Read also: Strike Concerns and Tariff Plans Drive Early Import Surge at U.S. Ports

This breakthrough follows months of tension, including a three-day strike in October that concluded with a temporary contract extension and agreements on wage increases. However, the divisive issue of port automation lingered unresolved until now.

In a joint statement, the parties emphasized the contract’s dual focus on safeguarding jobs and embracing modernization. “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports. These measures make operations safer, more efficient, and ready to meet growing demand,” the statement read.

The agreement averts a port crisis during the final days of the Biden administration and as President-elect Donald Trump prepares for his January 20, 2025 inauguration. Trump, a vocal opponent of port automation, has historically supported the ILA, which represents approximately 45,000 longshoremen. He has argued that automation’s cost savings do not justify its impact on American jobs.

USMX, which includes foreign container carriers, direct employers, and port associations operating on the East and Gulf Coasts, has faced increased scrutiny amid shifting shipping patterns. Recent data highlights the disruption caused by labor uncertainties, with West Coast ports handling 10.1% above their 52-month average in November, while East and Gulf Coast ports saw a 3.4% decline.

Industry stakeholders, including the National Retail Federation, anticipate ongoing growth in U.S. container imports, fueled by fears of disruptions and proposed tariff increases by the incoming administration.

While specific terms of the agreement remain confidential pending ratification by ILA members and USMX stakeholders, early reactions have framed the deal as a significant win. By balancing modernization with job protection, the contract is expected to bolster the supply chain, benefiting consumers, businesses, and the broader economy alike.

The post ILA and USMX reach Six-Year Contract Agreement to Secure Stability for U.S. Ports appeared first on Global Trade Magazine.

The looming January 15, 2025, strike by US East Coast dockworkers is sending shockwaves through the logistics industry, driving up freight rates and triggering surcharges from major shipping lines. Negotiations between dockworkers and terminal operators remain deadlocked, prompting industry stakeholders to prepare for significant supply chain disruptions.

Read also: East Coast Port Strike Looms as Contract Talks Stall, Carriers Brace for Impact

Surcharge Rollouts by Leading Carriers

To mitigate potential impacts, carriers like Maersk, CMA CGM, and Hapag-Lloyd have announced surcharges across various shipping routes.

• Maersk: $1,500 per TEU, rising to $3,780 for 45-foot containers.
• CMA CGM: $800 per TEU for exports and $1,500 for imports.
• Hapag-Lloyd: A Work Disruption Surcharge applicable across multiple regions, with additional fees for East Asia imports.

Freight Rate Increases Across Key Routes

Freight rates are climbing sharply, reflecting the uncertainty surrounding the strike. The Shanghai Containerized Freight Index (SCFI) reports:

• A 9% increase in the Shanghai-US West Coast rate, now at $4,581 per FEU.
• An 8% rise in the Shanghai-US East Coast rate, reaching $6,074 per FEU.

These figures mark a recovery from prior losses and indicate further gains if the strike proceeds.

Outlook: Rising Costs and Supply Chain Shifts

Industry analysts at Linerlytica predict that freight rates on China-to-US routes will continue rising, with emergency surcharges of $1,000 to $2,000 per FEU likely if port closures occur. Cargo diversions to the US West Coast are also anticipated, potentially driving rates higher as capacity tightens.

As the deadline approaches, the industry braces for widespread disruptions that could ripple across global trade, underscoring the critical role of stable port operations in supply chain continuity.

The post US Port Strike Looms: Freight Rates Surge Amid Surcharge Announcements appeared first on Global Trade Magazine.

Read also: November 2024 U.S. Container Imports Show Softer Seasonal Decline

Record-Breaking Momentum

November saw total inbound volumes reach 2,033,620 TEUs, a significant increase from October’s 9.7% rise, though still 11.1% below the all-time high of May 2022. McCown noted that the trailing twelve-month growth of 14.7% ranks among the highest ever recorded, excluding the pandemic era.

“We are unquestionably seeing unusually strong and consistent volume growth,” said McCown.

The value of containerized goods passing through all U.S. ports hit $185.3 billion in November, highlighting the robust demand driving this growth.

Coastal Realignment

McCown’s analysis points to a notable shift in port activity, with West Coast ports outperforming their East and Gulf Coast counterparts in 14 of the last 16 months. This westward trend intensified following a three-day strike by the International Longshoremen’s Association (ILA) in October, which ended with a temporary contract extension until January 2025.

West Coast ports reported a 20.2% year-over-year increase in November, far outpacing the 6.0% growth at East and Gulf Coast ports. The West Coast’s performance is now 10.1% above its 52-month average, while East/Gulf Coast ports lag 3.4% below their average.

