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Rate Related Update and Market Conditions

Market Overview

  • East Coast Dockworkers’ Strike: The countdown to the East Coast dockworkers’ strike is underway, with ports from Boston to Houston potentially impacted. Clients are advised to ensure containers are picked up before Sept. 30th to avoid disruptions in operations. If the strike leads to a prolonged shutdown, there could be equipment shortages in China by December due to the delay in returning containers.
  • Federal Marine Commission (FMC) Advisory: The FMC has issued a warning to carriers not to impose additional Demurrage and Detention (DEM/DET) fees during the strike. ONE has announced that they will not charge extra DEM/DET fees if the strike occurs.
  • Port Incidents: A fire broke out in a container holding 15,000 kg of lithium batteries at the Port of Montreal. No restrictions or prohibitions have been issued by carriers at this time regarding the transport of lithium batteries.
  • CMA CGM Investment in Santos Brasil: CMA has acquired a 48% stake in Santos Brasil, the largest container terminal in South America located at the Port of Santos. This move strengthens CMA’s position in the region’s growing logistics market.

Rate Predictions

With the looming East Coast dockworkers’ strike, cargo rerouting to the U.S. West Coast could lead to increased rates and space shortages. This is particularly relevant for refrigerated cargo, where extended waiting times at the seashore may become an issue. Clients should monitor reefer shipments closely and inform us of any containers en route to or from the U.S.. Additionally, YML has announced General Rate Increases (GRI) starting in October and up to November 1st.

Port Congestion

Terminal Handling Charges Become Key Issue in ILA Contract Negotiations

The absence of terminal handling charges (THCs) in the U.S. market has emerged as a significant issue in contract negotiations between the International Longshoremen’s Association (ILA) and carriers. While THCs are standard in most parts of the world, U.S. shippers generally do not pay them. This has become a point of contention, as carriers argue the lack of these charges impacts their operational costs. The dispute is contributing to the ongoing contract stalemate.

  

Trucking Industry Ramps Up Preparations as ILA Port Strike Deadline Nears

The potential strike by East and Gulf Coast port workers is already impacting U.S. trucking networks, with increased demand for trucking services as shippers rush to move freight before a possible work stoppage. Trucking firms are pre-pulling containers from ports, utilizing intermodal trains, and seeking storage and transloading options. The effects could extend far beyond the ports, especially if the strike lasts more than a few days, causing inland disruptions and straining trucking capacity.

Railroads Set Export Deadlines in Anticipation of Potential ILA Strike

Major railroads, including CSX Transportation, Canadian National Railway, and Norfolk Southern Railway, have set deadlines for accepting export containers ahead of the potential International Longshoremen’s Association (ILA) strike on October 1. Refrigerated containers must be delivered by Thursday, while dry containers have until Sunday to ensure they reach ports before operations may halt. Rail companies are also preparing to store some containers in case of prolonged labor disputes.

US Ports Announce Contingency Plans as ILA Strike Nears

U.S. East and Gulf Coast ports are implementing contingency plans ahead of the anticipated International Longshoremen’s Association (ILA) strike on October 1. Ports such as the Port of Virginia have extended terminal hours and set operational deadlines in preparation. Several ports have announced they will pause demurrage charges during the work stoppage, while port authorities continue to monitor negotiations between the ILA and the U.S. Maritime Alliance (USMX).