaminants aboard.
The vessel was abandoned on February 15 after it was driven onto the rocky shoreline of western Newfoundland. A helicopter rescued the crew.
Since the vessel went ashore, winter storms have continued to impact the area. The Coast Guard says teams are frequently unable to get aboard the ship and the weather is hampering some of the water operations. They are monitoring the ship from shore and the air.
At the beginning of last week, they reported that divers have confirmed that there were significant breaches or holes in the hull below the waterline. The vessel has settled firmly to the seabed and so far, they have not found significant breaks about the waterline. However, pictures have shown some deformations in the hull and the possibility of a crack.
February 27: Panama’s Attorney-General Backs Claims to Cancel Hutchison Port Concessions – Seatrade Maritime
The port concessions held by Hutchison Ports subsidiary Panama Ports Company (PPC) in Balboa and Cristobal on the Pacific and Atlantic entrances of the Panama Canal have been in the spotlight as part of claims by U.S. President Donald Trump that the waterway is under Chinese control.
With parent company CK Hutchison headquartered in the Chinese Special Administrative Region of Hong Kong, the Trump administration believes that in a time of conflict the Chinese government could order the port operator to block access to the Canal.
The 25-year concession to Hutchison’s PPC was granted in 1997 and extended for a further 25-years in 2021.
In early February, two Panamanian lawyers filed a complaint with the country’s Supreme Court to nullify the concessions on the basis that they were unconstitutional.
On February 19, Attorney General of Panama Luis Carlos Gómez sent his opinion to the presiding judge of the Supreme Court of Justice, María Eugenia López Arias, concluding the concession was “unconstitutional.”
February 28: U.S. Port Fees on China Vessels Would Affect All Shipping Firms, CMA CGM Says – gCaptain
U.S. proposals to hit Chinese vessels with high port fees would have a major impact on all firms in a container shipping industry in which most vessels are built in China, said French-based shipping firm CMA CGM.
The U.S. Trade Representative’s office has proposed charging up to $1.5 million for Chinese-built vessels entering U.S. ports as part of its investigation into China’s expansion in the shipbuilding, maritime and logistics sectors.
“China builds more than half of all container ships in the world, so this would have a significant effect on all shipping firms,” Chief Financial Officer Ramon Fernandez told reporters.
February 4: Air Cargo Industry Jolted by Trump Tariffs on Chinese E-Commerce – FreightWaves
President Donald Trump’s weekend order eliminating a duty-free exemption for low-value e-commerce shipments from China could upend business models for many companies engaged in international trade, but stakeholders say the air cargo sector could take the biggest hit.
Chinese and U.S. marketplaces like Shein, Temu, AliExpress, Amazon and Shopify also could be significantly constrained in the short term.
The U.S. imported more than 2.5 million tons of cargo by air from China last year, including about 1.3 million tons of cheap e-commerce products that are potentially impacted by the U.S. decision to close the trade privilege as of this week. The rest is general cargo now subject to a new 10% tariff on Chinese goods, according to data from Netherlands-based air cargo consultancy Rotate.
Electronic retailers, logistics service providers, express carriers, customs brokers and others are scrambling to understand the new rules and how to reorient workstreams accordingly. Trade professionals say they are confused about how to adjust operations with only a vague announcement from the White House and few answers so far from U.S. Customs and Border Protection. The situation is still very fluid and projected impacts could change depending on whether President Trump changes his mind – as he did on February 3, giving Canada and Mexico a one-month reprieve on 25% tariffs – or the types of coping mechanisms companies identify.
February 5: CPKC, United Steelworkers Reach Tentative Agreement – Progressive Railroading
Canadian Pacific Kansas City announced on February 5 it has reached a tentative four-year collective agreement with United Steelworkers (USW), representing approximately 600 clerical and intermodal employees in Canada.
Details of the tentative collective agreement will not be released publicly until the agreement has been ratified.
The tentative agreement is the third CPKC has reached this year in Canada.
February 17: IBEW Ratifies New CN Collective Agreement – CN press release
CN announced on February 17 that its new four-year tentative collective agreement with the International Brotherhood of Electric Workers (IBEW) was formally ratified by employees on February 14. The union represents approximately 750 Signals and Communications employees at CN in Canada.
This new four-year agreement includes 3% wage increases annually. It expires on December 31, 2028.
February 18: TCRC-MWED Ratifies 4-Year Pact with CPKC – Progressive Railroading
Canadian Pacific Kansas City announced on February 14 that the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED), which represents 2,300 engineering service employees in Canada, has ratified a new four-year collective agreement with the Class I.
February 25: Unifor Mechanical Workers Ratify Contract with CPKC – Progressive Railroading
Unifor members employed as mechanical employees at Canadian Pacific Kansas City in Canada have ratified a new four-year collective agreement with the Class I.
The agreement includes improved wages and benefits for the 1,200 mechanics, labourers, diesel service attendants and mechanical support staff across Canada, CPKC officials in a press release.
February 4: Truckers Fear Job Losses if Tariffs Imposed – La Presse (translated from French)
Truckers fear that the 25% tariffs that U.S. President Donald Trump is still threatening to impose will have disastrous consequences for their sector, as trade between Canada and the United States would suffer.
“If these tariffs remain in place at these levels for an extended period of time, it could be the final nail in the coffin for many trucking fleets,” warned Canadian Trucking Alliance President Stephen Laskowski. “It’s a bleak picture.”
Tariffs on Canadian imports into the United States, which ultimately won’t take effect for at least 30 days, would be the biggest trade shock north of the border in nearly a century, according to RBC Economics.
Several of the 5,000 member companies of the Canadian Trucking Alliance are already struggling due to weaker consumer demand. “It’s a hypercompetitive situation,” Laskowski said of the struggling sector.
“When the economy catches a cold, the trucking industry catches pneumonia.”
Some 120,000 Canadian truckers haul cross-border shipments, he said. Shipments to the United States account for about two-thirds of all Canadian truckloads, according to transportation technology firm Arrive Logistics.
February 7: Trump Halts Program to Expand U.S. EV Charger Network – Transport Topics
The Trump administration is suspending federal funding for electric car chargers, following through on one of President Donald Trump’s first directives to roll back U.S. subsidies for plug-in vehicles after he retook the White House.
The U.S. Department of Transportation’s Federal Highway Administration announced in a letter dated February 6 that it is suspending approval of funds intended to be distributed to states from the National Electric Vehicle Infrastructure Formula Program, which provides funding to add chargers mostly along the interstate highway system.
The NEVI program was included in the 2021 bipartisan infrastructure law that was passed by Congress under former President Joe Biden. It allocated $5 billion over five years to install chargers in an effort to jump-start acceptance of the plug-in cars.
Trump has made rescinding Biden’s pro-EV initiatives a key plank of his economic platform.
February 14: U.S. Feds Taking Another Look at Truck-Broker Contract Rules – FreightWaves
The Trump administration has given renewed hope to truck owner-operators that the government will make it easier for them to review broker transaction records to combat alleged price gouging and help ensure they get a fair price for hauling freight.
The Federal Motor Carrier Safety Administration is reopening the comment period for its “Transparency in Property Broker Transactions” notice of proposed rulemaking (NPRM) at the request of the Small Business in Transportation Coalition. The initial 60-day comment period, which ended on January 21, received close to 5,000 comments.
SBTC petitioned FMCSA on January 19 for an additional 14 to 30 days based on the high number of comments coming in at deadline, and to give drivers affected or displaced by the wildfires in Southern California an opportunity to respond to the proposed rule.
The new comment period ends on March 20.
February 20: Nearly a Third of Ontario Carriers Lay Off Workers as U.S. Tariffs Loom – Today’s Trucking
Nearly one in three Ontario carriers – 32% – have already laid off some employees amid the looming threat of U.S. tariffs on Canadian imports.
When polled, 68% expected conditions to worsen, 29% were unsure, and only 3% believed that conditions might improve in the short term, according to an Ontario Trucking Association (OTA) news release.
Market uncertainty is directly impacting the industry’s workforce. Carriers suggest that, if business conditions do not improve, the sector may see increased layoffs. The OTA survey found that 51% have not yet laid off employees but said they could be forced to do so if conditions don’t improve.
February 25: Cargo Theft Surges in Canada, U.S., with More Than 13,500 Incidents Recorded in 2024 – Today’s Trucking
Cargo theft remains a growing concern in Canada, with Ontario accounting for 85% of all reported incidents in 2024, according to Overhaul’s newly released annual cargo theft report, that summarizes and analyzes theft data collected in 2024 across Canada and the U.S.
The Greater Toronto Area (GTA) remains the country’s biggest hotspot, while the remaining 15% of thefts were spread across British Columbia (5%), Saskatchewan (4%), Alberta (3%), Quebec (1%), New Brunswick (1%) and Newfoundland (1%).
Despite being historically underreported compared with the U.S., cargo theft in Canada is well known within the industry, and criminal networks mirror those in the U.S., using the same sophisticated methods to steal and distribute stolen goods. In September 2024, Mark Haywood, a detective with Peel Regional Police who runs the cargo side of its Commercial Auto Crime Bureau, said cargo theft in the Greater Toronto Area’s Peel Region has taken a disturbing turn, placing it third in North America for high cargo theft activity.
February 4: CIFFA Selects 2025 Canadian Young Logistics Professionals Award Winner
Every year, CIFFA offers an award to a young logistics professional who best demonstrates industry knowledge and skills to become a true international logistics professional in the future.
After a review process of industry experience and a written dissertation demonstrating technical knowledge, CIFFA is pleased to announce that Prince Joshua Aguilar of DSV Air & Sea Inc. has been selected as the 2025 Canadian Young Logistics Professionals Award winner.
As this year’s Canadian winner, Joshua will receive a cash prize of $1,500 and will represent Canada at the FIATA Americas regional competition. This requires the submission of two dissertations. If selected as the Americas regional winner, Joshua will compete at the 2025 FIATA World Congress in Hanoi, Vietnam in the fall.
On February 10, CIFFA sent a letter to The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement Canada, expressing concerns regarding Canada Post’s decision to have its subsidiary, Purolator, acquire Livingston International, a leading firm in customs brokerage and freight forwarding.
CIFFA noted that the issue raises important questions regarding the role of government corporations in the private market and the use of revenue generated through Canada Post’s operations. CIFFA asked for the Minister’s insight into how this acquisition aligns with the interests of both taxpayers and Canadian businesses alike.
February 12: New CIFFA Resource – Carbon Reporting for Freight Forwarders: A Beginner’s Playbook
A new comprehensive guide from UK-based Pledge Earth Technologies Ltd. – an associate member of CIFFA – to the importance of sustainability in transport and logistics is available in the Resources section of CIFFA’s website.
The document provides freight forwarders with information to integrate carbon emissions measurements into their services and sell these services as part of their offerings.
On February 26, CIFFA wrote to commend Anita Anand, Canada’s Minister of Transport and Internal Trade, and the Council of Ministers Responsible for Transportation and Highway Safety for their meeting on February 22, which prioritized improving infrastructure and addressing internal trade barriers.
A key initiative announced at this meeting – a full-scale investigation and action plan by the Canadian Council of Motor Transport Administrators – will address challenges related to issuing safety fitness certificates for commercial trucking operations. This is a crucial step in combatting unsafe carriers that threaten highway safety and contribute to the unchecked expansion of the underground economy. The consequences of inaction include responsible fleets being driven out of business or relocating operations south of the border.
However, this step is not enough and, in its letter, CIFFA urged federal and provincial transportation ministries, along with the Canada Revenue Agency and Employment and Social Development Canada to increase enforcement measures to address the growing presence of the underground economy in the trucking industry.
January 2: FuelEU Sails In, Charging a Heavy Price for Vessel Emissions – But Who Pays? – The Loadstar
The beginning of 2025 marked the entry of FuelEU, the robust European legislation imposing major costs on shipowners for their vessel emissions.
Carriers have already announced their intention to pass these FuelEU costs on to their customers, Hapag-Lloyd having warned prices would “roughly double.”
Shipowners will pay around three times the cost of very-low-sulphur fuel oil (VLSFO) energy equivalent, or €2,400 per tonne, for non-compliance with FuelEU, an amount set to increase in the coming years.
Sequential years of non-compliance will cause a shipowner’s premium to increase cumulatively, even more than the successive annual increases, which means that, while it is open to shipowners not to comply with the legislation, FuelEU costs will grow to become a major drain on their operations.
January 2: Suez Canal Expansion to Increase Capacity by 6 to 8 Ships Daily – Trans.info
The Suez Canal Authority (SCA) has announced the successful trial operation of a new 10-km duplicated section of the Suez Canal in the Small Bitter Lakes area. This development forms part of the broader project to enhance the canal’s southern sector.
The duplication increases the length of the New Suez Canal to 82 km, up from 72 km, and is expected to boost daily capacity by accommodating an additional six to eight vessels. This improvement aims to enhance navigational security and reduce the impact of environmental factors such as water and wind currents.
January 3: Yang Ming Eyes Higher Contract Rates, with a ‘Focus on the Transpacific’ – The Loadstar
Yang Ming management expects oversupply concerns to ease this year as detours round the Cape of Good Hope continue.
The gap between container shipping supply and demand was 8% in 2024, and is expected to narrow to 4% in 2025, added the carrier.
CCO Kevin Lee added that, with freight rates being higher year on year and with high port handling costs, Yang Ming is optimistic about negotiating higher contract shipping rates this year.
January 8: ILA and USMX Announce Tentative Agreement on New Six-Year Master Contract – joint press release
The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year master contract. The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
January 8: Alliance Reshuffle Will Increase Box Ship Shortage as Carriers Hunt ‘Buffers’ – The Loadstar
The combined capacity of the liners controlling more than 1% of the global liner fleet grew by 10.3% last year, according to Alphaliner.
And, despite the carriers’ relentless search for more tonnage in 2024, market demand remains strong, and the threat of overcapacity still hasn’t surfaced, reflected in low vessel idling and charter availability.
Alpahaliner noted that the charter market was short on tonnage above 3,000 teu, with vessels of 5,500 teu and above “especially limited until the summer.”
This low availability of vessels, it warned, had the potential to create further rises in charter rates.
It also noted that the commercially idle containership fleet ended the year “with a downtick” from what was already a low number. And over the past fortnight, Alphaliner again recorded “a reduction in carrier-controlled vessel idling”. In its latest survey, on 30 December, it recorded 58 ships, or 173,930 teu, as commercially idle.
It reported: “At only 0.6% of the total cellular fleet, the liner sector can still be considered ‘fully employed’, and there is zero structural idling.”
January 9: Proposal for IMO-Controlled Shipping Decarbonization Fund Gains Traction – The Loadstar
Some 47 governments and industry groups are lobbying the International Maritime Organization (IMO) to implement an emissions pricing mechanism for greenhouse gases (GHG) to raise a fund to decarbonize shipping.
The proposal is just one of many to be mulled by the IMO at the February meeting of its GHGs working group.
The market-based measure would aim to reduce the price gap between fossil and zero-emission fuels in a way that is not necessarily supported by the EU’s emissions trading system (ETS) or FuelEU Maritime.
Critics of the European systems say that, while they are perfectly capable of punishing shipowners for non-compliance, they do little to incentivize action by fuel refiners to make such low- and zero-emission fuels available to shipping.
January 15: Gaza Ceasefire Deal Sparks Hope for Red Sea Shipping Security, But Houthis Maintain Hard Line – gCaptain
A ceasefire agreement between Hamas and Israel, set to begin on January 19, could potentially ease maritime tensions in the Red Sea region, though Houthi rebels in Yemen remain firm on their conditions for ending attacks on commercial vessels.
The deal establishes a six-week initial ceasefire and includes the gradual withdrawal of Israeli forces from Gaza.
Maritime stakeholders are closely monitoring the development, as the agreement could be a turning point for vessels in the Red Sea region, where ships have endured numerous drone and missile attacks since October 7, 2023. These attacks have forced much of global trade to divert around the Cape of Good Hope, significantly extending voyage times while raising both costs and emissions.
However, Houthi forces in Yemen have set strict conditions for ceasing their maritime attacks. A spokesperson stated their military actions will only stop when “all military operations by the IDF are stopped, the siege on Gaza is lifted, humanitarian aid is allowed to flow freely, occupied territories in the Gaza Strip are withdrawn, and all military actions by the UK, U.S. and Israel in Yemen are ended.”
January 16: Port of Montreal Activities Back to Normal – press release
Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) has announced that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season.
January 17: Strikes End, But Delays Continue at Australian Ports – The Loadstar
Australian freight forwarder International Cargo Express (ICE) has warned of backlogs at Australian ports affected by strikes against terminal operator Qube.
The union campaign against Qube – ongoing for months at ports including Brisbane, Kembla, Melbourne, Adelaide, Darwin and Fremantle – ended last week.
ICE said that, while this marked a positive step forward, “the widespread delays in loading, unloading and transporting goods have created a significant backlog, expected to impact supply chains in the short term.”
January 20: In Inaugural Address, Trump Pledges to Take Back Panama Canal – The Maritime Executive
In his inaugural address, President Donald Trump devoted more than a minute to his pledge to take the Panama Canal back from Panamanian control. In response, Panamanian president José Raúl Mulino, a conservative populist and American-trained maritime lawyer, reiterated that the Canal belongs to Panama.
“The Canal is and will continue to be Panama’s and its administration will continue to be under Panamanian control with respect to its permanent neutrality,” Mulino said. “For 25 years, without interruption, we have managed and expanded it responsibly to serve the world and its commerce, including the United States.”
France and the U.S. built the original canal at the turn of the last century. It was administered by American forces until its final transfer to local control in 1999.
A Panamanian-financed and -built upgrade, the “New Panama Canal,” was completed in 2016 and now accounts for the majority of Canal Zone revenue. In 2023, the older American-built section delivered about 45 percent of total Canal Zone earnings. Both are operated by the Autoridad del Canal de Panama (ACP), a division of the Panamanian government.
In his inaugural address, Trump claimed that “China is operating the Panama Canal.”
January 21: Panama Audits Hutchison PPC After Trump’s Complaints of Chinese Influence – The Maritime Executive
After criticism from President Donald Trump about the Panama Canal’s operations, the Panamanian government has announced an audit of the local unit of Hutchison Port Holdings, the Hong Kong-based giant that manages container terminals near each end of the waterway. Hutchison is a Chinese firm, and Trump has accused Panama of allowing China to “operate” the Canal, which was held by the U.S. up until 1999. The president has pledged to “take back” the Canal Zone, declaring his ambitions to “expand our territory.”
Ahead of Trump’s inauguration, Panamanian Comptroller General Anel Bolo Flores promised to conduct a probe to ensure that Hutchison is in compliance with its 25-year concession for the Balboa and Cristobal container terminals. The Panama Maritime Authority renewed the concession for Hutchison’s Panama Ports Company in 2021, under a previous administration, and Flores said that the local branch of Hutchison would be subjected to a “severe and strong” financial audit.
January 24: France Faces More Port Strikes to Protest Lack of Action on Pension Reforms – The Maritime Executive
The long-running dispute between the French government and the powerful trade unions over proposed pension reforms is again prompting threats of port strikes across the country. The government has been pushing for pension reforms and changes to France’s work rules since 2023.
The CGT Federation of Ports and Docks filed notice last week that it plans to renew its strikes and work slowdowns to demonstrate its frustration at the lack of movement by the government. According to the union, talks took place between January and July 2023 and again in 2024. The union staged a 24-hour strike in June 2024, blocking the container, bulk and ro-ro terminals in Le Havre while an estimated 600 dockworkers blocked the main entrance to Marseille-Fos in the south.
The union suspended the protests last summer after the French government collapsed. President Emmanuel Macron dissolved parliament and called special elections, which were inconclusive. Macron has vowed to continue through his current term, which is due to end in 2027 despite the collapse of two governments and continued instability.
According to the union, there had been talks in December and an indication by the government of a willingness to resolve the dispute. However, the union contends the offer was withdrawn in January.
January 28: Congestion at Box Ports Still Plaguing Europe’s Inland Waterways – The Loadstar
Issues surrounding worsening weather have compounded long-running difficulties across Europe’s inland water network, with many calling for large-scale reform.
Sources within the sector have repeatedly said that operators need to be forced into better utilizing the space on their vessels, with many sailing “heavily” underutilized, leading to substantial, “now uniform” delays.
Indeed, barge operator Contargo is reporting congestion of 67 hours in Antwerp, with shippers looking at delays of 57 hours in Rotterdam.
And these numbers are by no means outliers, with average waits of 40+ hours common over the past decade, with 24+ hours largely “expected” as a consequence of poor utilization and a sense of intransigence among operators to resolve the structural problems in the sector.
January 28: Chinese New Year Rush and Threat of Tariffs Leaves Box Ports Congested – The Loadstar
The Chinese factory rush to get goods out before the new year holiday, and the threat of U.S. import tariffs, have seen global container port congestion hit a three-month high.
Approximately 3.3 million TEU, or nearly 11% of the container shipping fleet, is held up at ports in Asia, Europe and North America, according to a Linerlytica report.
The consultancy said: “Chinese ports are extremely congested in the run-up to the holidays, with both the Yangtze River ports and Pearl River Delta ports recording a significant surge in gate and berth congestion. The pre-holiday cargo rush has been exacerbated by heavy demand to beat potential U.S. tariffs for Chinese imports, with carriers also scrambling to build cargo roll pools ahead of the holiday lull.”
January 28: U.S., UK Ships Return to Red Sea on Houthis’ Vow to Hold Fire – Transport Topics
British and American ships are tentatively returning to the Red Sea after Yemen’s Houthi rebels vowed to hold off attacks on vessels linked to both nations, a sign that traffic on one of the world’s main trade routes could normalize after more than a year of disruption.
Six ships linked to the U.S. and UK have successfully transited the area without coming under attack since January 19, when the Houthis said they would stop targeting vessels associated with those countries, according to the Joint Maritime Information Center, which collates information on the militants’ attacks from multiple navies.
January 28: With Panama Canal-U.S. Tensions Rising, ‘All Options on the Table,’ Warns Trump’s Top Maritime Official – CNBC
Louis Sola, President Donald Trump’s newly appointed head of the U.S. Federal Maritime Commission, said that no-bid contracts give China an unfair advantage at the Panama Canal and nearby ports, and that reports saying Chinese companies are getting canal tolls refunded are “alarming.”
Trump has threatened to reassert U.S. control over the canal, a threat categorically rejected by Panama’s government. At a Senate hearing about trade and security issues at the canal, several Republican senators voiced support for an aggressive U.S. stance.
The FMC head says the U.S. can issue substantial daily fines to the Panamanian government and bar Panamanian-flagged vessels from calling at U.S. ports if it finds that Panama’s laws or practices are harmful to U.S. shipping.
January 31: Gemini Cooperation Launches Operations – press release
Gemini Cooperation, which was jointly planned and implemented by Hapag-Lloyd AG and Maersk A/S, starts operations on February 1. The ambition is to deliver a fast, flexible and interconnected ocean network with industry-leading reliability of over 90% once fully phased in. By June 2025, all vessels are expected to operate according to the new schedule.
January 10: IATA Calls for International Coordination When Addressing Security Threats – Air Cargo News
IATA has called for international cooperation when developing future security requirements following the introduction of “disjointed” security measures last year in response to the discovery of two incendiary devices in parcel networks.
IATA head of global cargo Brendan Sullivan said various countries quickly introduced new security requirements last year after improvised incendiary devices (IIDs) were found in European parcel networks, but there was little coordination between states.
“IATA is committed to ensuring that these emerging threats are appropriately addressed,” he said. “In response to this, several states imposed additional security requirements or recommendations for inbound cargo and mail and some of those additional security measures were not appropriately developed or coordinated at an international level.
“This resulted in a disjointed and not-suitable operating environment where it was different in different parts of the world.”
January 13: Air Cargo Capacity Grew 10% in 2024, with Passenger Belly Capacity Back to Pre-COVID Levels – Air Cargo News
Air cargo capacity grew by double-digit percentage levels last year, with bellyhold capacity continuing to recover and freighter space remaining above pre-COVID levels.
Figures from data provider and consultant Rotate show that in 2024 total air cargo capacity in airfreight tonne km terms (ATK) was up 10% year on year, to 442bn ATK.
The increase was led by the return of passenger services, as bellyhold capacity increased 13% year on year and is now just 1% behind pre-COVID 2019 levels.
Meanwhile, freighter capacity was up 8% year on year in 2024, as the industry continues to rely on all-cargo aircraft more than it did in the past.
Compared with 2019 levels, freighter capacity is up 43%.
January 14: STB Approves CN Acquisition of Iowa Northern with Conditions – Progressive Railroading
The U.S. Surface Transportation Board has approved, with conditions, CN’s request for the board’s authority to acquire and operate Iowa Northern Railway Co.’s 218-mile rail system.
January 27: IBEW Issues Strike Notice at CN; No Impact on Operations Expected – Progressive Railroading
CN is preparing for a work stoppage by the International Brotherhood of Electric Workers union (IBEW).
The union, which represents about 750 CN employees in Canada who work in signals and communications, filed a 72-hour strike notice that could see a strike start on January 27. The current contract agreement expired December 31, 2024.
There will be no impact on operations as a result of a work stoppage, CN officials said in a bargaining update.
The railroad and IBEW will continue to negotiate.
January 28: CN, IBEW Agree to Tentative Pact; CPKC Reaches Deals with Unifor, TCRC-MWED – Progressive Railroading
Both CN and CPKC have announced new tentative four-year collective agreements, CN with the International Brotherhood of Electric Workers (IBEW), CPKC with Unifor.
CN’s tentative pact ended the possibility that IBEW members would go on strike. The union had filed a 72-hour strike notice under which a work stoppage could have begun on January 28.