Navigating Challenges

Despite concerns over inventory levels and supply chain disruptions, McCown noted minimal evidence of forward-shipping impacts in Census data. However, the ongoing coastal shift continues to reshape the dynamics of U.S. container traffic.

As the industry monitors labor disputes and infrastructure upgrades, this sustained import surge positions U.S. ports to capitalize on evolving trade patterns and rising demand.

The post U.S. Container Imports See Historic Growth Streak Amid Coastal Shifts appeared first on Global Trade Magazine.

A.P. Moller – Maersk (Maersk) has solidified its commitment to sustainable shipping by signing agreements with three shipyards for the construction of 20 dual-fuel containerships. This milestone completes the company’s August 2024 fleet renewal plan update and adds a total capacity of 300,000 TEUs to its operations.

Read also: Maersk Commits $2 Billion to Boost Pakistan’s Port and Transport Infrastructure

Anda Cristescu, Head of Chartering & Newbuilding at Maersk, emphasized the importance of the deal, stating, “We are pleased to have signed agreements for 20 vessels and thereby completed the acquisition of 300,000 TEU capacity as announced in August. These orders are a part of our ongoing fleet renewal programme and in line with our commitment to decarbonisation, as all the vessels will have dual-fuel engines with the intent to operate them on lower emissions fuel.”

Technical and Environmental Features

The 20 vessels will feature advanced liquefied gas dual-fuel propulsion systems, capable of significantly reducing emissions compared to conventional fuels. The ships, ranging in capacity from 9,000 to 17,000 TEUs, are slated for phased delivery between 2028 and 2030.

This move aligns with Maersk’s broader sustainability strategy, which prioritizes reducing greenhouse gas emissions and transitioning to low-carbon fuels across its fleet. The dual-fuel capability is expected to facilitate operations using lower-emission alternatives such as methanol or LNG.

Broader Decarbonization Efforts

Maersk’s latest order complements other initiatives aimed at decarbonizing global logistics. In November, the company partnered with Lufthansa Cargo to promote airfreight decarbonization through the adoption of Sustainable Aviation Fuel (SAF). Furthermore, Maersk recently celebrated the maiden voyage of its newest dual-fuel methanol container carrier, which successfully completed its first journey from Asia to Europe, stopping in Singapore.

A Step Toward Sustainable Shipping

This latest order underscores Maersk’s ambition to lead the shipping industry toward a greener future. By investing in dual-fuel vessels and collaborating on cross-industry decarbonization initiatives, Maersk is setting a benchmark for sustainable logistics practices while ensuring it meets evolving global environmental standards.

The post Maersk Finalizes Order for 20 Dual-Fuel Vessels to Advance Decarbonization Goals appeared first on Global Trade Magazine.

Read also: Forwarders Shift Focus to Hurricane Fallout as Strike Concerns Ease

Milton initially made landfall as a Category 3 hurricane on Florida’s Gulf Coast, causing widespread damage before crossing the state and regaining strength over the Atlantic. Federal, state, and local agencies continue to assess the storm’s impact as recovery efforts ramp up.

Thanks to pre-planning and coordination among agencies such as NOAA, the U.S. Army Corps of Engineers, and the Florida Division of Emergency Management, several ports resumed operations as of October 10. The reopened ports include:

1. Florida: Key West, Port Everglades, Port Miami, and the Miami River
2. Georgia: Brunswick and Savannah
3. South Carolina: Charleston and Georgetown

Additionally, the Coast Guard’s Captain of the Port for Sector St. Petersburg announced the reopening of Port Tampa and Seaport Manatee, albeit with operational restrictions. Federal pilotage movements—like U.S. vessels exceeding 1,600 gross tonnes and petroleum barges over 10,000 gross tonnes—are still prohibited. Vessel movements are currently limited to daylight hours with at least three nautical miles of visibility, though vessels can shift freely within the ports.

Meanwhile, other Florida ports remain closed as inspections and damage assessments continue. These include St. Petersburg, Fort Myers, the Port of Palm Beach, Fort Pierce, Port Canaveral, Fernandina, and Jacksonville.

JAXPORT has stated that it remains closed but plans to reopen its main gates on October 11 after completing post-storm evaluations.

This recovery effort follows the recent reopening of the Port of New Orleans (Port NOLA) and the New Orleans Public Belt (NOPB), which resumed operations after Hurricane Francine disrupted activities in mid-September.

As response teams work around the clock, more updates on port statuses are expected in the coming days.

The post Ports Reopen Across Southeast U.S. as Hurricane Milton Recovery Progresses appeared first on Global Trade Magazine.

