Looming Labor Strikes and Record Import Volumes

Looming Labor Strikes and Record Import Volumes

The shipping industry is no stranger to delays and interruptions, especially these last few years. Recently, we’ve gotten notice of potential labor strikes, record import volumes, and delays in ports across the globe. At Western Overseas, we’re dedicated to keeping our customers up to date on all industry happenings. Here’s what you need to know: 

Looming Labor Strikes: 

U.S. Strikes: The US Maritime Alliance (USMX) is just over a month out from the expiration of their contract with the International Longshore Alliance (ILA). The ILA is planning to halt operations when the contract term ends on September 30th. This potential strike is the result of USMX incorporating automated technology into longshore operations, which was in direct violation of the contracted agreement between ILA and USMX. Since both companies have not come to an agreement on an updated contract, the East Coast is at risk of ending up in the first dock strike along the East Coast since 1977. 

Canadian Strikes: The Canadian Railway is preparing for a nationwide strike on the CN and CPKC railroads starting on August 22. Canada is currently trying to source enough trucks to move the freight during the railroad strike. CN has announced a series of embargos for freight types:  

• August 12: Rail Security-Sensitive Materials (RSSM), Poison Inhalation Hazard (PIH), Toxic Inhalation Hazard (TIH) and Time-Sensitive commodities
• August 15: All temperature-controlled intermodal traffic – exact timing is dependent on origin and destination
• August 15: Hazmat Traffic – exact timing is dependent on origin and destination
• August 16 @ 12am EST – All intermodal traffic to all points in Canada from US origins 

**All U.S. to U.S. intermodal shipment operations will continue as usual. 

Indian Strikes: Indian port workers have called for a strike, demanding better wages and pension benefits. The strike is set to begin on August 28, unless there is a settlement before then. This strike could cause extreme congestion to the Asian and European ports, with over 20,000 workers involved in the impending strike.

Record Import Volumes: 

The Port of Los Angeles had a record-breaking month in July with a 37% increase in imports compared to last year. They handled over 939,600 twenty-foot units, with many of those being early imports for the holiday season to avoid the risk of delays later this year. We expect the ports to continue the trend of increasing shipments coming through US ports leading into the holiday season. 

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