No details of either tentative agreement have been released, pending ratification.
Note: CPKC issued a customer advisory on January 28 to indicate that it has also reached a tentative agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED), which represents approximately 2,300 engineering service employees across Canada.
January 1: U.S. FMCSA Delays Broker-Authority ‘Immediate Suspension,’ Other Regs Provisions – Overdrive
The U.S. Federal Motor Carrier Safety Administration has announced plans to delay implementation of certain provisions of its rules requiring stricter financial responsibilities for brokers and freight forwarders from January 16, 2025, until a full year later – January 16, 2026.
FMCSA said it would delay the new broker responsibilities to wait for its big registration system overhaul to take place.
“FMCSA is taking this action because the Agency determined that only its forthcoming online registration system will be used to accept filings and track notifications, and this functionality will not be added to its legacy systems,” the agency wrote.
January 3: District Court of South Carolina Slams the Brakes on Broker Liability – JD Supra
In a negligence action brought against transportation broker Echo Global Logistics, Inc., the District Court for the District of South Carolina held that Congress expressly pre-empted state laws related to brokers’ services under the Federal Aviation Administration Authorization Act. The court also held that the so-called safety exception to that pre-emption does not apply to brokers.
January 11: C.H. Robinson – and 3PL Industry – Win Another Broker Liability Case in U.S. 7th Circuit Court – FreightWaves
The 3PL industry’s latest win in the legal battle over broker liability comes in a U.S. federal appellate court, where a pro-broker precedent already exists.
In the most recent case, the U.S. Court of Appeals for the 7th Circuit, in a decision handed down January 3, held that C.H. Robinson did not have an “agency” relationship with carrier Caribe Transport, affirming a lower court ruling.
January 11: Quebec Trucking Association and Teamsters Join Forces to Denounce Driver Inc. – Truck Stop Quebec (translated from French)
At a press conference on January 9, the Quebec Trucking Association (ACQ), the Quebec Towing Professionals Association (APDQ) and the Teamsters joined forces to denounce Driver Inc. before the media.
Together, these organizations hope to encourage Quebec Premier François Legault to act quickly to put an end to this scheme.
“Today, it’s an alliance with a common core: saving an industry, saving jobs in Quebec,” said Marc Cadieux, CEO of the ACQ.
“So, to send a message to the Quebec government, to the premier and his ministerial team, so that they can come up with solutions. We’ve proposed some: We put our shoulder to the wheel, we consulted our lawyers, our tax experts, and we submitted 35 pages of recommendations and proposals. We submitted that over a year ago.”
Marc Cadieux stressed the urgency for the government to provide concrete feedback on the proposals submitted by industry.
January 28: Western Express Prevails at U.S. Federal Appeals Level in Case ATA Saw as Important – FreightWaves
With so much focus on nuclear verdicts in the trucking industry, a decision last week in a U.S. federal appeals court went in a different direction with a significant victory for a major carrier.
Western Express, a privately held truckload carrier with what it says is more than 3,600 power units, has prevailed in an appeals case in the Fourth Circuit involving a 2018 crash in Rockbridge County, Virginia, on Interstate 81 that resulted in “devastating and permanent injuries” to Andre Le Doux, according to a court document.
The January 23 decision from the three-judge panel was unanimous.
The case was considered important enough to impact the body of law that governs trucking negligence that the American Trucking Associations (ATA) filed an amicus brief in support of Western Express.
January 31: U.S. Bipartisan Bill Takes Aim at Freight Fraud – Land Line
A bipartisan bill aimed at fighting freight fraud has been introduced in the House and Senate. The Household Goods Shipping Consumer Protection Act would attempt to crack down on fraud involving residential moving companies, but it also would assist in the overall effort to fight freight fraud.
The bill would restore and codify the Federal Motor Carrier Safety Administration’s authority to issue civil penalties against bad actors. The legislation also requires brokers, freight forwarders and carriers to provide a valid business address to FMCSA before acquiring operating authority.
January 7: CIFFA Launches Ask RUTH, an AI Assistant for Trade and Logistics
CIFFA launched Ask RUTH, an AI-powered assistant to help users navigate the complexities of trade, logistics and supply chain management. Available 24/7, RUTH can answer questions, provide insights into CIFFA’s programs and trade regulations, and connect users to resources. Plus, the program adapts and grows with use. Try Ask RUTH to experience smarter support for your supply chain needs.
January 13: CIFFA Requests Extension of CARM Grace Period
On January 13, CIFFA wrote to the CBSA to formally request an extension of the 90-day grace period for late accounting penalties, as our members continue to face several unresolved issues arising from the transition to CARM.
As you are aware, that transition has introduced various complexities that have made it difficult for the trade community to fully comply with the required timelines and procedures for submitting accurate accounting information. Despite best efforts to adapt, CIFFA members and others in the industry have encountered numerous challenges, which are outlined in the letter.
As a result of these ongoing issues, our members have been unable to meet the required deadlines for accounting and customs-related submissions, despite their commitment to full compliance. We have made consistent efforts to resolve these challenges, but the transition process has proven to be more complicated and time-consuming than initially anticipated.
January 21: CIFFA Writes to Transport Minister Anita Anand
CIFFA wrote to Transport Minister Anita Anand requesting her intervention to create a more effective process around transportation security in Canada with regard to communicating more broadly about security measures directly affecting industry.
Just prior to Labour Day 2024, first the United States and then Canada responded to a credible threat concerning cargo flights, instructing the aviation industry to take new measures to ensure airlines had proof of established relationships with the forwarders and their exporters before the loading of North American destined cargo. Consistent with Transport Canada’s interpretation of the Aeronautics Act, it issued direction to the air carriers exclusively. Each carrier was obliged to instruct its customers on the measures, independently.
The result was myriad different instructions from airlines to the forwarders and exporters, ranging from some carriers unnecessarily refusing cargo to others indicating no change of normal practices was necessary. In some cases, there were significant financial losses, in other cases a failure to enact the measures the government had ordered.
CIFFA has outlined its request for the government to include more stakeholders in directives affecting the transportation of air cargo.
December 2: DP World Expands Port Saint John Capacity – Inside Logistics
DP World and Port Saint John have welcomed two of the largest cranes ever deployed at the port, marking a major step in enhancing container handling capacity and operational efficiency.
The new additions aim to bolster the port’s role in global trade and strengthen Saint John’s position as a key Atlantic gateway.
The cranes, each with an outreach of 65 metres and capable of spanning 24 containers wide, can service vessels exceeding 10,000 TEUs. Their arrival increases the port’s total to six quay cranes, the highest capacity in its history.
The arrival of the cranes coincides with the completion of the port’s $250-million modernization project.
December 3: ‘Gemini Cooperation’ Is Officially Open for Bookings, Kicking Off in February – Logistics Management
Effective December 3, the “Gemini Cooperation” ocean network is open for bookings, according to a customer advisory recently issued by Hapag-Lloyd. The Gemini Cooperation is a long-term operational collaboration between A.P. Moller-Maersk and Hapag-Lloyd, which will take effect in February.
Hapag-Lloyd will exit THE Alliance, which also includes Ocean Network Express, Yang Ming and HMM, at the end of January, and Maersk and MSC will conclude their 2M alliance at the same time, which they announced a year ago.
December 3: U.S. East Coast Longshore Contract Talks Break Down Over Automation – The Maritime Executive
After promising not to negotiate their new master contract in the media, the International Longshoremen’s Association and the United States Maritime Alliance issued statements arguing their positions on semi-automation technology for U.S. ports along the East and Gulf Coast. The ILA said the talks are at “a crossroads with ocean carriers and employers,” reporting an impasse over the use of semi-automated rail-mounted gantry cranes (RMGs).
After four scheduled days of negotiations, the ILA contends that USMX introduced new semi-automation mid-way through the talks, “causing the talks to break down.”
“USMX-ILA negotiations ended when management introduced their intent to implement semi-automation – a direct contradiction to their opening statement where they assured the ILA that neither full nor semi-automation would be on the table,” said ILA President Harold Daggett.
He said the stalemate over automation and semi-automation threatens to cause another strike in less than six weeks.
USMX responded saying it is not seeking to eliminate jobs but that U.S. East and Gulf Coast ports need to be made more efficient. They point out that most of the ports lack land to expand, saying that to meet demand and handle more volume the only way is “to densify terminals – enable the movement of more cargo through their existing footprint.”
December 9: Shippers Breathe Again as Threat of Indian Port Strike Eases – The Loadstar
Indian exporters and importers are breathing a sigh of relief as fears of a nationwide strike by unionized dockworkers across major government ports fade, according to industry sources.
Labour groups last month threatened to launch indefinite work stoppages from December 17 in a bid to force the government to implement terms of a wage contract hammered out two months ago at port management level.
Sources said officials at the Ministry of Shipping had finally received a mandatory “go-ahead” to approve revised contract conditions for signature. “A formal order is expected quickly, mostly by tomorrow,” said one source, privy to the information. “Officials have already been instructed.”
Union sources, however, said strike preparation plans would continue until the settlement that was agreed on in late September was implemented.
December 9: U.S. Halts Major Asian Shipping Alliance, Says Filing Lacked Details – Supply Chain 24/7
The U.S. Federal Maritime Commission (FMC) has delayed the start of the Premier Alliance Agreement, a proposed vessel-sharing partnership between HMM, Ocean Network Express (ONE) and Yang Ming. The agreement aims to allow the three companies to share vessels, charter space and collaborate on global shipping operations. It was designed to replace THE Alliance, which is being restructured following Hapag-Lloyd’s departure to join Maersk in the new Gemini Cooperation.
The Premier Alliance Agreement was filed with the FMC on October 28 and was set to take effect on December 12. However, the FMC determined that the filing lacked sufficient details to evaluate its competitive impact and compliance with statutory requirements.
The FMC has issued a Request for Additional Information (RFAI), requiring the companies to provide further documents and verified information to address unresolved issues. The review process will not resume until the FMC receives a fully compliant response. Once deemed complete, the Commission will have 45 days to analyze the agreement, and a 15-day public comment period will follow its publication in the Federal Register.
The delay has disrupted the alliance’s timeline, including the postponement of its planned Transpacific PS5 and PN4 services until May 2025. ONE has announced temporary adjustments to its existing services, adding calls at Ningbo and Qingdao on certain routes.
December 10: Ocean Carriers the ‘Outright Financial Winners’ in a Year of Unpredictability – The Loadstar
A year of unpredictability has led to substantial increases in both ocean and air freight rates, according to this week’s report from Transport Intelligence (Ti), and complicated market factors are making future trends hard to predict.
Ocean freight rates remain elevated – 117.6 points above January – and are not expected to return to pre-crisis levels any time soon, according to Ti data.
Indeed, chief analyst at Xeneta Peter Sand said the “clear outright financial winners” this year had been ocean carriers. “They went from a disastrous outlook, with loss-making freight rates, to a dream outlook, with subsequent massively high freight rates,” he explained.
December 12: Trump Backs ILA on Automation Concerns – Supply Chain Dive
President-elect Donald Trump voiced his support for the International Longshoremen’s Association’s stance against automation in a December 12 Truth Social post.
After meeting with ILA President Harold Daggett, Trump said the financial benefits of automation are “nowhere near the distress, hurt, and harm” the technology creates for workers.
In response to the president-elect’s statement, the United States Maritime Alliance, or USMX, claimed that automation is needed to support better pay for workers and help American consumers.
“To achieve this, we need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity, and strengthen our supply chains,” USMX said in a statement. “ILA members’ compensation increases with the more goods they move – the greater capacity our ports have and goods that are moved means more money in their pockets.”
December 16: Carriers Unveil Panama Canal Transit Surcharges for New Year – The Loadstar
Two major carriers have announced new Panama Canal surcharges on Asia-U.S. east coast transits in response to the canal authority implementing a new booking system to “optimize transit operations.”
As of January 1, the Panama Canal Authority (ACP) will modify its transit reservation system, including changes in the tariff structure and fee amounts and the introduction of new tariffs. ACP said the modifications aim “to improve the level of service, to reflect the value of the reservations service, to improve the supply and demand management and to optimize transit operations.”
MSC notified customers that, “to address the increased costs associated with these changes and maintain [its] commitment to providing reliable and efficient services,” it will introduce a Panama Canal surcharge on January 1.
And last week, CMA CGM similarly advised of a “Panama Canal transit surcharge” from January 1, “to recover this extra cost” and “keep providing most reliable services transiting through Panama Canal.”
December 18: Ocean and Premier Alliances Plan Jointly Operated Transatlantic Networks – The Loadstar
Following this week’s announcement from Japanese container line ONE that it is to participate in three transatlantic services with Ocean Alliance carriers, there has been further confirmation that next year will see the Ocean and Premier alliances jointly operating transatlantic networks.
According to analysts at liner database eeSea, the network rejigs represent a reform of the current transatlantic services operated as THE Alliance, which is set to be replaced by the Premier Alliance at the beginning of February.
Meanwhile, an advisory from CMA CGM said the French carrier would also be deploying tonnage on the service, meaning that at least two of the Ocean Alliance carriers would be operating tonnage on the ex-THE Alliance service from next year.
December 20: Qube Ports Faces More Strikes Across Australia – Splash
Strikes at major Australian ports are set to continue in an ongoing dispute between unionized workers and Qube Ports over contract negotiations. Work stoppages will take place in Adelaide, Brisbane, Darwin, Gladstone, Melbourne and Port Kembla.
Upcoming industrial actions will affect ports handling bulk goods, including grains, steel and machinery. Additionally, all participating port workers plan to stage eight-hour stoppages when vessels berth.
The dispute between the Maritime Union of Australia (MUA) and Qube Ports has been ongoing since contract negotiations broke down in April 2024.
“If the MUA prolongs or expands the scope of the strike, cargo handling delays will likely prompt supply chain disruptions through January,” maritime security consultancy Crisis24 warned.
December 21: Trump Demands Panama Lower Transit Fees or Return Canal – BNN Bloomberg
President-elect Donald Trump said on December 21 that the Panama Canal is charging “exorbitant prices and rates of passage” on U.S. naval and merchant ships, and he demanded that fees be lowered or else Panama should return the canal to the U.S.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump said in a post on his Truth Social platform. “This complete ‘rip-off’ of our Country will immediately stop.”
The U.S. is the canal’s biggest customer, responsible for about three quarters of the cargo transiting through each year. A prolonged drought, however, has hampered the the canal’s ability to move ships between the Atlantic and Pacific oceans. U.S. National Economic Council Director Lael Brainard said last week that the resulting disruptions contributed to the supply chain pressures that have boosted inflation.
December 23: After Trump Threat, Mexican President Says Panama Canal Belongs to Panamanians – American Journal of Transportation
Mexican President Claudia Sheinbaum expressed support for Panama’s government on December 23 after U.S. President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal.
“Indeed, the Panama Canal belongs to the Panamanians,” Sheinbaum said.
Sheinbaum’s comments came one day after Trump accused Panama of charging excessive rates to use the Central American passage. After the event, he posted an image on Truth Social of an American flag flying over a narrow body of water, with the comment: “Welcome to the United States Canal!”
Panamanian President Jose Raul Mulino swiftly denounced Trump’s comments.
December 26: Hapag-Lloyd Sets Work Disruption Surcharge for U.S. East/Gulf Coast Ports – The Maritime Executive
With the labour contract unresolved and fears increasing for another longshoremen’s strike at U.S. ports on the East and Gulf Coast, Hapag-Lloyd announced plans for surcharges for all containers booked to the ports. The strike could start in just three weeks and the fees would kick in days later should a strike occur.
“To help manage the potential impact of ongoing challenges at U.S. East Coast and Gulf ports, we are introducing a Work Disruption Surcharge (WDS) and Work Interruption Destination Surcharge (WID), effective January 20, 2025, in the event of a strike,” Hapag writes in a customer alert. “This surcharge covers additional costs from labour disruptions, strikes, slowdowns, unrest, congestion and other unforeseen events that may delay operations and incur extra handling, storage and feeder service costs.”
The fees would be from ports all around the world for cargo gated-in on or after January 20. The charge will be $850 for a 20-footer and $1,700 for a 40-footer.
Containers gated in prior to that date or already on the water will not incur the surcharge.
December 27: Panama’s President Rejects Trump’s Claim of Chinese Interference at Canal – American Shipper
Panamanian President José Raúl Mulino dismissed claims by President-elect Donald Trump of higher fees charged to U.S. ships to use the Panama Canal and scoffed at threats to take over the vital waterway because of Chinese interference.
“The tolls are not set at the whim of the presidents [of Panama] and the administrator of the [canal]. They are set in a public and open process in which clients and other actors participate,” Mulino said at a news conference.
He added, “There are no Chinese soldiers in the canal, for the love of God. It’s nonsense. There are no Chinese at the canal, no Chinese nor any other world power at the canal.”
December 4: Limitations of Liability for International Air Transportation are Rising – Benesch
The limitation of liability for cargo that is lost or damaged during international air transportation will increase on December 28, 2024, from 22 Special Drawing Rights (SDRs) per kilogram to 26 SDRs per kilogram.
The change in international law is due to an increase under the Montreal Convention 1999, formerly known as the Convention for the Unification of Certain Rules for International Carriage by Air, which applies to traffic with signatory nations. The change was recently announced by the International Civil Aviation Organization (ICAO), a United Nations agency that leads international alignment of technical standards and strategies for international air shipments.
December 2: Union Says Negotiations with CPKC Have Reached an Impasse – Inside Logistics
Unifor said negotiations with CPKC have reached a stalemate and, as a result, Local 101R will hold strike votes across the country in the coming weeks.
December 9: CN Reaches Tentative Agreement with Union Representing Mechanics, Clerks – CBC News
Canadian National Railway has reached a tentative agreement with the union representing its mechanical workers and clerks, the company announced on December 9, just two weeks after workers voted to authorize a strike.
Details from the tentative four-year agreement with Unifor will not be released publicly until it is ratified, according to a CN news release. The current collective agreement is set to expire on December 31, 2024.
Two weeks ago, Unifor said two of its member groups voted overwhelmingly in favour of a strike mandate that would have seen workers walk off the job as soon as January 1, 2025.
One group comprises 2,100 mechanics, technicians, crane operators, machinists and electricians, and the other includes 1,500 administrators and customer support staff.
December 23: Unifor Ratifies CN Contracts – Progressive Railroading
Unifor members who work for CN have ratified new four-year collective agreements, the Class I and union announced.
The union represents 3,300 employees at CN in Canada, working in different mechanical, clerical and intermodal functions, all covered by multiple collective agreements.
The new agreements include 3% wage increases annually and expire December 31, 2028.
December 9: Quebec Restricts Access to Driving Privileges for Newcomers to Improve Road Safety – Transport Routier (translated from French)
The Minister of Transport and Sustainable Mobility, Geneviève Guilbault, announces that the Quebec government intends to amend the Regulation respecting permits in order to better regulate access to the right to drive for people wishing to settle in Quebec.
In the future, foreign driving licence holders who fail their practical test will lose the right to drive alone and will be issued a learner’s licence.
“The meteoric rise in immigration to Quebec has had a significant impact on our services, but also on our roads. With high failure rates among newcomers, it was imperative to take action to tighten the rules for access to driving,” said Guilbault.
December 10: Ontario Driving School Enrolments, Fees Plummet as International Student Pipeline Runs Dry – Today’s Trucking
The race to the bottom in new truck driver training is well and truly underway in Ontario’s trucking heartland. Truck driving schools are witnessing a steep drop in enrolments and fees as competition to attract a dwindling number of students has grown increasingly fierce.
After the federal government announced curbs on international student numbers a couple of months ago, some truck driver training schools in Peel Region – comprising Mississauga, Brampton and Caledon – say enrolment has plummeted 40% to 60%. International students worried about their status in Canada are shying away from investing in a trucking career.
More alarming, many of the scores of schools in the area are reducing fees in a desperate bid to sign up the few aspiring truckers available.
Philip Fletcher, president of the Truck Training Schools Association of Ontario (TTSAO), said there are 107 truck driving schools in the Greater Toronto Area. “The over-proliferation of schools is creating a cutthroat mentality, where people are cutting costs in order to try to stay alive,” he said. “They are cutting corners, and they are cutting training time.”
He’s had his association members contact him saying they couldn’t continue to offer training in this environment. Fletcher observed that on average, one-on-one training in a truck costs $120 an hour. MELT mandates 32 hours of on-road training, meaning it would cost a school $3,840 per student. “How are they charging only $3,000 or $3,500?” he asked.
December 13: TQL Asks U.S. Supreme Court to Resolve Issue of Broker Negligence in Motor Carrier Crashes – Land Line
Despite winning its wrongful death case in a U.S. federal appellate court, broker Total Quality Logistics (TQL) is asking the Supreme Court to hear its case to resolve conflicting rulings at circuit courts that address whether a broker is liable for crashes involving motor carriers it has hired.
On December 10, TQL filed its brief with the Supreme Court in a case stemming from a fatal crash involving a motor carrier it hired. The victim’s wife, Kathy Gauthier, claimed the broker should be liable for negligent hiring.
Both the district court and the 11th Circuit Court of Appeals ruled that the Federal Aviation Administration Authorization Act (F4A) protects brokers from personal injury negligence claims. In November, Gauthier petitioned the Supreme Court to hear the case and overturn the ruling.
Typically, the party on the winning side of the appellate case will urge the Supreme Court to deny the petition to secure its win. However, this is not the first or second time the high court has been asked to weigh in on the topic, and TQL wants to put the issue to rest.
December 14: Rising Rejection Rates amid Demand Drop Reveal Truckload Capacity Exodus in U.S. – FreightWaves
Carriers in the U.S. are accepting the same load volumes that they were in April 2023, near the theoretical floor of the freight market’s recent recessionary period. Rejection rates (the rate at which carriers turn down load coverage requests from contracted shippers) are more than double what they were at the time. This is further evidence that a significant amount of supply has left and is continuing to leave the American domestic truckload market.
December 16: Fleets Have Rapidly Improved Fuel Efficiency Since 2022: NACFE – Today’s Trucking
The North American Council for Freight Efficiency’s (NACFE) Fleet Fuel Study reveals that fleet-wide fuel efficiency has significantly improved over the last two years, with average miles per gallon (MPG) rising to 7.62 in 2022 and 7.77 in 2023. These results mark year-over-year gains of 4.2% and 2.0%, following a period of little improvement from 2018 to 2021.
During a webinar discussing the study, Yunsu Park, NACFE’s director of engineering and the lead author, emphasized the role of technological and operational advancements. “The adoption rate for the Fleet Fuel Study fleets of all technologies is at an all-time high, and so are MPGs,” he explained, noting that broader market trends also contributed to the gains.
The study highlights that the adoption of fuel-saving technologies has reached 42%, up from just 17% in 2003. This increase has allowed the 14 participating fleets, which operate 75,000 trucks, to save $512 million in 2023 compared with the average truck on the road.
December 27: States Acting to Curb Nuclear Verdicts Across U.S. – Transport Topics
State lawmakers are taking wider aim at lawsuit abuse, working to curtail an issue that for years has vexed the trucking industry and which now is drawing more mainstream legislative attention due to the thousands of dollars per year it is estimated to cost average Americans.
Per the U.S. Chamber of Commerce, frivolous lawsuits are estimated to cost the average U.S. household more than $4,000 per year, as measured in tort costs incurred by each state.
The Chamber’s Institute for Legal Reform put costs and compensation in the U.S. tort system at $529 billion in 2022, equal to 2.1% of GDP and averaging $4,207 per household. The per-household costs per state vary and consist of total court costs paid in individual states, and the figures include general and commercial litigation liabilities (such as personal injury claims), automobile accident claims and medical liability claims. The findings come from the Chamber’s recently updated analysis, “The Hidden Costs of Lawsuits Continue to Grow.”
December 17: CIFFA Contributes to Report by Standing Committee on International Trade
Canada’s Supply Chains and Expanded International Trade: Challenges and Measures, a report issued recently by the Standing Committee on International Trade, is the result of a study undertaken to: identify programs, tools and measures that support the growth of Canadian businesses and their contributions to domestic and global supply chains, export abroad, and becoming integral players in various economic sectors; and diversify and increase the presence of Canadian businesses in global markets, focusing on areas of competitive advantage and regional diversity of goods and services.
During eight meetings held between January 30 and May 9, 2024, the Committee heard from Government of Canada officials, 12 trade associations, seven Canadian firms, two Canadian port authorities, two federal Crown corporations, one Canadian airport authority, one not-for-profit organization, one think tank and one Canadian mayor. As well, the Committee received three written
responses – from the Canada Border Services Agency, the Economic Development Agency of Canada for the Regions of Quebec, and Global Affairs Canada – and three briefs – from the Canadian International Freight Forwarders Association, the Organization of Canadian Nuclear Industries and UPS Canada.
The report summarizes comments relating to supply chains and expanded international trade that witnesses made to the Committee during a meeting or in a written response or brief. The first and second sections focus on Canada’s supply chains, and the third and fourth sections are concentrated on expanding the country’s international trade. For each of these two areas, observations are provided about selected challenges, as well as about existing and proposed federal measures. The final section contains the Committee’s thoughts and recommendations.
November 2: BCMEA’s Industry Final Offer to ILWU Local 514 – BCMEA update
In an effort to bring nearly two years of negotiations to a close, the BCMEA presented a final offer letter to ILWU Local 514 President Frank Morena.
November 2: MEA Suspends Salary Guarantee for Longshore Workers Not Working – MEA update
The Maritime Employers Association (MEA) is suspending the salary guarantee as of November 5 at 7:00 am for all longshore workers not working, with the exception of bulk sector and essential services. This is a mitigation measure to reduce the cumulative financial impact of repeated strikes and lower volumes at the Port of Montreal.
