Recent events, including Boeing factory workers extending their six-week strike, increased Russian attacks on Ukrainian port infrastructure, and record container volumes at the Port of Long Beach, are adding strain to global supply chains. The Boeing strike has halted jetliner production, while Russia’s attacks on Ukrainian ports threaten global food shipments, delaying deliveries to regions like Gaza and southern Africa. At the same time, the Port of Long Beach saw record throughput as shippers moved goods ahead of potential strikes, straining logistics further. CPKC grew earnings despite a Canadian work stoppage, while the U.K. warns of rising risks in the Black Sea from Russian strikes. As U.S. trade officials recognize the limited impact of tariffs on China, companies are shifting supply chains closer to home, adapting to changes like a proposed cargo truck ban at the Texas border. These challenges require businesses to adjust strategies amid evolving global trade conditions. Read the full articles below.
Weekly Freight Report: October 25, 2024
October 25th, 2024
Boeing Factory Workers Vote to Reject Contract and Continue 6-Week Strike
Boeing factory workers in Seattle rejected the company’s latest contract offer, extending their six-week strike and halting production of jetliners, as union members seek to regain concessions after years of sacrifices.
Oregon Looks to Build West Coast's First Ship-to-Rail Port Terminal
The U.S. Department of Transportation has awarded $25 million to the Oregon International Port of Coos Bay to support the development of a new ship-to-rail intermodal container terminal, which will be the first of its kind on the West Coast, aiming to streamline cargo movement and reduce emissions with electrified operations.
Tariffs, Nearshoring, Cargo Truck Ban
U.S. trade officials acknowledge that tariffs on China have not succeeded in changing China’s behavior, with American businesses and consumers continuing to bear the economic burden, while supply chain shifts and proposed regulations, such as a potential permanent ban on cargo trucks at the Texas border, signal broader adjustments in trade strategy and logistics across the Americas.
Port of Long Beach Hits Record Container Volumes
The Port of Long Beach set a new record for container volumes in September and the third quarter, driven by strong consumer demand and preemptive shipping ahead of potential East and Gulf Coast port strikes, handling over 829,000 TEUs in September and exceeding previous quarterly records.
CPKC Earnings Grow Despite Canadian Work Stoppage
CPKC reported increased third-quarter profits and revenue despite a four-day work stoppage in Canada, with a 6% rise in revenue to $2.56 billion and a 4% growth in volume by revenue ton miles, supported by gains in bulk and intermodal segments, improved operational metrics, and ongoing infrastructure upgrades in the U.S. and Mexico.
U.K. Warns of Grain Threat After Russia Steps Up Port Attacks
The U.K. has warned that increased Russian attacks on Ukrainian port infrastructure threaten global food shipments, damaging vessels and delaying deliveries to regions like Gaza and southern Africa, while also raising the cost of war insurance for cargo vessels as Russia intensifies its strikes on Black Sea ports amid Ukraine’s harvest season.
Chokepoint Disruptions Threaten Trade and Supply Chains
The maritime industry faces significant challenges as geopolitical tensions, climate change, and chokepoint disruptions like those at the Panama and Suez Canals threaten global trade and supply chains, with the 2024 UNCTAD report urging investment in resilient infrastructure, low-carbon technologies, and enhanced regulatory measures to navigate these turbulent times.
