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.
April 4: Relief as Finnish Port Strikes Are Set to Cease in Bid to Start Talks – The Loadstar
Finland’s supply chains look set for a reprieve after the country’s trade unions issued a temporary pause to the weeks-long labour disruption.
The Central Organization of Finnish Trade Unions (SAK) on Thursday confirmed that the wave of port strikes would cease on Monday morning at 6 am.
Petri Laitinen, MD of the Finnish Freight Forwarding and Logistics Association, said the union decision to suspend the action was intended to open up the possibility of government negotiations.
Finland’s recently elected ‘austerity government’ has taken a hard line on when and when it will not negotiate with unions, making clear that no negotiations would be permitted while strikes were taking place.
April 5: Box Logjam at Port of Vancouver as Import Surge Meets Rail Shortages – The Loadstar
A surge of imports meeting strained rail capacity has pushed up container dwell times at North American west coast ports, especially in Vancouver.
And importers face further disruption with Canadian rail workers set to vote on industrial action in their contract negotiations with the railways.
On April 4, Vancouver Fraser Port Authority’s dashboard for rail flows showed container dwell times of more than seven days at the Centerm container facility, while Vanterm and Deltaport registered dwells of five-to-seven days.
Average dwell times climbed from 4.3 days in December to 5.2 in January, 6.7 in February and 7.3 in March.
The congestion was caused by a double-digit surge in imports. For March, the port posted a 10% rise in boxes over February, 51.7% higher than 12 months earlier. Terminal utilization reached 91% at Deltaport and 96% at Centerm.
April 5: Port of Montreal Labour Negotiations Update
In a statement, the Maritime Employers Association said that mediation meetings have been scheduled by the Federal Mediation and Conciliation Service for April 8 and 9.
The MEA noted that there has been no strike vote and the union has not planned a meeting to set that in motion. For any pressure tactics to be applied, a vote and 72 hours’ notice is necessary.
“While the situation at the Port of Montreal and at the MEA is critical, our priority remains the conclusion of a negotiated collective agreement as soon as possible,” the MEA stated.
April 5: MSC Faces $63-Million Penalty in U.S. Regulatory Dispute – Splash
Mediterranean Shipping Co. (MSC) is looking at a potential $63-million fine in the U.S. for alleged violations of the Shipping Act, encompassing thousands of contested charges directed at various clients.
The U.S. Federal Maritime Commission’s (FMC) Bureau of Enforcement, Investigations and Compliance has accused the world’s largest liner of charging excessive late fees on non-operating reefers and billing companies that were not originally part of the contractual agreement.
In its case brought to the regulator’s administrative law judge, Alex Chintella, the Office of Enforcement alleged MSC knowingly and willfully employed unreasonable and unfair practices that did not promote or “ensure an efficient, competitive and economical transportation system in the ocean commerce of the United States.”
April 7: Houthis Claim Long-Distance Attacks on Three Boxships – The Maritime Executive
On April 7, a spokesman for Yemen’s Houthi rebels claimed that the group had attacked three more container ships, including one that appears to have been no closer than 700 nm away from the group’s territory.
In a statement, spokesman Yahya Saree said that, within the last 72 hours, Houthi forces had carried out attacks on the merchant ships Hope Island, MSC Grace F and MSC Gina.
He described the Hope Island as British, and the MSC vessels as Israeli; none have clear management links to Britain or Israel, based on their Equasis records, but the Houthis have previously targeted MSC ships.
Saree claimed that MSC Grace F and MSC Gina were hundreds of miles from Yemen in the Indian Ocean and the Arabian Sea at the time of the attacks. The group has previously threatened to extend its geographic reach, though whether it has the technical ability to do so is unclear.
April 10: Transpacific Container Contracts ‘Substantially Below’ Initial Asking Rates – Splash
The first batch of transpacific contracts are concluding for the May 2024-April 2025 period, with analysts at Jefferies reporting Asia-U.S. west coast rates are understood to be in the $1,400 to $1,500 per FEU range, up from $1,200 to $1,300 per FEU last year. These agreements compare with current spot rates above $3,000 per FEU.
“While the latest contracts are a bump from last year’s levels, they remain close to break-even levels, highlighting liners’ inability to capture stronger long-term rates given the supply outlook even against a stronger than expected market this year,” stated a shipping markets update from Jefferies on April 9.
Providing further specifics on the deals being concluded, Hua Joo Tan, co-founder of Asia-based container advisory Linerlytica, explained that there are various tiers of contracts being concluded, with large beneficial cargo owner (BCO) rates expected to come in at below the $1,400 to $1,500 range, while smaller BCOs will come in at around that range. The $1,400 to $1,500 range was approximately what liners were making on the spot market in 2019, the year ahead of COVID.
April 14: MSC Containership Seized Near Strait of Hormuz – WorldCargo News
Iranian armed forces have seized a container ship, identified as the Portugal-flagged 15,000-TEU MSC Aries, near the Strait of Hormuz.
The vessel was commandeered by the Islamic Revolutionary Guard Corps (IRGC) on April 13, according to reports from Iranian state media. The move comes as a retaliation against an Israeli attack on Iran’s consulate in Syria, which has resulted in heightened tensions in the region.
The container ship had just completed a call at Khalifa port in the UAE and was heading with cargo onboard for her next call at Nhava Shiva port in India.
April 15: U.S. FMC Building Case for New Container Data-Sharing Rules – FreightWaves
The U.S. Federal Maritime Commission is seeking another round of comments from container line operators and their customers as part of its quest to build the case for potential new mandates on container shipment data sharing.
The FMC wants to supplement an information request issued last year, along with a May 2023 report on the agency’s Maritime Transportation Data Initiative (MTDI). That project, led by Commissioner Carl Bentzel, attempts to measure the extent to which shipment data is used and shared throughout the supply chain.
The information request was to be published on April 16.
“While some key data elements are readily shared between supply chain participants, the lack of timely and accurate access to some data elements can lead to inefficiencies, as was seen during the COVID-19 pandemic,” the new information request states.
April 16: Panama Canal to Add Back Daily Transits as Rainy Season Approaches – The Maritime Executive
After months of increasing restrictions due to falling water levels in its reservoir, the Panama Canal Authority will continue its gradual restoration of daily transits and add a foot to the maximum draft. The decision was made after an analysis of the water levels, efforts to save water and increase storage, and a slight increase in rainfall levels in April ahead of the traditional rainy season.
The increase in transits is especially good news for bulkers, car carriers and gas carriers, as well as smaller containerships, as the increases in transits are slated for the original Panamax locks. After a week-long period of maintenance in May that will restrict transits, the number of daily crossings will be increased primarily for the” Supers” category, Panamax vessels with a beam over 91 feet. Five slots will be restored for a total of 18 daily transits for Supers with a total of 31 daily transits being conducted.
Starting in June, the Panama Canal Authority will also add one additional slot for the largest vessels transiting the canal through the new Neopanamax locks. They will increase from seven to eight the number of vessels and as of mid-June also add one foot back to the maximum authorized draft. It will increase to 45 feet as of June 15, which, while below the pre-draft levels that were as high as 50 feet, will still further reduce the challenges for the largest ships. Some containerships have been transshipping boxes across the isthmus to reduce their draft.
April 18: BCMEA/Local 514 Bargaining Update – 21-Day Cooling-Off Period Begins – BCMEA press release
The BC Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union Ship & Dock Foremen Local 514 (ILWU Local 514) have been engaged in negotiations, assisted by the Federal Mediation and Conciliation Service (FMCS) since January 19, 2024. On March 19, the parties mutually agreed to a 30-day extension of the conciliation period.
As the extended conciliation period concluded on Thursday, negotiations have now entered a 21-day cooling-off period, with mediated talks continuing with the support of FMCS. During the cooling-off period, the parties may acquire the legal right to strike or lockout, but may not exercise their right to strike or lockout until:
April 22: Port of Montreal: Longshoremen Reject MEA’s Settlement Proposal – CityNews
The 1,200 longshoremen at the Port of Montreal rejected, by a margin of 99.5 percent, management’s latest offer to renew their collective agreement.
The Maritime Employers Association (MEA), which represents the employer side, had stated that this settlement proposal represented the furthest they could go in the current context.
Of the 1,206 members of this local of the FQ-affiliated Canadian Union of Public Employees (CUPE), 1,078 were present, and rejected the employer’s offer by 99.54 percent.
April 22: Labour Minister Appoints Industrial Inquiry Commission on Longshoring Disputes at Canada’s West Coast Ports – Employment and Social Development Canada press release
Minister of Labour Seamus O’Regan Jr. on April 22 announced the appointment of an Industrial Inquiry Commission on the underlying issues in longshoring labour disputes at Canada’s West Coast ports. The Commission will be chaired by Vincent Ready and will include Amanda Rogers as a Member of the Commission. The Commission will soon begin meeting with stakeholders and reviewing consultation submissions from relevant parties. The Commission will present its findings and recommendations in a report to the Minister in Spring 2025.
April 24: Box Ship Diversions due to Red Sea Crisis Having Dramatic Impact on Emissions – The Loadstar
Re-routing of vessels on Asia-European routes has added 5,800 nautical miles to the journey of each container, pushing up CO2 emissions.
According to Xeneta’s CO2 per-tonne-km measure, the carbon emissions index (CEI), the Far East-Mediterranean trade, which in Q3 23 was one of the best performers in terms of emissions, became the worst in the first quarter of this year, with a CEI score of 140.8 – an increase of over 60%.
The CEI index for Far East-Northern Europe trades also increased in the first quarter, to 111, a 20% jump year on year. However, Xeneta analyst Emily Stausbøll noted that the increased distance on this trade was partially mitigated by an improved vessel filling factor, up 6.1%.
April 24: Houthis Target Maersk and MSC Vessels as They Vow to Renew Attacks – The Maritime Executive
Security services received reports of an explosion near an unidentified vessel on April 24 in the Red Sea. It is the first acknowledged report in days and came just hours after the Houthis issued a renewed threat on their official channels.
Details were vague on the incident, with the UK Maritime Trade Organization issuing only brief details. They received a report from a vessel of an explosion in the water approximately 72 nautical miles southeast of the port of Djibouti. The statement said only that there had been an explosion “at a distance,” and that the crew and vessel were reported safe.
A Houthi spokesperson claimed responsibility, reporting they had targeted two vessels, the Maersk Yorktown (28,900 DWT) a U.S.-flagged containership operated by Maersk Line Ltd., which operates under contract to the U.S. military, and the MSC Veracruz (68,000 DWT). The MSC vessel is registered in Portugal. The Houthis are again attributing the MSC vessel as an “Israeli ship.”
April 29: FAK Rate Hikes Holding, with Strong Demand into Peak Season Predicted – The Loadstar
With excess container liner capacity continuing to be soaked up by the widespread vessel diversions around the Cape of Good Hope, combined with surprisingly strong demand, the recent turnaround in the fortunes of shipping lines is now expected to last into the peak season.
According to new analysis from shipping consultancy MSI, anecdotal evidence shows a round of FAK rate hikes announced earlier this month appear to have had some success.
“The initial signs are that these increases are sticking,” it said.
“Apart from the impact of the Cape of Good Hope diversions, a strong rebound in cargo demand across the world is supporting liners’ endeavours to keep freight rates at their current levels,” it added, noting that the main east-west trades, as well as variety of smaller north-south trades, had shown “robust” growth.
April 28: Baltimore Welcomes its First Container Ship Since Bridge Collapse – The Maritime Executive
On April 27, the Port of Baltimore received its first container ship since the tragic collapse of the Francis Scott Key Bridge one month ago. The arrival is an important milestone for Baltimore businesses and longshoremen, who have been heavily impacted by the closure of the inner harbour.
April 30: Houthi Attack on MSC Ship in Indian Ocean Indicates Further Range – The Maritime Executive
The attack on the MSC Orion on April 26 is raising troubling questions, as the vessel was in the Indian Ocean, up to 400 nautical miles from the mainland of Yemen.
The ship, which is registered in Portugal and owned by Eyal Ofer’s Zodiac Maritime and chartered to MSC, reported an explosion and found some debris believed to be from an “uncrewed aerial system.” The ship sustained some minor damage.
The Houthis in mid-March had threatened to expand the zone of attack to include portions of the Indian Ocean. They said they would disrupt ships attempting to divert away from the Red Sea and traveling around Africa. So far, while there have been several other Indian Ocean attacks, this is the first confirmed at these distances.