November 4: ILWU Local 514 Strike Activity Commences – BCMEA update
At 8:00 am on November 4, ILWU Local 514 industry-wide strike activity commenced at BCMEA member terminals.
November 4: Partial Strike by Port of Montreal Dockworkers: Court Rejects MEA Request – Radio-Canada (translated from French)
The Federal Labour Court has once again rejected the request of the Maritime Employers Association (MEA) to have the partial strike by dockworkers at the Port of Montreal affecting the Termont company declared illegal.
The Canadian Industrial Relations Board (CIRB) ruled on the principle of res judicata, since it had already ruled on the previous partial strike affecting the same two Termont terminals.
The Council ruled on a virtually identical request after hearing the parties on September 29, said the court. The only difference is that this time the partial strike is unlimited, whereas it was limited to three days in September.
The union is therefore entitled to exercise the right to strike, even partially, without breaching its obligation to negotiate in good faith, it ruled.
November 6: Trump Presidency Will Reignite U.S.-China Trade War and Threaten a Spike in Ocean Container Rates: Xeneta – American Journal of Transportation
Donald Trump’s victory in the U.S. presidential election is ‘a step in the wrong direction’ for international trade, as importers fear another spike in ocean container shipping freight rates.
Data from Xeneta – the ocean and air freight intelligence platform – shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.
Peter Sand, Xeneta Chief Analyst, said: “Shipping is a global industry feeding on international trade, so another Trump presidency is a step in the wrong direction.
“The knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.”
November 10: Lockout Triggered at Port of Montreal – Le Journal de Montréal (translated from French)
In the absence of an agreement with the CUPE dockers, the Maritime Employers Association (MEA) called a lockout at the Port of Montreal on November 10.
When submitting its final offer on November 7, the MEA warned the longshoremen’s union “that in the absence of an agreement on the offer … only essential services and activities not related to longshore will continue at the Port of Montreal as of Sunday, November 10 at 9 pm.”
Members of the union rejected the MEA’s offer by 99.7% during a secret vote held at a general meeting in the morning of November 10.
The MEA said in a press release that it “reiterates its request to the Minister of Labour, Steven MacKinnon, to intervene to resolve the impasse as quickly as possible.”
November 12: Minister of Labour Orders End to Labour Disruption at Ports, Imposes Binding Arbitration – BCMEA update
On November 12, Labour Minister Steven MacKinnon announced he will use his powers under Section 107 of the Canada Labour Code and direct the Canada Industrial Relations Board (CIRB) to order parties at the Port of Montreal and across Canada’s West Coast to resume operations and duties, and to impose binding arbitration on the parties in order to reach a settlement.
November 13: Resumption of Operations – BCMEA update
On November 13, the Canada Industrial Relations Board (CIRB) issued an order directing the BCMEA and all its members to resume operations on November 14, and to continue operations and duties until the Board makes a final determination.
With the resumption of work, coupled with an anticipated high volume of vessels and cargo, there will be extensive, province-wide labour requirements across all port areas.
The CIRB has scheduled a hearing on November 18 to hear the parties on certain questions raised with respect to the ministerial direction under Section 107 of the Canada Labour Code.
November 13: Canadian Unions Plan Court Challenges to Arbitration Ending Port Strikes – The Maritime Executive
The unions representing the foremen for ports in British Columbia and the dockworkers in Montreal both responded angrily to the announcement that the federal government was mandating final and binding arbitration in their contract disputes.
On the West Coast, where the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 has been locked out since November 4, the union leadership called the government’s decision “an insult” and said it was denying workers’ bargaining rights.
“We will fight the arbitrated forced contract in the courts,” said Frank Morena, president of the local, in a press release. “Labour Minister Steven MacKinnon has unfairly given the BC Maritime Employers Association (BCMEA) the one-sided federal intervention it wanted from locking out workers and closing BC ports.”
At the same time, the Quebec branch of the Canadian Union of Public Employees (CUPE), which represents the Port of Montreal’s nearly 1,200 dockworkers, called it a “dark day for workers’ rights.” In a press release, the union asserted, “The right to collective bargaining is a constitutional right.”
November 13: ILA Breaks Off East Coast Port Contract Talks – American Shipper
The International Longshoremen’s Association has broken off contract negotiations with East and Gulf Coast port employers, accusing them of pushing automation technology into a new coastwise labour pact that would eliminate union jobs.
The ILA and employers represented by the United States Maritime Alliance this week resumed bargaining on a new six-year master contract covering 45,000 union workers involved in container handling at dozens of East and Gulf Coast ports.
In a statement posted to social media and then taken down, the ILA said that in meetings in New Jersey, “USMX introduced language in their proposal for semi-automated equipment to be used at ILA ports, which this union outright rejected. The ILA recognized this as a renewed attempt by USMX to eliminate ILA jobs with automation and broke off talks.”
November 16: Port of Montreal Operations Resumed – City News Montreal
Operations were set to resume at the Port of Montreal on November 16 following the lockout of longshore workers.
Management at the Port of Montreal says it will take several weeks to fully establish the import and export supply chain flow following the lockout that started on November 10. That’s when the Maritime Employers Association locked out close to 1,200 longshore workers after its latest contract offer was rejected.
The Canada Industrial Relations Board ordered the restart of operations at the port, as well as for negotiations to be moved to binding arbitration.
November 25: Mediation for Montreal Port Labour Talks – American Shipper
Port of Montreal employers and union dockworkers have mutually agreed to mediation in their contract negotiations.
“Following the decision of the Canada Industrial Relations Board (CIRB) on Nov. 14, the union of Longshoremen of the Port of Montreal (CUPE 375) and the Association of Maritime Employers (MEA) have agreed, by consensus, to undertake a mediation process for a period of 90 days,” the sides said in a joint release.
The parties have agreed to retain the services of Gilles Charland, a dispute resolution specialist. Both sides also agreed not to make any public statements during the mediation process.
November 27: Australian Wharfies to Expand Job Action at Bulker/General Cargo Terminals – The Maritime Executive
Australian port terminal operator Qube becomes the latest in a long list of port operations to be facing potential strikes by dockworkers. The National Maritime Union (NMU) of Australia anticipates that 10 Australian ports will be involved by late December as it seeks to expand its industrial action against the company.
The NMU asserts that the real value of wages paid to its members by Qube has declined 14 percent due to inflation since the pandemic. The union’s demands include pay increases that catch up with inflation and protect dockworkers’ purchasing power. They cite the principle of “same job same pay,” demanding increases for all workers.
November 9: Revision of Liability Limits Under the Montreal Convention 1999 – FIATA
Effective December 28, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 will increase, as announced by the International Civil Aviation Organization (ICAO).
According to the changes, the limit for destruction, loss, damage or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram.
The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at US$1.33038 on October 25 this year.
The limits are set to increase in line with the Convention’s built-in review mechanism, to adjust for inflation every five years so as to ensure that passenger and cargo compensation remains appropriate over time.
These updates will affect freight forwarders, as they will need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for the increased liability limits.
November 19: Changes to U.S. Air Cargo Advance Screening Requirements and Guidance – FIATA
New TSA emergency air cargo security measures and updates to the ACAS program are aimed at strengthening the security of cargo entering or transiting through the United States. Supply chain players, including freight forwarders, must comply with these more-stringent pre-loading advance cargo information (PLACI) requirements.
Changes have been made to requirements related to data elements, the “established business relationship” and more.
November 19: Canadian Railways Seek Solutions to Frequent Labour Disruptions – Trains
If there’s a silver lining to the spate of labour disruptions that have affected Canadian railways and ports over the past 15 months, it’s that Ottawa now recognizes there’s a problem.
“That’s the first step in fixing it,” Canadian National CEO Tracy Robinson said at the recent RailTrends conference. CN executives were scheduled to meet with federal officials about labour matters in the week of November 18, she said.
Canadian ports and railways are losing traffic to their U.S. rivals due to recent work stoppages. CN and CPKC have seen significant growth in their international intermodal traffic for more than a decade as Canadian ports have become gateways to the U.S. Midwest. Frequent labour disruptions put that traffic at risk, the railways have said.
The railways are advocating for changes in Canadian labour law that would make it mirror the U.S. Railway Labor Act, which seeks to avoid strikes by sending unions and railroads to binding arbitration or mediation when contract talks are deadlocked.
The Teamsters Rail Canada Conference, which represents train crews on CN and CPKC, is bitterly opposed to any changes to existing labour regulations.
Marc Brazeau, CEO of the Railway Association of Canada, says the railways respect workers’ right to strike, but notes that a relatively small number of unionized workers should not be able to shut down the country’s economy.
November 25: CN Rail Mechanics, Clerks Vote Overwhelmingly to Approve Strike Mandate – CBC News
Mechanics and clerks at Canadian National Railway Co. have voted overwhelmingly in favour of a strike mandate that could see workers walk off the job as early as New Year’s Day.
Unifor says 97 percent and 96 percent of the two groups, respectively, cast their ballots in favour, paving the way for potential job action on January 1.
One group comprises 2,100 mechanics, technicians, crane operators, machinists and electricians, and the other includes 1,500 administrators and customer support staff. They are calling for improved job security, compensation and working conditions at CN.
Unifor says negotiations are resuming in Montreal and will continue through December 8.
November 6: Stakeholders Concerned Over Deteriorating Safety, Compliance Standards in Ontario Trucking Industry – Today’s Trucking
Trucking industry stakeholders have raised the alarm about an increasing number of companies, schools and drivers in Ontario who do not rise to the minimum professional requirements, and in many cases disregard complying with laws and standards.
A release signed by the Ontario Safety League, Ontario Trucking Association, Truck Training Schools Association of Ontario, Private Motor Truck Council of Canada, Professional Truck Training Alliance of Canada, Teamsters Canada and Women’s Trucking Federation of Canada says, “It is distressing to admit the standards of safety and compliance are eroding rapidly in our industry.”
The stakeholders believe the Ontario trucking industry is being dominated by carriers whose operating model is built on widespread non-compliance and who have little to no commitment to vehicle and driver safety and the environment.
They have no respect for labour standards and mandates, contempt for employee and contractor classifications, and willfully neglect their obligation as corporate citizens to contribute to Canada’s social systems, the release adds.
November 19: FMCSA Proposes New Rules on Broker Transparency – FreightWaves
Federal regulators have issued a long-awaited proposed rule in response to allegations of fraud in the rate-making process raised by owner-operators against truck brokers.
In May 2020, the Owner-Operator Independent Drivers Association and the Small Business in Transportation Coalition petitioned the Federal Motor Carrier Safety Administration to improve broker transparency.
OOIDA’s petition requested that brokers automatically provide transaction information within 48 hours of the completion of contractual services and that brokers be prohibited from including any contract provision that requires a carrier to waive its rights to access the transaction records.
SBTC also wants brokers to be prohibited from requiring carriers to waive their rights to review transaction records, and wants FMCSA to adopt new regulatory language stating that broker contracts cannot exempt brokers from having to comply with transparency requirements.
FMCSA’s proposal stops short of outright prohibitions as requested, however.
“Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC,” the agency stated in a notice.
November 29: Trucking Companies Hit with $165 Million in Nuclear Verdicts in the U.S. in 2023 – Today’s Trucking
Trucking companies across the U.S. faced US$165 million in nuclear verdicts – jury awards exceeding $10 million – in 2023, according to the latest Marathon Strategies report.
To address such challenges, Iowa became the first state in the U.S. to cap liability damages against trucking companies, helping companies affected by nuclear verdicts. The legislation limits such damages to $5 million. It does not include cases where a trucking company acted negligently, such as through hiring, training, supervising, or trusting an employee driver involved in a crash, according to the report.
Louisiana continues to be one of the hardest-hit states for trucking-related verdicts. Last year, the state accounted for 15 nuclear verdicts for the trucking, oil and gas, and pharmaceutical industries, ordering nearly $10 billion in payoffs. Meanwhile, Florida ordered companies in trucking, automobile, real estate and tobacco industries to pay more than $33.2 billion in 175 verdicts since between 2009 and 2023.
November 11: CIFFA Letter to Labour Minister Regarding Port Work Stoppages
CIFFA wrote to federal Labour Minister Steven MacKinnon, urging him and the federal government to consider classifying the key port work forces as “essential,” thereby ensuring that a different and more reliable mechanism can be employed to resolve labour/management negotiations.
November 27: CIFFA Announces Winners of the 2024 Scholarship Program
CIFFA is pleased to announce two winners of the 2024 CIFFA Scholarship Program: Ava Hihn and Hannah Murphy.
The scholarship was created to raise awareness of global logistics as a career path and to encourage advanced education in international trade, logistics and commerce.
CIFFA awarded a cheque for $4,000 to each of the scholarship recipients.
October 1: Impacts Apparent After One Day of Three-Day Strike Action at Port of Montreal – Port of Montreal press release
The Montreal Port Authority (MPA) has revealed the operational impacts of Day 1 (September 30) of the partial strike at the Port of Montreal.
While the ongoing work stoppage at the Viau and Maisonneuve terminals is paralyzing 40% of total container handling capacity, MPA is seeing an accumulation of containers on the ground, including temperature-controlled containers for food, pharmaceutical and medical products. In addition, goods scheduled to transit through the Viau and Maisonneuve terminals are being held up at forwarding agents, and five container ships due to arrive at the Port of Montreal in the next few days have been delayed.
October 1: East and Gulf Coast Ports Strike, with ILA Longshoremen Walking Off Job from New England to Texas, Stranding Billions in Trade – CNBC
Approximately 50,000 ILA union longshoremen walked off the job at East Coast and Gulf Coast ports from New England to Texas starting at 12:01 am ET on October 1 after failing to reach an agreement with ports ownership on a new contract, the union’s first strike since 1977.
Between 43% and 49% of all U.S. imports and billions of dollars in trade monthly move through the U.S. East Coast and Gulf ports.
October 2: Port of Montreal Negotiations Update – MEA update
After a three-day strike, activities are to resume on October 3 at the Viau and Maisonneuve terminals.
In an online update, the Maritime Employers Association (MEA) said: “Clearly, the current mediation process is no longer producing results. The mediation meeting on September 26 unfortunately led to the longshore workers’ Union filing a strike notice the next day.”
October 2: Box Lines Declare Force Majeure as White House Defends ILA – The Loadstar
Shipping lines are beginning to declare force majeure, as the U.S. East and Gulf Coast port strike continues.
Any hope from employer association USMX that the government might intervene to halt the economically damaging strike was dashed when the White House landed firmly on the side of the union. The administration also warned carriers against ‘price-gouging.’
A statement from President Biden urged both sides to restart collective bargaining, saying “the best way for workers to get the pay and benefits they deserve.”
He added: “I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions.
“Ocean carriers have made record profits since the pandemic and, in some cases, in excess of 800% compared with their profits prior to the pandemic. Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates.
“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”
October 3: U.S. Port Strike Ends as Workers Agree to Tentative Deal on Wages and Contract Extension – CNBC
The ILA and USMX agreed on October 3 to a tentative deal on wages and have extended their existing contract through January 15 to provide time to negotiate a new contract.
The move ends a strike that had snarled East Coast and Gulf Coast ports since the beginning of the week.
“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues,” the parties said in a joint statement.
October 4: Hapag-Lloyd Introduces Low-Water Surcharge from North Europe and Mediterranean to Canada – Container News
Hapag-Lloyd will implement a low-water surcharge from North Europe and Mediterranean to Canada, effective October 14.
“The water levels in the St. Lawrence River have significantly dropped, and the Canadian Coast Guard has forecast further reductions in the coming weeks,” noted the German carrier.
In response to these conditions, Hapag-Lloyd will introduce a surcharge of US$150 per TEU for all cargo transported via the Port of Montreal.
October 7: Port of Montreal Longshoremen to Refuse Overtime – CTV News
The longshoremen’s union at the Port of Montreal is announcing further pressure tactics: They will refuse to work overtime from 7 am on October 10 for an indefinite period.
A mediation session between the parties was held on October 4 in the presence of two federal mediators after the longshoremen resumed their activities.
Management of working hours and work-life balance were among the main issues in dispute.
October 7: Port of Montreal Negotiations Update – MEA update
In response to the announcement from the Port of Montreal longshoremen’s union, the Maritime Employers Association said that the complete cessation of overtime has a significant impact on deployed crews and the tasks required for operations.
As a result, the MEA has decided that employees assigned to shifts with incomplete crews will not be paid, saying that incomplete shifts will cause imminent slow downs or even halt operations at the port.
The MEA has formally asked the union to withdraw this strike notice.
October 15: Port of Montreal Labour Negotiations Update – MEA update
A meeting was held on October 15 with federal Minister of Labour Steven MacKinnon to advance the matter of the labour contract between the MEA and the Montreal Longshoremen’s Union. The meeting was attended by both the employer and the union.
During the meeting, the Minister proposed the appointment of a special mediator so the parties can resume negotiations, without any pressure tactic from either party for a period of 90 days.
The MEA and the union must submit their respective responses to the Minister of Labour no later than October 18 at 5:00 pm.
October 15: Carriers Battle for Market Share as Demand Falls and Alliance Shuffle Looms – The Loadstar
The shuffling of container shipping alliances in 2025 is prompting liner operators to fight for market share, impeding capacity discipline, despite a relentless fall in freight rates.
Linerlytica’s report this week notes that just 37 box ships, amounting to 77,185 TEU, equivalent to 0.3% of the active fleet, are currently unemployed.
The consultancy noted: “Demand for additional tonnage shows no signs of cooling down, with carriers snapping up all tonnage coming open on the charter market in the next two months. The idle fleet remains unusually low at this time of the year, while scrap sales for the year remain well short of 100,000 TEU as carriers set the stage for a fresh battle for market share ahead of the 2025 alliance reshuffle.”
October 21: More Cargo Chaos at Chittagong Port as Transport Operators Strike for 48 Hours – The Loadstar
Shippers are facing more upheaval at Chittagong Port – transport operators began a 48-hour strike on the morning of October 21, leaving export and import containers stranded.
The Chittagong District Prime Move Trailer Workers Union’s action will impact 3,000 to 4,000 TEU at the port each day of the strike.
Secretary general of the Bangladesh Inland Container Depots Association Ruhul Amin Sikder said: “If the strike continues, shipment of boxes would not be possible in time. Many containers will miss designated feeder and mother vessels.”
October 22: Overtime Ban at Port of Montreal Goes On as ‘Special Mediator’ Is Rejected – The Loadstar
Canadian shipping stakeholder hopes of a prompt resolution of the dispute at the Port of Montreal have been quashed, after Canadian Minister of Labour Steven MacKinnon’s proposal for “special mediation” was rejected.
Last week, Mr. MacKinnon made a proposal to the Maritime Employers Association (MEA) and Montreal Longshoremen’s union Local 375 to appoint a special mediator so the parties could “resume negotiations without any pressure tactics from either side, over a 90-day period.”
But Mr. MacKinnon wrote on X on October 21: “The parties have been unable to reach an agreement,” indicating that a mediator would therefore not be appointed.
But he urged: “They must find a path forward towards a negotiated settlement as quickly as possible,” and added that he would “continue to closely monitor the situation.”
Meanwhile, the overtime ban at the port that started on October 11 is set to last indefinitely.
October 23: BCMEA–Local 514 Bargaining Update – BCMEA update
The Canada Industrial Relations Board (CIRB) provided a written decision on October 23 on outstanding issues between the BC Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union Local 514, and has found, for the third time in this round of negotiations, that Local 514 has bargained in bad faith.
The decision follows the CIRB’s ruling this past summer that Local 514’s attempt to isolate DP World with a strike vote and strike notice in July 2024 was bargaining in bad faith, and therefore illegal. In that same ruling, it also held that Local 514’s proposal regarding DP World’s Nanaimo terminal constituted bargaining in bad faith because it was raised too late into the negotiation process.
Now the CIRB has determined that Local 514 bargained in bad faith by tabling a minimum manning proposal at DP World (Canada) Inc., more than a year into the bargaining process.
October 24: Union Issues Notice of 24-Hour Strike at Port of Montreal – MEA update
The Maritime Employers Association (MEA) received a strike notice on October 24 from the Port of Montreal Longshoremen’s Union, CUPE Local 375, which will see a complete stoppage of work on Port of Montreal territory, including the Contrecœur terminal, for 24 hours, from Sunday, October 27, at 7:00 am to Monday, October 28, at 6:59 am.
October 28: Port of Montreal Dockworkers Launch Partial Unlimited Strike – Global News
After holding a 24-hour strike on October 27, dockworkers at the Port of Montreal have decided to continue their pressure tactics with a general strike at two terminals.
The union representing nearly 1,200 longshore workers at the country’s second biggest port announced a job action will begin October 31 at the same two container terminals affected by a three-day strike earlier this month and continue until further notice.
The union says the terminals that will be impacted by the unlimited strike are operated by Termont and are responsible for about 40 percent of container traffic.
October 29: Port of Montreal Labour Negotiations Update – MEA update
The Maritime Employers Association (MEA) has asked Minister of Labour Steven MacKinnon to appoint a special mediator to break the deadlock between the MEA and the Longshoremen’s Union.
The MEA is concerned about operational upheavals expected from the union’s unlimited general strike at the Viau and Maisonneuve terminals starting on October 31, and the financial impacts they will have.
October 31: BCMEA–Local 514 Bargaining Update – BCMEA update
In response to ILWU Local 514’s second industry-wide strike notice set to commence on November 4 at or about 8:00 am PT, and in anticipation of escalating and unpredictable strike action, the BCMEA has made a decision to take defensive action in the form of a coastwide lockout.
October 2: Airlines Scramble to Avoid Middle East Airspace as Missiles Fly – The Loadstar
Israeli, Jordanian and Iraqi airspace is temporarily closed after Iran’s biggest-ever missile attack on Israel, with disruption to air cargo traffic expected.
Israeli officials reported that Iran launched some 200 ballistic missiles at the country on October 1, following days of attacks on Hezbollah targets in Beirut, Lebanon.
October 10: Soaring Airfreight Rates See Dhaka Cargo Being Moved via China – The Loadstar
Bangladeshi freight forwarders have started sending air cargo to the U.S. west coast via China, as elevated airfreight rates elsewhere mean this is more cost-effective than using Middle East hubs.
As well as soaring rates out of Dhaka, forwarders have reported hubs in the Middle East as congested in recent weeks, particularly as regional tensions increase and airlines were forced to cancel flights.
October 11: Air Cargo Spot Rates Hit 2024 Peak, While Vietnam Becomes a Hotspot – The Loadstar
As of October 11, air cargo spot rates had risen to their highest level this year, despite the recent Golden Week holiday in China.
Tonnages fell by 7% week on week out of Asia Pacific, in the week to October 6, WorldACD said. But worldwide spot rates went up 1% in the week to $2.84 per kg – their highest level this year.
Asia Pacific rates rose 1%, while Africa was up 2% and Central and South America up 5%. WorldACD noted that contract rates out of Asia Pacific rose 2%.
One current hotspot is Vietnam – and it has not gone unnoticed by carriers.
October 17: Incendiary Device Revealed to Have Been Found in UK Parcel Network in July – Air Cargo News
It has been revealed that a shipment containing an incendiary device found its way into DHL’s UK parcel network and caught fire in July, with the incident under investigation by the country’s counter-terrorism police.
The Guardian reported that the device had been transported by aircraft into the UK and later caught fire at a DHL warehouse in Birmingham.
The incident occurred in July but only came to light on October 17 following an investigation published by the news services.
At this stage, it is not known whether the package was transported on a freighter or a passenger aircraft, or what its final destination would have been.
A similar incident occurred in Germany earlier this year with the package igniting in Leipzig.
The head of Germany’s domestic intelligence service, Thomas Haldenwang, said the shipment had been delayed and would otherwise have been on an aircraft when it caught fire and would have resulted in a crash.
October 18: Passenger Rush to Attend Festivals Puts Strain on India’s Air Cargo Flows – The Loadstar
Indian air freight forwarders and shippers are reporting a severe strain on airline bellyhold capacity, due to festival-linked passenger traffic.
Various Indian Hindu festivals run between September and November, with Diwali – the festival of lights – the biggest celebration, starting on October 31.
Industry sources complain that the cargo capacity crunch is seriously impacting supply chains, especially time-sensitive or perishable cargo movements.
“With the festive season in full swing, the surge in passenger air travel has put immense pressure on air cargo logistics players, particularly those relying on belly space to transport goods,” said Hector Crasto, GM (international division) at Mumbai-based 3PL Patel Integrated Logistics.
“Airlines are experiencing significant capacity pressures, both on domestic and international routes,” he noted, and explained that cargo volumes had seen strong surges in recent weeks, causing clearance delays of up to four days at major airports.
October 2: CPKC Integration Update
CPKC has scheduled the integration of its Canadian/U.S. systems for Q2 2025. Complete integration with Mexico is planned for a later date.
Significant progress on this has already been made by CPKC, including active collaboration with Railinc and Interline partners to ensure a successful transition. Customer training, support and ongoing communication regarding critical system or process changes will be provided well in advance.
October 7: Disputed CN Rail Hub in Milton Gets Go-Ahead from Federal Court – CHCH
There’s been a major development regarding the construction of a quarter-of-a-billion-dollar rail hub in Milton.
The Federal Court of Appeal has ruled construction can proceed as planned, even though there has been push-back from the community over environmental concerns.
CN Rail says the new transportation hub will meet the growing demand for the transportation of household goods across the GTHA.
Construction is well under way on the Milton Logistics Hub and is expected to take approximately two years to complete.
