Weekly Newsletter

With a lack of clarity regarding the stalled negotiations for a new Master Contract between the ILA) and the USMX, a letter penned by 267 trade associations, led by the National Retail Federation (NRF), to ILA President Harold Daggett and USMX Chairman and CEO David Adam, called on them to return to the negotiating table, in advance of January 15, when the current contract between the parties expires. The ILA and USMX resumed Master Contract discussions in November, “to discuss all outstanding issues to reach a new contract,” in advance of a January 15, 2025 deadline for a new deal. This followed a brief three-day strike on October 1, after the expiration of their previous six-year contract, which resulted in 36 East and Gulf Coast ports, stretching from Maine to Texas, going on strike for the first time since 1977. ILA and USMX resumed Master Contract discussions in November, “to discuss all outstanding issues to reach a new contract,” in advance of a January 15, 2025 deadline for a new deal. USMX said, at the time, that there was positive progress on a number of issues, but they were unable to make significant progress on discussions focusing on a range of technology issues. “Unfortunately, the ILA is insisting on an agreement that would move our industry backward by restricting future use of technology that has existed in some of our ports for nearly two decades, making it impossible to evolve to meet the nation’s future supply chain demands,” said USMX.

Now, rail-mounted gantry cranes (RMGs) at container terminals have emerged as the deciding factor for the ILA in whether they will agree to a new master contract that avoids another port strike in January. The union was unable to block the introduction of RMGs at two East Coast ports under three previous contracts but sees their further usage as a line in the sand in current contract talks. The semi-automated RMGs, which have been in use in the US since 2007, are seen as the key method for land-constrained terminals, particularly those near urban East Coast ports. Here we go...

The ILA meanwhile celebrated the support it had received from PE Trump. “I am so grateful to President Donald Trump for his courageous support for American ILA longshore workers,” said ILA President Harold Daggett.

The Containerization & Intermodal Institute (CII) honored Allen Clifford, Executive Vice President, MSC Mediterranean Shipping Company (USA) Inc. with the 2024 Connie Award. The record-breaking event took place in front of nearly 600 transportation industry experts gathered at the Marriott EWR Liberty Airport Hotel on Monday, December 9.

Transpacific eastbound rates held steady for a second week. GRIs for 12-15 seem not to be holding.

Taiwan's exports rose more than expected in November benefiting from the booming artificial intelligence (AI) industry and a bounce back in demand from top trading partner China(yes, you read that correctly), with the outlook upbeat. Exports rose 9.7% on the year to $41.09 billion both beating a forecast for expansion of 8% in a Reuters poll and above October's gain of 8.4%, marking the 13th straight monthly rise.

Newbuilding deliveries in 2025 will double the capacity overhang even following the absorption of capacity following the Red Sea diversions, according to shipbroker Braemar.

In its latest market report Braemar said that it had expected 2024 overcapacity to reach 12-13% in this year, up from around 9% in 2023, but the Red Sea diversions quickly changed that projection. In 2024 overcapacity was significantly suppressed, despite significant fleet growth. Estimates of vessel overcapacity in 2024 will be in the region 3-4%. Despite underlying overcapacity, the high level of uncertainty surrounding Cape of Good Hope transits has understandably enticed a surge in newbuilding investment in 2024. In 2025, the deliveries of new vessels will again raise the capacity oversupply. Even allowing for Red Sea avoidance, oversupply is expected to increase from 3-4% in 2024 to 7-8% in 2025. Estimates of the actual amount of capacity set to be delivered varies. Some put the number at around 220 vessels that are scheduled to be delivered totaling around 1.9 million TEU, representing a vessel growth rate of 3%, but a capacity increase, without scrapping, of 6%.

With a strike possible at East Coast and Gulf Coast container ports and PE Donald Trump planning to increase tariffs, retailers are trying to import cargo ahead of those potential disruptions. While the drayage truckers serving the southern California ports say they can handle a surge, at the same time there are concerns, according to the Harbor Trucking Association. There are a lot of uncertainties to the situation, as well as factors beyond the drayage companies' control. That includes difficulties in getting appointments, challenges in the labor force due to the state's strict laws severely restricting the use of owner-operators, as well as a concern that a surge now will mean a big slowdown later.

After the supply chain problems that hit the nation's container ports during the record surge of the Covid-19 pandemic, there were some painful lessons learned at the Southern California ports. Today, all the terminals at the Ports of LA & LB require appointments. However, each one has a different system. Efficiently booking those appointments manually would require a human to essentially sit in front of a computer all day continually clicking on "refresh" to see new appointments. So drayage truckers have turned to third-party software to help. But there are some that are abusing the system and hedging their bets by booking multiple appointments, which has led some terminals to push for not allowing the third-party solutions. And, while prioritizing dual transactions was designed to keep truckers from having to make separate trips to pick up loaded containers and drop off empty ones, it also puts a new constraint on making appointments. Meanwhile, there are California's regulations to deal with. The Advanced Clean Fleets rule requiring zero-emissions trucks targeted drayage fleets first. And there is AB5, the law that makes it virtually impossible to use the traditional trucking owner-operator model. On top of AB5, California’s new AB2754 law regarding independent contractors will make shippers look twice at using motor carriers with owner-operators who do not maintain their own DOT authority. Here we go...

Last week, Costco rejected or refused to accept nearly all Teamsters’ proposals, including critical language on seniority, inclement weather, paid family leave, bereavement policies, sick time, and safeguards against surveillance. By dismissing approximately 98 percent of the proposed provisions, the wholesale giant has signaled a troubling unwillingness to bargain in good faith and is taking an aggressive anti-union stance.

Crowley has been recognized as a Top Company for Women to Work For in Transportation by Women in Trucking Association’s official magazine, Redefining the Road, for the fourth consecutive year. This recognition underscores Crowley’s sustained commitment to fostering an inclusive workplace that empowers team members by offering competitive compensation and benefits and emphasizing professional development and career advancement opportunities. Through its employee-led business resource groups like Women Empowered, which supports female team members by providing a platform for growth, sharing and collaboration, Crowley helps employees enhance their career and impact on the industry.

The U.S. average diesel price fell 8.2 cents to $3.46 per gallon for the week ending Dec. 9, according to the latest data from the U.S. Energy Information Administration. This significant decline represents the largest weekly drop since Dec. 11, 2023, when prices fell 10.5 cents.