MARKET BRIEF | August 2023
ILWU Canada Contract Solves BC Port Labor Issues
About three-quarters of longshore union members have agreed to a four-year contract at Vancouver and Prince Rupert ports, bringing labor peace to Western Canada after a month of strife. The deal ensures marine terminals can clear a backlog created by a gridlock in negotiations. On Friday, the International Longshore and Warehouse Union (ILWU) announced that 74.66% of its membership voted for the contract, although neither the ILWU nor employers disclosed exact wage levels, or how the two sides were able to move through an impasse over expanding job jurisdiction. The renewed collective agreement includes increases in wages, benefits, and training that recognizes the skills and efforts of British Columbia’s longshore workforce, while providing certainty and stability for the future of Canada’s West Coast ports. The agreement caps five weeks of disruption marked by 13 days of strikes, a one-day “wildcat strike,” and the union’s rejection of three tentative agreements. This dispute caused serious disruptions to Canada’s supply chains, risking the country’s international reputation as a reliable trading partner. Now that a tentative deal has been reached, Montreal remains the last major Canadian container port negotiating a new contract. They have until the end of the year to do so.
U.S. Freight Rebound Not Expected Until 2024
Despite some of the perceived gains the U.S. economy may be experiencing, freight demand is not showing signs of rebounding. Instead, the freight downturn – which began in the fall of 2022 – will likely last through the end of the year. As for the U.S. trucking sector, that downturn could stretch into the second quarter of 2024. Even when demand rebounds, only modest growth is expected (assuming there are no unanticipated disruptions). The truckload spot market has hit bottom. Lower manufacturing output and overstocked inventories are two reasons for the extended downturn, along with record levels of employment in trucking and the continued excess capacity in the market.
What to Know About Asset Recovery Logistics
Asset recovery is a critical process that involves the retrieval and management of valuable assets from a variety of sources, including returned, refurbished, or end-of-life products. This complex operation demands efficient logistics and shipping services to ensure the safe and secure transportation of valuable cargo. Let’s explore the main components of logistics and shipping services essential for successful asset recovery, focusing on services, capabilities, equipment, and packaging options that play a crucial role in avoiding damage claims … READ MORE
What to Know About Cold Chain Logistics
In the ever-evolving world of global trade and commerce, the safe transportation of temperature-sensitive goods is a critical aspect of supply chain management. Enter cold chain logistics and shipping services, a complex network that ensures the integrity and quality of perishable goods throughout their journey. From pharmaceuticals and vaccines to fresh produce and seafood, the cold chain plays a pivotal role in maintaining the efficacy and freshness of these products. Let’s delve into the main components of cold chain logistics and shipping services, along with the essential services, capabilities, and equipment required for seamless operations … READ MORE