Read also: C.H. Robinson: How Shippers can prepare for a Potential ILA Strike Amid an Increasingly Disrupted North American Shipping Landscape 

Port Strike Impacts on Specific Industries: Pharmaceutical and Healthcare

1. The looming U.S. port strikes put most categories of goods at risk as east and gulf coast ports process nearly half of the country’s cargo. General retail goods may be the only category not as affected by a short or medium-term strike action, as many importers anticipated that the strike would move forward, and moved up the typical seasonal peak shipping season from September to August to stock inventories for holiday spending upticks.

2. Most companies have about 3-4 weeks’ worth of inventory, risking a disruption to supply should the impacts of the strike continue beyond that time frame.

3. In addition to the automotive and agri-food industries, the pharmaceutical and healthcare sector which relies on a time-sensitive supply chain may see the biggest impacts and potential material shortages that could disrupt production or patient safety. 

• The affected ports handle more than 91% of containerized imports and 69% of containerized exports of U.S. pharmaceutical products.
• Over 1 in 3 containers departing the U.S. with lifesaving medications leaves from the Port of Norfolk, VA.
• Nearly 30% of containerized pharmaceutical imports in the U.S. enter through the Port of Charleston, SC.
• If port strikes occur, this will lead to a spike in airfreight activity for time-sensitive supply chains such as pharmaceutical and could lead to capacity shortages for lower-value goods.

And below is some additional insight from Jena Santoro, Senior Manager of Intelligence Solutions at Everstream Analytics.

How long would a port strike take to impact the prices of goods? 

“Some estimates say that a coordinated port strike would take roughly four weeks to reach consumer level as many companies have adequate inventories to support orders in the interim. As peak holiday shipping season occurred early this year – in part due to anticipated disruptions from this strike action – most retail goods have already been imported to fulfill those orders and stockpiles are high. For other categories of goods, a strike duration beyond one month or so could be devastating. Some manufacturers could run short of parts, notably in the auto and pharmaceutical industries, which generally don’t stock large parts inventories. Each strike day could lead to a 4-6-day backlog in cargo processing which could end up causing shortages in deliveries and inventory even beyond the actual duration of the strike action.”

 Are stores already hiking prices in anticipation? Are there any particular goods that could be impacted? 

“Based on our intelligence, there haven’t been any reports of price hikes at the retail level in anticipation of the strikes. However, a variety of goods are expected to see impacts in the event of strike action, even if it ends up being a partial strike like a work-to-rule order. This includes fruit imports like bananas given the significance of the Port of Wilmington, Delaware for companies like Dole Fresh Fruit Company and Chiquita Fresh North America and meat exports as 45% of waterborne US pork exports and 30% of US beef exports are shipped via East and Gulf Coast ports. As the affected ports handle about half of the nation’s cargo shipments, disruptions would extend to most categories of goods, including automotive and electronics shipments, other perishables like medicine and pharmaceuticals, and general retail goods.”

As part of the current government and Democratic nominee, could the strikes spell any election trouble for Kamala Harris?

“Harris has not made public her intentions for intervention in case of a prolonged strike action should she be elected. President Biden has made clear that his administration would not intervene but instead would encourage continued dialogue and negotiation between the affected parties. It is currently unclear if Kamala Harris has that same stance, and without knowing her position, it is difficult to discern any potential implications to her election.”

The post Port Strike Impacts on Backlogs and Delays appeared first on Global Trade Magazine.

Read also: C.H. Robinson: How Shippers can prepare for a Potential ILA Strike Amid an Increasingly Disrupted North American Shipping Landscape 

What’s at Stake?

If the strike begins on October 1, it’s estimated that the resulting supply chain disruptions could cost the U.S. economy over $1 billion per day. 

Essential goods, including imported retail items, automotive parts, and perishables could be stranded at ports or rerouted at considerable expense. Oxford Economics warns that a prolonged strike could impact up to 100,000 jobs, exacerbating the pressure on businesses already grappling with inflation and the aftermath of previous supply chain crises.

The East Coast ports are critical gateways for a range of industries. Retailers are rushing to secure holiday inventory as the strike coincides with peak shopping season preparations. Companies have been importing early, shifting cargo to the West Coast, and even opting for costly air freight to avoid potential delays.

Commenting on the broader implications of the strike for containerized trade, Christian Roeloffs, cofounder and CEO of Container xChange, said, “The strike could push the container trade into chaos, with ripple effects that potentially will disrupt supply chains well. The congestion and delays at these major ports will severely impact the availability of containers, increase costs, and disrupt schedules. Small traders, in particular, may feel the squeeze as they are more vulnerable to price surges and extended delays in securing and moving their boxes. Businesses are acting now to reroute shipments and secure their container supply, or they risk being left stranded in a congested and costly aftermath.”

