The market from Asia to the US was stronger than expected in October, owing to tighter capacity and roll pools built up before the Golden Week holiday. Space to US West Coast is very tight, especially to Pacific Southwest (PSW) ports. Vessels to US East Coast are also quite full. Carriers implemented a spot rate increase for November 1, and they are eyeing another increase for November 15.
Shippers are looking ahead and planning for the January 15 deadline for the extended US East/Gulf Coast labor negotiations. There are still significant obstacles for the union and employers to overcome, including the divisive automation issue. There is the risk of another port strike should the sides not reach an agreement before the deadline.
The US presidential election this week is also likely to impact shippers’ volumes in the coming months. Concerns about tariffs increasing in 2025 could create more front-loading of volumes leading up to the January labor contract deadline and Lunar New Year, which begins January 29.
Labor action at Canada ports continues. The Pacific Northwest Canada ports have announced a lock-out starting November 4. This follows various recent labor shutdowns at Montreal port during October.
It’s likely that US West Coast ports will see more demand on top of the existing high volumes the ports have seen this year. Cargoes moving via rail through PSW ports are seeing very long dwell times, as much as weeks before loading the rail. Pressure from port disruptions in Canada and concerns about US East/Gulf Coast labor in January are expected to put more pressure on US West Coast gateways.
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.