Rate Related Update and Market Conditions
Market Overview
- Hurricane Milton has caused significant disruptions to Florida’s major ports, including Port Everglades and Port Tampa Bay, with vessel traffic halted and landside operations continuing as safely as possible. Both ports are under strict conditions set by the U.S. Coast Guard, which limits cargo movements. Recovery efforts are underway, but with widespread flooding and infrastructure damage, delays in shipments and supply chain disruptions are expected for the coming weeks.
- Canada Port Updates
- Dockworkers at the Port of Montreal have begun an overtime strike, adding pressure to ongoing contract negotiations. The Maritime Employers Association warns that this action will significantly disrupt operations, potentially halting freight flow. Shipping companies like Maersk have responded with surcharges, raising concerns about supply chain delays and increased costs for consumers.
- Carrier ONE will introduce a new Port Emissions Fee for all shipments to/from Prince Rupert and Vancouver ports, effective November 9, 2024. This surcharge aligns with British Columbia terminals’ existing charges to support decarbonization efforts and will apply to all services until further notice.
Rate Predictions
A General Rate Increase (GRI) has been announced for Eastbound cargo from Far East and Indian Sub-Continent origins to all USA and Canada destinations, effective November 15, 2024, as issued by major Steamship Lines.
Port Congestion
US Retailers Forecast Modest Import Increase to Close Out Peak Season
US retailers expect a slight increase in imports this October as the 2024 peak shipping season concludes. Most holiday merchandise has already arrived due to the frontloading of imports earlier in the year. The recent three-day International Longshoremen’s Association (ILA) strike is not expected to cause significant disruptions in transportation supply chains ahead of the holiday season, according to the National Retail Federation (NRF).
Montreal Dockworkers to Refuse Overtime Amid Contract Dispute
Port of Montreal dockworkers plan to reject overtime requests starting Thursday, escalating their ongoing contract dispute. This follows last week’s partial strike that delayed around 6,200 containers. Local 375 of the Canadian Union of Public Employees (CUPE) said the refusal to work overtime will continue indefinitely, citing unresolved issues in negotiations with port management.
US Port Strike Avoided, but Market Resilience in Question
The brief three-day strike on the US East and Gulf coasts averted significant disruptions, but analysts warn that its ripple effects will last until mid-November. The potential for another strike in January raises concerns about the global supply chain’s resilience. About 60 vessels were impacted, and market instability could return during the peak holiday season and early next year.
WTO Projects Modest Global Trade Growth Amid Geopolitical Concerns
The World Trade Organization (WTO) forecasts a 2.7% growth in global trade for 2024, a slight increase from earlier estimates. The outlook for 2025 shows even more optimism, with 3.0% growth expected. While Asia is projected to lead export growth, challenges remain for Europe. Geopolitical risks and policy uncertainties continue to pose threats to global trade stability, though interest rate cuts in advanced economies could offer some upside potential.