October 10: Unifor, CPKC Open Contract Talks; Conciliators Appointed for CN Negotiations – Progressive Railroading
Unifor has initiated contract negotiations with Canadian Pacific Kansas City, weeks after it opened negotiations with CN for a new contract agreement.
“Our bargaining team has prioritized the key issues of work ownership and protection, improving working conditions, and resolving poor labour relations,” Unifor officials said in a notice to members. “We are focused on securing protections against high levels of contracting out and forced overtime, as well as tackling strict company policies that negatively impact work-life balance.”
October 22: Ottawa Set Precedent in Rail Dispute, Labour Court Says – Radio-Canada (translated from French)
The Canada Industrial Relations Board has said the federal government’s directive to end work stoppages to allow rail traffic to resume across the country in August was an “unprecedented” move.
In a new document explaining its decision, the CIRB said Labour Minister Steven MacKinnon’s direction that the quasi-judicial body end the work stoppages and begin binding arbitration amounted to an order.
These ministerial directives are unprecedented in that […] the minister effectively ordered the Board to end the strikes and/or lockouts and impose final and binding arbitration to settle the terms of the collective agreements, wrote President Ginette Brazeau in a unanimous decision released on October 22.
Union members and worker advocates criticized the move, saying it undermined workers’ bargaining power and negotiating rights.
MacKinnon said he supports collective bargaining, but the directive was necessary to limit the impact of a work stoppage that has disrupted the movement of goods and people across the country.
October 24: Railways and Union to Begin Binding Arbitration Meetings in March – Inside Logistics
Following the August 23 order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between CN, CPKC and the Teamsters Canada Rail Conference (TCRC), CN recently announced it has agreed on an arbitrator to determine the terms of the next collective agreement.
Mediation meetings will occur over seven days in March. If a mediated settlement is not reached during those seven days, arbitration will be scheduled to take place in April. As per the protocol negotiated between the parties, the arbitrator will have 60 days to make a ruling. In view of this, a decision is expected before the end of the second quarter.
CIRB also directed that the current collective agreement remain in place until a new one is reached, meaning no strike or lockout can occur.
October 24: Arbitrator Tabbed for CPKC-TCRC Rail Contract Talks – FreightWaves
There is progress in contract negotiations between Canadian Pacific Kansas City (CPKC) and its largest union.
Teamsters Canada Rail Conference says the Federal Mediation and Conciliation Service has appointed William Kaplan as the arbitrator in its collective bargaining with the railway.
Kaplan is also serving as arbitrator for the TCRC’s contract negotiations with Canadian National, the union said in a news release.
A schedule has not been set for mediation.
October 29: Unifor Files for Conciliation in Contract Talks with Canadian Pacific Kansas City – CBC News
The union that represents mechanics and labourers at Canadian Pacific Kansas City Ltd. has filed for conciliation in its contract talks with the railway company.
Unifor, which represents more than 1,200 mechanics, labourers, diesel service attendants and mechanical support staff at Calgary-based CPKC, said its negotiations with the railway are at an impasse.
October 2: U.S. FMCSA Targets Falsified ELD Records in New Approach – Transport Topics
Faced with evolving tactics to bypass hours-of-service rules, the U.S. Federal Motor Carrier Safety Administration is taking steps to combat electronic logging device fraud. The agency is launching a multipronged approach to address what it describes as a “moving target.”
In particular, the agency cited National Transportation Safety Board concerns with so-called ghost drivers as well as drivers utilizing multiple ELD accounts, and it is exploring various technological requirements to target those specific issues. It also is monitoring ELD performance data, training enforcement personnel to identify and act against fraud, removing noncompliant ELD providers from the market, and updating its ELD rules.
October 3: Halton Region Enforcement Blitz Puts One in Four Inspected Trucks Out of Service – Today’s Trucking
Enforcement officials placed 27% of inspected trucks out of service during a recent commercial vehicle enforcement blitz in Halton Region, situated in the Golden Horseshoe of Southern Ontario.
The Halton Regional Police Service, working with more than 80 police officers and ministry officials from police services and agencies across the Greater Toronto Area and Southwestern Ontario, inspected 487 trucks, placing 132 OOS during the annual event that took place October 1 and 2 at Elements Casino Mohawk, just off Highway 401.
Areas of concern included driver licensing, daily trip inspections and hours of service, along with truck-oriented issues that included mechanical fitness, load security, and weights of trucks and loads.
October 4: Cargo Theft Trends: Motor Carrier Number Manipulation Is on the Rise in the U.S. – FleetOwner
Imagine you’re a freight broker who has done business with the same trucking company in the U.S. for many years. The fleet has a good reputation, and you know them personally. Unbeknownst to you, those in charge of the trucking company sell its motor carrier number; unbeknownst to the fleet, those who purchase the number are cargo thieves.
With this MC number, the cargo thieves come to you, the freight broker, for a load. The cargo thieves paid extra to the original fleet for its phone number, email and other contact information. So, on your end, nothing has changed; the fleet information looks the same in your system. You have no idea that your once-trusted carrier sold its MC number. You give them a load, and the thieves steal it and others in one fell swoop, abandoning the MC number afterward.
This Trojan Horse method is called motor carrier number manipulation, and according to cargo theft experts, it’s currently on the rise.
October 4: Emission Regulations Leave Frustrated B.C. Truckers Tampering with Controls: Report – Business in Vancouver
A report from Metro Vancouver Regional District’s air quality department says there is “growing evidence” B.C. truck drivers are “tampering” with emission controls on their vehicles – a phenomenon confirmed by the BC Trucking Association.
The report states that tampering of medium and heavy truck (MHT) emission control software is a concern in meeting local nitrogen dioxide particulate and greenhouse gas emission targets.
The need for alternatives – such as renewable biofuels and short-sea shipping of containers, per the report – is evident because zero emission goals for MHTs are not attainable under current realities, said Dale Earle, president and CEO of the BC Trucking Association.
“We’re not there yet and it’s really frustrating” to face some of the regulations in place or about to be put in place, said Earle.
“The cold, hard truth is there is no mathematical way we can get to emission targets using zero emission vehicles,” said Earle, noting no electric truck can make it even halfway up the Coquihalla Highway.
October 10: FMCSA Guidance on Buying and Selling MC Numbers – Overdrive
Is it legal to sell an MC number? Trucking businesses obviously get bought and sold all the time.
But then there’s a grey, or maybe even black, market for MC numbers to help fraudsters evade detection from carrier vetting software or even the Federal Motor Carrier Safety Administration itself. Some shady operations offer trucking companies up to $30,000 for an MC number with a good history and relationships with big shippers.
Since 2013, FMCSA does not process “applications for transfer of operating authority, issue transfer approvals, or require the $300 fee formerly associated with such applications,” a notice in the Federal Register reads. “Under the new transfer recordation process, both transferors and transferees will be asked to provide basic identifying information concerning their business operations, ownership, and control, e.g., name, business form, business address, and name(s) of owner(s) and officers. No application form is required, and no transfer fee applies.”
Basically, these days, when two willing parties want to transfer an MC, they’re asked, not required, to tell FMCSA about it, and there isn’t even an application.
October 18: Q3 Cargo Theft Incidents 14% Higher Than Last Year – Today’s Trucking
Cargo thefts across the U.S. and Canada saw a sharp rise in the third quarter of 2024, with 776 theft events reported, representing a 14% increase compared with the same period in 2023, according to a new report from CargoNet. The total value of stolen goods in the third quarter of the year exceeded $39 million.
Despite a slight 1.6% decrease in incidents compared with the second quarter of 2024, the gap is expected to close as delayed reports come in, CargoNet said. The report added that organized crime groups continue to drive the increase in cargo theft, turning to increasingly sophisticated tactics of strategic nature that typically involve some form of document fraud, identity theft and intent to steal the property they are being entrusted to transport.
October 25: Non-Compliant Carriers Gaming the System for Profit: CTA’s Laskowski – Today’s Trucking
Non-compliant carriers are gaming the system and gaining market share, warned Stephen Laskowski, president of the Canadian Trucking Alliance (CTA).
He observed that the government is not taking the issue seriously and wants rules enforced.
Laskowski said industry members are getting increasingly frustrated about enforcement regarding personal services businesses and employee misclassification.
“Why isn’t the law being applied? Is a political calculus being applied to the law?” he asked. “We are entering an era where we have seen decisions made that don’t factor in the application of the law exclusively. Enforcing the rules is not black and white anymore.”
September 3: Local 514 Bargaining Update – BCMEA web post
On September 3, International Longshore and Warehouse Union Local 514 communicated to the BC Maritime Employers Association (BCMEA) that it had a mandate from its members to take strike action.
Neither party immediately issued 72-hour notice of strike or lockout. Regular operations at B.C. ports continued uninterrupted.
The BCMEA awaits the conclusion of the Canada Industrial Relations Board (CIRB) hearing regarding the union’s DP World (Canada) Inc. pay and manning proposal, which the BCMEA alleges to be illegal, constituting the union bargaining in bad faith.
The parties are scheduled to continue the CIRB hearing next week.
September 3: Maersk’s New ‘Fossil Fuel Fee’ More Costly for Shippers than Surcharges – The Loadstar
Maersk’s new fossil fuel fee (FFF), which replaces its bunker adjustment factor (BAF) and low-sulphur (LSS) surcharges, appears to be a more costly outcome for shippers and to the carrier’s advantage.
On May 31, Maersk announced the FFF and since July 1, all new contracts with more than three months’ validity have been quoted including the new fee.
To calculate FFF, the Danish carrier uses Platts’ fuel price index for 0.5% sulphur fuel oil (VLSFO) and 0.1% sulphur fuel oil (LSMGO).
Using this methodology for the period of May 11 to August 10, Maersk updated the FFF to an average $586.59 per ton for VLSFO and $750.28 per ton for LSMGO from October 1.
September 4: U.S. Port Talks Kick Off in Effort to Avoid Strike – Transport Topics
The union representing East and Gulf coast dockworkers kicked off a two-day meeting on September 4 in New Jersey to discuss wage demands with port employers under the threat of a strike that would disrupt maritime trade gateways from Houston to Boston.
Negotiations on a labour contract covering six of the 10 busiest U.S. ports have stalled since June, when the International Longshoremen’s Association called off high-level wage talks with the United States Maritime Alliance, a group known as USMX that represents ocean carriers and terminal operators.
About 45,000 workers and three dozen ports in total could be affected in the event of a strike. And with less than a month before the September 30 deadline, U.S. retailers are renewing their plea to the White House to help break the impasse.
September 5: ILA Chief Vows to Form Global ‘Mega-Union’ to Fight Port Automation – The Loadstar
Belligerent U.S. International Longshoremen’s Association (ILA) president Harold Daggett has vowed to initiate strikes on October 1 if agreement is not reached with the “far apart” port operators’ United States Maritime Alliance (USMX).
And, he said, he intends to take on all the major carriers by forming a global ‘mega-union’.
September 6: Insurance Claims on the Rise with Box Ships Forced to Brave Cape Weather – The Loadstar
There has been a prolific rise in weather-related cargo loss and insurance claims since carriers have been forced to brave the extreme conditions round the Cape of Good Hope to escape Houthi attacks in the Red Sea.
Conventional wisdom has it that ships should avoid heavy storms where possible to minimize the risk of container loss, but the past 270 or so days of rerouting have seen vessels exposed to extreme weather off southern Africa.
In fact, between June 2 and September 6, there have been five incidents involving cargo loss or damage in the area, according to data from maritime claims consultant MK Webster.
September 6: Tentative Contract After Longshore Union Stops Hamburg Port Operations – The Maritime Executive
Germany’s labour union Ver.di and the employers of longshore workers reported on September 6 they have reached a tentative agreement on a new contract after months of disputes and “warning strikes.” The agreement came as the union had staged yet another strike that was disrupting the Port of Hamburg.
September 9: New Strings Attached – Shipping Shapes Up for 2025 with Premier Alliance Launch – The Loadstar
The structure of the global container shipping alliance next year is set for a further shake-up after MSC unveiled its new standalone east-west service network and revealed it has concluded a vessel-sharing agreement (VSA) with THE Alliance, covering nine Asia-Europe services.
The pivot point is February 2025, when the 2M partnership of MSC and Maersk is set to disband, while at the same time Hapag-Lloyd will depart THE Alliance to form the Gemini Cooperation with Maersk – at which point, the remaining three THE Alliance carriers – ONE, Yang Ming and HMM – will rebrand as the Premier Alliance and enter into a slot-share agreement with MSC covering the Asia-Europe trades.
In a parallel development, MSC has also signed a three-year VSA with Zim on the transpacific trade.
September 10: U.S. FMC OKs Maersk, Hapag-Lloyd Alliance – Supply Chain Dive
Maersk and Hapag-Lloyd’s operational alliance called the Gemini Cooperation took effect on September 9, the Federal Maritime Commission said.
Originally set to take effect July 15, the FMC halted the operational agreement from the two ocean shipping giants because it was determined the agreement lacked details on its potential competitive impacts.
Newly filed agreements or already-operative agreements can be assessed by the commission for the likelihood of an unreasonable increase in transportation costs or a decrease in transportation service. The agency can seek an injunction in federal district court if it makes such a finding.
“The Commission has not determined to seek an injunction against the Gemini Cooperation Agreement at this time,” the FMC said.
September 11: Could U.S. East Coast Port Strike Spread to West Coast? ILWU Has Pledged to Support ILA in Contract Fight – American Shipper
Could a work stoppage by East Coast longshoremen spread to West Coast ports?
That’s the nontrivial question facing shipping lines, terminal operators and the country at large as U.S. East and Gulf Coast port employers nervously wait out an October 1 strike deadline set by the International Longshoremen’s Association.
Now, the International Longshore & Warehouse Union has thrown its considerable weight behind the ILA. The ILWU represents tens of thousands of dockworkers at West Coast ports, including the Port of Los Angeles-Long Beach complex, the busiest containerized gateway in the U.S.
September 13: Ocean Freight Rates Continue to Tumble as Peak Comes to an Early End – The Loadstar
Spot freight rates on every major container lane continued to tumble last week as demand remained flat, while a possible short-term pre-Golden Week upsurge has so far failed to materialize.
Golden Week begins on October 1 and the week-long public holiday sees work stop across China – in previous years there has often been a spike in demand over the fortnight before it begins.
However, it would appear shippers have more pressing issues, particularly the growing probability of a strike on the U.S. east and Gulf coasts, which would explain last week’s dramatic collapse in Asia-North America east coast spot rates as their window to get import cargo into the east coast before October 1 has now disappeared.
September 16: Dockworkers Locked Out for Two Years at Port of Quebec – Syndicat des débardeurs du port de Québec press release (translated from French)
September 15 marked the second anniversary of the lockout of dockworkers at the Port of Quebec.
A large mobilization of dockers and their allies is planned for September 25 in Quebec to mark two years of the conflict.
September 19: Carriers Announce Disruption Surcharges for USEC Cargo as Strike Looms – The Loadstar
As the possibility of strike action at ports on the U.S. east and Gulf coasts draws nearer by the day, container shipping lines serving the region have begun to announce disruption surcharges.
On September 1, MSC notified customers it would apply a $1,000 per 20ft and $1,500 per 40ft emergency operations surcharge (EOS) from October 1 (the date set for the strike to begin) on all shipments from Europe to the U.S. east and Gulf coasts, as well as to ports in the Caribbean, Mexico and Canada.
That was followed by a CMA CGM advice that U.S. east and Gulf coast local port charges for import shipments of $1,500 per TEU would be applied from October 11, while export shipments would be subject to local port charges of $800 per 20ft and $1,000 per 40ft on the same date.
The French carrier has also advised customers that it would apply a $500-per-TEU rate ‘restoration initiative’ on all transatlantic shipments from October 1.
On September 19, Hapag-Lloyd became the latest carrier to announce a port strike surcharge, revealing it would apply a work disruption surcharge of $1,000 per TEU from October 18 on container shipments to the U.S. east and Gulf coasts.
September 20: Report Reveals Digital Transformation Progress in Container Shipping Industry – gCaptain
The Digital Container Shipping Association (DCSA) has released its “State of the Industry Report 2024,” highlighting significant advancements in digitalization within the container shipping sector.
The report reveals growing adoption of digital tools and standards, while also identifying areas for improvement. Key findings indicate that 86% of cargo owners view digitalization as a means to enhance operational efficiency. Ports and terminals emphasize its role in enabling scalability, while banks point to its potential for risk reduction. The report also notes that digital standards are crucial for seamless operations across the supply chain.
September 23: Residents Near Port of Montreal Warned to Stay Indoors Due to Lithium Battery Fire – CBC News
Firefighters worked to extinguish thousands of kilograms of lithium batteries on fire at the Port of Montreal.
In a Facebook post, the Mercier–Hochelaga-Maisonneuve borough says a lockdown notice is in progress in a sector adjacent to the port due to the fire.
The batteries are in a shipping container, but firefighters say there is no risk that the second-alarm fire will spread to other containers.
September 24: FMC’s ‘Shot Across the Bows’ Warning Over Unfair D&D Fees During Strike – The Loadstar
The U.S. Federal Maritime Commission (FMC) has warned carriers and terminal operators against profiteering from unfair detention and demurrage (D&D) charges amid the disruption from an east and Gulf coast port strike.
The FMC on September 23 published a reminder that “all statutes and regulations administered by the FMC would remain in effect” during any International Longshoremen’s Association (ILA) strike-related terminal closures, threatened for October 1.
Vespucci Maritime CEO Lars Jensen said: “Basically, this should be seen as a metaphorical ‘shot across the bows’; that the FMC will not look kindly on anyone trying to profit from D&D charges resulting from a physical inability to use the ports during a strike.”
September 25: Montreal Dockworkers Approve Strike Mandate – The Globe and Mail
Dockworkers at the Port of Montreal have approved a strike mandate after more than a year of contract negotiations. Longshore workers voted 97.9 percent in favour of granting their union executive the authority to call a strike if it chooses.
The union local, affiliated with the Canadian Union of Public Employees, would need to issue a 72-hour notice before its nearly 1,200 members could walk off the job.
The parties remain in mediation, and the Maritime Employers Association says it hopes to hash out a deal at the table in the coming days.
September 27: Grain Workers Union on Strike at Vancouver’s Grain Terminals – Chamber of Shipping
Workers at several Metro Vancouver grain terminals, including Viterra, Richardson, and Cargill facilities, walked off the job on September 24, halting the movement of 100,000 tonnes of grain daily and potentially costing $35 million in lost exports. The Grain Workers Union Local 333 initiated the strike after stalled contract talks with the Vancouver Terminal Elevators Association (VTEA).
September 27: Port of Montreal Longshoremen File 72-Hour Strike Notice – The Gazette
The union representing longshore workers at the Port of Montreal said on September 27 work at two terminals could come to a standstill next week as the union served a 72-hour strike notice.
Dockworkers could walk off the job as of 7 am on September 30, a work stoppage that could last until October 3 at two terminals owned by Termont Montréal.
About 350 members would be part of the labour action, affecting about 35 percent of container shipments, according to the union local, which is affiliated with the Canadian Union of Public Employees.
September 9: Air Canada Prepares for Orderly Shutdown to Mitigate Customer Impact Resulting from Labour Disruption – Air Canada press release
Air Canada on September 9 said that it is finalizing contingency plans to suspend most of its operations. Talks between the company and the Air Line Pilots Association (ALPA), representing more than 5,200 pilots at Air Canada and Air Canada Rouge, continue, but the parties remain far apart. Unless an agreement is reached, beginning on September 15, either party may issue a 72-hour strike or lock-out notice, which would trigger the carrier’s three-day wind-down plan.
September 12: Air Canada Urges Federal Government to Direct Arbitration – Air Canada press release
Air Canada on September 12 said that, if the airline’s contract negotiations with its pilot union fail, a government direction for binding arbitration will be necessary to avoid a major disruption of air travel that would upset the plans of 110,000 or more travellers a day and delay time-sensitive cargo shipments.
The parties have met for 100 days over the past 15 months, during which 1,110 issues have been subject to negotiation.
September 12: WestJet Adopts New Business Model for Freighter Aircraft – FreightWaves
Canadian airline WestJet has pivoted to offering other airlines and logistics companies the option of chartering its small fleet of Boeing 737-800 cargo jets to move goods after recently discontinuing scheduled cargo service because of weak demand.
WestJet Cargo on September 10 issued a news release promoting its charter service in North America and Latin America utilizing Boeing 737-800 converted freighters. The cargo division said it introduced charter service in the fourth quarter of 2023, but this is the first time there has been any public announcement about freighter aircraft being available for long-term rental.
The announcement said WestJet’s cargo division has completed more than 40 charter flights since the product’s inception. Most of those flights are being conducted by two 737-800 freighters running between Montreal or Toronto and Orlando, Florida, according to data on flight tracking site Flightradar24.
September 15: Air Canada and ALPA Reach Tentative Agreement on a New Four-Year Contract – Air Canada press release
Air Canada has reached a tentative, four-year collective agreement with the Air Line Pilots Association (ALPA), representing more than 5,200 pilots at Air Canada and Air Canada Rouge.
Terms of the new agreement will remain confidential pending a ratification vote by the membership, expected to be completed over the next month, and approval by the Air Canada Board of Directors.
September 16: Airlines Suspend Flights as Middle East Tensions Rise – American Journal of Transportation
Concerns over a wider conflict in the Middle East have prompted numerous international airlines to suspend flights to the region or to avoid affected air space.
This article lists some of the airlines that have adjusted services to and from the region.
September 20: CBSA Issues Information on Transport Canada’s New Security Measures
The CBSA has shared information on the new security requirements that Transport Canada implemented effective August 29. The message was:
Please be advised that recent cargo incidents involving incendiary devices, including a fire at a logistics hub in Leipzig (originating from a package), have heightened awareness of potential threats within global supply chains. Transport Canada has implemented new measures: All cargo arriving from a list of fifty-five (55) European and Central Asian countries will not be accepted on an aircraft unless there is an established business relationship with either the carrier, the freight forwarder or their known agent.
This applies to commercial cargo flights and/or combined cargo and passenger flights carrying commercial cargo and casual goods, with the exception of mail.
Potential Impacts:
Canada Border Services Agency (CBSA) operational staff have been advised to remain vigilant in the handling and examination of packages and utilize all resources available to mitigate health and safety risk when conducting examinations.
September 27: Bottlenecks Begin to Form in Asia as Air Peak Season Approaches – The Loadstar
On the eve of the peak airfreight season, most Asian gateways are running without problems, but some bottlenecks have begun to appear, particularly out of South-east Asia and the Philippines.
And, according to the latest Dimerco Asia Pacific Freight Report, despite sinking volumes, exporters using container lines are also facing challenges as a result of a sharp rise in blank sailings.
Capacity is expected to be squeezed further by China’s Golden Week holiday early in October, when many factories close, causing a rush to ship out goods before the holiday.
September 27: Middle East Maritime Threat Escalates: Israeli and Lebanese Ports in the Crosshairs, Ambrey Warns – gCaptain
Maritime security firm Ambrey has raised the alarm over the increasing dangers faced by vessels operating in the Eastern Mediterranean, as tensions between Israel and Hezbollah continue to escalate.
The conflict has evolved into a series of escalatory airstrikes between Hezbollah and Israel. This has led to a significant increase in maritime security risks, particularly for vessels calling at Israeli and Lebanese ports, according to Ambrey.
Ambrey’s analysis indicates that the port of Haifa is at “heightened risk” and could potentially become a direct target for Hezbollah. Meanwhile, Beirut and other Lebanese ports are assessed to be at “moderate risk,” with the possibility of a naval blockade looming.
September 28: Tentative Agreement Reached to End Vancouver Grain Terminal Workers’ Strike – CTV News
A strike by grain terminal workers at the Port of Metro Vancouver has ended, their employer announced on September 27.
Just hours after talks to end the strike broke down, a “rekindled” mediation effort led to a tentative agreement between the parties, said Wade Sobkowich, executive director of the Western Grain Elevator Association in a statement.
September 19: CN Rail Relocating Jasper Operations 100 Kilometres Away to Hinton – Global News
Canadian National Railway Co. says it plans to relocate its operations in Jasper to near Hinton, Alta., about 100 kilometres away.
In a memo sent to employees, the company said it’s aiming to increase efficiency by minimizing train stops between Edmonton and Blue River, which sits on the B.C. side of the Rockies.
CN plans to close its Jasper bunkhouse and build a crew change facility east of Hinton, with workers slated to clock in at the new site starting in September 2025.
The union representing rail workers criticized the relocation, which affects about 200 employees, though no layoffs are expected.
September 27: Unifor Files a Notice of Dispute against CN – Yahoo Finance
Canadian National Railway said on September 27 that labour union Unifor has filed a notice of dispute to the Canadian Minister of Labour, just three days after initiating negotiations.
Also known as “conciliation,” the notice of dispute can be sent by either party to the Canadian Minister of Labour during a negotiation and typically results in the appointment of a conciliation officer to assist the parties in reaching an agreement.
Unifor asserted that it has filed for conciliation to move talks into a positive direction, adding that, within 24 hours of negotiations, CN issued a notice to the union expressing its intent to lay off at least 65 of its members.
September 4: Insurers Offer Advice for a Tough U.S. Claims Environment for Canadian Truckers – Today’s Trucking
‘Nuclear verdicts’ – court awards of more than $10 million – against trucking companies are very much on the radar of Canadian trucking insurers that cover Canadian-based trucking companies travelling in the U.S.
Generally, Canadian trucking insurers are exposed to nuclear verdicts in the U.S. because Canadian-based trucking companies carry liability coverage that attracts the attention of U.S. civil litigators.