The fallout from a strike would hit industries like retail, automotive, and manufacturing hardest. Retailers, for example, are already rushing to import goods ahead of the holiday season. Without contingency plans, many companies will face severe shortages, missed deadlines, and skyrocketing logistics costs. Roeloffs further emphasizes the risk to small traders:

“For small traders, the consequences could be devastating—skyrocketing costs, container shortages, and delays that might cripple business operations.” Roeloffs added. 

Immediate Supply Chain Challenges 

1. Stranded Cargo: With 42 container ships scheduled to arrive at the Port of New York and New Jersey alone in the coming days, any work stoppage could leave cargo stranded in transit. Shipping lines such as Ocean Network Express (ONE) are already advising customers to pick up their containers by September 30 and avoid leaving perishable or hazardous materials at the terminals.

2. Rerouting Challenges: Redirecting shipments to West Coast ports or alternate East Coast ports could create a logistical bottleneck, especially for goods requiring passage through the Panama Canal. 

3. Cost Escalations: Maersk has already announced a disruption surcharge for all cargo moving to and from U.S. East and Gulf Coast terminals, starting on October 21. The surcharge will be $1,500 per twenty-foot equivalent unit (TEU) and $3,000 per forty-foot equivalent unit (FEU), depending on the extent of the supply chain disruption.

Hapag-Lloyd plans to implement a “Work Interruption Destination Surcharge” for imports from East Asia on October 19, and a “Work Disruption Surcharge” for cargo from the rest of the world on October 18, both at $1,000 per TEU. CMA CGM will introduce an export surcharge on October 11, set at $800 per TEU and $1,000 per FEU, with a $1,500 per TEU import surcharge. Additionally, starting November 1, they will apply a $1,000 peak season surcharge for imports from the Indian Subcontinent and the Middle East, delayed from the original October 1 date.

Ocean Network Express (ONE) has yet to finalize its surcharge strategy but has cautioned customers about possible booking changes, including vessel rollovers or cancellations, beginning this week.

These additional costs are likely to be passed on to consumers, impacting a wide range of goods from holiday products to industrial supplies.

Even if the strike is short-lived, the backlog of cargo will lead to delays as ports struggle to clear stranded containers. 

Sector-Specific Impacts 

The retail sector, particularly those dependent on imports from Europe and Asia, will bear the brunt of the delays. Critical holiday merchandise, including apparel, electronics, and seasonal goods, may not arrive on time. 

“The automotive industry, which relies heavily on timely shipments of parts and components, could see production delays, especially for vehicles assembled in the U.S. with parts arriving through East Coast ports. “Each day of the strike could mean five days of delays for businesses already struggling with tight margins and timelines. For many, this could be the breaking point,” says Roeloffs, emphasizing the logistical strain.

Roeloffs notes, “The cost of shipping will skyrocket, and ultimately, it’s the consumer who will bear the brunt—whether they’re buying holiday gifts or essential auto parts.”

Strategic Recommendations for Supply Chain participants

To mitigate the impact of the potential strike, supply chain managers must adopt proactive strategies:

1. Reroute Shipments: Where possible, divert cargo to alternative ports on the West Coast or Gulf Coast. Although this may require additional transit time through the Panama Canal or air freight options, it’s essential to explore all available alternatives to avoid delays at East Coast ports.

2. Prioritize High-Value and Critical Goods: For industries like automotive and retail, it’s crucial to prioritize high-value, high-demand products that cannot afford delays. Companies like Designer Brands have already shifted some of their shipments to air freight despite the higher costs. Roeloffs advises:

3. Expedite Customs and Clearance: Businesses should work closely with freight forwarders and customs agents to expedite the processing of goods already en route. Shipping lines like Maersk and ONE have encouraged customers to expedite their imports to avoid potential shutdowns.

4. Leverage Additional Gate Hours: Ports such as New York and New Jersey are extending their gate hours ahead of the strike deadline. Utilizing these extra hours to clear inbound shipments will help companies avoid the backlog that is expected if the strike occurs. Terminal operators APM Terminals, Maher and Port Newark Container Terminal will have extended gate hours.

5. Diversify Suppliers and Logistics Providers: To build resilience against disruptions, companies should consider diversifying their supplier base and logistics networks. Relying on a single port or carrier leaves businesses vulnerable to localized disruptions like strikes.

The Bigger Picture: Long-Term Consequences 

While immediate actions can help alleviate short-term disruption, the long-term effects of a strike could extend well into 2025. With major global carriers already preparing to impose surcharges on shipments to and from the U.S. East Coast, cost pressures will increase across the board.