April 3: Shipping Disruption and E-Commerce Demand Driving Up Airfreight Rates – The Loadstar
The start of the airline summer season this month is likely to hit airfreight rates, due to an increasing amount of belly capacity on passenger routes. But right now, despite the major tradelanes not seeing significant changes, there remain pockets of high volumes.
Ex-India is still busy, say forwarders.
“Space is still congested across all India origin airports, as well transshipment points,” said Ligi Logistics.
“There is a severe backlog and congestion in Chennai, Mumbai, Delhi and Bengaluru, where off-loading is being badly delayed and time for off-loading of trucks is a minimum 36 to 44 hours.”
April 10: Forwarder Anger as Scanner Malfunctions Hit Bangladesh Air Exports Again – The Loadstar
Air cargo flows through Bangladesh’s Dhaka Airport are again facing severe challenges, due to the malfunction of explosive-detection scanners (EDSs).
Only one of the airport’s EDS machines is working, as air cargo demand and rates out of the country have significantly increased this year.
“It is utterly impossible to meet the requirements of freight forwarders with only one operational EDS,” Kabir Ahmed, president, Bangladesh Freight Forwarders Association (BAFFA), wrote to the civil aviation authority on April 9.
Outbound cargo is being stockpiled inside cargo villages, according to forwarders.
April 15: Bottlenecks and Price Hikes as Airlines Now Avoid Iran Airspace – The Loadstar
Asia-to-Europe airfreight could face extreme bottlenecks and price hikes due to the rising tension in the Middle East, and sea-air transshipments from Dubai will also be affected.
On April 13, Iran launched around 300 missiles and drones at Israel, most of which were shot down by Israel’s U.S.-backed missile defence system and its allies.
Safety concerns led many major carriers to cancel or reroute flights. Lufthansa Cargo told The Loadstar it would “fly around Iranian airspace” until April 19, at least.
But with Russian airspace also closed since 2022, due to its invasion of Ukraine, carriers rely on Iranian airspace as a vital crossing for the in-demand Asia to Europe trade, creating concern that the airspace closure would bottleneck Asia-Europe airfreight routes further.
April 30: EU Launches Greenwashing Action Against Airlines over Emissions Offsetting Claims – ESG Today
The European Commission announced on April 30 that it has launched action, alongside the EU consumer authorities, against 20 airlines over misleading greenwashing practices, with a particular focus on claims made by the airlines that the CO2 emissions from flying could be offset by paying additional fees to support climate projects or the use of sustainable aviation fuel (SAF).
In a letter sent by the Commission and the Network of Consumer Protection Cooperation (CPC) Authorities, the airlines are invited to outline proposals to bring their practices in line with EU consumer law, and warned that they may face enforcement actions by the CPC authorities if they fail to take steps to solve the concerns, including sanctions.
The Commission’s action follows the launch of a complaint last year by the European Consumer Organisation (BEUC) targeting misleading climate-related claims by several European airlines, and calling on European authorities to require airlines to stop making claims aimed at giving consumers the impression that flying is sustainable.
April 1: Teamsters Canada Calls for Strike Authorization Vote by CN and CPKC Train Crews – Trains
The union representing Canadian National and Canadian Pacific Kansas City engineers and conductors in Canada has authorized a strike vote, as labour and management remain far apart on new contracts.
Leaders of the Teamsters Canada Rail Conference told their members on March 28 that a strike vote will be held from April 8 to May 1. If the rank and file vote to authorize a strike, the earliest a walkout or lockout could occur is May 22.
After being unable to reach agreements during negotiations that began last fall, labour and management since March 1 have been negotiating with the help of federal conciliators. Also still negotiating: CPKC rail traffic controllers, who are represented by TCRC in Canada.
April 8: CPKC–TCRC Collective Bargaining Update
Following Canadian Pacific Kansas City’s (CPKC) filing of a notice of dispute and request for assistance in ongoing collective bargaining negotiations, the Federal Minister of Labour appointed conciliators on March 1 to help CPKC and the Teamsters Canada Rail Conference (TCRC) reach new negotiated agreements.
CPKC met during the week of April 1 with TCRC leadership representing both the TCRC – Train & Engine (T&E) division and the TCRC – Rail Canada Traffic Controllers (RCTC) division, along with federal conciliators. The parties remain far apart.
Bargaining will continue the week of April 22.
April 1: Trucking LLCs Must File New Report Under U.S. Law – Transport Topics
Small trucking company owners may find themselves among the millions of limited liability company proprietors across the U.S. [and beyond] facing hefty fines and prison time if they fail to report information now required by an obscure new U.S. Treasury Department law that took effect January 1 to thwart money laundering, tax fraud and financial crimes.
The new paperwork, called beneficial ownership information reports, for LLCs is now required by the Financial Crimes Enforcement Network, a bureau under the Treasury Department focused on safeguarding America’s financial system from illegal activities and collecting, analyzing and providing regulators with financial information to the agency.
[Some non-U.S. companies may be required to file the report as foreign reporting companies.]
April 2: Nova Scotia Offers Rebates for Zero-Emission Vehicles – Today’s Trucking
Nova Scotia will offer rebates of up to $50,000 per medium- and heavy-duty zero-emission vehicle, depending on its class.
Eligible vehicles include vans and trucks used for commercial or industrial purposes that weigh more than 3,856 kilograms (8,500 pounds), according to a news release.
“Transportation is Nova Scotia’s second-largest source of greenhouse gas emissions,” said Tory Rushton, minister of natural resources and renewables. “Moving to zero-emission vehicles reduces emissions and supports our goal of reaching net zero by 2050.”
April 4: Alberta’s New Class 1 Training: More In-Cab Training Hours, Red Seal Certification – Today’s Trucking
As of next year, new Class 1 drivers in Alberta will require 103.5 hours of mandatory training as a part of broader goal to make truck driving a Red Seal certified job three years from now. This will make Alberta the first province to officially recognize truck driving as a skilled trade.
The existing mandatory entry level training program (MELT) requires 113 hours of training, which includes 57 hours of in-cab training.
“While the new learning program will reduce barriers to Class 1 licensing, it will also require more hours of in-vehicle training than the current MELT system, and opportunities for ongoing competency training will continue throughout a driver’s career, increasing safety,” said Jesse Furber, press secretary of Alberta’s Transportation and Economic Corridors Ministry.
April 6: Fuel Costs Show Why Trucking Market Is So Challenging for Providers – FreightWaves
Retail diesel fuel costs are up 33% versus April 2019, while the National Truckload Index that measures all-in spot rates shows an increase of only 16% over the same time. The implication is that carriers are in a far worse position on the spot market than they were in 2019 as they are unable to fully pass along operating costs.
Fuel is just one of many trucking operating cost inputs that have inflated dramatically over the past five years, but it is one of the largest measurable costs that are relatively homogenous across the national carrier base. It is also a glaring example of how desperate the truckload spot market has become.
April 9: Urgent Action Needed for Commercial Truck Driver Training: Report – Insurance Bureau of Canada
New commercial truck drivers who have not received adequate training are putting the safety of Canada’s roads and highways in jeopardy, according to a new report from professional services firm MNP, commissioned by Insurance Bureau of Canada (IBC).
MNP found drivers with less training and experience are more likely to be involved in collisions and make costly claims than drivers with more training and experience. Insurance claims related to commercial trucking accidents have been increasing rapidly in recent years.
“This third-party report echoes many of the recommendations that our industry has put forward and we encourage governments across the country to use this report as a call to action to update and improve training and enforcement standards,” said Celyeste Power, President and CEO, IBC.
To identify best practices in truck driver training, MNP conducted a review of driver training programs in various Canadian and international jurisdictions. It then offered recommendations on how to improve training requirements.
April 16: False Hours-of-Service Log Reports Rise in U.S. Despite ELDs – FreightWaves
The full implementation of the U.S. federal ELD rule dates back to December 2019, but that hasn’t stopped hours-of-service violations from racking up, said P. Sean Garney, co-director of Scopelitis Transportation Consulting.
The working theory always was that the tight, immutable data on HOS generated by an ELD would reduce the frequency of violations. The record spelled out by Garney shows mixed results.
Garney said the road to HOS violations generally runs through two pathways: questionable use of the personal conveyance provisions of the HOS rule and the “yard rule” that allows drivers to be behind the wheel but considered off duty while moving a truck within a defined company-owned area.
April 18: Philadelphia Judge Rejects $25 Million Jury Verdict in Truck Crash – Transport Topics
In an unusual ruling, a state judge of the Philadelphia Court of Common Pleas last month erased a “clearly inappropriate” $25 million jury verdict for punitive damages in a 2019 truck-involved accident lawsuit.
However, Judge Gwendolyn Bright’s decision still left the defendant, Lancaster, Pa.-based Ecore International, a family-owned recreational flooring firm with only four trucks, facing a $1 million jury award in compensatory damages.
Before the judge reduced the jury verdict, it seemed that the litigation – Clemmons v. Ecore International – would stand as another nuclear jury verdict, like some past decisions that tilted the scales of justice against motor carriers.
April 18: U.S. FMCSA Looks to Streamline Tracking of Motor Carriers, Freight Brokers – FreightWaves
U.S. regulators are moving ahead with plans for a new registration system that will help the government keep better track of motor carriers and freight brokers.
The Federal Motor Carrier Safety Administration will be asking the White House Office of Management and Budget to review and approve a request to collect new information that will inform the FMCSA Registration System (FRS). FRS will replace the current Unified Registration System (URS), according to a Federal Register notice.
FMCSA and the states use operating-authority registration information to track motor carriers, freight forwarders and brokers, as well as the companies that insure them.
“Registering motor carriers is essential to being able to identify carriers so that their safety performance can be tracked and evaluated,” FMCSA stated in the notice.
April 24: U.S. FMCSA to Establish Registration Fraud Team – FreightWaves
After years of complaints from truckers, brokers and insurance companies, U.S. federal regulators are setting up a team specifically to deal with rampant fraud in the trucking industry.
The Federal Motor Carrier Safety Administration’s Registration Fraud Team will work in the agency’s registration office to focus solely on assisting those who have been victims of registration fraud at the agency as well as identifying measures to help prevent it.
“We’ve heard from every corner of the industry about how bad fraud is right now,” said Ken Riddle, director of FMCSA’s Office of Registration, “and the one thing we’ve heard loud and clear is, ‘How can FMCSA help?’ We took that very seriously, so we’re looking at every way that we can help mitigate it.”
March 1: Cost of ‘Land Bridge’ Alternative to Panama Canal Too High for Carriers – The Loadstar
Liner operators say they are unlikely to emulate Maersk in using land transport to circumvent the Panama Canal restrictions, as moving containers by land in the Americas could drive costs up more than 30%.
In January, the Panama Canal Authority increased the number of daily transit slots to 24, despite first announcing a reduction to 18 for February. However, this is still fewer than the usual 36 daily transits through the waterway.
March 4: Empty Container Movements Increase by 20% – WorldCargo News
The demand for transporting empty containers has surged much more than the demand for transporting full ones, with back-haul trades expanding 2½ times faster.
By analyzing data sourced from Container Trade Statistics (CTS) on the movement of full containers between regions, it is evident that the expansion of empty container volumes, when compared with 2019 (excluding the significant fluctuations caused by the pandemic), has hovered around the 20% threshold over recent months.
March 6: Contracts: Shippers and Forwarders Wary of Usual 12-Month Deals – The Loadstar
The annual transpacific contract tender bartering season is in full swing at the S&P Global TPM24 conference and networking event in Long Beach, California.
The meeting rooms and halls of the vast venue are populated with formal, informal and sounding-out conversations on rates and routings for Asian container imports for the traditional May to April 12-month period.
However, this could be the year when the timeline of those contracts is reset – perhaps for good.
Indeed, ahead of those meetings, several shippers said they felt the lines were being unreasonable in their first rate increase requests.
And some indicated that they would look to sign for a shorter duration in order not to commit at too high a rate level for the second half of the year, when analysts are predicting rates will fall sharply against a background of the huge influx of newbuild tonnage.
March 11: Deadly Ship Attack Means Red Sea Voyages Need Rethink, Union Says – American Journal of Transportation
A major transport union urged a full halt of merchant ships sailing through the Red Sea, adding to calls for vessels to reconsider the voyages after a Houthi militant attack killed three sailors.
“We call on the industry to divert ships around the Cape of Good Hope until safe transit through the Red Sea can be guaranteed,” the International Transport Workers’ Federation said in a statement. “No delivery window is worth the loss of seafarers’ lives.”
