The market from Asia to the US West Coast ports has settled and is now seeing lighter load factors than in previous weeks. The Asia to US East and Gulf Coast markets are stronger now, as blank sailings during November are keeping space tight and rates on the higher side. Carriers are mostly extending the current freight levels through the end of the month.
On the labor front, an announcement from November 13 states that negotiations have broken down between the USMX and the ILA, the two parties negotiating the US East and Gulf Coast labor contract. Reports state that the ILA walked away due to disagreements related to automation. Shippers had been hoping for a positive update ahead of the holidays. Instead, concerns are growing that the industry could see another strike as of January 15.
With the US presidential election behind us, shippers are also concerned about potential tariff increases on imports beginning in 2025. It’s becoming more likely that many shippers will front-load inventory once again to stock up ahead of tariff increases and potential labor disruption. With the Lunar New Year holiday beginning January 29, there are indications that we will see an import volume surge over the next two months. Exports, which are relatively stable, may also ramp up due to concerns about retaliatory tariffs on US goods.
There have been a number of recent labor actions at the ports of Montreal and British Columbia. The Canadian government has now mandated binding arbitration and operations are slowly returning to normal, working through a backlog at all ports.
Now is the time to make plans for volumes moving through January. Please reach out to your CSR with questions and to discuss options.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.