“The approach [of U.S. litigators], especially toward Canadian-plated companies, [is that] because we carry more liability, there is more opportunity for lawyers to take home a higher payout,” says Rupinder Hayer, assistant vice-president of long-haul trucking and commercial automobile at Echelon Insurance.
Hayer acknowledges claims against trucking companies are part of the landscape of long-haul trucking, which makes it a tricky line of business for insurers to write. But trucking companies can improve their chances of finding the coverage they need by reducing their exposure to liability.
For many trucking companies, that means investing in technologies to track driving behaviour and prevent accidents, such as trucks with automatic braking or lane assist.
September 6: How Self-Driving Trucks Could Create New Jobs – Transport Topics
As autonomous truck developers move closer to deploying fully driverless on-highway tractors, they are also pioneering a set of new, specialized job functions that will be necessary to support autonomous fleets in real-world freight operations.
Even with no one onboard, unmanned trucks will still depend on trained professionals to prepare, inspect, dispatch, monitor and maintain the vehicles as they haul loads between designated freight hubs on specific stretches of highway.
Some of these emerging job opportunities will focus on safety and logistics tasks on site at the transfer hubs or terminals where autonomous trucks will drop and hook trailers in a hub-to-hub distribution model.
September 10: Fleets Buckle In for Extended Downturn, Focus on Internal Improvements – Today’s Trucking
Fleet executives speaking at FTR’s annual transportation conference are not anticipating an imminent turnaround in freight conditions, and are instead turning focus inward to ensure they’re ready to return to growth when market conditions do eventually improve.
Contract truckload rates are down 8.2% on average this year, based on DAT data, while dry van has been hardest hit, down 9.7%. “Higher contract rates may have to wait until next year as spot capacity slowly exits the market,” said Lee Klaskow, senior transportation and logistics analyst with Bloomberg, adding “I’m a little surprised at how stubborn the industry is in terms of excess capacity coming out.”
Avery Vise, FTR’s vice-president of trucking, noted that, while capacity is slowly exiting the industry, the rate of exits has slowed – there was actually net carrier growth in August. But he added it will take more than a loss of capacity to improve rates, noting that will have to be complemented by an increase in freight volumes.
September 11: Canada Falling Behind on Zero-Emission Commercial Vehicle Transition: Report – Today’s Trucking
Canada is falling behind its global peers in the shift to zero-emission heavy-duty vehicles, a recent report from Clean Energy Canada says.
While countries like the U.S. and those in the European Union accelerate their transitions, only 2% of new trucks and buses sold in Canada in 2023 were zero-emission, compared with 9% globally. California leads, with 17% of new commercial vehicle sales coming from zero-emission models, while the EU has set ambitious emissions standards for heavy-duty vehicles.
The report suggests that Canada’s focus has been primarily on electric passenger cars, overlooking the commercial vehicle sector, which has a disproportionate impact on emissions. Although these vehicles account for just 17% of Canada’s total vehicle stock, they are responsible for 37% of the country’s transport emissions.
September 17: BCTA Announces Next Intake of the CleanBC Heavy-Duty Vehicle Efficiency Program – BCTA press release
The BC Trucking Association (BCTA) has launched the latest intake, Year Six, of the CleanBC Heavy-Duty Vehicle Efficiency (HDVE) Program, in partnership with the B.C. Ministry of Transportation and Infrastructure. This program provides $1 million in rebates toward the adoption of fuel-saving technologies for medium- and heavy-duty vehicles, supporting the Province’s efforts to reduce carbon emissions and improve the efficiency of British Columbia’s trucking industry.
Eligible applicants can receive rebates on approved fuel-reducing technologies such as low- and zero-emission reefers, fuel-efficient tires and auxiliary power units. Rebates of up to $15,000 per vehicle and $50,000 per fleet are available for the purchase and installation of approved technologies. Applications are open until August 31, 2025, or until all funds have been allocated. Trucking companies are encouraged to apply early to maximize the benefit of the available rebates.
September 17: The Electric Shift in Quebec Trucking Slowed by the Suspension of Écocamionnage Program – Truck Stop Quebec (translated from French)
The electric shift in the Quebec trucking industry is in trouble. The sudden suspension of the Écocamionnage program, designed to mitigate the acquisition costs of electric trucks, has sent shockwaves through the sector.
This government program, which aimed to encourage the electrification of freight transport while helping companies bear the high costs associated with this transition, was interrupted without notice, leaving the industry in great uncertainty.
September 18: A Structural Shift in Road Freight – Who Are the Winners and Losers? – The Loadstar
The road freight sector is “undergoing a change in structure,” according to Transport Intelligence (Ti) analyst Thomas Cullen, and there will be winners and losers.
In his recent North American road freight update, Mr. Cullen highlights that the less-than-truckload (LTL) sector is buoyant and “seems to be increasing its market-share.” However, full-truckload (FTL) operations appear “markedly less profitable” and are losing market share to LTL, he says.
“What is clear is that the third-party trucking companies have suffered over the past year,” says Mr. Cullen.
“Overall, a key factor seems to be the shift by the market away from FTL and towards LTL. In the longer term, it is probably this as much as any supply issue that is making life tough for truckload companies,” he says.
September 20: U.S. House Committee Passes Bill to Combat Freight Fraud – Commercial Carrier Journal
The U.S. House Transportation and Infrastructure Committee last week approved two pieces of legislation related to trucking safety.
One bill, the Household Goods Shipping Consumer Protection Act, aims to combat freight fraud by clarifying the authority of the Federal Motor Carrier Safety Administration to assess civil penalties for violations of laws and regulations. It also requires that brokers, freight forwarders and carriers provide a valid business address to FMCSA in order to register for authority.
The committee also passed the Motor Carrier Safety Screening Modernization Act, which would require FMCSA to establish guidelines for states to follow in reviewing challenges against citations and violations. Currently, states have the authority to establish their own review process.
Both bills will move to the full House floor for consideration.
September 20: Cargo Thefts in Peel Region Soar as Tractors, Trailers Worth $16.73 Million Stolen This Year – Today’s Trucking
Cargo theft in the Greater Toronto Area’s Peel Region has taken a disturbing turn, placing it third in North America for high cargo theft activity, as organized crime groups use increasingly sophisticated methods to target high-value loads.
Mark Haywood, a detective with Peel Regional Police who runs the cargo side of its Commercial Auto Crime Bureau, describes these developments as an escalation in theft methods, particularly with the rise of in-transit pilferage, a tactic that’s now spreading in Canada after gaining traction in Europe and parts of the U.S.
Organized crime groups are now actively targeting trucks while they are on the move.
A lot of high-value loads go out on schedules, so thieves will watch the distribution centre to see which truck is used, Haywood explained. He added that companies often use the same trucks for the same loads, making it easy for criminals to figure out a routine. After observing for about a week, the thieves choose a spot, like a stoplight, where the truck has to turn. They park a car in the turn lane, pretending it’s broken down – maybe popping the hood or doing something else to block the truck.
“Meanwhile, they’ll cut the lock on the back of the trailer,” Haywood said, noting that drivers are often unaware of what’s happening due to the noise inside the truck. The thieves will quietly gain access to the trailer, close the door, and let the truck continue. While it’s still driving, they pilfer the load, putting stolen goods into bags or other containers. Later, the truck will be cut off again or forced to stop, and the criminals will throw the stolen goods into waiting vehicles behind it before driving off.
September 30: Hurricane Helene Update: Highways Closed; Truck Stop Services Interrupted – Truckers News
Recovery efforts continue in the U.S. south following the severe damage wrought by Hurricane Helene.
Key takeaways from the aftermath of what may well be the most destructive storm to ever strike the region:
Many highways in western North Carolina remain closed. NCDOT posted to its website: “I-40 is impassable in multiple locations. I-26 is closed at the Tennessee state line. There are many closed roads that are not listed on this site as many areas are not able to report at this time. All roads in Western North Carolina should be considered closed and non-emergency travel is prohibited.”
September 23: CIFFA Sustainability Committee Issues Social Sustainability: A Guide for CIFFA Members
CIFFA’s national Sustainability Committee has published the second paper in its three-part sustainability blueprint series. Social Sustainability: A Guide for CIFFA Members provides an overview of the social dimension of the ESG (environmental, social and governance) framework.
The paper describes key aspects of social sustainability and actions that businesses and organizations can take as they prioritize social responsibility. It offers an extensive list of resources by category.
August 2: Flexport Data Shows Sailings from China to U.S. West Coast 20 Days Faster than to East Coast Ports – American Journal of Transportation
Sailing times from China to U.S. West Coast ports are averaging 20 days faster than to U.S. East Coast ports, according to the supply chain logistics platform Flexport.
On July 29th, Flexport reported: “This week, the Ocean Timeliness Indicators (OTI) for China to the U.S. East Coast and China to the U.S. West Coast have decreased, falling from 61 to 60.5 days and 40.5 to 39.5 days, respectively. The OTI for China to Northern Europe also decreased, dropping from 69.5 days to 68 days. The reason? Port congestion on all trade lanes is slightly improving.”
The reason for the large gap between sailing times to U.S. East Coast and U.S. West Coast ports was explained by Nerijus Poskus, Vice President of Global Ocean Procurement at Flexport. He said that, due to the Suez Canal closure: “All vessels that typically sail to the U.S. East Coast via the Suez Canal are diverted to the Cape of Good Hope, which takes longer than normal routing. Global port congestion is further increasing transit times [due to vessel bunching, equipment issues, blank sailings, weather delays, etc.].”
August 5: Panama Canal Authority Increases Capacity as Water Levels Return – gCaptain
The Panama Canal Authority (ACP) has increased the number of daily transits and maximum draft of the expanded neopanamax locks, bringing the waterway one step closer to normal operations following last year’s historic drought.
Effective immediately, vessels transiting the neopanamax locks are now allowed a maximum authorized draft of 14.94 meters (49.0 feet) Tropical Fresh Water. The ACP said the decision is based on the current and projected water levels of Gatun Lake for the upcoming weeks.
Meanwhile, as of August 5, the number of daily transits has been adjusted to 35, up from 34 as of July 22nd and 32-33 earlier in the month.
The changes bring the canal’s capacity closer to its design specifications of approximately 36 daily transits and a maximum draft of 50 feet for the neopanamax locks.
August 8: U.S. Container Ports Face Record Cargo Surge Ahead of Possible Port Strike – gCaptain
Monthly inbound cargo volume at major U.S. container ports is expected to approach record levels as retailers expedite shipments ahead of a potential strike at East and Gulf Coast ports, the National Retail Federation (NRF) announced on August 8.
“Retailers are concerned by the possibility of a strike at ports on the East and Gulf coasts because contract talks have stalled,” said Jonathan Gold, NRF Vice President for Supply Chain and Customs Policy. “Many retailers have taken precautions, including earlier shipping and shifting cargo to West Coast ports.”
The contract between the International Longshoremen’s Association and the United States Maritime Alliance, covering East Coast and Gulf Coast ports, is set to expire on September 30. With negotiations at an impasse, the ILA has threatened to strike if a new contract is not reached by the deadline.
August 9: Explosion at Ningbo-Zhoushan Port in China Raises Serious Safety Concerns in Ocean Container Shipping – American Journal of Transportation
A major explosion occurred on August 9 on a container ship berthed at the port of Ningbo-Zhoushan in China in another incident that raises serious safety concerns.
Video footage shows a massive explosion onboard the YM Mobility. There are no reports of casualties.
Peter Sand, Xeneta Chief Analyst, said: “This type of incident should never happen and is another example of how one failure in ocean container shipping can have catastrophic consequences.
“Had this explosion happened at sea rather than at berth in port then the crew and ship would have been in even more perilous danger.
“An investigation will take place and the industry must learn from it. Container ships are used to transport hazardous and potentially explosive cargo, so it is of paramount importance that robust safety measures are in place.”
August 19: Cargo Backlog at Bangladesh Eases as Carriers Bring in More Ships – The Loadstar
Container lines serving strained Bangladesh supply chains are making every effort to clear up the cargo backlogs at Chittagong Port.
The cargo chaos began amid recent political upheaval that brought businesses across the country to a standstill.
A few carriers have deployed additional vessels to lift stranded exports at Chittagong, according to industry sources.
August 26: Chittagong Port Pay-Order Crisis Stalls Import-Export Operations – Jago News
Following the fall of the Sheikh Hasina government in Bangladesh, major shipping agents at Chittagong Port have stopped accepting payment orders from nine banks, causing delays in the release of import goods and complications in shipping export goods.
Exporters are fearing this disruption may lead to missed lead times, potentially harming the country’s economy.
The situation arose after the Hasina government fell on August 5, with an interim government led by Dr. Muhammad Yunus taking over on August 8. Subsequently, the top positions at Bangladesh Bank began changing, uncovering long-standing irregularities. As a result, Bangladesh Bank ceased providing cash assistance to banks embroiled in loan corruption, further exacerbating the situation.
August 29: Transpacific Rates War Breaks Out as New Arrivals Undercut Major Liners – The Loadstar
A rates war on the Asia-U.S. West Coast tradelane is under way, as newcomer transpacific carriers offer lower rates to gain market share.
This has forced the established mainline operators to drop their rates to hold onto customers.
According to Linerlytica’s report this week, while the Shanghai-U.S. West Coast rate on August 23 stood at $5,955 per 40ft, down 10% from the previous week, actual rates are more than $1,000 lower.
Linerlytica said: “Several of the smaller carriers and recent newcomers on the trade are slashing their rates to boost volumes, forcing their large rivals to match.”
August 30: Ocean Carriers ‘Fire Blanks’ Ahead of China’s Golden Week Holiday – The Loadstar
Fearing another container spot rate crash, ocean carriers have blanked a number of export sailings from Asia to Europe and Asia to the U.S., prior to the Chinese national holiday in early October.
A carrier contact said last week he expected to see “many more” void sailings this year in the key soft-demand weeks of the slack season.
“We are determined not to get sucked into another rates war this year, and as long as the Red Sea diversions continue we think we will be ok,” said the contact.
Drewry’s latest blanked sailings assessment puts the notified cancellation rate in September for scheduled sailings on the transpacific, Asia-Europe and the transatlantic at 10% to date.
August 2: Air Rate Anger from Bangladesh Exporters as Carriers ‘Cash In’ on Logjams – The Loadstar
Airfreight rates from Bangladesh to major western destinations have shot up in a span of two weeks as export cargo piles up at the country’s main airfreight gateway, Dhaka.
Student-led protests in the third week of July prevented some 3,000 tonnes of exports leaving after the government responded to chaos and blocked highways with curfews and an internet shutdown.
As soon as the internet connection was restored, on July 24, businesses rushed to send export boxes to airports and seaports, intensifying a shortage of space, which in turn saw freight rates spiral.
Now, exporters are claiming carriers were taking advantage of the demand spike, raising rates by as much as $1.50 per kg to a variety of destinations.
August 7: WestJet Says 10 Percent of Fleet Grounded After Calgary Pummelled by Hail – CTV News
WestJet says 16 of its planes have been grounded after a massive hailstorm hit Calgary earlier this week.
The Calgary-based airline says those aircraft – 10 percent of its fleet – need substantial repairs and inspections before they can fly again.
The carrier also says 84 of its flights were cancelled on August 7, with 106 cancelled August 6 and 58 on August 5.
August 8: Shippers ‘Running Out of Options’ to Get Their Peak Season Goods Out of Asia by Air – The Loadstar
Cargo owners that haven’t made firm arrangements to move peak season cargo out of Asia by air are running out of options, warns logistics provider Dimerco.
Most direct, reliable freighter capacity has already been snapped up, it said.
Capacity on long-haul routes out of China and other countries in East and South-east Asia has been tight, driven by strong demand for e-commerce and a shift of container traffic from ocean to air, a result of extended transit times, congestion, limited capacity and soaring container rates, Dimerco notes in its latest airfreight market report.
August 8: Air Canada Drops 2 Late-Model Boeing Freighters from Fleet – FreightWaves
Air Canada has removed two new cargo jets from its fleet, furthering a strategic reversal in ambitious growth plans for dedicated freighter operations after less than three years even as the air cargo market experiences a robust recovery in 2024.
A management analysis published alongside the company’s second-quarter earnings report showed the size of the freighter fleet had fallen from eight to six Boeing 767-300 aircraft. A footnote indicated the two planes were sidelined in April.
Executive Vice President Mike Galardo mentioned on a call with analysts later that two freighters were pulled from the operating fleet early in the second quarter.
An Air Canada spokesperson declined to provide additional details about the status of the two freighter aircraft or why they have been grounded, but indicated in the response that they were “temporarily” removed from service.
August 14: Alert to Shippers as Airfreight Capacity Becomes Scarce and Rates Increase – The Loadstar
As air cargo’s peak season approaches, shippers are faced with limited capacity, allowing forwarders to up their sell rates on major trades.
The Loadstar previously reported how airlines were bracing for a busy Q3, as the steady drum of ecommerce traffic beats alongside the extra capacity taken up by modal switch to avoid the Red Sea and the usual pre-holiday volumes.
And market analytics platform Xeneta noted that, as the north-east Asia-to-Europe trade heats up, freight forwarder air cargo sell rates have hit their highest level in nearly a year-and-a-half. According to Xeneta, newly contracted long-term general cargo sell rates have reached $4.42 per kg, up 30% on the same period last year.
“Peak season surcharges introduced in May and June have now been removed, but the increasing base rates were clearly enough to elevate the market,” said the analytics platform.
August 14: Air Canada Pilots Prepare for Strike amid Ongoing Labour Dispute – CBC News
Air Canada and the union representing its pilots have been negotiating for more than a year but remain “far apart” on compensation and other issues, the union said.
Air Canada and the Air Line Pilots Association worked with a private mediator during the first half of this year and are now in conciliation.
The pilots are now voting on whether to give their union a strike mandate. The earliest possible job action would be September 17.
August 14: Bangladesh Air Cargo Logjams Ease but Delays Still Expected – Air Cargo News
The Bangladesh air cargo market continues to report delays to shipments following weeks of protests but the situation is beginning to ease.
At the height of the protests, cargo was taking around 10 days to be exported out of Dhaka Airport to the U.S. and Europe.
Maruf Khan, the chief operating officer of Bengal Airlift’s freight division, said the situation has eased over the past week. He said origin processing times at the airport are now down to around five days, although on August 13 there were around 200 trucks waiting in line at the airport.
August 15: WestJet Shuts Down Fledgling Freighter Network – American Shipper
WestJet has abandoned its scheduled freighter operation and put two of four Boeing 737-800 aircraft in storage one year after launching the business venture, according to the executive in charge of the airline’s cargo operations.
The development is a tacit acknowledgement by WestJet that it can’t compete in the challenging Canadian cargo market. Air Canada last week disclosed it has parked two new factory-built 767-300 freighter aircraft because of insufficient demand.
August 22: Air Canada Pilots Vote to Give Strike Mandate to Their Union – American Journal of Transportation
Air Canada pilots voted to give their union a strike mandate as negotiations over a new labour agreement have been stalled for more than a year. Workers could walk off the job as soon as mid-September.
The Air Line Pilots Association, representing Air Canada’s more than 5,400 aviators, is in a federal conciliation process with Air Canada until August 26, which will be followed by a 21-day cooling off period. The workers will be in a legal strike position starting September 17.
August 27: Forwarders and Shippers Push for Longer-Term Air Cargo Deals – Air Cargo News
Freight forwarders and shippers are continuing to push for longer-term air cargo deals as they look to avoid potential rate hikes due to the risk of supply chain disruption.
A half-year market report from analyst Xeneta shows that contracts of more than six months accounted for 54% of the market in the second quarter of 2024 compared with 30% a year earlier.
Spot deals (one-month contracts) in the second quarter accounted for 10% of the market against 12% for the period in 2023, three-month deals are at 18% of the market compared with 23% last year and six-month deals are at 18% compared with 35%.
The analyst said the move towards longer-term deals has been ongoing since last year, but the motivation for doing so has evolved.
August 28: Foreign Airlines React to Sudden New U.S. Rule Tightening Air Cargo Security – The Loadstar
Foreign airlines are said to have reacted strongly to an emergency security change to U.S. Customs regulations on airfreight, at least one carrier reportedly suspending cargo services as it seeks more clarity on the sudden additional requirement.
According to sources, an emergency amendment – with restricted access – has been passed by the U.S. Transportation Security Administration (TSA) requiring carriers to submit additional details of shippers and consignees to the U.S. Customs and Border Protection agency.
The new requirement became effective on August 21.
August 9: CN Asks Federal Government to Order Binding Arbitration to Protect Canada’s Economy – CN press release
Following the Canada Industrial Relations Board’s (CIRB) decision that does not bring the labour conflict any closer to a resolution, CN is formally requesting the Minister of Labour’s intervention under section 107 of the Canada Labour Code to protect Canada’s economy from the impacts of prolonged uncertainty.
Negotiations with the TCRC resumed on August 7. However, no progress has been made, said the railway in a press release, “as the TCRC has not engaged meaningfully at the negotiating table.”
While CN is willing to keep negotiating with the TCRC, “the company has lost faith in the process and is concerned that a negotiated deal is no longer possible without a willing partner.”
Unless there is immediate and meaningful progress at the negotiating table or binding arbitration, CN will begin a phased and progressive shutdown of its network, starting with embargoes of hazardous goods, which would culminate in a lockout at 00:01 Eastern Time on August 22nd.
August 9: CPKC to Issue TCRC Lockout Notice for August 22 – CPKC press release
Canadian Pacific Kansas City on August 9 said it will issue notice to the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division and TCRC – Rail Traffic Controller (RCTC) division of its plan to lock out employees at 00:01 ET on August 22 if union leadership and the company are unable to come to a negotiated settlement or agree to binding interest arbitration. CPKC is committed to continuing good faith negotiation throughout.
The decision to issue a lockout notice comes after the Canada Industrial Relations Board (CIRB) on August 9 issued its decision, determining that no services need to be maintained during a railway strike or lockout in order to protect Canadian public health and safety. The CIRB also ordered a 13-day extension of the cooling off period, which ends on August 22. Following the expiration of the cooling off period, a legal strike or lockout involving the TCRC – T&E or TCRC – RCTC could occur.
August 9: Labour Minister Reacts to CIRB Decision – statement on X
Canada’s Labour Minister, Steven MacKinnon, posted on X after the Canada Industrial Relations Board (CIRB) issued its decision related to a potential strike or lockout at CN and CPKC. His statement ended with the following.
“The parties in this dispute have a responsibility to Canadians. I call upon the parties to stay at the bargaining table and continue holding productive and substantive discussions that meet the needs of this moment. A negotiated agreement is the best way forward.”
August 15: Labour Minister Rejects CN Rail’s Call for Binding Arbitration as Lockout Looms – CBC News
Labour Minister Steven MacKinnon has rejected CN Rail’s request for binding arbitration in the company’s labour dispute with Teamsters Canada Rail Conference (TCRC) – one week before a lockout could shut down the rail network.
“I would like to clarify that it is your shared responsibility – Canadian National Railway Company and the Teamsters Canada Rail Conference – to negotiate in good faith and work diligently towards a new collective agreement,” MacKinnon wrote in a letter.
The minister added that federal mediators remain available to both parties as negotiations continue.
August 18: CN Issues Lockout Notice to Teamsters – CN press release
CN has issued notice to the Teamsters Canada Rail Conference (TCRC) formally advising them of its intention to lockout Canadian TCRC-represented employees on August 22 at 00:01 ET unless an agreement or binding arbitration is achieved before that time.
Despite negotiations over the weekend, no meaningful progress has occurred, and the parties remain very far apart.
Unless there is an immediate and definite resolution to the labour conflict, CN will continue the phased and progressive shutdown of its network, which would culminate in a lockout.
CN chose to continue with the progressive and planned shutdown of its network, as it remains under the threat of an unpredictable strike notice. This planned shutdown helps to ensure the safety of the communities in which it operates and the safety of its customers’ goods, and to optimize the network’s recovery following a labour disruption.
August 18: Teamsters Issue Strike Notice to CPKC – TCRC press release
The Teamsters union has served 72-hours notice to CPKC to withdraw services, to be effective August 22 at 0001 Eastern Time, “to protect the TCRC’s statutory and Charter protected rights to engage in a lawful strike,” said the union in a statement. “We are continuing to bargain with the Company and will remain at the table as long as it takes.”
August 20: U.S. Agriculture Groups Urge Trudeau to Step in to Avert Rail Strike – American Journal of Transportation
Some of the biggest U.S. agriculture trade groups are urging Canada’s prime minister to step in to avert a rail strike in the country that could disrupt the flow of North American commodities.
“We request that you take action to ensure railroad operations continue before a lockout or strike occurs to prevent serious damage to the Canadian and U.S. economies,” 35 U.S. industry groups wrote in a letter to Prime Minister Justin Trudeau.
“Operational railroads are essential on both sides of the border for the integrated North American supply chain,” the groups wrote in their letter. “While we believe a negotiated solution is always the preferred outcome, your government should be prepared to move quickly if negotiations fail.”
August 22: CN Moves Forward with Lockout – CN press release
CN has formally locked out employees represented by the Teamsters Canada Rail Conference (TCRC) as of August 22 at 00:01 ET, after the union did not respond to another offer by CN in a final attempt to avoid a labour disruption.
Without an agreement or binding arbitration, CN chose to finalize a safe and orderly shutdown and proceed with a lockout.
August 22: CPKC Locks Out TCRC Employees, Moves to Full Shutdown of Canadian Rail Network – CPKC press release
Canadian Pacific Kansas City has locked out employees who are members of the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division effective 00:01 Eastern Time on August 22.
That was followed by the lockout of employees who are members of the TCRC – Rail Traffic Controller (RCTC) division effective 00:01 Mountain Time.