“It’s not just about getting containers out of the port—it’s about keeping trade moving in an increasingly fragile supply chain,” says Roeloffs, emphasizing the broader implications of the strike.

The post U.S. East Coast Strikes appeared first on Global Trade Magazine.

Read also: Global Trade Magazine Calls for Nominations for Annual Women in Logistics Feature

Starting today, voting is officially open, and Global Trade Magazine invites businesses, logistics professionals, and port users to cast their votes for the ports they believe exemplify excellence in service, sustainability, customer satisfaction, and operational performance.

How to Participate: Voting is easy! Simply click here to select your favorite U.S. ports.

Voting Deadline

Make sure to submit your vote before November 1, 2024, at 5 PM CST. The winners will be featured in Global Trade Magazine’s December issue, with special recognition given to the ports that receive the highest accolades from industry leaders.
“We’re excited to launch this new tradition in the trade and logistics sector. America’s ports are essential to the success of global commerce, and this awards program gives professionals the chance to shine a spotlight on those ports that have made a real difference in the industry,” said Matt Coker, Editor-in-Chief of Global Trade Magazine.

About Global Trade Magazine

As the premier publication for executives involved in international trade and logistics, Global Trade Magazine delivers critical insights on supply chain strategies, port developments, and market trends. Our goal is to keep decision-makers informed and help them stay ahead in the competitive world of global trade.

For more information about the 1st Annual America’s Favorite Port Awards, contact Associate Publisher, Clive Bullard at cbullard@cs.com, (845)309-0892 or click here to submit your vote today.

The post Global Trade Magazine Launches 1st Annual America’s Favorite Port Awards: Voting Now Open! appeared first on Global Trade Magazine.

Read also: Maersk Settles Whistleblower Retaliation Case with U.S. Department of Labor

The ILA has already submitted the required notifications to government agencies and negotiating parties, signaling the possibility of a strike if a new agreement is not reached. However, due to a ‘no strike’ clause in place until the contract expires, no job actions are anticipated before October 1. It’s important to note that these notifications do not guarantee that a strike will occur.

Maersk remains optimistic that both parties are committed to reaching a deal that will keep supply chains robust and efficient. Despite a history of successful negotiations, the potential for a strike looms as long as a new contract remains unsettled.

“Disruptions could be localized or widespread. In the event of a general work stoppage on the U.S. Gulf and East Coasts, even a one-week shutdown could take 4-6 weeks to recover from, with significant backlogs and delays worsening with each passing day,” the Maersk update cautioned.

In case of disruptions, Maersk is prepared to help customers find alternative routes, transportation methods, or distribution schedules to ensure the continuity of their supply chains. Customers are encouraged to maintain close communication with their Maersk representatives to discuss supply chain needs and develop customized contingency plans if necessary.

The post Maersk Alerts Shippers to Potential Supply Chain Challenges Amid U.S. Labor Negotiations appeared first on Global Trade Magazine.

Over twenty years ago, California legislators embarked on energy deregulation. Implemented haphazardly, what followed were mandated price caps, rolling blackouts, and the eventual 2003 recall of then-Governor Gray Davis. Fast-forward to the present and the state still struggles with a stable and reliable electrical grid.

LADWP attributes the outages this year to bad weather, vehicles and birds hitting the power poles and lines, and equipment failure. A glaring weakness of the port is that it is served by overhead power lines that the elements can easily compromise. The previously mentioned upgrades include new underground power lines. 

Down the road at the Port of Long Beach, terminal operators report fewer issues. Still in California, Long Beach receives its power through Southern California Edison, leading some to question whether these failures are also the result of poor management on the part of LADWP. Long Beach is a heavily automated port that runs nearly entirely on electricity and employs backup battery systems when needed. 

Power interruptions cause ship-to-shore cranes to reset, ceasing cargo flow to the terminals. Compromised automated gates also interrupt the acceptance and delivery of goods to trucks. Recalibrating the machinery takes time, as does replacing fried circuit cards, and time off the grid is costly.  

The outages are sparking a larger discussion about what the future holds after the state mandate kicks in to phase out diesel-powered machinery by 2030. An all-electric environment with an unreliable grid would spell disaster in the current climate. The shift to zero-emission technologies in California is well underway. For example, the US Environmental Protection Agency released a “mandate” under a different name that will push truck manufacturers to sell additional battery-electric trucks by 2030. It remains to be seen if the infrastructure and providers can keep pace. For the moment, they haven’t. 

The post California Power Outages Wreaking Havoc on the Port of Los Angeles   appeared first on Global Trade Magazine.