The ITF lobbies for seafarer rights by acting alongside more than 700 affiliate trade unions. It followed a similar appeal by Nautilus International, one of the world’s largest crewing unions on March 7.
March 11: Finnish Port Workers Start Two-Week Strike, Anticipate Delays and Disruptions – WorldCargo News
The Central Organization of Finnish Trade Unions last week instructed its member unions to engage in industrial action following unsuccessful negotiations with the government regarding employee rights and social security.
Among the participating member unions is the Finnish Transport Workers’ Union, which predominantly represents workers in the stevedoring industry and has announced a port strike. The strike was scheduled to start on March 11 at 6 am and will continue until March 25 at 6 am.
Consequently, disruptions in operations are anticipated across all container ports, resulting in vessel loading and unloading delays.
March 12: Panama Canal Authority Adds Three More Daily Transit Slots – Splash
Solid amounts of rain have allowed the Panama Canal Authority (ACP) to add three extra slots per day at its panamax locks, taking the total daily maximum transits to 27, still more than 10 shy of the waterway’s normal maximum, but a sign that the worst is over from the record drought that has been plaguing the canal since June last year.
Two additional slots will be offered through auction for transit dates beginning March 18, and an additional slot will become available for transit dates beginning March 25.
March 14: Tribunal Rejects Montreal Port Employers’ Bid to Rule Dockworkers as Essential – CityNews Halifax
A federal tribunal on March 14 reiterated its stance that Montreal port employers cannot require employees to work during a strike, paving the way for negotiations to resume ahead of potential job action.
In a summary decision, the Canada Industrial Relations Board rejected a request by the Maritime Employers Association to deem port work an essential service in a bid to prevent a strike on the waterfront.
The employers and the union representing 2,100 port workers failed to secure a new collective agreement before it expired on Dec. 31, but the case was before the tribunal at that time, postponing possible labour action.
Explaining its ruling, the board cited a 2020 decision that the employers association failed to demonstrate “imminent and serious risks to the health and safety of the public” – the criteria for essential activity – in the event of a work stoppage.
March 15: Maersk CEO Says Container Rates Have Hit Unsustainable Levels – WorldCargo News
“Freight rates have fallen significantly since the good years of 2021 and 2022, and have fallen actually to an unsustainable level,” said Maersk CEO Vincent Clerc on March 14.
According to Clerc, further headwinds are emerging on the supply side, with an additional 11% of containership capacity expected to be added to the global fleet this year, followed by 7% more in 2025.
March 19: Local 514 Bargaining Update – BCMEA update
The BC Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union Ship & Dock Foremen Local 514 have been engaged in negotiations with the assistance of conciliation officers from the Federal Mediation and Conciliation Services since January 19. In anticipation of the conclusion of the initial 60-day conciliation period on March 19, the parties have mutually agreed to a 30-day extension to conciliation.
This agreement extends the conciliation period to April 18. At the end of the conciliation period, the 21-day cooling-off period will begin (ending on May 9). Any further extension to the conciliation period can be made only by mutual consent of the parties. Accordingly, the parties have meeting dates scheduled in April.
March 19: Box Throughput Improves, but Delays Still Endemic at South African Ports – The Loadstar
Crane breakdowns and adverse weather are exacerbating delays at South Africa’s ports, despite a recent improvement in container throughput at its main gateways.
The South African logistics crisis has been escalating for years, and a lack of government investment into supply chain infrastructure has left the country’s ports, railways and roads extremely susceptible to disruption.
However, for the week ending March 15, the South African Association of Freight Forwarders reported that ports had handled an average of 8,838 containers a day, up significantly on the 7,755 handled the week before.
And state-owned port operator Transnet reported in its February figures that 23% more containers were handled than in January and 26% year on year.
March 22: Strike Paralyzing Finnish Ports Extended After Talks Collapse – The Loadstar
The two-week strike by Finnish transport workers that has effectively shut down the country’s ports is set to enter a third week, after union members voted to extend the action until April 1.
Around 7,000 workers across the transport, industrial and electrical sectors, and including the AKT transport workers union, have been on strike since March 11 in protest at proposed labour reforms by the Finnish government.
March 26: At Port of Montreal, Fewer Containers, Same Salary, Complains Employer – La Presse
More and more longshoremen at the Port of Montreal with job security are being paid even if they don’t “work” due to the drop in container volume, their employer complains. The Maritime Employers Association (MEA) blames this on the uncertainty of union bargaining and is asking a federal court to order a bargaining blitz.
The MEA is criticizing the Port of Montreal Longshoremen’s Union, which is affiliated with the Canadian Union of Public Employees (CUPE), in its application recently filed with the Canada Industrial Relations Board (CIRB). The employer accuses the union – which represents some 1,100 longshoremen – of showing “bad faith” by refusing to make itself available to negotiate.
After a series of meetings since last September, there have been no talks since January 16, the MEA points out. The employer accused the union of dragging things out, fueling instability and causing cargo to “flee from the Port of Montreal.”
March 27: Baltimore Bridge Collapse Impacts I-95 Shipping, Rail, Trucking and Port of Baltimore – American Journal of Transportation
The collapse on March 26 of the Francis Scott Key Bridge, after it was hit by a container ship, will disrupt shipping, rail, trucking, the Port of Baltimore and the Mid-Atlantic region served by the I-95 highway corridor, according to one shipping executive.
The executive said: “At this point, nobody knows how long the Port of Baltimore will be closed. It could be weeks, it could be longer. There are still containers in the water, and they have to be retrieved. There is still the damage assessment to the ship to be taken into account. There is also the environmental impact. Right now, we are scrambling to redirect our ships either to Norfolk or to New York/New Jersey and our concern is whether there is sufficient capacity to take the redeployments …”
The shipping executive went on to say: “In terms of the traffic, the loss of this bridge is huge: There’s a lot of vehicles that cross that bridge a day. There is also the impact on trucking and especially on hazmat cargoes that were transiting the bridge that may not use the tunnels. Rail, in and out of Baltimore, will be impacted, both the CSX and the Norfolk Southern.”
March 28: Finland Strikes Extended for Another Week, Port Disruptions Expected to Continue – WorldCargo News
The Executive Board of the Central Organisation of Finnish Trade Unions has extended its national program of political strikes for another week.
The extended strike began at 6:00 am on March 28 (coinciding with the anticipated conclusion of the current two-week strike) and will conclude at 6:00 am on April 8.
The Executive Board will reconvene this week to assess the situation and determine any further continuation of industrial action.
March 28: Cargo Companies Start to Reroute Away from Montreal amid Fears of Port Strike – Today’s Trucking
A major transport company has rerouted cargo away from the Port of Montreal over fears of a potential strike, prompting concerns that others may follow in its wake.
Delmar International, a Quebec-based logistics firm that counts 1,500 employees across 17 countries, said all Montreal-bound freight will now flow through the Port of Halifax in a pre-emptive move to curtail fallout from possible job action.
Association spokeswoman Isabelle Pelletier said employers are “very worried” about the consequences of mounting fears that a strike is looming.
“We have strong signals that cargo will be rerouted because of the uncertainty at the Port of Montreal,” she said in an email.
March 5: Lufthansa Cargo Woes Continue as Ver.di Union Vows to Fight On – The Loadstar
Following repeated strikes at its hubs across Germany, Lufthansa is to engage in further negotiations with trade union ver.di.
Ground staff at Lufthansa Cargo have been striking intermittently since the start of the year, calling for a 12.5% increase on their basic salary, among other conditions.
The last round of negotiations between the German carrier and union were on February 21 and proved unsuccessful. The next round is set for March 13 and 14.
If the involved parties again fail to reach an agreement, the head of aircrew alliance at ver.di, Dennis Dacke, warned that ver.di is prepared to up the ante.
March 19: Exporters Nervous as Air Cargo Congestion Builds in Delhi and Mumbai – The Loadstar
Airlines are dealing with considerable cargo backlogs across major international airports in India as volumes spike, according to industry updates.
“The effect has been most [noticeable] at Delhi and Mumbai airports,” a source at Air India said.
The source also noted that ocean trade diversions, in the wake of lingering Red Sea-linked pain points along with the traditional peak season for air cargo during March and April, had caused the acute capacity overhang.
March 6: CN Committed to Milton Logistics Hub Despite Court Ruling – Progressive Railroading
After a Canadian federal court rejected the federal government’s approval of CN’s planned Milton Logistics Hub, the Class I reiterated its commitment to the $250 million project in the Greater Toronto Area.
The court recently ruled that the government failed to settle whether the CN facility will have a harmful impact on air quality and, by extension, human health. The court’s decision sets aside the approval issued by the federal government in January 2021 and sends it back for reconsideration.
Authorization to build the project was subject to Canada’s most extensive environmental review process, resulting in an approval that includes 325 conditions designed to protect both the community and the environment, CN officials said in a press release.
CN officials also said they’re still reviewing the decision. But they reiterated that the project is a critical piece of infrastructure in Canada’s busiest and fastest growing region, where new capacity is needed to meet the growing demand for goods.
March 4: B.C. Container Truckers Will See Rate Increase in July – Today’s Trucking
The Office of the British Columbia Container Trucking Commissioner (OBCCTC) has increased the minimum rates for drivers that move drayage containers to and from the Vancouver ports and within the Lower Mainland.
As of July 1, 2024, independent owner-operators will see a 3.9% increase in wages, while company drivers will receive a minimum of $33.66 per hour.
The change applies to drivers with 2,340 hours of experience, while truckers with less than the required hours of experience will receive a $32.26 per hour rate until they reach 2,340 hours.
March 19: ‘Massive’ Rate Increase Needed to Finance Projected $1 Trillion U.S. Electric Trucking Conversion – Commercial Carrier Journal
Battery electric trucking is an almost $1 trillion proposition, and that doesn’t include the cost of acquisition for the actual trucks, according to a report released by the Clean Freight Coalition, an alliance of truck transportation stakeholders whose founding members include the American Trucking Associations and Truckload Carriers Association, among others.
The report was compiled by Roland Berger, an international management consultancy headquartered in Munich, Germany.
The group pegs full electrification of the U.S. medium- and heavy-commercial truck fleet at a cost of nearly $1 trillion in infrastructure investment alone: upwards of $620 billion from the trucking industry in chargers, site infrastructure and electric service upgrades, and $370 billion from utilities in upgrades to grid networks to meet the surge in demand of just commercial vehicles.
“An industry with a yearly turnover of about $800 billion and a profit margin around 5% cannot invest $620 billion without financial support or a significant increase in freight rates,” said Dr. Wilfried Aulbur, Roland Berger senior partner responsible for the firm’s global commercial vehicle, construction and agricultural business.
March 20: 5,000 Commercial Truck Parking Spaces Needed in Metro Vancouver – Daily Hive
There is a shortfall of 5,000 large parking spaces for oversized commercial trucks across Metro Vancouver, according to the Canadian Trucking Association of BC (CTABC).
This includes the need for 2,000 spaces within Surrey, where many of the region’s truck drivers reside, and where many logistics, warehouse-based and other types of traditional industrial businesses are located.
“The issue has been left unresolved for more than 20 years and the planners and politicians have never shown any real intention to resolve this issue. They need to get this issue resolved in partnership with the industry before it is too late,” said Amit Kumar, the president of the CTABC.
According to the City, a shortfall of available industrial lands in the region has created pressures in the trucking industry in Surrey and other areas within the South of Fraser. Without designated truck parking facilities, there have been growing issues with unpermitted truck parking lots, which create issues such as noise complaints, safety concerns and damage to roads not designed for heavy-duty trucks.
March 21: U.S. FMCSA to End MC Numbers, Overhaul Registration System to Stamp Out Fraud – Overdrive
The U.S. Federal Motor Carrier Safety Administration on March 21 admitted its system for motor carrier, broker and freight forwarder registration and updates has fallen behind and in part enables rampant fraud, while pledging to completely overhaul its verification processes and improve the “customer experience.”
The changes include ending MC numbers and using USDOT numbers as the sole identifier for carriers, brokers, forwarders and others, and also would require some work on the carriers’ part.
Much of the details of the change await finalization, and many will have to wait for a full rulemaking process to take place through publications in the Federal Register, where industry stakeholders can comment. Furthermore, FMCSA plans to hold an “industry stakeholder day” on May 29 to communicate the changes and gather feedback.
The changes are aimed mostly at security and fraud prevention.