Working closely with customers, CPKC has executed a safe and structured shutdown of its train operations across Canada. This will enable CPKC to safely and efficiently resume full rail operations across the entire network once the work stoppage ends.
August 22: Railways Prepare to Restart After Federal Government Forces Binding Arbitration in Labour Dispute – CTV News
Canada’s Labour Minister Steven MacKinnon is intervening to end a work stoppage that saw this country’s two largest railways grind to a standstill, by forcing the parties into binding arbitration.
MacKinnon said he is invoking powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to “assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration.”
MacKinnon has also ordered the board to extend the term on the parties’ current collective agreements until new deals are signed, and is calling for operations on both railways to resume “forthwith.”
August 22: CPKC Disappointed by TCRC’s Decision to Dispute Minister’s Direction to Resume Railway Operations – CPKC press release
In a case management conference convened by the Canada Industrial Relations Board (CIRB) at 9:00 pm ET on August 22, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss resumption of service, said CPKC in a statement. The union said it will make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order.
Another case management conference was scheduled for 10:00 am ET on August 23 to further hear submissions by the parties.
While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.
August 24: Federal Labour Board Orders Rail Workers Back on the Job, Imposes Binding Arbitration – CBC News
Freight trains were required to start rolling again first thing on August 26, the federal labour board ruled on August 24 as it ordered thousands of rail employees back to work to end a bitter contract dispute that shut down the country’s two major railways.
The decision by the Canada Industrial Relations Board (CIRB) imposes binding arbitration on the parties following an unprecedented dual work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) that halted freight shipments and snarled commutes across the country.
But the matter may not be settled for good, since the Teamsters union representing workers with both companies is pledging to appeal the ruling in court.
August 28: Train Movements in Canada Close to Normal, ‘Complete Recovery to Take Several Weeks’ – American Journal of Transportation
Train movements at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. are almost back to normal after a short lockout of unionized workers, according to RailState, a provider of real-time rail data.
Canadian National train movements were at 96% of pre-lockout levels as of August 27, while Canadian Pacific was at 95%, RailState said.
The data doesn’t necessarily indicate that the volumes of goods shipped are close to normal. Train movements are indications of trains in motion, including those with empty cars; the figures don’t provide information on the loads being transported. RailState based its average daily volume on train movements between August 1 and 21.
“Our recovery plan is underway,” CN Railway said in an emailed statement. “We expect complete recovery to take several weeks to catch up the impact that supply chains have been dealing with since April.” CPKC did not provide any details on operating levels.
August 30: Canada Rail Union Launches Court Challenges to Back-to-Work Order – Reuters
The union representing workers at Canada’s two main rail companies said on August 30 it had filed court challenges against rulings by the country’s industrial labour board that forced them back to work.
The union had already said it would appeal the rulings on the grounds that they were a win for the railways and could lead to the imposition of future contracts, eroding workers’ bargaining power.
“These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will,” said Paul Boucher, president of the Teamsters rail union.
“The right to collectively bargain is a constitutional guarantee. Without it, unions lose leverage to negotiate better wages and safer working conditions for all Canadians,” he said in a statement.
August 20: As Canada Braces for Rail Stoppage, Truckers Scramble to Meet Demand – Reuters
As Canada braced for a freight rail stoppage that could hit industries ranging from autos to agriculture, the trucking sector said it faced higher demand it could not meet.
Daman Grewal, a senior operations manager with British Columbia-based Centurion Trucking, would normally expect 20 or 30 online postings from shippers seeking trips east across Canada on an August Monday. On the morning of Monday, August 19, he saw more than 500.
“Last week is when a lot of the panic started to set in,” said Grewal, noting trips for which he charged C$7,000 a few days ago now cost up to C$9,000. “Similar to COVID, you see the scarcity in supply chain.”
Grewal said Centurion could increase capacity 10% to 20%, largely by reducing driver downtime.
“We would just have to turn the drivers around a little bit quicker,” he said.
Industry officials said some softening in the economy has left room to increase capacity but not enough to make up for idled railways.
August 19: CIFFA Writes to PM, Minister of Labour Regarding Potential Rail Work Stoppage
CIFFA has sent a letter to Prime Minister Justin Trudeau and a letter to Labour Minister Steven MacKinnon to express the association’s frustration and concern with the current status of the rail negotiations.
CIFFA emphasized the severe impact of a complete rail stoppage to its approximately 14,000 employees from the key players in Canada’s supply chain, including customs brokers, drayage, freight brokers, load brokers and warehouse operators, who are equally challenged with the impacts of a pending disruption.
August 23: CIFFA Writes to Minister of Labour Seeking Government Intervention to Avert a Strike by Air Canada Pilots
CIFFA has written a letter to Canada’s Minister of Labour to express concern about “the looming possibility of a strike among the pilots of Air Canada.”
CIFFA urges the minister “to use all available resources within your department to facilitate an early resolution and, if necessary, to intervene to avert a strike.”
The letter was copied to Deputy Prime Minister Chrystia Freeland, Minister of Transport Pablo Rodriguez and Minister of Innovation, Science and Industry François-Philippe Champagne.
July 1: Schedule Reliability for Boxships Rebounds to Highest Level in 2024 – The Maritime Executive
Schedule reliability for the container segment rebounded from the lows of January and April to reach the highest point in 2024. While the industry has been able to stabilize after the shocks caused by the Red Sea diversions, it remains far behind its post-pandemic performance, while Maersk is warning customers that the pain is going to continue.
Data intelligence firm Sea-Intelligence released its monthly analysis of global trade reports showing a rebound on the container liner routes to nearly 56 percent, which is the highest for the year. However, in the mid-50s, the rate is at the same levels as in late 2022 and 10 percentage points behind the recovery in 2023.
“This is now the highest schedule reliability figure for 2024,” notes Alan Murphy, CEO of Sea-Intelligence. “Schedule reliability in May 2024 was 11 percent points lower,” he notes versus year-ago levels.
July 3: Managing Freight Spend the Main Concern as Red Sea Crisis Drags On – The Loadstar
Managing freight spend is the biggest concern for shippers and forwarders, as the supply chain volatility driving ocean rate hikes appears to have no end in sight.
In Xeneta’s mid-year ocean freight update, CEO and co-founder Patrik Berglund said: “Carriers were expecting to record massive financial losses in 2024, but the skyrocketing spot market will see them deliver a full-year profit, which seemed improbable six months ago.”
According to a Xeneta poll, ‘managing freight spend’ is the biggest concern for shippers and forwarders this year, 46% listing it as a primary challenge.
Xeneta chief analyst Peter Sand said: “It’s the one thing that is the mother of all that has to do with maritime supply chains and logistics – freight spend and the disruption that may or may not come about.”
July 4: South-East Asia Transshipment Call Omissions a Blow to India’s Exporters – The Loadstar
Indian shippers are being hit by a wave of late vessel arrivals and port call omissions, as Red Sea-linked schedule disruptions continue to wreak havoc on container supply chains.
The majority of schedule disruptions are tied to connections serving Asia and Middle East trades, due to congestion plaguing leading hub ports in the region.
Amid the schedule disruptions, Indian shippers and forwarders are also reporting serious space problems on vessels through July.
“Congestion continues to create havoc in the supply chain,” said one executive at a Mumbai-based industrial group. “Deteriorating schedule reliability has added to the longer transit times linked to the Red Sea crisis,” the executive said.
July 5: U.S. Court of Appeals Calls FMC “Illogical,” Awarding D&D Fee Win to Evergreen – The Maritime Executive
Evergreen won an appeal in the U.S. Court of Appeals in Washington, D.C. in a case over the application of detention and demurrage fees (D&D) that could be a significant blow in the long-running battle between shippers and carriers over the hotly contested fees. While on face value the case was over $510 in fees, the court found that the Federal Maritime Commission was “illogical in its position,” siding with the Taiwan-based carrier that the government regulator had a “myopic focus” and was acting in an “arbitrary and capricious” manner.
July 7: ILWU Local 514 Issues Strike Notice, CIRB Determines It Contravenes Canada Labour Code – BCMEA bargaining updates
ILWU Ship & Dock Foremen Local 514 (ILWU Local 514) on July 6 provided formal 72-hour notice of intended strike action against DP World (Canada) Inc. to commence on July 8.
Later that day, the BC Maritime Employers Association (BCMEA) requested urgent interim intervention by the Canada Industrial Relations Board (CIRB). Specifically, it asked the Board to declare proposals and strike action of ILWU Local 514 contrary to the Canada Labour Code.
CIRB met on July 7 to address this request. It determined that ILWU Local 514’s declaration of strike action against DP World (Canada) Inc. is in contravention of the Code. CIRB found that the union failed to bargain in good faith when it conducted a strike vote amongst employees of only one member employer of the BCMEA and issued a strike notice based on that strike vote. Accordingly, CIRB directed the union to rescind the strike notice of July 5 and advise members that it is rescinded.
Furthermore, CIRB found that the union’s Nanaimo dispatch proposal was illegal because it consists of a receding horizon in bargaining and amounts to a failure to bargain in good faith. Therefore, the Board directed the union to withdraw its proposal.
July 8: Maersk Warns of Shipping Delays in South Africa due to Extreme Weather – Transport Topics
A.P. Moller-Maersk A/S warned extreme weather conditions and a storm surge lashing the South African coast are expected to cause shipping delays.
An intense cold front bringing snow to some areas of the country is resulting in damaging coastal winds, rains and waves that threaten infrastructure, the South African Weather Service said. High-speed winds could also pose difficulty to navigation in some offshore areas.
There has been an increase in vessels using the route as ships avoid attacks in the Red Sea. The impact of the disruption has been most acutely felt in container shipping, with about 690 vessels currently sailing around the Cape of Good Hope.
The conditions “will impact vessel movement and operations” along the South African coastline, over the next few days, especially between Cape Town and Port Elizabeth, where the worst impact may occur, Maersk said in a statement on July 8. “Vessels are expected to seek shelter/alter their course to avoid the impacted areas, please expect delays over the next few days.”
July 9: ‘Usual’ Shortage of Seasonal Workers Creating Delays on Europe’s Waterways – The Loadstar
Shortages of seasonal workers have prompted delays across Europe’s inland waterways, leaving many in the sector aggrieved at the failure to address the years-long problem.
According to barge operator Contargo, delays hit 44 hours and 72 hours at Antwerp and Rotterdam, respectively, with one source in the sector highlighting the issue neither industry nor government had “bothered to address.”
“This is nothing new, we see it each summer: the typical seasonal worker shortages across inland terminals,” said the source.
“Every holiday season we experience this challenge from the start of July until the end of August. But it has become more worrying that it seems to be accepted and that no one wants to address it, particularly with Rotterdam’s box capacity set to double by 2033.”
July 9: Singapore Container Ship Logjam Spills Over to Malaysian Port – American Journal of Transportation
Container ship congestion in Singapore, one of Asia’s busiest ports, is spreading to neighbouring Malaysia, snarling supply chains and causing delays in the movement of consumer goods.
Around 20 container vessels are anchored in a cluster off Port Klang, on the western coast of Malaysia near Kuala Lumpur. Both Klang and Singapore sit on the Straits of Malacca, a vital waterway that links Europe and the Middle East to East Asia.
July 9: German Seaports Brought to Standstill by Strikes Ahead of Wage Negotiations – The Maritime Executive
German labour union Ver.di called another round of “warning strikes” at the major container ports starting on July 9 and continuing into July 10 ahead of the next round of wage and contract negotiations. The union openly says its objective is to pressure terminal operators represented by ZDS (Zentralverband der deutschen Seehafenbetriebe) into a deal, while calling the previous offers “inadequate” to keep up with inflation and the demands of the job.
Dockworkers staged a series of strikes during June tied to each of the three prior rounds of negotiations. Under German labour law, the union is free to call these short-duration “warning strikes” without conducting full votes of the membership each time. Negotiations began in May on the new contract for 11,500 employees at German North Sea ports.
Workers at the port of Hamburg walked off the job on the morning of July 9, at the start of the first shift of the day, and began protests in the port area. This strike was scheduled to continue through all three shifts on July 10, with Ver.di reporting there would also be a larger protest rally that day.
The port of Bremen/Bremerhaven joined in the strike on the afternoon of July 9 with its walkout scheduled to continue till the first shift on July 10. While Bremerhaven was due to resume work, dockworkers at the westernmost seaport of Edem were due to walk off the job for the full shift on July 10.
July 10: Storms Continue to Pound South African Coast – American Journal of Transportation
Storms pounded South Africa’s coastline for a fourth day on July 10, disrupting shipping operations, with massive swells forcing the evacuation of a cargo ship.
State-owned port operator Transnet SOC Ltd. said it was monitoring harbour operations impacted by the extreme weather. Vessel traffic rounding the Cape of Good Hope, which has increased as shippers seek to avoid attacks in the Red Sea, has encountered offshore storm surges, with swells forecast as high as 10 metres (32.8 feet).
July 12: Shortage of Reefer Boxes Plays Havoc with India’s Export Schedules – The Loadstar
Indian cool chain shippers could miss some export order commitments to western buyers for the upcoming holiday season because of their inability to secure sufficient reefer containers.
While an equipment shortage was expected to be widespread in the context of longer turnaround times, the pressure seems to be especially worrisome on refrigerated boxes.
“Reefer inventory is becoming a major challenge for all trades [out of India],” said one sales executive at a leading carrier. “But we are able to provide dry containers almost normally now,” the source claimed.
The executive said there were efforts to reposition more reefer containers into India to mitigate the developing crisis for shippers and forwarders.
Other carrier sources cited inventory management challenges. One senior operations manager at a European carrier said: “We are operating in abnormal times.”
July 12: FMC Defers Approval of Maersk-Hapag Cooperation for Competitive Review – The Maritime Executive
The U.S. Federal Maritime Commission on July 12 reported that it is deferring its review and approval of the proposed Gemini Cooperation between Maersk and Hapag-Lloyd. The commission said it requires additional information on the “potential competitive impacts of the arrangement”; both Maersk and Hapag-Lloyd responded saying it is “fairly standard” from the FMC, noting the cooperation is not due to begin till February 2025.
“The Commission has determined that the Gemini Cooperative Agreement as submitted lacks sufficient detail to allow for a complete analysis of its potential competitive impacts,” the FMC wrote in its statement. It is invoking its Request for Additional Information, which defers the approval that otherwise would have happened 45 days after the filing. The commission will also now conduct a 15-day public comment period.
July 15: German Port Workers to Vote on Contract Proposals After Multiple Strikes – The Maritime Executive
Germany’s Ver.di union has decided to present two possible alternatives for a new dockworkers’ contract to the membership for comments after four rounds of contentious negotiations. Ver.di says it will determine its response after the membership survey to what the Central Association of German Seaport Operators (ZDS) called its final offer.
The contract for 11,000 port workers expired at the end of May. The union staged a series of warning strikes during June and July, bringing cargo shipments and containers to a halt at major ports ranging from Hamburg to Bremerhaven and Edem. The stoppages ranged from one to two days at a time, with carriers such as Maersk warning that they could be forced to divert ships or experience delays.
“The offer falls short of expectations,” the union’s Federal Collective Bargaining Committee said after the fourth round ended on July 12. They noted however that the employers had accepted some of their demands, including a financial bonus and compensation for the stress of shift work.
July 19: Kaohsiung the Latest Victim of Asia’s Container Congestion Contagion – The Loadstar
The container congestion contagion effect appears to be manifesting itself in Taiwan with a recent build-up of boxes in its main gateway of Kaohsiung.
Congestion in south-east Asia’s key ports has prompted liner operators to divert transshipment containers to Taiwan’s main container port which, in turn, placed Kaohsiung’s road infrastructure under pressure as more trucks are needed to ferry containers between terminals.
A representative of the country’s port authority, Taiwan International Ports Corporation (TIPC), said: “Mainline operators have been omitting calls to Singapore, Port Klang and Vietnam’s Cai Mep port due to congestion caused by disrupted schedules attributed to the Red Sea crisis. So they decided to divert some containers to Kaohsiung to be transshipped instead.”
Consequently, Kaohsiung processed 815,000 containers in June, up 13% year-on-year. Of this, transshipments comprised 375,000 containers, a 12% year-on-year increase.
EconDB’s data shows that in Kaohsiung, dwell time is seven days for inbound containers, nine days for outbound containers and eight days for transshipments.
July 22: U.S. FMC Finalizes Rule for Assessing Ocean Carriers’ Denial of Cargo Space – gCaptain
The U.S. Federal Maritime Commission (FMC) has published its final rule defining what constitutes an “unreasonable refusal to deal or negotiate with respect to vessel space accommodations.”
The rule delineates the standards for assessing whether a refusal by an ocean common carrier (VOCC) is unreasonable and thus violates federal regulations. Specifically, it differentiates between refusals occurring during the “negotiation” phase and those during the “execution” phase.
Each claim brought before the FMC under these sections will be evaluated individually, ensuring that the unique facts and circumstances of each case are considered. Not every refusal by a VOCC will be deemed a violation; if a carrier can substantiate a reasonable basis for their refusal, they will not be found in breach of the law.
July 24: Bangladesh ‘Jam-Packed’ with Cargo as Curfew and Internet Restrictions Continue – The Loadstar
Bangladesh cargo flows have resumed after the government restored limited internet connections for airport, emergency services, hospitals and port operators on July 23.
The country’s imports and exports took a massive hit after internet connections were cut on July 18 and a curfew enforced on July 20 – although this has been partially lifted to facilitate shopping and business activities – in response to student protests over job quota reforms.
Bangladesh Inland Container Depots Association secretary general Ruhul Amin Sikder said depots had some 5,000 TEU of laden containers ready for shipment.
“Today we are sending and bringing containers from the port,” he said, but he noted that, with the internet outage impeding customs entries, some 8,000 to 10,000 TEU of export containers could not be shipped during the chaos.
July 26: Container Shipping Rates Dip for First Time in Months as Restock Rally Fades – Supply Chain Brain
Spot rates for shipping containers fell for the first time in almost three months amid signs demand is cooling, after U.S. tariffs on Chinese goods and other trade disruptions sparked an earlier-than-usual peak season for restocking.
The Drewry World Container Index composite of eight major trade lanes dropped 2.2% to $5,806 for a 40-foot unit, snapping a 12-week-long advance, according to figures released on July 25. That’s still about three times higher than the rate posted at the end of 2023, when cargo ships started diverting en masse away from the Red Sea to avoid Houthi attacks.
July 30: Box Lines Set for Price Hikes in August to Halt Asia-U.S. West Coast Rate Slide – The Loadstar
Mainline operators are looking for a price hike in Asia-U.S. West Coast rates in mid-August to undo the recent correction.
Hikes of $1,000 per 40ft have been announced for August 15, by carriers hoping to halt the declines of the past three weeks.
On July 26, the Shanghai Containerized Freight Index showed Shanghai-U.S. West Coast rates lost about 7% from the previous week, averaging $6,663 per 40ft, although this remained above the $1,943 of a year ago.
July 16: ‘Unfair’ IATA CASS Rules Put ‘Severe Financial Strain’ on Forwarders – The Loadstar
IATA is causing “severe financial strain” for start-up and SME forwarders that could propel them out of business.
The airline association has been accused of anti-competitive and unfair commercial practices, and could face legal action as forwarders look to complain to national competition authorities.
The problems stem from an October 2022 change in IATA’s resolutions that means CASS associates are now obliged to provide financial guarantees to be able to access the payments system.
Companies say that not only are the rules unfair, but also the wrong formula is being applied.
July 17: IATA ‘Taking a Sledgehammer to Problem That Needs a Little Tack Hammer’ – The Loadstar
The forwarding industry has questioned IATA’s decision to require ‘potentially ruinous’ financial securities for some companies wishing to use CASS, its settlement system.
New offices, new company names or new locations – even for established forwarders – could result in the need to give IATA 20% of air cargo sales turnover in deposits, or expensive bank guarantees.
Turgut Erkeskin, president of FIATA, said: “It’s worth noting that the current payment success rate of forwarders to carriers stands at an impressive 99.99%. Therefore, there’s another valid argument for relaxing guarantee rules in light of this exceptional track record.”
Bill Gottlieb, former FIATA and CIFFA president [and current Chair of CIFFA’s Airfreight Committee], added: “CASS came out of the passenger settlements system, which involves travel agents. On the travel agency side, there is a greater risk of fraud.
“In cargo, we are a very compliant, very disciplined industry in terms of payments. In general, IATA makes it worse. But we pay our truckers. We pay our steamship companies. Otherwise, how long are we going to be in business if we don’t pay? A week, a month, two months? You know you’re going to fade away if you don’t pay.
“So show us, where are the numbers? What are we talking about here? And if we’re talking about .00 decimal places, why do you need a sledgehammer to deal with something a little tack hammer can resolve?”
July 18: Trade Associations Urge ‘Uncontactable’ IATA to Play Fair Over CASS – The Loadstar
Industry associations have joined the attack on IATA’s “potentially ruinous” financial security requirements for companies wishing to become CASS associates.
Forwarders that have failed to get satisfactory responses from IATA have turned to TIACA and FIATA to help, as well as national competition authorities.
Glyn Hughes, secretary general of TIACA, said he was concerned that the IATA process was unfair, and could harm industry growth.
Turgut Erkeskin, FIATA president, said: “It’s evident that SME freight forwarders are facing challenges due to the new financial security guarantees introduced by IATA.”
July 18: Cargo Logjam at Dhaka Airport as Clearing and Forwarding Agents Strike – The Loadstar
Over 1,500 tonnes of export-import cargo is waiting at Dhaka Airport in Bangladesh, following a three-day strike by clearing and forwarding (C&F) agents protesting against the introduction of an express delivery system.
The customs authority introduced a new rule on June 6 allowing courier services to assess cargo weighing below 30kg themselves, which helped importers receive cargo within two days – which also allowed for faster exports – but meant C&F agents lost business.
Shipments handled by C&F agents are slower; importers must wait around a week for their cargo, resulting in factories being forced to delay production.
The C&F agents temporarily suspended the strike on July 16, but warned they would strike again on July 22 unless a memorandum of understanding facilitating their business is signed by July 21.
Boxes have piled up at Hazrat Shahjalal International Airport (HSIA), exacerbated by a government holiday following the strike, meaning cargo was not delivered for four days. Stakeholders say it will take at least a week to clear the backlog.
July 31: Airfreight Rates Remain Stable Despite July Global IT Outage – Air Cargo News
The latest data from airfreight price reporting agency TAC Index shows that global air cargo rates only edged up in the week ending July 29.
That news came as a surprise, given the massive global IT outage of July 18.
The overall Baltic Air Freight Index calculated by TAC in the week to July 29 was only 0.7% higher than the week previously (and 8% up over the same period 12 months ago).
“After the major global IT outage on July 18, some observers expected the disruption to cause a further bump in air cargo rates, which have already been relatively strong for the summer season,” TAC said in its latest market update.
Overall, rates maintained the firm tone of recent months – particularly out of Asia, where there has been a continuing boom in e-commerce. The index of outbound routes from Hong Kong rose by 1% week on week, for example, leaving it up by 21.8% year on year.
July 1: Canadian Rail Workers Keep Window Open for Strike – Supply Chain Dive
Represented workers from Canadian National and Canadian Pacific Kansas City Southern overwhelmingly voted in favour of going on strike unless they get a new labour deal, the union announced on June 29.
The result of the vote by more than 9,200 Canadian railroad workers does not mean a strike is imminent. It does, however, position members of the Teamsters Canada Rail Conference to conduct a work stoppage unless members receive a new contract to replace its previous deal that expired on December 31, 2023.
This is the second time the union has authorized a strike this year. Members previously approved a strike on May 1, which positioned the union to begin a work stoppage on May 22.
However, intervention by Seamus O’Regan, Canada’s Minister of Labour, closed that strike window, as he requested the Canada Industrial Relations Board to investigate whether a work stoppage would impact Canadians’ health and safety.
July 3: CN Announces Net-Zero Target Approved by Science Based Targets Initiative – American Journal of Transportation
CN has announced that its net zero by 2050 target has been validated by the Science Based Targets initiative (SBTi). In using a science-based approach to its climate commitments, CN and the broader North American rail industry are aligned to reducing emissions and decarbonizing to deliver a sustainable future for all.
“At CN, we are focused on the long-term success and sustainability of our business,” said Tracy Robinson, President and CEO of CN. “We know that we cannot achieve our commitments alone, which is why we continue to collaborate with fuel producers and locomotive manufacturers, supply chain partners, governments, customers and peers in support of an effective transition to a low-carbon future.”
July 11: Port of Montreal Completes Rail Optimization Project – Port of Montreal press release
The Montreal Port Authority (MPA) has completed its extensive project to optimize rail capacity, a flagship project to improve the performance and fluidity of its logistics services. Phased in over three years at a total cost of $62.4 million, this ambitious project that extends from Bourbonnière Avenue to Panet Street, near the Jacques-Cartier Bridge, signals a major increase in the Port of Montreal’s rail capacity.
Through the project, the MPA installed two new tracks totalling 6 km of additional track and six switches to serve the 14 terminals and relocated the Port Road and all related infrastructure (sewer, water supply, power and telecom networks, etc.).
July 12: CIRB to Issue Decision on August 9
The Canada Industrial Relations Board (CIRB) informed CPKC and CN on July 12 that it intends to issue its decision regarding the Ministerial Referral on the maintenance of activities by Friday, August 9. The CIRB will issue the decision without holding oral hearings.
This development helps provide some predictability regarding the timelines for a potential work stoppage because the parties cannot legally take strike or lockout action prior to the CIRB issuing its decision and must then provide a minimum of 72 hours’ notice.
CPKC update: The railway has asked the CIRB to extend the cooling-off period by 30 days and has proposed to the union that the parties resolve this labour dispute through binding arbitration.
