Track Shipment

Week 21 Freight and Customs Updates

May 25th, 2022

There might be a perfect storm brewing between strained labor relations on the West Coast and the lockdowns in China.

Uncertainty surrounding the West Coast labor dispute continues and Port of Long Beach officials doubt that a settlement will be reached by the July 1 deadline. They’re certainly hoping things go better than they did in 2014 when the two parties last met to iron out contract issues. That was a long, contentious battle, only resolved when the White House stepped in. Adding credibility to the above concerns, the union representing dockworkers—ILWU—has requested a halt to contract negotiations until June 1. While it’s not clear why they made the request, one source says it may be due to the lack of progress made since contract talks began on May 10.

An estimated 260,000 teu of Shanghai’s unshipped cargo is set to swamp the market this summer, making the peak season “even more chaotic” than last year. According to new analysis from Drewry, China lockdowns have stored up problems for a global container distribution system “already severely stressed and facing reduced capacity due to pervasive congestion”.  There’s still a significant worker shortage in rail, port, and trucking in both China and the US, which is hampering movement at major ports, with ships waiting for weeks to berth.

Who’s to blame for the current supply chain chaos? Many would immediately point to the pandemic, but some are placing blame on giant container ships. Megaships were first introduced in 2006 and today they’re the norm. However, they’re simply too big for most ports. And let’s not forget the chaos the 1,300-foot Ever Given caused in 2021 when it became wedged in the Suez Canal. Yes, these mega-ships move lots of cargo, but what can happen when the cargo arrives at the port is problematic.

Let’s conclude with one other issue that could take its toll on the supply chain. Unusual weather events and climate issues. For whatever reason, sea surfaces are getting warmer, which could lead to more powerful hurricanes. Loss prevention experts feel the shipping sector should take note and adapt to what could become the new norm.

West Coast port chief Cordero doesn’t see labor deal by July 1

West Coast port chief Cordero doesn’t see labor deal by July 1

The head of the US’s second-busiest port doesn’t see talks over new labor contracts for 22,000 dockworkers at 29 West Coast operations reaching settlement by a July 1 deadline, but is optimistic of a solution a month or two later.

ILWU seeking temporary halt to contract talks: sources

ILWU seeking temporary halt to contract talks: sources

The International Longshore and Warehouse Union (ILWU) has requested that contract negotiations with West Coast waterfront employers be suspended until June 1, according to multiple sources close to the talks. The halt, if granted, would begin Friday.

Peak season could be Shanghaied by a 260,000-container surge

Peak season could be Shanghaied by a 260,000-container surge

China appears to be gradually easing its lockdown of Shanghai, but that won’t bring immediate relief to global supply chain congestion, according to a major shipping company.“Drewry estimates that up to 260,000 teu of export cargo was not shipped from Shanghai in April, because of the lockdown.

Giant container ships are ruining everything

Giant container ships are ruining everything

I hate big boats, and so should you. In 2006, Maersk stunned the global shipping community with the introduction of Emma Maersk, a container ship that could carry nearly 15,000 twenty-foot equivalent units. (TEUs translate to about half of a standard forty-foot shipping container.)

Transport industry needs to buckle-up to navigate the climate onslaught

Transport industry needs to buckle-up to navigate the climate onslaught

With insurers raising alarm at the rise in freak climate change-driven weather threatening business and driving up rates, cargo industries on land and sea must adapt to the unadaptable.

2022-05-25T14:56:59+00:00May 25th, 2022|Shipping News|
Go to Top