March 29: U.S. EPA Announces New Strict Emissions Rule for Heavy Trucks – Commercial Carrier Journal
The U.S. Environmental Protection Agency on March 29 set strict emissions standards for heavy-duty trucks covering model years 2027 through 2032.
The new rules are somewhat more strict than those proposed last year. For example, motor carriers will have more time (2027-2030) to build out a zero-emissions infrastructure, but the flip-side is stronger emissions limits in 2031 and 2032. Under the final rule, roughly 30% of heavy-heavy-duty vocational trucks would need to be zero-emission by 2032 and 40% of regional day cabs.
The EPA Phase 3 rule does not specify any particular emissions solution in its rules, maintaining its promise of a “technology-neutral” approach. However, it will be difficult to hit emissions benchmarks without some integration of either hybrid, battery-electric or hydrogen-electric trucks.
March 13: CIFFA Writes to Minister of Transport Ahead of Budget 2024
CIFFA wrote this week to Pablo Rodriguez, Canada’s Minister of Transport, to “emphasize the importance to our membership of adequate funding for the new Supply Chain office” in the coming budget.
The letter said, in part:
As you will recall, this new organization was one concrete action by your government in response to the disasters which befell Canada’s supply chain during the Covid pandemic and the floods in British Columbia.
The Budget of 2024 will be the first time your government can equip this Office with the resources it needs to have a positive impact, increasing the security and resiliency of our supply chains.
We also recognize that the government is consulting on the development of the National Transportation Supply Chain Strategy and opportunities for collaborative action, and we look forward to seeing the strategy outlined and in place, with concrete deliverables.
March 18: Executive Director’s Statement – Milton Logistics Hub: Oversight or Roadblock?
The year has started with a very upsetting development affecting supply chain fluidity. On March 1, the Federal Court of Canada ruled that it was blocking approval of the CN Logistics Hub planned for Milton, Ontario. Proposed in 2015, the $250-million investment would handle four trains a day, transferring cargo to approximately 800 trucks into or out of the rail yard.
The Federal Court’s decision is especially frustrating because the project had passed through a multi-year environmental assessment as requested by the Minister of Environment and Climate Change Canada. The Minister established 325 legally binding conditions, to protect the environment and human health, which would make this the most stringently regulated hub in North America, all of which were satisfied by CN.
After the licence was issued by the federal government, opponents sued to stop the project and the Federal Court did so, ruling that the assessment was flawed and failed to consider potential health risks relating to air pollution from the diesel fumes. Thankfully, CN has pledged to continue its attempts to develop the Hub.
February 1: Strikes at DPW Ports Across Australia Exacerbating Empty Box Shortage – The Loadstar
Dock worker strikes across Australian ports operated by DP World are amplifying the Red Sea crisis equipment crunch being felt largely in Asia.
Following shipping delays caused by diversions from the Red Sea, empty-container shortages have been reported on high-yielding trades from Asia.
Peter Sundara Swamickannu, head of global ocean freight product at Visy Global Logistics, said: “I think equipment shortage is hitting many of us… Especially in China, we require these containers, but most of the surplus is in Europe.
Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which estimated the cost to the Australian economy at A$86m ($56m) a week.
The Maritime Union of Australia has extended its strike action to February 10.
February 2: Dock Workers Down Under End Strike at DP World – The Loadstar
Australian shipping stakeholders have cause to celebrate as DP World and the Maritime Union of Australia (MUA) have reached an agreement that will end protected industrial action at Australian ports.
Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which it is estimated has cost the Australian economy A$86m (US$56m) a week.
February 6: Ocean Freight Industry Lagging in Digitization, Report Finds – Inside Logistics
A new study has found that 40 percent of ocean freight carriers are not using digital solutions to expedite operations. The report, based on a large-scale survey conducted by ODeX, provides in-depth insights into the operational challenges, adoption of digital documentation and the evolving landscape of maritime logistics.
The survey, which garnered responses from a diverse group of industry professionals, revealed the following findings.
Three quarters of respondents experience operational bottlenecks frequently or occasionally, with 50 percent citing documentation issues as a major challenge. The most common issues included delays, errors and difficulties in obtaining originals. Approximately 30 percent cited logistical challenges such as blank sailings and roll overs as significant bottlenecks. Around 20 percent of participants pointed out delays and complexities related to customs and regulatory compliance.
February 7: Revised Carrier Schedules Bedding-in, Say Shippers, But They See Trouble Ahead – The Loadstar
Amid continuing attacks on commercial shipping by Houthi rebels, scheduling issues caused by re-routing of services away from the Suez Canal and around the Cape of Good Hope (CGH) have begun to stabilize.
Director of Global Shippers Forum James Hookham said: “There was a bit of a lull in ports while the diversions were in place, so there were a lot of ships that didn’t turn up when they were expected to, but they are on their way and they’re starting to arrive.
“We should see stability in schedules and arrivals now – albeit it will take longer for goods to get here – but they should bed down into the new arrangements and start to get back to the regular pattern shippers are expecting.”
February 12: First Rays of Optimism Are Shining on South Africa’s Struggling Ports – The Loadstar
From Durban’s shoreline, the immediate horizon of the Indian Ocean is still decorated with freight vessels on anchorage, waiting for berthing slots in South Africa’s largest port, a legacy of several months’ of port congestion. Although it was hoped the backlog could be cleared by late January, industry experts now say the whole of February is needed to clear the congestion at the country’s eight main ports that has seen shipping rates soar and some major lines pare down port calls.
But in a sector beleaguered by over a decade of difficulties, including neglected infrastructure, aging equipment and a stagnated economy, that maritime horizon looks set to start clearing metaphorically as well as literally, with local industry favourite Michelle Phillips taking the helm as the acting CEO of Transnet National Ports Authority.
“We’ve seen some really good moves from Transnet in recent months, especially with changes to the executive board, which have helped a lot,” said Jacob van Rensburg, R&D head of the South African Association of Freight Forwarders. “It’s very promising and good things are starting to happen, but this is against a backdrop of 10 to 15 years of stagnation, so a lot of hard work is taking place behind the scenes.”
February 15: Ocean Carriers Propose “Feebate” Carbon Levy – The Maritime Executive
The World Shipping Council, the industry body for ocean carriers, has joined the call for a “feebate” bunker tax-and-subsidy program – but with a new twist.
The idea of the “feebate” is straightforward: Fossil bunker consumers pay a levy, and the proceeds are used to subsidize the price of expensive green fuels. This makes green fuels more competitive on the market and paves the way for broader commercial adoption.
The International Chamber of Shipping has proposed what may be the best-known feebate structure. ICS’ levy would start at an initial $20-$40, and would remain at that level until IMO member states vote to raise it, without an automatic mechanism to increase fees over time.
WSC’s bunker levy would start at a comparable level, but would increase automatically to match the expansion of the green-fueled fleet.
February 21: Carriers Still Desperate for Capacity to Guarantee Emergency Schedules – The Loadstar
Ocean carriers are struggling to maintain weekly sailings from Asia to Europe via the Cape of Good Hope routing, despite the delivery of some 425,000 TEU of newbuild capacity this year.
According to an analysis by Alphaliner, the extended voyages are proving a challenge for carriers endeavouring to keep to revised proforma schedules.
“At least two, and preferably three, extra vessels need to be added to each loop to guarantee all scheduled departures,” said the consultant.
However, to plug the gaps in their networks, carriers have adopted a hybrid strategy of adding some extra vessels and speeding-up ships, supplemented by additional sailings with any size ship they can fix on the charter market.
February 23: Carriers Face Chilly Response to Their New Transpacific Contract Rates – The Loadstar
Transpacific container spot rates remain high as the contracting season moves into gear; however, new contract proposals from carriers may get the cold shoulder.
Xeneta’s XSI Asia-U.S. west coast component ticked up 1% last week, to an average of $4,762 per 40ft, which compares with the reading for the same week of last year of just $1,329 per 40ft.
Meanwhile, reversing consecutive weeks of decline, the Freightos Baltic Index (FBX) Asia to U.S. east coast average spot rate increased 3% last week, to an average of $6,764 per 40ft, more than double the spot rate a year ago.
With ocean carriers, BCOs, shippers and freight forwarders assembling in their hundreds for the JoC TPM conference in Long Beach in a week’s time – the traditional start of the transpacific contract season – the lines will believe they are in the perfect position to push for substantial contract rate hikes.
However, anecdotal reports suggest carrier account negotiators at TPM24, endeavouring to persuade customers to sign up for long-term deals, will be in for a challenging few days across the meeting rooms and halls of the Long Beach convention centre.
February 23: U.S. FMC Releases Final Rule on Detention and Demurrage – Supply Chain Dive
The U.S. Federal Maritime Commission released a new rule on detention and demurrage billing practices as part of its compliance with the Ocean Shipping Reform Act of 2022.
Detention and demurrage billing practices were major problems for shippers during the pandemic. Ocean carriers collected about $6.9 billion in detention and demurrage costs from 2020 to 2022, according to the FMC’s final rule shared on February 23.
February 5: January Pushes Air Cargo Volumes Up 10% as Red Sea Conflict and Lunar New Year Combine – American Journal of Transportation
Global air cargo volumes rose by 10% year on year in January as shippers’ concerns over hostilities in the Red Sea and an early Lunar New Year more than compensated for an anticipated post-Christmas drop in ecommerce traffic, according to the latest weekly market analysis by Xeneta.
With plenty of available air cargo capacity in what is traditionally a quieter month for demand, however, fuller cargo holds are yet to translate into higher rates. Globally, general air cargo spot rates in January declined 12% month on month, to an average US$2.27 per kg, consistent with the trend of the global dynamic load factor, which dropped three percentage points to 56% versus December. Xeneta’s dynamic load factor analysis measures air cargo capacity utilization by considering both cargo volume and weight perspectives of cargo flown and capacity available.
Overall, the year-on-year growth of global air cargo market supply slowed down in January, as much of the missing capacity was restored last year.
February 21: Shein, Temu and Other E-Commerce Retailers Are Upending Global Air Cargo Industry – CBC News
The rapid rise of fast-fashion e-commerce retailers such as Shein and Temu is upending the global air cargo industry, as they increasingly vie for limited air-cargo space to woo consumers with rapid delivery times, industry sources say.
Shein, PDD Group’s Temu and ByteDance’s TikTok Shop, which recently launched online shopping in the U.S., ship the majority of their products directly from factories in China to shoppers by air in individually addressed packages.
Shein and Temu together send almost 600,000 packages to the United States every day, according to a June 2023 report by the U.S. Congress, and their growing popularity is boosting air-freight costs from Asian hubs like Guangzhou and Hong Kong, making off-peak seasons almost disappear and causing capacity shortages, the sources said.
According to data aggregated by Cargo Facts Consulting, Temu ships around 4,000 tonnes a day, Shein 5,000 tonnes, Alibaba.com 1,000 tonnes and TikTok 800 tonnes. That equates to around 108 Boeing 777 freighters a day, the consultancy said.
February 20: Canada’s Two Major Railways Could See Strike in May: Teamsters – Today’s Trucking
Tensions between the Teamsters Canada Rail Conference (TCRC) union and railways Canadian National and Canadian Pacific Kansas City (CPKC) are ramping up after the December 31, 2023 expiration of three major collective agreements.
About 9,300 workers at the railways are covered by the agreements.
Negotiations have come to a standstill and CN and CPKC have filed notice of disputes with the federal government, requesting government mediators be appointed. Teamsters points out the notice of dispute starts the legal countdown to a possible strike or lockout, which could come as soon as 81 days after government mediators are appointed. This could lead to a labour disruption as early as May.
February 2: International Student Cap to Squeeze Driving School Enrolment – Today’s Trucking
The federal government on January 22 capped the number of international student permits over the next two years. It will approve approximately 360,000 undergraduate study permits for 2024, a 35% reduction from 2023.
Each province and territory will get permits according to population, and Ontario is likely to see a 50% cut from present numbers.
“Driving schools in Brampton are fed by international students,” said Manan Gupta, regulated Canadian immigration consultant and president of Skylake Immigration based in the city. “Their intake is going to suffer.”
Raj Walia, owner of Trukademy based in Mississauga, Ont., said international students form a large part of trainees at truck driving schools in the area. He added there are schools in Brampton whose trainee intake is 60% to 70% international students, and they will be affected. “It will impact the training business and the overall trucking industry down the road,” he said.
February 2: Lower Mainland Authorities Placed 58% of Inspected Trucks Out of Service in 2023 – Today’s Trucking
Burnaby RCMP’s Traffic Services and 10 partner agencies placed 58% of the commercial vehicles they inspected out of service (OOS) during enforcement operations across the Lower Mainland in British Columbia last year.
