US port strike looms: Surcharges send freight rates soaring
Shipping lines prepare for disruption on January 15 The upcoming January 15, 2025, strike by dockworkers on the East Coast of the United States is having an impact on the logistics industry, pushing up freight rates and triggering surcharges from major shipping companies. Negotiations between longshoremen and terminal operators remain deadlocked, prompting industry stakeholders to brace for major supply chain disruptions. Also read: Contract talks stalled, East Coast port strikes loom, carriers brace for fallout Leading carriers launch surcharges To mitigate the potential impact, carriers including Maersk, CMA CGM and Hapag-Lloyd have announced surcharges on several routes. Maersk: USD 1,500 per TEU, rising to USD 3,780 for a 45-foot container. CMA CGM: USD 800 per TEU for exports and USD 1,500 for imports. lloyd table: Work interruption surcharge applicable to multiple regions, with additional charges for East Asian imports. Freight rates on major routes rise Freight rates climbed sharply, reflecting the uncertainty surrounding the strike. Shanghai Container Freight Index (SCFI)…
Brief strikes at U.S. ports won’t derail import surge
U.S. container imports are expected to remain strong despite brief three-day strikes at Eastern and Gulf Coast ports, supporting the upcoming holiday shopping season. The strike was initiated by the International Longshoremen's Association on October 1 after its main contract with the American Maritime Union expired, but it ended quickly and temporarily extended the contract until mid-January. READ ALSO: Protracted port strike narrowly avoided for now Retailers and consumers alike are relieved by the swift resolution. Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation (NRF), stressed that while it will take several weeks for ports to recover, holiday shipments are not expected to be significantly affected. In fact, U.S. ports have been handling strong cargo volumes. August increased 19.3% year-on-year to 2.34 million twenty-foot equivalent units (TEU), the highest level since May 2022. September's figure is expected to rise 12.9%, and October's growth is expected to be 3.1%. % Increase. Overall trends indicate…
Strikes begin at U.S. Eastern and Gulf Coast ports
At 12:01 noon on October 1, local time, approximately 45,000 dock workers launched a strike at ports along the eastern United States and the Gulf Coast. The workers are represented by the International Longshoremen's Association (ILA), while the 36 major ports affected by the strike are represented by the United States Maritime Union (USMX). Ports from Maine to Texas are affected by coordinated strike action, including New York-New Jersey, Savannah, Charleston, Houston and Mobile, among others. While negotiations for a new collective bargaining agreement began earlier this year, talks between ILA and USMX soured this summer over differing views on the future use of automation in port operations and wage increases for workers. Also read: US East Coast dockworkers strike – key insights from container traders and leasing companies The ILA is asking for new contractual agreements to explicitly protect the future of dockworkers’ jobs by continuing to limit the use of automation. The issue has been contentious throughout negotiations,…
Port of Brunswick expands to lead ro-ro trade
The Georgia Ports Authority (GPA) has approved the construction of an additional 50 acres of paved vehicle storage area at the Colonel Island Terminal in the Port of Brunswick. The expansion will allow the terminal to more efficiently handle growing trade and solidify Brunswick’s position as the leading U.S. port for roll-on/roll-off cargo transportation. GPA President and CEO Griff Lynch highlighted the port’s position as the nation’s leading gateway for ro-ro trade, noting its expansive capacity, strategic location and best-in-class service. This infrastructure investment is in response to growing demand from automakers looking to expand their shipping volumes through Georgia. The new auto storage capacity will be operational by summer 2025, joining the recently added 120 acres of paved storage. Kent Fountain, Chairman of the GPA Board of Directors, said this latest expansion is in addition to the $262 million already invested in automotive storage and warehouses. With more than 200 acres of land available for future development, Brunswick has…
Georgia Ports celebrates truckers, highlights industry
The Georgia Ports Authority (GPA) is honoring truckers during National Trucker Appreciation Week to recognize the vital role they play in the global supply chain. “Our partners in the trucking industry are the critical link between our global vessel services and our domestic supply chain,” said Griff Lynch, GPA President and CEO. To celebrate the day, GPA employees will be handing out safety gloves, water bottles and chicken sandwiches at the truck gates at the Garden City Terminal at the Port of Savannah. Lynch stressed the importance of keeping trucks running smoothly, noting that the efficiency of the Port of Savannah allows drivers to complete up to eight truck turns per day, compared to just two per day at Southern California terminals. Savannah is able to handle 80% of truck traded import and export container movements in both directions, significantly reducing truck trips, minimizing diesel emissions, and increasing driver profitability. In July and August, truck turn times were as low…
Leveraging automation and machine learning to ease port