July 31: A Canadian Rail Strike Is Likely in Late August, CPKC CEO Keith Creel Says – FreightWaves
With labour negotiations at a standstill, a Canadian rail strike is likely to occur in late August, Canadian Pacific Kansas City CEO Keith Creel said on July 30.
CPKC and the Teamsters Canada Rail Conference are still talking but remain far apart on a new contract, Creel said on the railway’s second quarter earnings call.
The Canadian Industrial Relations Board has said it will release a decision by August 9 on what commodities are vital to health and safety and must keep moving during a work stoppage.
Members of the TCRC, which represents engineers and conductors on CPKC and Canadian National, have voted to authorize a strike that could begin with 72 hours notice once the CIRB decision is issued.
July 10: U.S. EPA Heavy-Truck GHG Rule Drawing Legal Fire – Today’s Trucking
Upon its release on March 29, the U.S. EPA’s latest final rule on greenhouse gas (GHG) emissions for new heavy trucks was met with stiff resistance by trucking interest groups.
Their initial salvos were strongly worded press releases countering EPA claims justifying the rulemaking. Now, they’ve escalated to launching lawsuits against the rule’s provisions. And environmental and health safety groups that aim to protect the rule are filing their own lawsuits to defend the rule as it is written.
July 18: CTA Warns of Potential Border Ramifications of CDC Dog Import Rules – CTA press release
The U.S. Centers for Disease Control and Prevention (CDC) will implement a policy on August 1 that has the potential to cause significant disruption to commercial vehicle travel and all cross-border trade, says the Canadian Trucking Alliance (CTA).
In its recent correspondence on CDC’s upcoming dog importation rules, the Alliance is asking U.S. and Canadian trade committees to put pressure on decision makers to bring common sense to the situation before the August 1 deadline. Specifically, CTA is requesting the implementation of this rule be delayed until at least January 2025, or until the CDC and the Canadian Food Inspection Agency (CFIA) have agreed that all issues have been addressed. The Alliance says pushing the deadline back will boost compliance and protect pets travelling with cross-border truck drivers.
If implemented as currently outlined, the policy could delay shipments carried by commercial drivers who are travelling with their dogs, which could potentially lead to a logjam in secondary inspection and cause backups that would impact all truck drivers, whether they’re travelling with a dog or not. There is also lack of clarity around how border admissibility will be impacted, and how truck drivers and their loads will be treated if unintentional noncompliance occurs.
The risk of these potential ramifications remains difficult to understand, as Canada remains a low-risk country for the spread of rabies. The CFIA states that dog rabies is currently not present in Canada.
July 22: Requirements Simplified for Taking Dogs into U.S. from Rabies-Free, Low-Risk Countries – Global News
The rules for Canadians wanting to travel with their dogs across the border to the United States starting on August 1 will now be easier than from some other countries.
According to the U.S. Centers for Disease Control and Prevention, dogs that have spent the prior six months only in dog rabies-free or low-risk rabies countries, such as Canada, will now be able to enter with a CDC import form online submission receipt as acceptable documentation.
This form can be filled out on the day of travel and the receipt can be shown to airlines and border officials as a printed copy or by phone. The receipt will be good for travel into the U.S. for six months from the date of issuance, including multiple entries. All dogs entering the United States must have a microchip and be over six months of age.
July 23: U.S. FMCSA Pleads with Congress for More Power to Punish Brokered-Freight Fraudsters – Overdrive
The U.S. Federal Motor Carrier Safety Administration issued a report to Congress this week on “Unlawful Brokerage Activities,” and essentially admitted it can’t crack down on bad actors without some serious help.
The report comes amid widespread hacks hobbling major load boards and brokers reporting “hemorrhaging” cash to freight fraudsters as the problem seems to grow nearly unchecked, but it’s written in response to an appropriations bill passed in 2022 that required FMCSA to ensure compliance with 49 U.S.C. 14916, Unlawful Brokerage Activities.
The report seeks to fully spell out FMCSA’s current route toward assessing fines for what it calls “commercial violations,” likewise “alternative enforcement mechanisms for unlawful brokerage activities” available to the agency. Also at issue is “whether new legislative authority or the clarification of existing legislative authority is necessary to address unlawful brokerage adequately,” the report states. “Additionally, this report addresses safety concerns arising from unlawful brokerage activities.”
July 24: B.C.’s CVSE Now Posting Carrier Safety Data – Today’s Trucking
Beginning this month, the Commercial Vehicle Safety and Enforcement (CVSE) branch in B.C. is posting a list of carriers holding a valid National Safety Code (NSC) safety certificate issued by the province.
The list will be updated monthly and will provide the public with information including: the carrier’s legal name and home city; its certificate status (Active, No Active Vehicles or Suspended); its safety rating; and number of registered vehicles.
The CVSE will also be posting a monthly listing of B.C. carriers whose authorities have been canceled for cause.
Both listings can be found on CVSE’s website, at www.cvse.ca.
July 26: Trucking Groups Say Some Carriers Abusing LMIA to Recruit Foreign Workers – Today’s Trucking
Trucking association executives say that a key component of the temporary foreign worker (TFW) program is being abused, with foreign workers paying tens of thousands of dollars for an opportunity to live and work in Canada.
“The Canadian Trucking Alliance on many occasions has seen unusual activity in our sector and irregularities when it comes to some carriers and the number of approved LMIAs [Labour Market Impact Assessments] they have,” said Stephen Laskowski, president of the Canadian Trucking Alliance (CTA) and Ontario Trucking Association.
“In some cases, we can see some companies with huge numbers of approved LMIAs in proportion to their fleet size. This should be an obvious red flag for authorities that draws questions as to why more drivers are required than trucks registered to the fleets.”
July 31: Highway 16 to Open to Commercial Traffic ‘Imminently’ as Jasper Wildfire Continues to Burn Out of Control – CBC News
While out-of-control wildfires continue to burn and smoulder in Jasper, the critical highway route through the national park is set to reopen to commercial traffic.
“The Government of Alberta understands this is an important economic corridor and it’s a priority for us to get large trucks and tractor-trailers passing through the park again,” Minister of Public Safety and Emergency Services Mike Ellis said on July 31.
July 30: CIFFA Brief to Industrial Inquiry Commission
On July 30, CIFFA submitted a brief to the Industrial Inquiry Commission on the topic of the underlying issues in longshoring labour disputes at Canada’s West Coast ports pursuant to Section 108 of the Canada Labour Code.
June 4: Ocean Contracts Under Strain Amidst Red Sea Diversions – Freightos blog
Capacity already stretched thin by Red Sea diversions is combining with an unexpected increase in demand in recent weeks to send ocean container spot rates spiking, and poses familiar challenges to shippers with long-term contracts.
Demand for ocean freight out of Asia unexpectedly picked up early in May, reflecting the possible start of restocking in Europe and an early peak season on the transpacific due to concerns over Red Sea or labour-driven delays later in the year. As a result, congestion began to worsen, and the supply side deficits began to be felt as empty container shortages in Asia and spiking rates.
Since the end of April, Asia to North America West Coast spot rates, for example, have spiked more than 70%, passing the $5,000/FEU mark and their previous 2024 high hit in February, when prices first soared on the start of Red Sea diversions.
With capacity and equipment scarce and spot rates now several thousand dollars above long-term contract levels, annual agreements are once again becoming unreliable.
A recent Freightos Group survey of more than 50 logistics professionals found that, since early May, nearly 70% of BCOs and forwarders with long-term ocean contracts have had containers rolled or pushed to the spot market, or are facing contract renegotiations with carriers to increase their long-term rate levels.
June 10: French Ports Face a Month of Chaos and Disruption as Workers Strike – The Loadstar
A month of chaos and disruption could lie ahead for France’s major ports, including box hubs Le Havre and Marseille-Fos.
Labour unions representing dockers and other port workers look set to carry out their threat to stage several one-day strikes, as well as numerous four-hour work stoppages this month, in protest over pension reform that increased the statutory retirement age in France.
The first of the 24-hour strikes took place on June 7, with Le Havre’s ro-ro, bulk and container terminals reportedly blocked by dockers. Four ship calls were cancelled and a further 18 calls delayed. The same day, an estimated 600 dockers and other port workers blocked the main entry point of trucks at the Fos box terminal.
Among the other French ports hit by the stoppages are Dunkirk, Rouen, Bordeaux and Nantes Saint-Nazaire.
June 10: ILA Suspends Talks, Warns of “Little Faith” in Reaching Deal on Time for U.S. East Coast, Gulf Coast Ports – The Maritime Executive
The International Longshoremen’s Association is continuing its tough stance against port automation, announcing on June 10 the suspension of contract negotiations due to an issue over automated gates. Noting it is only four months until the master contract expires covering all U.S. East Coast and Gulf Coast ports, the ILA said in its statement that it has “very little faith that these issues will be addressed in time.” In the past, the union has said it will not go past the September 30 expiration and would strike.
The suspension came just one day before the ILA and the United States Maritime Alliance (USMX) were scheduled to meet for talks regarding the master contract. Talks have been underway since last year for the local contracts with the goal of having completed that phase and now moving into the master contract. The ILA says it will not meet with USMX until the current automation issue is resolved.
June 11: Blank Sailings on the Rise at Canadian Ports as Carriers Fret over Potential Rail Strike – The Loadstar
As uncertainty hangs over Canada’s rail system being shut down by a strike, shipping lines on the transpacific trade have begun to cancel calls to the country’s main pacific gateways, Vancouver and Prince Rupert.
“Anticipation of a strike keeps carriers on their toes, with some already taking significant action to omit, blank or swap calls into Vancouver in June and beyond,” an eeSea trade update said.
“There are 14 port swaps and diversions away from Canada into U.S. gateway ports confirmed from week 24 onward, as well as three completed since mid-May,” it added.
June 13: Carriers Scramble for Tonnage – The Loadstar
Ocean carriers are “scrambling for any tonnage” to provide additional capacity on east-west services, but the tonnage providers are “taking advantage” as the cost of chartering vessels has recently risen rapidly.
Maersk’s head of ocean product UK and Ireland, Joe Knight, said at this week’s Multimodal exhibition in Birmingham: “Vessels are fully utilized and that’s why there are new services coming online, which honestly is great for the industry, to get as much pressure out as possible.
“They are very small vessels, in relative terms to the Far East norm. So, you’d be expecting to run 20,000-TEU or 14,000-TEU vessels, and we’re seeing 3,000-TEU ships being deployed,” he added.
Peter Sand, chief analyst for analytics platform Xeneta, said: “All carriers fight for the same ships – either you buy or you charter – and they are all scrambling for tonnage now. There is big money to be made, at the expense of shippers who get only to pay more and more for deteriorating service levels.”
June 13: Fears Are Rising that Ocean Freight Rates May Surpass US$20,000 with No Relief for Global Trade into 2025 – NBC
A major global trade inflation indicator is headed in the wrong direction. Rising freight rates are a new source of concern in the global supply chain, with forecasts warning that ocean cargo prices could reach $20,000 – potentially even touch the COVID-era peak of $30,000 – and stay there into 2025.
Spot ocean freight rates from the Far East to the U.S. popped between 36% and 41% month over month, and ocean carriers increased additional charges known as general rate increases by roughly 140%, according to the CNBC Supply Chain Heat Map. These costs have taken the price of a 40-foot cargo container to about $12,000.
June 14: More Strikes at German and French Ports Could Bring Congestion and Delays – The Loadstar
Port workers affiliated with German trade union Ver.di have threatened strike action at the country’s key hubs, adding to North European shipper stress as labour tensions also rise in France.
Ver.di is organizing a series of dock strikes in Bremerhaven, Hamburg, Bremen and Emden after talks with the Central Association of German Seaport Operators (ZDS) ended without success.
Negotiations will continue in Hamburg on June 17 and 18, but a warning strike took place on June 14 in Emden, and Ver.di said: “It remains to be seen whether there will be another warning strike, if the ZDS does not submit an offer in the next round of negotiations.”
The union said that, in 2022, warning strikes that accompanied talks “paralyzed the ports for around 80 hours.”
June 17: ‘At Least 65 Countries’ Now Affected as Houthi Red Sea Attacks Continue – The Loadstar
Houthi attacks on shipping in the Red Sea have cut box throughput in the region by 90% and, amid escalating insurance costs, it seems it will take more than naval support to lure carriers back to the region any time soon.
According to a U.S. Defense Intelligence Agency report, re-routing vessels around Africa has added some 11,000 nautical miles and $1 million in fuel costs to voyages, but from a financial perspective, this compares favourably with taking Red Sea routes in crisis conditions.
To date, the report notes, “at least” 65 countries have been affected by the attacks, well outside the Houthis purported scope.
June 18: Snap Election in France Prompts Labour Unions to Postpone Strikes at Ports – The Loadstar
The surprise announcement by French president Emmanuel Macron last week to call an election has led to dock and port worker unions postponing a series of strikes this month, which threatened to bring chaos to box ports like Le Havre and Marseille.
A 24-hour stoppage on June 7 saw Le Havre’s ro-ro, bulk and container terminals reportedly blocked by dockers, leading to four ship calls being cancelled and a further 18 delayed, while at Marseille-Fos, an estimated 600 dockers and other workers blocked the main entry point to the box terminal.
Further one-day strikes had been called for June 21 and 25, along with four-hour walkouts on three days of each week this month – all in protest at pension reform that increased the statutory retirement age in France.
However, the snap election left traditionally militant union Fédération Nationale des Ports et Docks CGT (FNPD) with no one at government level with whom to negotiate its demands until a new administration is formed.
June 21: Singapore Port Logjam Lingers as Container Ships Keep Piling In – gCaptain
The logjam that’s been plaguing Singapore’s container port is bringing forward this year’s peak season for the shipping sector, spelling trouble for businesses in the city-state.
The bunching up of container vessels outside one of the world’s busiest maritime trade hubs means there’s more cargo trapped in ports for longer. That’s pushing freight rates ever higher, with no immediate end to the congestion in sight.
A lack of immediate alternatives to Singapore in the region is making the logjam even worse. Nearby ports, such as Port Klang and Tanjung Pelepas in neighbouring Malaysia, aren’t easy substitutes because they aren’t as well-connected as Singapore, said Jayendu Krishna, a director at Drewry Maritime Services. So outbound cargoes may not be able to reach their destinations on time if they don’t leave from the city-state, he said.
June 26: Idle Containership Fleet Dips to Pandemic-Era Lows as Carriers Hunt Tonnage – The Loadstar
As global demand for box ship capacity continues to dramatically outstrip supply, the number of idled vessels is down to numbers not seen since the pandemic.
According to new Alphaliner data, in the first half of the year, commercially idle tonnage represented an average of 0.7% of the container shipping fleet, “harking back to levels seen during the pandemic,” it reported.
Stanley Smulders, director of marketing and commercial for ONE, said: “If you look at all the statistics, there are no ships idle. All the shipping lines are in need of ships at the moment.”
June 27: Forwarders ‘Being Squeezed’ as Spot and Contract Rates Move Further Apart – The Loadstar
Rapidly increasing spot freight rates are diverging further from contract rates, imitating the pattern seen during the pandemic, leaving large shippers in a better position than SMEs and freight forwarders, according to freight rate benchmarking platform Xeneta.
Xeneta market analyst Emily Stausboll said: “Some of our customers are saying this brings back pandemic memories, and there are very few that have pleasant memories from that time.”
Xeneta chief analyst Peter Sand warned that “what you pay depends on you either being very very good at negotiating, if you are a super-large shipper or you are an SME shipper.”
According to Xeneta data, SMEs are often paying more than the market average, whereas larger players on average pay less, due to carriers honouring long-term contracts to maintain relationships.
June 28: Disruptions Grow at German Ports as Labour Talks Drag On – The Maritime Executive
Germany’s powerful union Ver.di is continuing to stage a series of “warning strikes” rolling across the main German commercial ports as the union says they are “still far apart” on contract negotiations.
The latest effort was on June 27, with both the day and night shifts stopping work at Wilhelmshaven.
Carriers are continuing to warn customers of potential impacts on their schedules as Ver.di says that there could be additional strikes before the next round of talks, which is not scheduled for nearly two weeks.
Maersk issued an update to customers saying that it was “reviewing vessel line ups and schedules, as well as potential impact of the strike action on vessel departures. We are looking into taking additional measures, such as diversions or move count restrictions in order to minimize the impact on onwards vessel schedules, and consequently, delays to our customers’ cargo.”
June 14: Worsening Containership Market Keeps the Pressure on Air Cargo – Air Cargo News
The recent deterioration in the ocean shipping market could be pushing more cargo to airfreight following the impact of the Red Sea crisis.
In its latest market update, data provider WorldACD said that, over the last few weeks, air cargo demand and rates from Asia Pacific origins “continue to soar well above last year’s levels.”
Its figures show that, in the last two weeks, overall Asia Pacific tonnages are up 20% year on year and rates are 16% ahead of the year-ago level, although WorldACD pointed out that there are some big variations between origins.
This comes as ocean shipping – already under pressure due to the Red Sea crisis – has seen volumes and rates soar due to unseasonal capacity shortages and port congestion.
“Shippers face significant shortages of both air and ocean freight capacity due to strong demand and disrupted seafreight services,” the data provider said.
June 19: WestJet Cancels Some 40 Flights in Anticipation of Strike by Mechanics – CHEK News
The WestJet Group cancelled about 40 flights in anticipation of a possible strike by its aircraft maintenance workers on June 19.
WestJet says it started cancelling and consolidating its flights in order to park aircraft in a safe and organized manner.
Some 670 WestJet mechanics, represented by the Aircraft Mechanics Fraternal Association, are poised to walk off the job as early as June 20 after serving the airline with strike notice earlier this week.
The flight cancellations came as WestJet waits for a response to its request that the Canadian Industrial Relations Board intervene.
If accepted, the move would refer the dispute to arbitration and prevent labour action by both sides, the company says.
June 20: WestJet and Unionized Mechanics Agree to Resume Talks; Strike Action Off the Table – CP24
The threat of strike action by unionized mechanics at WestJet has been dropped after both sides agreed to return to the bargaining table.
A statement says the air carrier appeared before the Canadian Industrial Relations Board to discuss arbitration options with its Aircraft Maintenance Engineers and Tech Ops employees. CIRB officials say more information is needed from both sides before deciding whether arbitration is the best way to reach a first-time collective bargaining agreement.
In the meantime, the parties have jointly agreed to return to the bargaining table and continue working towards a resolution.
June 27: Government Steps In to Prevent WestJet Engineers Strike Ahead of Holiday Weekend – Reuters
Canada’s federal government intervened on June 27 to prevent a strike by maintenance engineers at WestJet Airlines to avoid more flight cancellations ahead of a busy holiday weekend.
Labour Minister Seamus O’Regan said he had ordered the country’s industrial relations board to impose final binding arbitration in the dispute between the airline and the Aircraft Mechanics Fraternal Association. “The parties still remain far apart today, and tensions have only increased,” he said in a statement.
The union said there was no modern precedent for the move, adding it would comply with the order and direct its members to refrain from any unlawful job action.
June 10: Zero- and Low-Emission Trucks to be Tested at Port of Prince Rupert through B.C.’s Integrated Marketplace – PRPA press release
Through an Integrated Marketplace project led by Innovate BC, new zero- and low-emission heavy-duty (HDZEV) trucks will be added to operations at the Port of Prince Rupert to help reduce greenhouse gas emissions and support sustainability in the province’s transportation sector.
The HDZEV project will see four new trucks – two hydrogen powered, one battery electric and one hydrogen-diesel co-combustion – utilized on existing operational routes. These operations will provide data to better understand the range, reliability and potential best use case for the vehicles.
June 10: CVSA Brake Safety Day Blitz in Canada Puts 11.5% of CMVs Out of Service – Today’s Trucking
More than one in 10 commercial motor vehicles that were inspected in Canada were put out of service for brake-related violations during Commercial Vehicle Safety Alliance’s (CVSA) recent one-day unannounced blitz.
Inspectors in nine Canadian provinces and territories conducted 1,021 inspections, in which 904 of the vehicles inspected did not have any brake-related out-of-service violations. They removed 117 vehicles from roadways for brake-related out-of-service violations, which is an 11.5% vehicle out-of-service rate. Additionally, 33 power units and 18 towed units had brake lining/pad violations.
June 11: Companies Looking to Reduce Emissions Turning to Private Fleets – Transport Topics
Across all areas of the economy, shippers are facing increasing pressure to make their operations more sustainable and to meet environmental, sustainability and governance (ESG) targets.
That has some companies looking to exercise greater control over GHG emissions in their logistics networks by stepping back from for-hire carriers and increasing their private fleets.
June 14: U.S. FMCSA Approves 25% Fee Increase for Carriers, Brokers – FreightWaves
U.S. federal regulators have approved a 25% increase in fees collected by states from motor carriers, brokers and leasing companies that are used to pay for state highway safety programs.
The fee increase in the Unified Carrier Registration (UCR) Plan for the 2025 registration year, announced on June 14 by the Federal Motor Carrier Safety Administration, ranges from $9 to $9,000 more per year that carriers will pay, depending on the size of their fleet. The fee per entity for a broker or leasing company is $46.
“The agency notes the rare occurrence of this upward adjustment, which has only previously occurred once, over a decade ago,” FMCSA stated in a final rule approving the increase.
June 26: Canadian Truckers Worried as U.S. Dog Import Rule Deadline Approaches – Today’s Trucking
Effective August 1, the U.S. Centers for Disease Control and Prevention (CDC) will enforce new entry requirements for dogs traveling across the border to prevent the spread of rabies. All dogs must appear healthy, be microchipped and be at least six months old, and owners must present a CDC Dog Import Form receipt upon arrival.
The Canadian Trucking Alliance (CTA) has voiced concerns about these regulations, particularly for cross-border truck drivers who frequently travel with dogs.
According to a news release, the upcoming rule has CTA members worried about condensed timelines, burdensome compliance requirements and potential adverse health effects that could endanger the well-being of their dogs if specific revaccination requirements remain in place.
“CTA recently wrote the CDC, indicating that many cross-border truck drivers travel with their pets as a companion, with some fleets estimating that upwards of 20% of their long-haul drivers travel with their dogs into the U.S. Many drivers also have questions about potential impacts on admissibility, and the lack of education around this rule prior to its introduction at the border,” the release reads.
Since the CDC has recognized Canada as a low-risk country for rabies, CTA has requested an extension of the educational enforcement period until the end of 2024 and advocated for already-vaccinated dogs to be grandfathered into the new regulations, regardless of microchipping status.
May 1: Indian Trade Disrupted as Port Congestion Forces Liner Services to Skip Calls – The Loadstar
Container lines are wrestling with growing service reliability challenges on connections out of India – the longer journey around southern Africa and congestion problems at hub ports en route, particularly Jebel Ali, have taken a toll on their operations.
CMA CGM and MSC have announced port call changes on several Indian services to help schedule recovery, sparking serious concerns for shippers and forwarders.
According to industry sources, the widespread disruptions have left carriers constantly shuffling gate cut-offs or cargo carting windows for their Indian sailings over the past few weeks, making shipment planning increasingly difficult for exporters and freight forwarders.
May 3: Houthis Escalate Threats Against Shipping, Launching “Fourth Stage” – The Maritime Executive
The leader of the Houthi movement called for a further escalation of the attacks on shipping, citing the potential attack on the city of Rafah and as Western pressure grows on Hamas to accept the terms of a proposed ceasefire.
“The Yemeni armed forces announce the beginning of the implementation of the fourth stage of escalation,” Houthi spokesperson Yahya Saree announced. He said it was effective immediately from “the moment of this statement.”
The statement said they were targeting all ships “violating the ban on Israeli navigation,” and heading to Israeli ports in the Mediterranean. They vowed attacks in “any reachable area” within their range, which some media outlets are interpreting as a threat against ships in the Eastern Mediterranean.
The Houthis also threatened to expand their attacks to “all ships and companies that are related to supplying and entering [Israeli ports] of any nationality if a military operation is launched against Rafah” in southern Gaza. The United States and other Western allies have been pressuring Israel not to attack Rafah, while the Israeli government and military continue to accuse the leaders of Hamas of hiding among the civilian population of Rafah.
May 6: Maersk Warns Red Sea Impact Widens, Creating Capacity Constraints and Costs – The Maritime Executive
The largest container carriers are warning customers of increased disruptions and costs after the Houthis widened their attacks further into the Indian Ocean and have threatened to further expand the attacks. Both Maersk and Hapag-Lloyd said they will be further diverting ships, with Maersk raising its surcharges as it warns of increased costs and capacity constraints.
“The effects of the situation in the Red Sea are widening and continue to cause industry-wide disruptions,” Maersk wrote in a May 6 customer advisory. “The complexity of the situation in the Red Sea has intensified over the last few months…The risk zone has expanded, and the attacks are reaching further offshore.”
Maersk is reporting that bottlenecks and vessel bunching as well as delays and equipment and capacity shortages are developing. They report using 40 percent more fuel per journey while saying that charter rates are currently three times higher, often fixed for five years.
May 8: Container Fleet Adds Record Capacity as Orders Become Deliveries – The Maritime Executive
The global containership fleet continues to experience record capacity growth in the number of TEU capacity added to the fleet in 2023 and again so far this year. While industry executives continue to express concern over the mid-term overhang on capacity, near term it has helped to offset the impact of the diversions away from the Red Sea and the lower number of daily transits at the Panama Canal.
Industry trade group BIMCO calculates that 2.3 million TEU of containership capacity was delivered in 2023, beating a previous record by 37 percent. To put these volumes in perspective, Alphaliner calculates the global container fleet numbers just over 6,900 vessels with a total capacity exceeding 29.6 million TEU.
