The East/Gulf Coast labor strike ended last week after three days with an agreement for a contract extension through January 15. The union and employers have agreed on wages, but the contentious issue of automation remains a sticking point. The industry will be watching developments closely in hopes that they reach an agreement and another strike or slowdown can be averted. The new deadline falls close to the start of the Lunar New Year holiday (January 29, 2025) that closes much of China and Asia manufacturing and is historically preceded by a surge of volume before the holiday closure.
Ports impacted by last week’s strike are working through backlogs of vessels that had anchored offshore. Operations are running smoothly so far. Ocean carriers still have a variety of surcharges filed for October related to congestion, disruption, and emergency costs. Most of these are still going into effect as of this writing, though we could see a cancellation of charges if port operations remain relatively smooth. We are monitoring for updates.
The China market reopens Tuesday, October 8, after the weeklong Golden Week holiday. Overall, demand appears relatively soft, though that could change as we move closer to the January labor contract deadline and Lunar New Year. Ocean carriers have blanked many sailings for October in anticipation of weaker demand. The situation is fluid, and we’ve seen dynamics shift quickly this year.
The damage caused by Hurricane Helene still has many roads closed along its path, especially in Western North Carolina and East Tennessee. Hurricane Milton, a major storm scheduled to make landfall on the Gulf Coast of Florida this week, is poised to cause disruption across the state.
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Rachel Shames
VP, Pricing & Procurement
CV International, Inc.