Authorities conducted 50 operations in 2023, inspecting 1,715 trucks and placing 999 OOS, according to a news release. The RCMP said there were 3,974 violations recorded and 1,298 tickets issued.
“Though the percentage of trucks placed out of service has inched down slightly this past year, there is still a lot of room for road safety improvement,” Corporal Mike Kalanj with the Burnaby RCMP said in the release.
February 1: CIFFA Selects 2024 Canadian Young Logistics Professionals Award Winner – The Forwarder Blog
Every year, CIFFA offers an award to a young freight forwarder who best demonstrates industry knowledge and skills to become a true international freight forwarding professional in the future.
After a review process of industry experience and a written dissertation demonstrating technical knowledge, CIFFA is pleased to announce that Rashaad Francisco D’Gama Rose of DSV Global Transport and Logistics has been selected as the 2024 Canadian Young Logistics Professionals Award winner.
CIFFA would like to acknowledge the good efforts and exceptional work of the Young Logistics Professionals Award competition runner up, Dhiraj Kochar.
February 9: CIFFA Submission: Supply Chain Regulatory Review
On January 26, CIFFA sent a submission to the Treasury Board Secretariat for its pending Supply Chain Regulatory Review. The review, “Let’s Talk Federal Regulations,” will examine federal regulations and practices, with the goal of supporting supply chain efficiency and resilience.
Following the review, the Government of Canada will develop a Regulatory Roadmap, outlining initiatives to improve the federal regulatory framework to better support economic growth and innovation.
Submissions were due by February 5. CIFFA commented on the issues of Duplication of Reporting Requirements and Weakness of Canadian Competition Legislation.
February 26: CIFFA’s Pre-Budget Submission
CIFFA has submitted, to Deputy Prime Minister Chrystia Freeland, a pre-budget document outlining our key priorities for the upcoming federal budget.
As we approach the next federal budget, our industry is experiencing reduced volumes of freight, owing to a decline in consumer demand due to inflation. The very severe human resource problems that afflicted the shipping sector following the COVID pandemic have somewhat declined, as a result. We see rising investor caution across our sector.
We have often stated that Canada’s supply chains are fragile at best, and frequently nearly broken. There has been ample evidence to support this over the last several years as environmental disasters, a pandemic, labour issues and infrastructure woes, not to mention geopolitical factors, contributed to that fragility.
But as the concept of a fluid supply chain becomes more recognized and championed for its contribution to our country’s GDP, productivity and reputation as a trading nation, we are hopeful that things will improve over the long term for Canadian consumers and businesses.
The Supply Chain Office created by this government is a good indicator that the role of a strong supply chain is supported.
We cannot ignore the weak spots, including the current labour environment, continued climate shocks and an economy with tightened monetary controls. And so we await with great anticipation a budget that recognizes these constraints and addresses concrete solutions.
December 1: Five Carrier CEOs Call for Regulatory Partnership and End to Fossil Fuel Ships – The Maritime Executive
The CEOs of five of the world’s largest shipping companies took the unusual step of joining together to outline a shared vision to accelerate the decarbonization of the global maritime industry. Timed to the conclusion of the UN’s COP 28 conference in Dubai, the executives of CMA CGM, Maersk, MSC, Hapag and Wallenius Wilhelmsen called for cooperation, including an alliance with the International Maritime Organization, and the definitive regulatory measures needed to create the investment conditions critical to accelerating the industry’s green transition.
As four of the largest container shipping companies, along with the leader in vehicle logistics, each of the companies highlights that they have taken steps to drive the transition. They are investing in efforts within their fleets and reiterating their belief that the importance of shipping achieving the IMO’s greenhouse gas targets is very clear.
December 1: Quebec City Longshoremen Reject Mediator’s Recommendation to End Lockout – CUPE press release (translated from French)
At a meeting on December 1, longshoremen at the Port of Quebec voted 70% against the proposal from a mediator. With the holidays approaching and the possibility of a second Christmas on the picket lines, the members rejected the offer as insufficient.
“It’s a … message to the employer that, after 15 months of lockout, there can be no half-deal. The parties need to get back to the bargaining table and find common ground that satisfies both parties,” said Nina Laflamme, CUPE union representative.
The longshoremen have been locked out since September 15, 2022. To carry out the work at the port, the employer uses replacement workers.
December 7: Strike Across Flemish Waterways Disrupts Antwerp Port Operations – The Loadstar
Strikes across Flemish waterways have hit operations at Antwerp – the second biggest container port in Europe.
Action by marine pilots and public service workers, which has spread across Flanders, Belgium, has resulted in lock closures and congestion, as unions VSOA and ACOD respond to reforms to the Flemish civil service statute.
The Port of Antwerp said the industrial action started on December 4, and it was “very hard to predict” how long it would last.
Inchcape Shipping Services (ISS) said on December 7 there were 49 ships waiting for arrival or departure at Antwerp, and raised concern that knock-on effects to wider supply chains could be expected if the strikes continued.
December 7: More Liner Services Avoiding Canals to Head for the Cape – The Loadstar
Confidence in the Panama Canal to process container vessel transits appears to have completely bombed over the past week.
“Multiple carriers have revealed changes to imminent voyages by removing the Panama Canal, signalling a continued loss of confidence in the passage in the weeks to come,” said eeSea operations and forecasting analyst Destine Ozuygur.
However, expectations that this might result in an increase in vessels transiting the Suez Canal have been dented by the recent attacks on commercial shipping by Houthi rebels, off the coast of Yemen.
“It seems many vessels that had originally planned to utilize a divergent route through the Suez Canal are now avoiding the area for fear of the safety of their crew and the vessels,” Ozuygur said. “For the first time in recent memory, we could possibly see a significant downturn of traffic through the Suez and the Panama canals, with a high volume of vessels preferring passage past the Cape of Good Hope.”
December 7: Container Shipping Outlook 2024: Rising Risk of Delays, Disruptions – American Shipper
The supply chain crisis is long over, but America’s importers still have a lot to keep them up at night as they plan for 2024.
Two key container shipping “chokepoints” – the Panama Canal and the Bab-el-Mandeb Strait in the Red Sea – are simultaneously under threat. Container-line financials are under severe pressure, forcing ever more vessel sailings to be canceled. The dockworkers union serving East and Gulf Coast ports is threatening to strike next October. While freight rates are low, concerns over delays in import shipments are high.
For an overview of the disruption risks in the year ahead, and advice on how U.S. importers can mitigate those threats, read this interview with Nerijus Poskus, global head of ocean procurement for Flexport.
December 15: Maersk and Hapag Pause Red Sea Runs as Industry Calls for Immediate Action – The Maritime Executive
Shipping giants Maersk and Hapag-Lloyd both confirmed on December 15 that they have paused all planned transits of the Red Sea and the Bab al-Mandab Strait, while the shipping industry is calling for immediate actions and a stop to the “flagrant breach of international law” that is risking the lives of seafarers and global trade. The actions came after the recent escalation, which saw a missile land close to a Maersk containership on December 14, a confirmed strike on a Hapag vessel on the 15th, and two MSC containerships targeted by the Houthi with one possibly struck.
December 15: Panama Canal Reverses Cuts in Daily Transits and Adjusts Reservations – The Maritime Executive
The Panama Canal Authority is delaying some of the scheduled reductions in daily transits that it was planning to implement starting next month due to slight improvements in the reservoir’s water levels and, at the same time, further adjusting its system for reservations. The changes come as good news for the shipping industry, which is increasingly diverting vessels as the conflict in the Red Sea threatens to choke off a critical alternate route.
The announced changes will restore two slots that had been removed from the daily transits for a total starting in January 2024 of 24 daily transits. The Panama Canal is currently restricted to 22 transits split with six at the Neopanamax locks and 16 at the Panamax locks. The plan called for the number of slots to be lowered to 20 in January and further reduced to 18 in February. The Panama Canal Authority highlights that today’s announcement allows for an increase of six daily slots above the projected low that was scheduled to take effect in about six weeks. It adds 30 percent from the previously announced daily low starting in February.
November’s rainfall was less adverse than projected by the forecasters plus the Panama Canal Authority highlights the positive outcomes of its water-saving measures. They implemented steps ranging from water recycling to short locking to decrease the amount of water lost from each transit.
December 17: OOCL Stops Serving Israel Because of ‘Operational Issues’ – The Maritime Executive
Chinese container carrier OOCL has decided to suspend all shipments to and from Israeli seaports, the company announced on December 16.
“Due to operational issues, OOCL will stop cargo acceptance to and from Israel with immediate effect until further notice,” the firm said in a one-sentence statement on its website.
At least four container lines have abandoned shipping through the Red Sea and the Suez Canal because of the ongoing threat of attack from Houthi forces in northern Yemen. MSC, CMA CGM, Maersk and Hapag-Lloyd have all signaled that they will take the Cape of Good Hope route, avoiding the risk of missile strikes, drone attacks or hijackings near Bab el-Mandeb.
The Houthi movement has threatened to attack any ship carrying cargo to Israel, and the militant group has the full width of the Red Sea in range off Hodeidah. By stopping service to Israel, OOCL appears to satisfy the Houthis’ political conditions for safe passage.
December 19: U.S. Announces Naval Coalition to Defend Red Sea Shipping from Houthi Attacks – The Guardian
The U.S. has announced the creation of an enhanced naval protection force operating in the southern Red Sea in an attempt to ward off mounting attacks from Yemen’s rebel Houthis on merchant shipping.
Britain said it would be among the countries participating, but notable absentees were Arab nations Egypt and Saudi Arabia. Analysts speculated that shipping would continue to be disrupted and attacks continue.
Lloyd Austin, the U.S. defence secretary, said the new effort would be called Operation Prosperity Guardian and was necessary to tackle the “recent escalation in reckless Houthi attacks originating from Yemen.”
Other participants in the effort, Austin said, included Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles and Spain.
December 19: Brace for Increased Shipping Rates as Lines Avoid Red Sea – Inside Logistics
Four of the top five largest container carriers will be avoiding the Red Sea and the Suez Canal until security is restored to the waterway. Together with ZIM, who was already diverting its Red Sea traffic, these carriers represent 56 percent of global capacity, meaning an estimated 17 percent of global volumes will be taking a longer, more expensive route from Asia around the southern coast of Africa.
Container diversions will take an extra seven to 14 days in transit time depending on the lane, and mean a 15 to 20 percent increase in costs for carriers. In addition to longer voyages and higher costs, disruptions to scheduled arrival times could cause congestion at destination ports and some equipment shortages, as empty containers take longer to get back to origin ports.
December 19: Houthi Leaders Vow to Keep Up Attacks on Shipping – The Maritime Executive
After a month of missile and drone attacks by Yemen’s Houthi rebel group, the United States has convened a group of 10 partner nations to assist in restoring maritime security in the Red Sea – but industry players, defence experts and Houthi leaders question whether it will have the desired effect.
“The American-formed coalition is to protect Israel and militarize the sea without any justification, and will not stop Yemen from continuing its legitimate operations in support of Gaza,” said Houthi spokesman Mohammed Abdel-Salam in a statement. “Whoever seeks to expand the conflict must bear the consequences of his actions.”
December 20: Carriers ‘Tear Up Schedules’ in Race to Get Diverted Box Ships to Port – The Loadstar
European and U.S. container ports and forwarders are scrambling to obtain revised ETAs for vessels from Asia that have been rerouted around the Cape of Good Hope.
Meanwhile, there is speculation that ships heading for North Europe may be instructed to increase speed to grab terminal slots ahead of their competitors.
At an average service speed of 18 knots, diverting around Southern Africa will add around 10 days to voyage times to North Europe and could add 15 days to transits to eastern Mediterranean ports. Asia-U.S. east coast services will see voyages extended by approximately seven days.
December 22: Carriers Are ‘Price Gouging,’ Claim Shippers as FAK Rates Skyrocket – The Loadstar
Shippers are accusing Asia-North Europe ocean carriers of ‘price gouging’ as FAK (freight all kinds) rates being quoted for January shipment go through the roof.
The Loadstar has been inundated with messages from shipper contacts who just cannot believe the level of rates being quoted by carriers.
“We expected our rates to be increased next year, but not to this level, and apparently they are non-negotiable,” said one UK-based NVOCC.
“This has cemented their $3,000 January GRIs and more,” said a forwarder contact.
