News
Industry Update – November 2024
Attention: Shipping Manager
Situation in USA/Canada
- Standstill at strike-bound Canadian ports could spread inland
Turmoil persists at Canada’s ports, with warnings that this could lead to spikes in road and rail freight, and congestion at ‘Plan-B’ US west coast gateways.
Yesterday, the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 began an industry-wide, open-ended strike against all BC Maritime Employers Association (BCMEA) member companies.
The association issued a coast-wide lockout notice in response, effectively shutting down the principal ports of Vancouver and Prince Rupert.
This comes after a weekend of failed discussions to see labour tensions decline at the country’s ports: in fact, rows on both the east and west coasts escalated. Current congestion data shows that the port of Vancouver is already experiencing a spike in vessel backlogs, while other Canadian ports like Prince Rupert and even Halifax on the east coast are trending upward as well.
As both Canadian coasts experience concurrent disruption, in conjunction with fears of renewed strike action at US east and Gulf coast ports in the new year, diversions to US west coast ports are “the most likely scenario”, according to industry experts.
(Source: Loadstar)
- US East Coast port employers, longshore union resume contract negotiations
The International Longshoremen’s Association (ILA) and employers represented by the United States Maritime Alliance (USMX) in a joint announcement said they will resume discussions on a new master contract in November.
The union earlier in October sent 45,000 members to picket lines during a three-day strike that shut down container and vehicle handling at 36 East and Gulf Coast ports.
The strike ended when Biden administration officials helped broker an extension of the previous master contract until Jan. 15, 2025. The sides then reached agreement on a 62% pay raise over the six years of a new pact, contingent on bargaining of other issues including the deployment of automation in port operations.
The announcement said negotiators will meet in New Jersey, where they will look to agree on terms for a new Master Contract Proposal that can be presented to the full ILA Wage Scale Committee for approval, and later, to ILA longshore workers for ratification.
(Source: Freightwaves)
Situation in Europe
- Port of Valencia slowly gets back to work after flooding from rainstorms
Valencia Port is limping back to cargo activity after it was forced to halt operations in the aftermath of severe rainstorms that lashed the country’s south-eastern region last week. The devastation from what was said to be the severest flash-flooding in Europe over the past five decades, is reported to have claimed some 100 lives.
Container lines have reported work resumption at Valencia on a “restricted scale”, as multiple landside challenges persist. Due to widespread damage to infrastructure systems, road closures continued to be reported, keeping truck flow at a standstill or seriously disrupted. According to reports, rail infrastructure also needed major repairs, and carriers have reported that new rail bookings for export cargo from Madrid to Valencia are currently on hold until operations are fully restored.
(Source: Loadstar)
General Rate Increase from North East Asia to Australia and New Zealand:
We received notifications this month from some shipping lines in regards to two separate General Rate Increases from North East Asia to Australia, details as follows:
The first GRI will come into effect from 1st November 2024:
USD 300/20’
USD 600/40’
LCL will increase accordingly.
In addition to the first GRI, shipping lines will have a second GRI effective from 15th November 2024.
USD 200/20’
USD 400/40’
LCL will increase accordingly.
General Rate Increase from South East Asia to Australia:
We received notifications this month from some shipping lines in regards to a General Rate Increase from South East Asia to Australia, details as follows:
The first GRI will come into effect from 1st November 2024:
USD 300/20’
USD 600/40’
LCL will increase accordingly.
We will keep you updated with any further information.
