This week, U.S. dockworker contract talks are set to resume on January 7, with automation disputes and a potential strike threatening to disrupt East and Gulf Coast ports, while Maersk urges shippers to clear containers ahead of the January 15 deadline. Severe congestion plagues Asia-Europe trade lanes, driven by holiday port closures and labor shortages, as over 120 vessels remain anchored at key Chinese ports. In Baltimore, work begins on replacing the Francis Scott Key Bridge, which collapsed last year after a ship collision disrupted traffic and shipping. The Suez Canal successfully tests a new channel to boost capacity, but ongoing Red Sea attacks and a 60% revenue drop highlight the region’s challenges. North American railroads earn praise for managing peak season volumes more effectively than during the pandemic, and a bipartisan congressional bill seeks to bolster U.S. maritime security by adding 250 U.S.-flagged ships over the next decade. Read the full articles below.
Weekly Freight Report: January 3, 2025
January 3rd, 2025
Dockworker Talks to Resume Jan. 7 as Port Strike Looms
U.S. dockworkers and employers will resume critical contract talks on January 7, with disputes over automation and a looming strike threatening to disrupt container trade across major East and Gulf Coast ports.
Shippers, Carriers Face Wave of Port Congestion, Vessel Delays in Asia, Europe
Shippers and carriers on the Asia-Europe trade are encountering significant delays caused by holiday port closures, vessel bunching, and labor shortages, with severe congestion reported in China, Japan, and the Philippines due to pre-holiday cargo surges, bad weather, and overcrowded yards, leaving over 120 vessels waiting at anchor in Shanghai and Ningbo.
Maersk Urges Container Pickup Ahead of Potential Port Strike
Maersk has urged shippers to retrieve laden containers and return empties at U.S. East and Gulf Coast ports before the potential January 15 longshore strike, warning of significant disruptions while contingency plans are developed amid ongoing labor stalemates and automation disputes.
Work Begins Next Week on Rebuilding Baltimore's Francis Scott Key Bridge
Work on a $2 billion replacement for Baltimore’s Francis Scott Key Bridge, which collapsed in March after being struck by a container ship, begins next week, with completion expected in four years to restore critical traffic and shipping routes.
IMCs Say Railroads Handled Peak Season Surge Better Than Pandemic
Intermodal providers praise North American Class I railroads for managing the 2024 peak shipping season surge more effectively than during the COVID-19 pandemic, despite some regional disruptions and a significant year-over-year freight volume increase.
Egypt Tests New Extension for Suez Canal
Egypt successfully tested a new 10-kilometer extension of the Suez Canal, designed to allow two-way ship traffic and improve emergency handling, amid ongoing challenges like Houthi attacks in the Red Sea that have caused a 60% drop in canal revenue in 2024.
Congress Looks to Boost U.S. Shipbuilding Industry
A bipartisan bill, the “SHIPS for America Act,” aims to boost the U.S.-flagged fleet by 250 ships over a decade, strengthen maritime security, and counter China’s dominance by incentivizing domestic shipbuilding and requiring 10% of U.S.-China import cargo to be transported on American-built, flagged, and crewed vessels.