In an increasingly fragmented global supply chain, ongoing port congestion has reached a tipping point, with many major ports struggling to handle incoming and outgoing cargo. Highlight The congestion level of each port is as follows: in the first half of 2024, the average waiting time at Durban Port is 8 days; the average waiting time at Ningbo-Zhoushan Port is 6.1 days; the average waiting time at Vancouver Port is 4.28 days; the average waiting time at Los Angeles Port is 3.6 days; and the average waiting time at Chittagong Port is 3.4 days. In addition, Estimated At risk is $131 billion in trade at ports such as Singapore, Tanjung Pelepas and Port Klang, where cargo has been severely backlogged in recent months, largely because ships have been diverted around the Red Sea. See also: Riding the wave: Examining the looming threat of port congestion As congestion periods become more frequent, costly and prolonged, targeted deployment of automation can streamline…
South Carolina ports see big cargo growth
South Carolina Ports (SC Ports) reported a significant increase in cargo volumes, with container throughput up 8% in July from a year earlier. The surge in cargo volumes was driven by a population boom and the start of the peak season in the region, with imports up 6%. See also: South Carolina ports boost Midlands economy, $22.3 billion impact Barbara Melvin, president and CEO of South Carolina Ports, highlighted the region’s attractiveness for new investment, noting the port’s reliable service, strong intermodal network and capacity for future growth as key factors. In July, South Carolina ports efficiently moved 224,407 TEUs and 124,448 dockside containers, the second-highest July volume on record, behind only the record set in July 2021 during the pandemic-induced import boom. Inland ports by rail also saw impressive growth, with 21,013 containers moved by rail in July, up 19% from the same period last year. Greer Inland Port set a new record with 17,332 containers moved, up 17%…
Ningbo port closure causes global supply chain disruption
The global trade landscape has always been delicate, and recent events such as the Red Sea crisis and the Baltimore Bridge accident have added complexity. The sudden closure of China’s Ningbo Port due to a YM Mobility container explosion was initially considered a major disruption, but the port quickly reopened within 80 hours, mitigating some of the expected consequences. See also: Necessary measures to reduce the impact during Ningbo Port closure The closure of Ningbo Port, which accounts for nearly 29% of China’s total ship traffic, initially appeared to have a significant impact on global trade, but the rapid resolution of the situation limited its impact. However, there were some supply chain disruptions during the brief outage. The strategic importance of Ningbo Port The Port of Ningbo remains an important player in global logistics, facilitating the flow of goods between the Far East and major global markets such as Europe and the United States. In 2023, the container throughput of…
Ningbo Port resumes operations after recent incident:
Container xChangeAn online container trading and leasing marketplace, To inform the global container trading and leasing community about the recent explosion aboard Yang Ming Marine's vessel YM Mobility at the Port of Ningbo, China. See also: Necessary measures to reduce the impact during Ningbo Port closure On August 9, 2024, a container carrying dangerous goods was YM Mobile The vessel berthed at Ningbo Beilun Phase III Terminal. Operational Update: As of 00:00 on August 12, 2024, Ningbo Beilun Phase III Terminal has resumed loading and unloading operations after being closed for 60 hours due to the explosion, and the terminal has begun to gradually resume normal operations. Christian Roeloffs, Co-founder and CEO, Container xChange Emphasize the urgent need to be prepared in the face of such disruptions. “For container trading companies and those engaged in container leasing, this event presents some immediate challenges that are worth considering. The disruption at Ningbo port, combined with pre-existing congestion at key Asian ports,…
Key measures to reduce railway disruptions in Ningbo
Container xChangeAn online container trading and leasing marketplace, A warning to the global container trade and leasing community of the serious consequences of the recent Yang Ming Marine container ship explosion YM Mobile The accident, which shut down one of the world's busiest container terminals, is expected to have major knock-on effects on global supply chains, especially on key trade routes out of Asia. See also: Dangerous goods container explosion causes fire at Ningbo Port; no casualties reported On August 9, 2024, a container carrying dangerous goods was YM Mobile The ship was moored at Ningbo Beilun Phase III Terminal at the time. The explosion involved organic peroxide materials, which resulted in the closure of the terminal until further notice. “As a result of this closure, the Port of Ningbo is no longer operating, which will exacerbate supply chain disruptions caused by Typhoon Gemi in July.” Christian Roeloffs, Co-founder and CEO of Container xChange. Christian Roelofs The urgent need to…
Oakland receives $3 million in climate adaptation grant
The Port of Oakland, in partnership with the City of Oakland, has been awarded a $3 million grant from the California Department of Transportation (Caltrans) for Sustainable Transportation Planning and Climate Adaptation. The grant is designed to address potential flooding issues caused by sea level rise (SLR) and groundwater intrusion (GWI). Director of Environmental Programs and Planning Colleen Liang emphasized the importance of the funding: “Sea level rise and groundwater intrusion pose an existential threat to the Port and the City. We are grateful to Caltrans for this award. We will use this funding to support adaptation strategies for vulnerable populations at the Port and in the City of Oakland.” The plan, titled "Sea Level Rise and Oakland's Infrastructure and Frontline Communities: Climate Adaptation Planning for Community-Led Resilience Projects," includes conducting an asset inventory and vulnerability assessment. The project will focus on the expected impacts of sea level rise and sea level rise on the port and nearby Oakland communities.…
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