The pace of new deliveries has not slowed in 2024. BIMCO reports another new record has been set so far this year. It calculates that more than 1 million TEU capacity was delivered in the first four months of 2024. That represents an 80 percent increase compared with the previous record.
May 10: BCMEA–ILWU Local 514 Bargaining Update – BCMEA update
The BC Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union Ship and Dock Foremen Local 514 (ILWU Local 514) continued negotiations with the support of the Federal Mediation and Conciliation Service (FMCS).
Citing “the union bargaining committee’s intransigence at the bargaining table,” the BCMEA filed a complaint with the Canada Industrial Relations Board on May 10.
The 21-day cooling-off period concluded at 12:01 am PT on May 10. Therefore, the parties have acquired the legal right to strike or lockout, but may not exercise their right to strike or lockout until a strike or lockout vote has been taken and a 72-hour strike notice, including date and time of intended action, has been provided to the other party and the Minister of Labour.
May 10: A ‘Carrier-Controlled Market’ as Spot Rates Rise and Capacity Tightens – The Loadstar
“You take away all sense and rationale. And whatever is left, is the container shipping market,” said Peter Sand, Xeneta’s chief analyst, on May 10.
The continuing Red Sea crisis, in combination with higher-than-expected demand, caught many Asia-Europe forwarders on the back foot over the past two weeks, and in the week of May 6 the spot freight rate indices began to match anecdotal trade reports.
Spot rate rises were strong on the Asia-North America trades, with the XSI transpacific trade rising 145%, to $3,754 per 40ft, while the WCI Shanghai-New York leg showed a 116% jump, to finish the week at $5,089 per 40ft.
May 10: Renewed Piracy Menace Endangers Red Sea Shipping Routes – Global Trade
The resurgence of piracy in the Red Sea and the Horn of Africa poses a grave threat to maritime security, with recent attacks by Somali pirates sparking renewed concerns for international trade and the safety of crew members. Exploiting the diversion of naval forces’ attention towards the Houthi crisis, Somali pirates have resurfaced, casting a shadow of fear and instability over the region.
May 13: Ocean Carrier Cocktail Leaving a Sour Taste in Shippers’ Mouths – American Shipper
The ocean carrier cocktail is back and it packs a punch. Two parts canceled sailings that spice up spot rates, coupled with a stiff pour of general rate increases, leaves shippers with a dull headache and a thinner wallet.
While this iteration of the cocktail is not as strong as previous ones, it is potent enough to sour shippers’ stomachs. With no end in sight to the Red Sea diversions and “meh” consumer demand, ocean carriers are in lockstep with their mission of trying to establish an artificial floor to stave off rate erosion and add some girth to their wallets.
Peter Sand, chief shipping analyst at Xeneta, says the market right now contains equal shares of “desperateness, defying gravity and frontloading.”
May 15: ILWU Local 514 Delays Serving 72-Hour Strike Notice on DP World to Take Part in Federal Mediation – ILWU Local 514 press release
The International Longshore and Warehouse Union Local 514, representing ship and dock foremen, has agreed to delay serving 72-hour strike notice on employer DP World Canada at Centerm in order to take part in federal mediation and is refuting claims made by the BC Maritime Employers Association about the dispute.
May 16: Panama Canal Slowly Returning to Normal Operations – gCaptain
The increase in water levels in the Panama Canal has sparked hopes of a potential return to normal operations for container shipping after over a year of restrictions due to a severe drought. However, experts warn that the situation, while improving, is far from returning to pre-restriction levels.
Starting on May 16, the Panama Canal Authority has increased the daily number of ships allowed to transit the waterway from 24 to 31.
Peter Sand, Chief Analyst at Xeneta, says the increase will provide limited relief for container shipping services, since the increase corresponds to additional slots in the smaller panamax locks. However, a more meaningful change is anticipated on June 1, with an additional transit slot for larger Neopanamax ships (including containerships), which will raise the daily total to 32. Meanwhile, authorities also plan to increase the draft limits for Neopanamax ships from 44 feet to 45 feet on June 15, bringing it closer to the normal limit of 50 feet.
The disruption caused by the water shortage in the Panama Canal has had a significant impact on scheduling reliability and spot rates.
May 20: Mounting Container Shortages Creating ‘Total Havoc’ – The Loadstar
Containers out of northern China are becoming increasingly hard to get hold of, report forwarders. A surprisingly strong market, plus lower vessel capacity due to the Red Sea crisis, is creating a shortage of both ships and containers.
“There is a very real shortage of 40’ HC in China – we are all running out,” said Hans-Henrik Nielson, global development director at CargoGulf.
“When I say it’s week-to-week scrambling, I’m really not exaggerating.”
Ligentia confirmed the shortage on May 20 in a message to customers. “Equipment stock, particularly in North China, is tight and varies daily based on vessel arrivals and the discharge of empty containers.”
It added that in Shanghai, “almost all carriers are lacking empties, especially CMA and ANL”. Vessel waiting time at the port is now three to 14 days, it added, due to port congestion. “Across almost all carriers we are seeing schedule delays.”
It also noted that carriers are struggling to obtain containers across many more Chinese ports, including Maersk and Hapag-Lloyd in Yantian, Cosco, HMM, Hapag-Lloyd and MSC in Ningbo, Hapag-Lloyd and Maersk in Tianjin, and Cosco and CMA CGM in Qingdao.
May 23: Port of Prince Rupert Receives Funding to Build Export Logistics Hub – PRPA press release
The Canada Infrastructure Bank (CIB) has reached financial close on a $150 million loan to the Prince Rupert Port Authority (PRPA) for the first phase of a project to build CANXPORT. The new export logistics hub will expand capacity and capabilities for rail-to-container transloading of multiple export products at the Port of Prince Rupert.
Work has already begun to prepare for the new facility, located a short distance from Fairview Container Terminal.
The facility will enable the containerization of bulk commodities with room to expand and diversify to handle additional cargoes in the future. The project’s scale, unit train capabilities and integration into existing container terminal operations are expected to facilitate substantial opportunities to exporters that enhance container supply chains and ways to reach international markets. The hub’s initial annual capacity will be 400,000 twenty-foot equivalent units.
May 24: Shipper Fury as Spot Rates Soar – And Box Lines Ignore Contracts – The Loadstar
The sense of genuine anger amongst North European shippers and freight forwarders was palpable this week as they struggled to digest rapidly escalating spot freight rates.
The ascent steepened over recent weeks, with Drewry’s WCI Shanghai-Rotterdam leg rising 20% week-on-week to finish at $4,999 per 40ft.
However, sources said that slots are being purchased at much higher levels.
“Rates for spot are in the $6,000-$7,500 mark, with carriers saying they will hit $10,000.”
Tight vessel supply is continuing to combine with high demand in trunk trades and has led to a worsening shortage of containers at key export hubs in Asia, which is now having a significant impact on secondary trades.
And carriers’ preference to carry higher-paying spot cargo over contracted volumes is infuriating many customers.
May 28: Trade Strains Boost Cargo Rates at Pace Recalling COVID ‘Chaos’ – American Journal of Transportation
Global goods trade is showing signs of accelerating after last year’s slump, pushing up shipping rates and giving some supply chain managers flashbacks to the demand spike that disrupted international commerce three years ago.
“This situation will bring back memories of the chaos and sky-rocketing ocean freight rates during the pandemic,” said Emily Stausbøll, a senior shipping analyst with Xeneta, an Oslo-based freight analytics platform. “Shippers have learned lessons from COVID-19 and some are bringing their imports forward, ahead of the peak season and the potential for a capacity squeeze.”
Some of the catalysts for the monthlong advance in seaborne freight rates stem more from worry than optimism. They include concerns about port congestion in Asia, labour strikes in North America that threaten to hobble ports or rail services, and heightened trade tensions between the U.S. and China.
May 28: Box Ships Omitting Singapore Call as Port Congestion Hits Critical Level – The Loadstar
Congestion in Singapore, the world’s second-busiest container port, has reached a critical level, compounding the shortage of ships and containers.
Data from Linerlytica indicates that containerships have to wait up to seven days to berth in Singapore, recently seeing up to 450,000 TEU of vessels in the queue.
And port congestion globally is worsening and has tied up 2 million TEU of ships, nearly 7% of the fleet, which is lending support to carrier rate hikes.
The bottlenecks at Singapore are mainly due to the diversions caused by the Red Sea crisis and shipping lines skipping the less-busy Port Klang in Malaysia. In normal circumstances, ships can berth upon arrival in Singapore, or wait half a day at most.
May 29: Some Shipping Container Costs Hit US$10,000 – Transport Topics
Companies transporting goods from Asia face costs of as much US$10,000 for an urgent full-size shipping container over the next month – about double current spot rates, according to prices circulating between carriers and importers.
CMA CGM already announced a $7,000 rate for a 40-foot container for the second half of June for goods shipped to northern Europe from Asia. That’s up from the current charge of about $5,000. For the first half of June, rates range from $6,000 to $6,500, with premium service offered at $7,500 to $10,000.
May 29: New FMC Rules on Detention and Demurrage Come into Force – The Loadstar
The U.S. Federal Maritime Commission (FMC) revision to detention and demurrage (D&D) rules came into force on May 28, introducing new requirements for billing, time frames and how to dispute unfair charges.
A key provision determines that D&D invoices can only be issued to either the consignee – defined as “the ultimate recipient of the cargo” – the person who contracted with the billing party to provide ocean transportation or storage of cargo, or the person for whose account this was provided.
The FMC highlighted that “billing the proper party is an important part of the final rule.”
May 30: Getting Containers in the Right Place at the Right Time is Now ‘Impossible’ – The Loadstar
Shippers and forwarders could find it “impossible” to position containers in the right place at the right time, as the global box shortage worsens.
The global dearth of containers has been threatening to disrupt shipping over the past few months, driven by Red Sea crisis diversions. But recently, it hit a crescendo as demand is exacerbated by shipping’s earlier-than-usual peak season.
Mirko Woitzik, global director of intelligence at Everstream Analytics, explained that shippers securing back-to-school and holiday goods earlier, more blank sailings out of Asia, little idle capacity, longer transit times around Africa, bad weather in Asia and a looming strike at U.S. Gulf and east coast ports have all created the perfect storm for disruption.
May 30: Panama Canal Increases Maximum Draft Ahead of Schedule – gCaptain
The Panama Canal Authority announced on May 30 an increase in the maximum authorized draft of the Panama Canal’s Neopanamax locks to 45 feet, bringing it closer to the normal limit of 50 feet. This adjustment, originally scheduled for June 15, comes in anticipation of the rainy season in the Panama Canal watershed and the current and projected levels of Gatun Lake.
The announcement comes days before the Authority is scheduled to add one extra transit in the Neopanamax locks, bringing the total number of daily transits to 32, up from a low of 24.
The Panama Canal is slowly returning to normal operations after over a year of restrictions due to a severe drought.
May 1: Airfreight Contracts Begin to Reflect Threat of a Q4 Capacity Crunch – The Loadstar
“Capacity will be king in Q4,” said one forwarder at the CNS Partnership event in Dallas – that is now becoming clear in the data and shipper airfreight contracts, according to Xeneta.
Volumes are coming off the spot market, it explained. In April, the spot market share was 41%, down 4 percentage points from a year earlier. And, with fears of a busy Q4, shippers and forwarders are starting to plan ahead.
“There’s the reality of now, where you will see load factor decline on markets, because of the increase in capacity, sitting alongside preparations already under way for Q4,” said Xeneta’s chief airfreight officer, Niall van de Wouw.
May 2: Air Canada Abandons Plans for Two Boeing 767 Converted Freighters – American Shipper
Air Canada has again scaled back growth plans for its startup freighter division, announcing it has canceled orders with a vendor to convert two Boeing 767-300 passenger jets into freighters.
The airline took a one-time charge of US$14.5 million for backing out of reservations for production slots at Israel Aircraft Industries, it said in its earnings report for the first quarter.
Air Canada’s freighter airline division is nearly two and a half years old and now consists of eight Boeing 767-300 freighters: six converted passenger jets and two factory models. It had seven aircraft at the end of 2023. The feedstock for cargo conversions came from 767s that were retired from Air Canada’s passenger fleet.
May 8: Global Trade Gains Push Air Cargo Rates Higher: TAC Index – The STAT Times
Global air freight prices edged a little higher again, according to the latest data from TAC Index. The overall Baltic Air Freight Index calculated by TAC was up 2.1 percent for the week to May 6, leaving it now close to flat at -2.2 percent over the last 12 months.
“The ongoing strength of the market follows recent predictions of an uptick in global trade from the OECD, IMF and World Trade Organization – and some sources anticipating tight capacity for peak season later this year,” says the update.
May 23: Dramatic Increase in Severe Turbulence Incidents Impacting Airfreight – Air Cargo Week
The recent fatality and injuries on board Singapore Airlines’ flight SQ321 highlights the dangers of turbulence. A 55% increase in severe turbulence since 1979 is also having a dramatic impact on air cargo, warns international delivery expert Parcelhero.
The Singapore Airlines’ aircraft hit severe turbulence and dropped more than 6,000 feet (1800m) in three minutes. While this was particularly dramatic, the number of severe turbulence events has been growing in recent years.
“Meteorologists from the University of Reading released a report last year revealing that, at a typical point over the North Atlantic (one of the world’s busiest flight routes), the total annual duration of severe turbulence increased by 55% from 1979 to 2020,” said Parcelhero’s Head of Consumer Research David Jinks.
“This is … why anyone sending an item overseas must carefully follow all packaging recommendations. The increasing likelihood of turbulence means [packages] must be packaged as carefully and securely as possible. Cargo is securely stowed in the bellyholds of aircraft but the growing likelihood of turbulence means every precaution must be taken.”
May 31: Transpac E-Commerce Freighters on Pause as U.S. Customs Checks Every Parcel – The Loadstar
The U.S. Customs and Border Protection (CBP) agency is inspecting every single e-commerce shipment coming from mainland China on freighters – leading to airport congestion, delays and the cancellation or suspension of some flights, according to sources.
“All freighters coming into LAX from mainland China, many of which are Shein and Temu, are going straight to Customs warehouses for full inspection,” said one source at LAX.
“And CBP is finding a lot of illegal stuff. There is fentanyl, drug-making equipment and misdeclarations of value to meet the de minimis threshold.”
With estimates of 100 freighters a day carrying e-commerce into the U.S., perhaps 100 tons on each – there is a significant amount of cargo to check.
May 1: CP, CN Railway Workers Vote to Strike – iPolitics
Workers for Canada’s biggest railways have voted to strike, setting the stage for a potentially crippling labour disruption that could stall freight shipments across the country.
The Teamsters Canada Rail Conference union says members working at Canadian National (CN) and Canadian Pacific Kansas City (CPKC) voted overwhelmingly in favour of a strike mandate as both sides remain far apart in labour negotiations.
The Teamsters could now call for a nationwide rail strike as early as May 22. It would impact around 9,900 train conductors, locomotive engineers and other workers.
The union said turnout for the votes came in at 92 percent, with 98 percent supporting a strike mandate. The numbers varied among the four bargaining units, though none came back at lower than 95 percent.
The strike vote comes at the end of the 60-day conciliation period between the railways and unions. Both sides are now in a 21-day cooling off period. No strike or lockout can take place until it concludes.
May 3: Minister of Labour Wants Deal “Done at the Table” to Avoid CN, CPKC Strikes (video) – TCRC Calgary
Canada’s Minister of Labour, Seamus O’Regan, wants the unions and the railways to reach a deal through negotiation without resorting to a strike or lockout.
He said on May 3: “I am serious when I say that the best deals are made at the table. They have to be made at the table. They have to be made between those unions and those employers.” However, he stressed, the parties need to get serious now. “Get a deal.”
He added: “I am not one of these ones who considers drama part of the process… If you see the deal, get the deal. If you’ve got to work to get to the deal, then work to get to the deal… The less drama, the better. Get the deal done at the table.”
May 10: Labour Minister Asks CIRB to Review Safety Aspect of Potential Railway Strike – Chamber of Shipping
The Minister of Labour has referred a question to the Canada Industrial Relations Board (CIRB) to determine if any rail activity must continue during a strike or lockout to protect the health and safety of Canadians. Concerns with the supply of chlorine, fuel and other essential commodities to communities have been raised. This referral means a legal strike or lockout cannot occur until the CIRB renders its decision.
May 13: Construction on CN Rail Hub in GTA Can Continue for Now: Judge – CTV News
The Federal Court of Appeal says work on a massive rail-and-truck hub in the Greater Toronto Area can go ahead – for the time being, as the future of the facility remains in limbo.
In a stay of a lower court ruling that had halted construction, the judge allowed Canadian National Railway Co. to continue to build the terminal in Milton, Ont., pending appeal of the earlier decision.
The $250-million project aims to double CN’s existing line of tracks in the area and construct a hub for containers to be transferred between semi trucks and freight cars.
Federal Appeal Court Justice George Locke said that, while a halt to work would have no effect on CN’s long-term viability, any delay is “detrimental to the public interest.”
“The harmful effects of construction emissions appear to be outweighed by the costs to CN of suspending its construction activities, and more importantly, the public interest in the completion of the project,” the judge wrote earlier this month.
Final word on whether work can proceed will rest on a later ruling from the Federal Court of Appeal.
May 16: CN Presents Simplified Offer to TCRC – CN press release
In an attempt to avoid a work stoppage and end the unpredictability for Canada’s supply chains, CN has tabled a new offer to the Teamsters Canada Rail Conference (TCRC).
CN said the offer respects Duty and Rest Period Rules and is aligned with scientific fatigue management practices.
Forty-five Canadian associations and 60 chambers of commerce and boards of trade have signed a letter to Minister of Labour Seamus O’Regan Jr. and Minister of Transport Pablo Rodriguez to express “alarm over the potential for a labour disruption that would affect Class I railways.”
The letter noted:
“On behalf of the Canadian business community, we urge the government to actively engage in ensuring a successful bargaining process, and in the event of failure, that it be prepared to act to prevent another labour disruption,” said the groups.
May 5: Hundreds of Semi Trucks Drive Across Metro Vancouver Sunday to Protest Industry Changes – CityNews
Hundreds of semi truck drivers drove across Metro Vancouver on May 5 to show solidarity between company owners and drivers over proposed changes to the drayage industry.
The event was organized to protest new licensing of port container carriers and to advocate for fair pay for drivers hauling containers in and out of port terminals.
“Attempting to reshape British Columbia’s container drayage industry by way of licence will have detrimental effects on B.C. small business, jobs within all related sectors, risk the health of Canada’s supply chain, and will ultimately increase inflation,” the Port Transportation Association said in a news release.
May 7: Quebec Study Finds EV Transition Cost-Effective in Short-Haul Operations – Today’s Trucking
Many carriers can start saving money today by transitioning to electrification slowly, one truck at a time, said Philippe Louisseize, project manager of electrification at Innovative Vehicle Institute (IVI), and Charles Trudel, the institute’s technological applications group manager, during the EV & Charging Expo on May 2 in Toronto.
Louisseize and Trudel presented data from the Plug-In Fleet study, conducted by the Que.-based IVI. It has revealed that a quarter of the Quebec fleet’s trucks included in the study are suitable to be electrified overnight, and another quarter is electrifiable through operational adjustments.
The study highlighted that electric trucks are up to the challenge of Canadian winters, showing an average 30% drop in range during winter, a promising sign for year-round reliability.
The project has also revealed that 50-kW charges are sufficient for local short-haul deliveries, and battery weight in trucks has not proven to be a problem for carriers.
May 8: Sustainability Initiatives Bring ‘Double-Bottom Line’ to Carriers – Commercial Carrier Journal
Embracing sustainability initiatives isn’t just about being environmentally conscious; it’s also a financial decision.
According to a Geotab industry survey, 69% of fleet managers who implemented sustainability initiatives reported a significant decrease in operating expenses over the previous year. The survey also noted that 42% of fleet professionals believe customers will demand more fleet sustainability initiatives in the next one to three years to continue doing business with them.
May 10: Cargo Theft Increased 46% in Q1: CargoNet – Today’s Trucking
Criminal activities impacting the logistics and transportation industry reached new highs in Q1 2024, Verisk’s CargoNet reports. This year, the organization documented 925 incidents, a 46% increase compared with the same time last year, and a 10% rise from Q4 2023.
On average, the stolen shipment value in Q1 was $281,757, while the declared total value was $76 million. By extrapolating the average shipment value across events without a declared value, CargoNet estimates that a total of $154.6 million worth of goods were stolen during this period.
May 14: FMCSA Sticks with Broker Final Rule, While Planning Other Broker-Focused Rulemakings – Land Line
The U.S. Federal Motor Carrier Safety Administration plans to maintain its final rule on broker and freight forwarder financial responsibility.
Last November, FMCSA published a final rule that takes several steps to improve broker security regulations, including the suspension of operating authority if the available financial security falls below $75,000.
Although the Owner-Operator Independent Drivers Association believes the rule is a step in the right direction, it argues that the agency should be doing even more to promote a fair working environment between brokers and motor carriers. Because of that, OOIDA filed a petition for reconsideration in December to strengthen the rule.
FMCSA, however, recently informed OOIDA that it is going to stay the course with the final rule, which took effect in January. The agency said OOIDA’s requests were “out of scope” for this specific rule but noted that it is taking steps to address broker issues.
May 17: Opposition Grows in U.S. to Speedy Electric Truck Transition – FreightWaves
There is a growing and widespread backlash in the U.S. to the regulation-driven transition to electric trucks.
Nearly every stakeholder – from the trucking industry and driver organizations to state attorneys general – is weighing in with dire estimates of crippling costs to a cyclical industry.
Electric truck proponents admit they cost more than diesel trucks – two or three times as much – to acquire. But with fewer parts, less maintenance and smart charging practices, the reasoning goes that EVs could reach parity with diesel while dramatically reducing air pollution.
The industry is on the defensive against the California Air Resources Board and the Environmental Protection Agency over purchase requirements for electric trucks and air quality standards achievable only by going electric, which have zero tailpipe emissions.
“A real-world understanding of the path to our shared goal of zero emissions is needed, but unrealistic timelines and expectations will break the bank,” said Chris Spear, president and CEO of the American Trucking Associations.
May 1: CIFFA Elects Six New Board Members at Toronto AGM – The Forwarder Online
CIFFA elected six new board members at its AGM on April 24, in Toronto. New board members are:
“We are very pleased to be adding such experience and diversity to our expanded board. These knowledgeable leaders in supply chain will assist in establishing future direction and guidance as we continue to focus on the challenges and interests of our members,” said Bruce Rodgers, Executive Director.
May 7: Monica Kennedy Recipient of CIFFA’S 2024 Donna Letterio Leadership Award – The Forwarder Online
Monica Kennedy, owner and President at ITN Logistics Group of Companies, has been named the winner of CIFFA’s 2024 Donna Letterio Leadership Award.
CIFFA introduced the annual Donna Letterio Leadership Award in December 2015, in memory of former CIFFA President Donna Letterio, who passed away in August 2013. The award recognizes a woman in the global freight logistics sector who has demonstrated, as Donna did, professionalism, commitment, leadership and a passion for excellence in her career and in her life.
CIFFA will present the award during its gala dinner event in Montreal this June. In addition to the award, CIFFA will prepare a cheque in Monica’s name for $1,000, which will be presented to Bladder Cancer Canada.
In the nomination form, Kennedy is described as a successful business entrepreneur and an individual with outstanding values and vision who has devoted almost 50 years to the logistics and transportation industry and has been certified by the WBE (Women’s Business Enterprises) in Canada and the USA since 2020.
May 20: CIFFA Responds to CIRB Request for Comments: Do CN and CPKC Have to Provide Some Level of Service During Strike/Lockout to Ensure Public Safety?
On May 13, the Canada Industrial Relations Board (CIRB) invited affected groups or organizations to file submissions in two referrals made by Minister of Labour Seamus O’Regan. The referrals relate to agreements between CPKC and Teamsters Canada Rail Conference (TCRC) and CN-TCRC that no services or activities have to be maintained in the event of a strike or lockout.
O’Regan asked that the CIRB determine whether the agreements entered into by the parties are sufficient to ensure that section 87.4(1) of the Canada Labour Code is complied with and that the CIRB determine the action, if any, that is required in order for the employers, the union and the employees in the bargaining units to comply with section 87.4(1) of the Code in the event of a work stoppage.
Section 87.4(1) of the Code provides that: “During a strike or lockout … the employer, the trade union and the employees in the bargaining unit must continue the supply of services, operation of facilities or production of goods to the extent necessary to prevent an immediate and serious danger to the safety or health of the public.”
In part, CIFFA wrote:
The primary concerns for CIFFA members in the questions posed by this request for submissions are the logistical complexities involved in the consolidated shipments of essential products (how essential products might be fairly identified and sorted in consolidated shipments), how the “definition of food products” might be articulated and the limitations that term would have for food security overall. Canada’s supply chain is complex and cannot transition quickly. CIFFA members are also concerned that the 72-hour notice period that would take effect once the CIRB renders a decision is insufficient.
The disruptions to Canada’s supply chain caused by railway work stoppages are damaging to Canada’s economy and reputation as a trading partner. The transition to alternative modes cannot happen quickly, causing congestion and chaos in Canada’s ports. Distinguishing essential versus non-essential goods is not as simple as providing a narrow definition of essential, as products at all stages of the value chain to ensure food, energy and water security should be considered essential. The complexity and integration for the movement of goods makes distinguishing between essential and non-essential goods for the purposes of moving only essential goods an almost impossible task.
For these reasons, CIFFA members encourage the CIRB and the government of Canada to recognize the essential nature of rail transportation services in general.