And a shipper contact, importing bulk commodities into the UK from China, said carriers were refusing to accept his heavy boxes, although he said one line had quoted him $3,000 for each 20ft.
“I was only paying $435 per 20ft a month ago,” he said, “I have no hair left!”
December 26: Red Sea Drone and Missile Attacks Continue Undeterred Despite Coalition – The Maritime Executive
Attacks on commercial shipping coming from Yemen continued on December 26, apparently undeterred by the multinational coalition led by the United States. While no vessels reported being hit, the Houthi rebels reiterated that they are targeting Israeli shipping interests and ships trading with Israel.
U.S. Central Command reported that U.S. forces shot down 12 one-way attack drones, three anti-ship ballistic missiles and two land attack cruise missiles over a 10-hour period on December 26.
The U.S. Pentagon asserted that more than 100 drones and missiles have been launched against commercial ships from 35 nations.
December 14: Shippers and Forwarders Expected to Target Longer-Term Deals in 2024 – Air Cargo News
Shippers and forwarders are returning to longer-term and fixed-capacity agreements as the air cargo market continues to normalize.
In a recent market update, Flexport vice president and global head of airfreight Zeid Houssami said that this switch to longer fixed-capacity contracts was partly driven by the rise of e-commerce demand, with some companies looking to secure predictability in terms of cost and speed.
The switch is also driven by improving shipper confidence that next year’s market will be more predictable and consistent as supply and demand is more balanced.
December 19: New Calgary Airport Property Owner Shifts Focus to Air Cargo – American Shipper
A jungle gym, indoor go-kart track and other mismatched businesses will eventually be moved out of a logistics complex at Calgary International Airport to make way for cargo operators that can utilize the airside access for its intended purpose – moving commerce – according to the property’s new owner.
Realterm, a global investment manager focused on logistics infrastructure and a developer of cargo real estate at airports, last week announced it had acquired control of more than 502,000 square feet of industrial property adjacent to the Calgary airfield.
Three of the five buildings in the logistics centre sit along the tarmac and have the capability to host freighter aircraft. In the 13 to 15 years since they were built, none of the facilities have had dedicated air cargo tenants, said Alexi Lachambre, Realterm’s vice president of investments.
December 20: Exporters Explore Air Freight Options as Red Sea Chaos Deepens – Yahoo Finance
Exporters are scrambling to find ways to get key consumer goods to buyers, including by air, as a wave of attacks in the Red Sea adds to ocean freight supply chain problems.
Companies are now trying to switch to intermodal transport to maintain global supply chains, which involves a combined sea and air route, said Jan Kleine-Lasthues, Chief Operating Officer, Airfreight with German freight forwarder Hellmann Worldwide Logistics.
That means goods being transported first by sea to a port in Dubai, from where they are moved by air freight, he said.
“This alternative route allows customers to avoid the danger zone in the Red Sea and the long voyage around the southern tip of Africa,” Kleine-Lasthues told Reuters.
December 28: Airfreight Rates Bounce Back to 50% Above Pre-COVID Levels – Air Cargo Week
Preliminary figures for week 50 (December 11 to 17) indicate that global tonnages and average worldwide rates were stable compared with the previous week, after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month, based on the more than 400,000 weekly transactions covered by WorldACD’s data.
Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased 1%, and overall global average rates continued to rise, by 2%, with capacity up 1%. The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months.
Although the main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China, volumes ex-Asia Pacific have now flattened, although there have still been some modest rises in average rates ex-Asia Pacific, especially to North America (+4%), on a 2Wo2W basis.
December 7: CN to Acquire Iowa Northern Railway – Progressive Railroading
CN has signed and closed an agreement to acquire Iowa Northern Railway (IANR), which operates 275 track miles in Iowa connecting to CN’s U.S. rail network.
The transaction closed into an independent voting trust pending regulatory review of the transaction by the Surface Transportation Board (STB), CN officials said in a press release. An STB decision on the acquisition is expected in 2024, according to CN.
IANR serves upper Midwest agricultural and industrial markets covering many goods, including biofuels and grain. The transaction creates single-line service to North American destinations, while preserving access to existing carrier options, CN officials said.
December 1: Truck Drivers Want More Training, MELT Falling Short: Survey – Today’s Trucking
Surveyed Canadian truckers want future truck drivers to undergo substantially more training than they did themselves, with almost half expressing concerns about mandatory entry-level training (MELT) requirements.
Fifty-one percent of those who responded to a survey said mandatory entry-level training has failed to improve the quality of entry-level truck drivers.
Twenty-six percent said students should complete up to 125 hours of formal training before being licensed to drive, while 12% set the benchmark at 125-149 hours, 29% at 150-299 hours, 18% at 300-599 hours, and 15% at 600 hours or more.
In contrast, 59% of those who were surveyed received less than 100 hours of formal training before being licensed themselves.
December 15: Teamsters, B.C. Container Commissioner Square Off – Today’s Trucking
The Office of B.C. Container Trucking Commissioner (OBCCTC) and unionized trucking companies in Greater Vancouver are in heated debates over a new policy that applies port rates to off-dock trucking.
OBCCTC believes this is the way to achieve stability and equal driver pay in the Lower Mainland.
But the Teamsters, who represent both licensed and unlicensed companies, say that enforcing regulated port rates for non-port work exceeds OBCCTC’s jurisdiction, causing financial issues for licensed trucking companies and putting unionized jobs and business stability at risk. According to a recent Teamsters press release, unlicensed trucking companies that are not paying port rates ‘can swoop in and undercut the unionized competition.’
December 15: B.C. Pilots Vehicle-to-Grid Bidirectional Charging – Today’s Trucking
Lion Electric is one of several companies that are participating in a B.C. pilot project aimed at providing the feasibility of vehicle-to-grid (V2G) technology, in which electric vehicles not only draw from, but also return unused electricity to the grid.
The project is led by Coast to Coast Experiences (CTCE), which says this is Canada’s first vehicle-to-grid pilot project for medium- and heavy-duty vehicles.
Fleet owners will be able to monetize their electric vehicles by selling power back to the utility using V2G technology.
December 7: CIFFA to Appear Before House of Commons’ Standing Committee on International Trade
CIFFA was asked by the House of Commons’ Standing Committee on International Trade to appear on December 7 as part of a panel of witnesses in view of its study The 2023 strike at the Port of Vancouver: Selected Impacts, Responses and Port-related Innovation. CIFFA’s Executive Director Bruce Rodgers and Director, Policy and Regulatory Affairs Julia Kuzeljevich appeared before the committee.
December 19: CIFFA Signs MOU with Pledge Earth Technologies
CIFFA recently signed a memorandum of understanding with Pledge Earth Technologies Ltd., a carbon-emissions measurement and offsetting platform.
This new partnership will provide research documents for member benefit, as well as informational webinars to educate members in the new year.
Pledge offers software solutions to empower logistics service providers to support their clients in meeting their sustainability goals. It provides accessibility and transparency to freight emissions measurement, reporting and offsetting, allowing businesses to offer these services without increasing operational costs. To learn more, visit www.pledge.io.
November 3: Maersk Cutting 10,000 Jobs in Face of ‘Worsening Market Conditions’ – American Shipper
Maersk revealed on November 3 that it is “intensifying” job cuts in light of the “worsening market conditions” in ocean shipping.
“Given the challenging times ahead, we accelerated several cost and cash containment measures,” said Vincent Clerc, CEO of A.P. Moller-Maersk.
“We are in a very uncertain trading environment with significant further downside risk potential – one that could stay with us for quite a while,” Clerc said on a call with analysts.
Maersk began the year with 110,000 global employees. Year to date, it has cut 6,500 jobs, which it had not previously disclosed. It has now decided to cut a further 3,500 jobs, including 2,500 by year-end and 1,000 in 2024. The total reduction – 10,000 layoffs – will reduce the company’s global headcount by 9%.
November 8: MSC and Maersk Unwind Transatlantic Fleets as Rates Hit New Low – The Loadstar
The unravelling of MSC and Maersk’s 2M vessel-sharing alliance (VSA) fleet is continuing ahead of the termination of the east-west trades cooperation, slated for early 2025.
Alphaliner said the 2M partners were “increasingly moving away from services run with a mixed fleet of vessels.”
The consultant said the embattled transatlantic tradelane was the latest 2M route to be split into services operated individually by the partners, thereby making the dissolution of the alliance smoother, and allowing the VSA to be ended by mutual consent earlier than planned.
November 8: $4 Million Lets Shipper Cut to Front of Line at Panama Canal – Transport Topics
A shipper has paid nearly $4 million to jump to the front of the line at the congested Panama Canal waterway, a record high.
Japan’s Eneos Group paid $3.975 million in an auction on November 8 to secure the crossing, bidding documents show. That comes on top of the regular transit fees companies pay, which can be hundreds of thousands of dollars more.
A queue of ships waiting to use the canal has been growing in recent months amid a deep drought. To manage the situation, the canal’s managing authority has announced increasingly drastic restrictions for the depleted thoroughfare. It also lets companies bid on the chance to speed things up and move to the front of the line. Last month, the Panama Canal Authority held 140 auctions, it said. Three of those came in above $1 million.
November 10: Ocean Carriers Are Driving the Rates Race to the Bottom – ‘They’re All at It’ – The Loadstar
Carriers are themselves driving the rates ‘race to the bottom’ they warned would lead to a “dire situation” in 2024 – Maersk singled out as one of the worst offenders.
Announcing the group’s third-quarter flop, the Danish carrier’s CEO Vincent Clerc told investors that, without an uptick on the spot market in the final three months, the coming year would prove difficult for ocean shipping.
His comments, though, received sharp shrift from the wider supply chain, with Rhenus’s head of ocean freight for the Americas, Stephanie Loomis, describing them as “comical.”
She noted on social media: “I find it comical that Clerc is warning of a ‘dire’ situation if rate levels did not improve before the end of the year. These under-market Maersk offers keep ‘showing up’ in co-loaders’ rate sheets, week after week.”
But Maersk is not the only carrier behaving like this: sources claim “they are all at it.”
November 10: ‘Cybersecurity Incident’ Prompts Shutdown of DP World Australia Terminals – The Maritime Executive
DP World, one of the largest terminal operators in Australia, reported on November 10, that the company had suspended all port terminal operations due to what it is calling a “cybersecurity incident.”
“Our teams are working diligently to contain the situation and determine the impact on our systems and data,” DP World Australia said in a statement. The company reports that it is engaging with cybersecurity experts and notifying the relevant authorities while continuing to investigate the scope of the breach.
The work stoppage was reportedly launched for all shoreside operations at the company’s terminals in Sydney, Melbourne, Brisbane and Fremantle after the breach was discovered on that day.
November 13: DP World Hack: Port Operator Gradually Restarting Operations Around Australia After Cyberattack – The Guardian
Australia’s biggest ports operator, which has been the target of a cyberattack, has begun gradually restarting its operations, but key exports could be subject to prolonged delays.
DP World Australia closed its Sydney, Melbourne, Brisbane and Fremantle port operations after detecting the breach on November 10, leaving cargo and containers stuck on the docks.
The company disconnected its internet, which stopped ongoing unauthorized access to its network. This also resulted in key systems linked to its port operations not functioning normally.
November 20: Durban Warns It Could Take 15 Weeks to Clear Backlog as 60 Ships Wait – The Maritime Executive
Port officials in South Africa are reporting it is likely to take until 2024 and possibly till February to clear the current congestion that has built up at the container port in Durban.
Consistently at the bottom of port rankings for efficiency, Durban is facing a crisis, with more than 60 vessels reportedly waiting offshore and importers now saying they will not have expected merchandise in time for Christmas.
November 21: More Surcharges Loom for Shippers as Panama Canal Restrictions Tighten – The Loadstar
French carrier CMA CGM is set to become the first major carrier to apply a new surcharge on shipments transiting the Panama Canal, in response to the ongoing capacity reductions.
The shipping line said the series of reduced capacity measures introduced by the waterway authority this year – and forecast to continue into 2024 – are pushing up its costs.
“The lack of precipitation over the summer has forced the Panama Canal Authority to reduce the number of vessels transiting a day. As a consequence, by 1 January, booking windows for transiting the canal’s neopanamax locks will be reduced by 30%.
“These restrictions, combined with an increase in the canal tariff implemented earlier in the year, are taking a severe toll on CMA CGM’s operations,” it said.
November 21: Global Shipping’s $3.6 Billion Carbon Bill is Six Weeks Away – The Uncontained
Ships sailing to European ports face a combined carbon emissions bill of $3.6 billion next year, the start of a levy that’s almost certainly going to rise as the continent steps up efforts to combat climate change.
