This week, the ports of Los Angeles and Long Beach reported their third-strongest month ever in July, processing nearly record levels of imports as shippers rushed to stock up ahead of potential U.S. tariffs on Chinese goods and anticipated dockworker strikes at East and Gulf Coast ports. Concurrently, a near-total rail shutdown in Canada, caused by labor disputes at Canadian National Railway and Canadian Pacific Kansas City, is prompting importers and exporters to divert shipments to U.S. ports, leading to increased freight costs and potential disruptions across North America. The situation is further complicated by the expansion project at the Pharr-Reynosa International Bridge, where a $44 million investment aims to boost trade capacity and economic growth between the U.S. and Mexico. Additionally, the grounding and subsequent oil spill from the MV Ultra Galaxy off South Africa’s coast has raised concerns about environmental impacts and global shipping delays. In response to these challenges, logistics companies are intensifying contingency planning, while U.S. shippers are facing rising transportation costs, especially as they navigate the peak shipping season. Read the full articles for detailed insights into these critical developments.
Weekly Freight Report: August 23, 2024
August 23rd, 2024
Canada Rail Stoppage Begins
The threatened lockout of nearly 9,300 workers at Canada’s two largest railways, CN and CPKC, has begun, potentially crippling critical supply chains across the country after failed negotiations with the Teamsters union.
Vietnam’s Da Nang to Develop Free Trade Zone, Connect with Strategic Lien Chieu Port
Vietnam’s Da Nang is set to develop a Free Trade Zone (FTZ) connected to the under-construction Lien Chieu Port, aiming to attract foreign investment and strengthen its position as a key regional trade hub through strategic incentives and enhanced infrastructure.
June Brings Double-Digit Gains at The Port Of New York And New Jersey
In June, the Port of New York and New Jersey experienced a 13.5% increase in total volume, with 708,935 TEUs moved, marking its fourth consecutive month surpassing 700,000 TEUs and continuing its year-over-year growth streak, while imports, exports, and auto imports all saw double-digit gains.
Beached Cargo Ship Leaks Oil Off South Africa’s West Coast
The cargo ship MV Ultra Galaxy, which ran aground off South Africa’s west coast last month, has spilled oil after waves broke up the vessel, leading to a significant cleanup operation as oil was detected in surrounding waters and on nearby beaches.
Port Traffic Booms Despite Recession Fears
Despite concerns about a cooling economy, the ports of Los Angeles and Long Beach had their third-strongest month ever in July, driven by importers stocking up ahead of potential tariffs and labor strikes, with capacity constraints beginning to show as the peak shipping season progresses.
$44M Expansion Begins at Pharr International Bridge
The city of Pharr, Texas, has begun a $44 million expansion of the Pharr-Reynosa International Bridge, a joint U.S.-Mexico project that will add a second bridge span, increasing capacity and enhancing trade efficiency at the Rio Grande Valley’s largest international cargo crossing with Mexico.
US Shippers Scramble as Canadian Rail Shutdown Hits Freight
A near-total rail shutdown in Canada, triggered by lockouts and strikes at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd., is forcing importers and exporters to divert shipments, spiking freight costs and straining already busy U.S. ports, with ripple effects likely to impact the American economy and exacerbate congestion.