The figure is an estimate of the total price of complying with the European Union’s Emissions Trading System from Drewry Shipping Consultants Ltd.
Under the regulation, which takes effect January 1, vessels going into and out of EU ports must pay for their carbon pollution.
The global shipping industry spewed more than a billion tons of CO2 into the atmosphere in 2018 and is almost exclusively powered by oil-derived fuels, which are significantly cheaper than low-carbon alternatives. Folding it into the ETS is part of the EU’s plan to decarbonize the sector to combat climate change.
November 22: More Shipping Lines Set to Plunge into Losses in Q4 – The Loadstar
Ocean carrier operational profits fell below pre-pandemic levels in the third quarter – and results for Q4 are likely to be a whole lot worse.
Alphaliner’s assessment of the reported earnings before interest and tax (EBIT) of the nine largest carriers saw the average operating margin fall to 1.5% in Q3, which was lower than recorded in any of the quarters in 2019.
November 24: Ashcroft Terminal and Vancouver Fraser Port Authority Partner to Increase Supply Chain Resiliency – American Journal of Transportation
Ashcroft Terminal Ltd. and the Vancouver Fraser Port Authority have signed a letter of intent concerning a long-term arrangement for the transportation of Canadian imports and exports. The organizations will work together to invest in, build and operate rail infrastructure at Ashcroft Terminal to reduce congestion within the Port of Vancouver, support capacity growth and enhance resiliency within the critical Asia-Pacific Gateway trade corridor. This partnership is expected to advance the efficient movement of imports and exports in Western Canada and help deliver goods to market faster.
Ashcroft Terminal Ltd. – an inland terminal located approximately 300 kilometres east of Vancouver – will provide infrastructure to supply railcar storage and staging for improved resiliency and cargo fluidity along the Asia-Pacific Gateway Corridor. This will help remove bottlenecks along this major transportation corridor. The parties anticipate the railcar storage program to be operational by fall 2024.
November 24: ‘Dire’ Scenario for Shipping Lines More Likely as Spot Rates Fall Back – American Shipper
There’s a lot at stake for container lines’ 2024 bottom lines in the last few weeks of 2023. If lines can’t push up spot rates very soon, next year’s annual contract rates will reset much lower versus this year’s.
That scenario – which would have a very negative financial effect on liners – looks increasingly likely. Time is running out for a fourth-quarter rebound, and indexes show spot rates falling, not rising.
Shipping lines’ attempts to use general rate increases (GRI) this month to improve their negotiating hand for annual contract resets have failed. They have one last chance in December, but their track record of getting GRIs to stick has been poor.
November 28: The Panama Canal Is So Backed Up Ships Are Rerouting Through the Suez – American Journal of Transportation
A bottleneck at the Panama Canal due to low water levels has prompted shippers to divert to the Suez Canal, the Cape of Good Hope or even through the Strait of Magellan off the tip of South America.
The Panama Canal Authority, which normally handles about 36 ships a day, announced on October 30 that it will gradually reduce the number of vessels to 18 a day by February 1 to conserve water heading into the dry season. Panama had the driest October on record due to a drought caused by the El Niño weather phenomenon, the authority said.
November 10: Flights Get Longer as Airlines Are Forced to Skirt War Zones – American Journal of Transportation
The Middle East has long been a global crossroads for air travel, with hundreds of aircraft bisecting the region every day on long-distance journeys connecting the U.S., Europe and Asia.
Plying those routes has become more challenging, with rising tensions forcing airlines to curtail services as a safety precaution. The war between Israel and Hamas, in a region already studded with hot zones, has added to the complications of flying between east and west.
That’s after Russia’s invasion of Ukraine already added hours to many journeys by shutting down vast airspace to many transnational operators – including the Great Circle routes through Siberia, a popular gateway between the continents.
Each extra hour of flight added $7,227 to the variable cost of a typical widebody journey in 2021, based on Federal Aviation Administration estimates. Expenses such as fuel and labour have only increased since then, said John Gradek, an expert on aviation operations and lecturer at McGill University in Montreal.
November 10: Cargojet to Sell Off New B757 Freighters, Pause 767 Conversions – American Shipper
Cargojet, which operates a nationwide air cargo network in Canada for e-commerce express companies plus international services, is moving more aggressively to cap fleet growth and preserve strong cash flows in response to the continued slowdown in shipping demand.
The airfreight specialist has a surplus of Boeing 757 converted freighters and recently listed four of them for sale. The planes were recently converted and had their engines overhauled.
The move follows an earlier decision not to proceed with converting four 777-300 passenger jets.
November 13: Pricing Index Shows Airfreight Rates Creeping Steadily Upwards – Air Cargo Eye
The August to September uptick on airfreight rates on major Asia-outbound lanes is gradually continuing, pricing analysts say.
Nevertheless, there was little change in the first week of November, according to the latest data from air cargo pricing monitor TAC Index.
The Baltic Air Freight Index (BAI) was overall slightly lower, down by 0.5 percent, in the week to November 6, leaving its year-on-year change at 28.8 percent down – but with the ‘firmer tone’ of peak season generally continuing, a statement says.
Rates on the biggest air cargo routes out of China continued to climb during the week.
November 16: WestJet Cargo and Flexport Collaborate on Airfreight Solutions to Asia – American Journal of Transportation
WestJet Cargo has signed an agreement with Flexport to offer new airfreight solutions for Canadian exports into Asia.
Under the agreement, WestJet Cargo will deliver Canadian cargo to O’Hare International Airport (ORD), where Flexport operates dedicated freighters from the U.S. to key air freight hubs in Asia, including Incheon International Airport (ICN), Shanghai Pudong International Airport (PVG) and Hong Kong International Airport (HKG), effectively expanding the global reach for WestJet Cargo and its customers.
November 8: CN Announces New Intermodal Service to Port of Gulfport – CN press release
CN has signed a memorandum of understanding (MOU) with the Mississippi State Port Authority at Gulfport and Ports America establishing a new intermodal service. The trial run of the service will launch in the coming weeks.
The goals of the MOU include identification and development of a best-practices vision through productivity improvements for the supply chain, and collaboration in implementing those supply chain improvements to leverage and increase market share.
November 3: 70% of Drivers in U.S. Violate Hours-of-Service Regulations Due to Lack of Parking: ATA – Transport Routier (translated from French)
The American Trucking Associations (ATA) and its 50 affiliated organizations are calling on the governors of every state in the U.S. to put truck parking at the top of their infrastructure spending priorities.
In a press release, the ATA said the lack of parking spaces for truckers has been a long-standing concern of the industry, adding that it raises safety issues that affect all road users.
The association also cites a study by the U.S. Department of Transportation, which found that 98% of truck drivers regularly struggle to find a safe place to stop and rest, often forced to park at unsafe or outright illegal sites. That’s 23% more than four years ago.
Even more worrisome, 70% of drivers have been forced to violate federal hours-of-service rules because of these all-too-common situations, the ATA said.
November 8: Truck Drivers Still Eligible for Express Entry After List Removal: IRCC – Today’s Trucking
Transport truck drivers remain eligible for Canada’s Express Entry immigration program for skilled workers, but may find it a bit tougher to secure permanent residence status under changes made by Immigration, Refugees and Citizenship Canada (IRCC).
An IRCC administrative update has removed National Occupational Classification Code 73300 for transport truck drivers from the list of occupations eligible for a Certificate of Qualification (CoQ) – a criterion that helped boost scores in the permanent resident application process.
“It has been determined that transport truck drivers do not have a CoQ-equivalent certification that some other tradespeople have [e.g. carpenters, welders, etc.]. Therefore, IRCC has removed the occupation from this list,” said an IRCC official.
November 14: Heightened Cargo Theft Trends Continue in Q3 – FleetOwner
In a trend that shows no signs of slowing, cargo theft for the third quarter of 2023 increased 59% year-over-year after comparable increases in quarters one and two, according to a report from freight security network CargoNet.
CargoNet recorded 692 instances of theft across the U.S. and Canada last quarter, largely as part of a continuing trend of shipment misdirection attacks, a type of fraud in which thieves use stolen motor carrier or broker identities to obtain freight. In total, thieves stole over $31.1 million in shipments in the third quarter of 2023.
November 15: FMCSA Issues Final Rule for Brokers, Forwarders – Trucking Dive
The Federal Motor Carrier Safety Administration released details on a final rule to help ensure brokers and freight forwarders have sufficient money posted to compensate carriers.
The rule sets parameters on what forms of security would be eligible and ineligible. Brokers and freight forwarders with financial security falling below $75,000 could have their operating authority suspended.
“This rule will result in benefits to motor carriers,” the agency said, noting it’s seeking to address how some brokers withhold payments to motor carriers. Provisions of the rule go into effect on January 16, 2025 and a year later.
November 30: Congestion in U.S. Cost Truckers Nearly $100 Billion in 2021 – DC Velocity
If you’ve been thinking highways are more crowded these days, you’re right. After dropping during the pandemic years, traffic congestion has returned with a vengeance, creating snarls and delays throughout the U.S.
And those delays are costing the trucking industry a bundle. According to the American Transportation Research Institute (ATRI), the nonprofit research arm of the American Trucking Associations (ATA), traffic congestion on U.S. highways added $94.6 billion in costs to the trucking industry in 2021. That represents the highest level in six years, according to the institute’s latest “Cost of Congestion” study.
September 5: Ocean Carriers’ Record Rejections Are Last-Ditch Effort to Bolster Spot Rates – American Shipper
Back in May, American Shipper warned that a second-half rebound in U.S. containerized import volumes was highly unlikely, as it was becoming increasingly clear that importers were facing a clear shift in consumer spending (from discretionary goods to more essential goods) and a nagging surplus of inventories that were carried over from last year. The reverse bullwhip effect was clearly going to crack any chances of a robust peak season. It also warned that this dismal outlook for future U.S. import demand may drive carriers to go to extreme lengths to keep upward pressure on spot rates.
Fast-forward to today and the tide is indeed turning quickly, with recent data from SONAR’s Container Atlas showing new booking volumes plummeting over 35% from their peak reached on August 1, a key indicator that U.S. import demand is rapidly deteriorating. While this significant drop in future demand is undoubtedly increasing the downward pressure on spot rates, ocean carriers have been pulling out all of the stops to help offset this downward pressure. This means going beyond blank sailings and rejecting a record amount of U.S.-bound containers in a seemingly desperate, last-ditch attempt to bolster spot rates ahead of (and after) their proposed general rate increase on September 1.
September 6: Cars in Containers the Norm as Ro-Ro Sector Capacity Crunch Continues – Seatrade Maritime News
Lack of capacity and congestion in the car carrier sector has driven some freight forwarders and manufacturers to move cars in containers rather than delay exports until space becomes available.
However, differences between insurers on the questions of safety and the movement of cars in containers, particularly electric vehicles (EVs), have emerged following the publication by the International Union of Marine Insurance (IUMI) of the findings of a recent study.
Soaring freight rates, congestion and a lack of ro-ro capacity have seen delays of up to three months or more in the shipment of cars, as sky-high demand adds to the sector’s problems.
One freight forwarder who specializes in the handling of cars said, “The cost of moving cars in containers is on a par with ro-ro because, although the freight is cheaper, the cost of loading and unloading containers is greater.”
September 7: MSC-Zim Alliance Strengthens, with VSAs ‘Across Multiple Trades’ – The Loadstar
The world’s largest container line, MSC, is joining in an alliance with tenth-ranked Zim across “multiple trades,” as both carriers prepare for life outside their cooperation with Maersk within the 2M Alliance.
The Israeli carrier said it had made “a new operational agreement with MSC, encompassing several trades.”
Zim explained: “The cooperation scope includes services connecting the Indian subcontinent with the east Mediterranean, the east Mediterranean with Northern Europe and services connecting East Asia with Oceania.”
It added that the agreements included vessel sharing, slot purchases and slot swap arrangements.
September 7: Time to Start Worrying Again About Rising Cost of Ship Fuel – American Shipper
At this time four years ago, before the pandemic and the Ukraine-Russia war stole the headlines, the cost of fuel was the big topic in shipping.
The industry was about to implement a sweeping new global regulation, IMO 2020, requiring the use of more environmentally friendly and more expensive very low sulfur fuel oil (VLSFO), with a sulfur content of 0.5%. Added fuel costs would be passed along to cargo shippers, and ultimately, consumers.
Fuel costs spiked as predicted after the regulation went into force on January 1, 2020. Then COVID struck. Demand for gasoline and diesel collapsed, the price of oil plunged, and with it, the cost of ship fuel. By mid-2020, vessel fuel was 30% cheaper than it was prior to IMO 2020. Fears over regulatory fallout waned.
Now, ship fuel costs are rising yet again. The cost of VLSFO is back near highs reached soon after the IMO 2020 first came into effect. Bunker adjustment factors (BAFs) – the fuel surcharges shipping lines levy on their customers – are headed up. And the cost of freight is all the way back down to where it was before COVID – and before IMO 2020 – meaning the pass-along cost to shippers from expensive VLSFO is now a much higher proportion of their total cost.
September 14: Montreal Dockworkers Union Says Changes Made to Hiring List Criticized as Nepotistic – CBC News
The union representing dockworkers at the Port of Montreal says it has ended a long-standing hiring practice that has been criticized for fostering nepotism – to the point where workers’ preschool offspring were placed on a list of potential employees.
For decades, the association of shipping companies that use the port has hired longshore workers from a list supplied by the union – a list created by asking each union member to provide a single name.
But the Maritime Employers Association has argued the list is a recipe for nepotism, resulting in few women candidates or members of ethnic minorities, but in some instances children who were barely out of diapers.
In April, a labour arbitrator ordered a series of changes after finding it was impossible for people to get their names on the list unless they were related to current dockworkers.
September 18: Box Lines Hit by Rising Fuel Costs as OPEC Cuts Supply – The Loadstar
As global freight rates continue to fall, container shipping lines are being hit by a huge spike in fuel costs.
This will inflict further damage on the bottom line of the financials of weaker carriers already challenged by second-quarter losses.
According to Ship & Bunker data, the price of Rotterdam-sourced industry-standard low-sulphur fuel (VLSFO) jumped on September 15 by another $8 per ton to $643 and has now increased by 22% since the end of June.
In theory, carriers have fuel cost mechanisms in place to adjust bunker surcharge amounts payable by shippers, but in practice some lines have waived increases within the heavily discounted period of the past few weeks.
September 21: Container Shipping Rates Sinking Further into the Red – American Shipper
It’s not looking good for container shipping lines. Peak season is running out of whatever limited steam it previously had. Spot rates are sliding into loss-making territory.
Rates “continue to lose ground, bending under the pressure of insufficient demand and growing overcapacity,” said Alphaliner.
According to Linerlytica, “Container market sentiment continues to deteriorate, with freight rates still slipping and little prospect for a rate rebound in October despite carriers’ efforts to contain capacity availability through blanked [canceled] sailings.”
September 25: Transport Committee Calls for Thorough Review of Canadian Ports – National Newswatch
The government needs to conduct a thorough review of the capacity of Canadian ports and their long-term infrastructure requirements, says the Commons transport committee.
In a 26-page report to the Commons, the committee made 12 recommendations for the government to act on to ensure the 17 Canada Port Authorities (CPA) can fulfill their critical role in handling exports and imports. The Conservatives and NDP offered some additional suggestions.
In addition to the review, the government should reduce red tape and regulatory burdens on the CPAs as much as possible to ensure a more timely, predictable review process for large port infrastructure and expansion projects, the report said.
September 26: As Canadian Shoppers Tighten Their Belts, Vancouver Port Shipments Plummet – CBC News
The number of shipping containers passing through Canada’s largest port fell sharply in the first half of the year, driven down by weaker consumer demand and a sputtering economy.
Container volumes at the Port of Vancouver fell 14 percent in the first six months of 2023 compared with the same period a year earlier, the Vancouver Fraser Port Authority said on September 25.
In a phone interview, interim CEO Victor Pang said the figures reflected a stalling economy, which contracted slightly in the second quarter.
“There’s some economic softness, overall and for Canada. And you’re seeing that through our container numbers,” Pang said, noting that the decline was not unique to Canadian ports.
September 29: B.C. Mayor Sounds Alarm over ‘Rampant’ Crime at Local Port as Expansion Looms – CBC News
The federal government’s failure to fund a police force dedicated to Canada’s ports is a threat to national security that needs to be dealt with immediately, says Delta, B.C., Mayor George Harvie.
Delta is home to the Roberts Bank Terminal, and expansion plans over the coming years will see millions more containers move through the Port of Vancouver annually.
Harvie says Canada’s ports are the federal government’s responsibility, but the “total absence” of uniformed police at the facilities makes them obvious targets for criminal elements to set up shop, from Mexican drug cartels to biker gangs.
“We’re witnessing a relentless flow of illegal drugs, weapons and contraband into Canada through our ports and that threatens our national security,” said Harvie.
The City of Delta released a report on September 28 that it had commissioned about policing of Metro Vancouver port terminal facilities that says there’s “literally no downside” for organized criminals to set up shop. “Recently, ports scored very high in British Columbia’s provincial threat assessment with respect to the potential for infiltration and corruption,” the report says.
September 30: Panama Canal Trims Vessel Passage Quota Again to Deal with Severe Drought – Reuters
Daily ship crossings on the Panama Canal will be reduced to 31 from 32 to soften the impact from a severe drought that is expected to last until next year, the authorities managing the canal said.
The Panama Canal Authority (ACP) in recent months has imposed various passage restrictions to conserve water, including cutting vessel draft and daily passage authorizations, which are normally 36 per day.
ACP said on September 29 that, due to the ongoing water crisis, it “finds it necessary to implement additional changes,” with the new rules implemented from November 1.
September 6: Why It’s Time for Shippers to Re-evaluate Their Air Cargo Agreements – Supply Chain Dive
With air cargo demand stabilizing and capacity up, shippers are re-evaluating contracts as air freight rates drop, industry executives say.
Following COVID-19’s capacity-strapped market, which put air carriers in the driver’s seat, shippers are now in a position to negotiate their rates, said Hellmann Worldwide Logistics Airfreight COO Jan Kleine-Lasthues.
“I believe we will see more and more RFQs coming out and shippers [trying] to secure the low rate level which we have at the moment for a longer period,” Kleine-Lasthues said. He anticipated possible contract agreements of six to 12 months.
September 22: Air Cargo Tonnages and Rates on the Rise – Air Cargo Week
Global air cargo tonnages showed a positive development in the second full week of September, after stabilizing at the beginning of the month, with average rates also on an upward trend, reaching $2.31 per kilo, according to the latest figures from WorldACD Market Data.
Figures for week 37 (September 11 to 17) show a jump in tonnages of 4%, compared with the previous week, while average worldwide air cargo prices increased slightly (+1%), based on the more than 400,000 weekly transactions covered by WorldACD’s data.
September 11: CN and Norfolk Southern Unveil Domestic Intermodal Service – FreightWaves
Canadian National and Norfolk Southern are pairing up to launch a domestic intermodal service that they say will allow customers in CN-served markets in Canada and the Upper Midwest to access markets in the U.S. Southeast.
The service, which will start October 2, will utilize steel-wheel interchanges in Detroit and Chicago and enable CN customers to gain access to markets in Atlanta and Kansas City, Missouri, via NS.
The two Class I railroads say the new service aims to operate “like a single-line intermodal product” and convert shippers from truck to long-haul rail. The service will also provide opportunities for customers to optimize their cargo loaded weights and give customers the ability to lower their shipment-related greenhouse gas emissions.
According to a webpage about the service, going between Atlanta and Toronto might take 3.3 to 3.7 days in transit time, while going between Atlanta and Calgary might take 7.1 days.
CN and NS’ service follows another partnership that CN has with other major freight railroads: the Falcon Premium service between CN, Union Pacific and Mexico’s Ferromex, established in the spring.
September 26: Canada’s Railways Mark Progress in Emissions Reduction Efforts – Progressive Railroading
The Railway Association of Canada’s latest Locomotive Emissions Monitoring (LEM) report confirms that greenhouse-gas (GHG) emission intensities improved across all railway operations, the association announced on September 25.
In 2021, the latest year available for LEM data, GHG emissions intensity for freight-rail traffic decreased 1.2%. Total freight-rail GHG emissions intensity has fallen 25.9% since 2005 while traffic rose 25.5% in that same period, RAC officials said in a news release.
September 13: CleanBC Heavy-duty Vehicle Efficiency Program Unveils Next Intake: Offers Carriers Rebates for Fuel Efficiency Upgrades – BCTA press release
The CleanBC Heavy-duty Vehicle Efficiency (HDVE) Program, administered by the British Columbia Trucking Association (BCTA) and funded by the Government of B.C., announces the launch of its latest intake. Designed to promote sustainable transportation practices, reduce emissions and provide economic benefits to carriers, the CleanBC HDVE Program offers an outstanding opportunity for carriers to enhance their fleets’ efficiency while contributing to a greener future.
Under the program, eligible carriers are empowered with fuel-management strategies that align with the province’s commitment to environmental stewardship. The HDVE Program also includes a rebate system, providing carriers with a financial incentive to adopt fuel-efficient technologies. Carriers can receive rebates of up to $20,000 per vehicle, and an impressive $150,000 per fleet for the purchase and installation of approved fuel-efficient equipment.
September 18: Truck Drivers Among First Round of Express Entry Invitations for Transport Occupations – Today’s Trucking
Marc Miller, Minister of Immigration, Refugees and Citizenship, announced that the first round of invitations for transport occupations through category-based selection in Express Entry will occur this week. This focus on candidates with experience in the transport sector – including commercial truck drivers, pilots and aircraft assembly workers – will help the sector attract the skilled talent it needs across the country, according to a news release.
“The transportation sector is crucial to our economy, and if we want to keep things moving, we need to invest in the people that move travellers and transport our goods,” said Pablo Rodriguez, Minister of Transport.
“With this new initiative, we are helping address a critical skills shortage while also attracting new, talented people to communities across Canada. Truck drivers, pilots, aviation mechanical engineers and seafarers play a critical role in our economy and Canadians’ lives. Filling vacancies in these professions will boost economic growth and create stronger and more resilient supply chains,” he added.
These category-based selection rounds will continue throughout the year, alongside general and program-specific invitation rounds.
September 20: Illegally Parked Trucks, Dropped Trailers Add to Parking Woes in Ontario’s Peel Region – Today’s Trucking
Out-of-town truck drivers trying to find parking spots at the handful of available places in Ontario’s trucking heartland are complaining that they are being squeezed out by illegally parked trucks, abandoned vehicles and dropped trailers.
Michael, a longhaul driver from New Brunswick, was left frustrated and worried on a recent evening as he failed to find a parking spot at a truck stop in Mississauga. Running out of drive time, he was forced to park on the street.
“I was lucky I didn’t get a ticket. People are dropping tailers next to a sign saying, ‘no dropping trailers’, and they sit there for weeks,” he said.
September 25: Cargo Thefts from Trucks, Warehouses Spike During Q2 – FreightWaves
Truckload carriers across the U.S. saw a sharp rise in cargo thefts during the second quarter – with thieves targeting everything from electronic goods to food and beverage products and construction materials.
Verisk Analytics’ firm CargoNet, which tracks voluntarily reported cargo thefts, said there were 566 incidents in the U.S. and 16 in Canada in the second quarter, a 57% year-over-year (y/y) increase compared with 2022.
“In total, thieves stole over $44 million in goods in the second quarter of 2023 and the average shipment value per event increased nearly $100,000 to $260,703 per theft as cargo thieves focused on high-value shipments,” said CargoNet.
September 28: Broker Dodges Liability in Illinois Case, Had No ‘Control’ over Carrier – FreightWaves
In a case with strong parallels to C.H. Robinson vs. Miller and the case known simply as Ye, an Illinois appellate court has removed a 3PL from a more than $18 million decision against a carrier whose truck struck a teenager in 2016.
The decision in the Alliance case was handed down by a unanimous three-judge panel.
Much of the panel’s decision was driven by its conclusion about the control that 3PL Alliance had over the carrier and by extension its driver. The question, it said, is whether they were “agents” of Alliance or an independent contractor.
September 25: CIFFA Writes to Minister of Labour Regarding Negotiations at Port of Montreal
CIFFA was notified on September 24 that the executive committee of CUPE 375 sent a Notice of Dispute to the Minister of Labour after only one meeting with the Montreal Port Authority at which initial demands were exchanged.
As a result of this action, CIFFA sent a letter to Labour Minister Seamus O’Regan seeking government engagement and assistance.
CIFFA has asked the minister and his department “to do everything possible to ensure the continued reliability of port services in Montreal.”