MARKET BRIEF | November 2022
A BRIEF look at what’s happening in the logistics and shipping industry.
RAIL CONTRACT UPDATE
Unions continue to vote on whether to ratify the tentative rail labor agreement currently on the table. This new agreement has been in the works since January 2020. In order to help resolve the conflict, the Biden Administration appointed three independent experts to serve on the Presidential Emergency Board (PEB), which resulted in a 124-page report listing recommendations on how the freight railroads and unions can work toward a new labor agreement. As of now, two unions are not accepting this agreement. This means there could be a rail strike that begins on December 5 (the end of the previously agreed-upon cooling off period). Essentially, if one union decides to strike, the others will follow in solidarity. More on this to come as the situation progresses.
TERMINAL CONGESTION UPDATE
Due to increased volume and labor shortages, most U.S. terminals continue to experience congestion. Here are some of recently reported vessel waiting times:
PORT OF OAKLAND RESUMES OPERATIONS
The Port of Oakland’s largest container terminal was fully operational last Tuesday after the loading and unloading of vessels was halted on Monday, due to “job action” taken by members of the International Longshore and Warehouse Union (ILWU). This action was in response to coastwide contract talks and an ongoing jurisdictional dispute in Seattle. Oakland International Container Terminal (OICT) accounts for about 70% of the port’s container volume. ILWU had workers red-tagged equipment inside OICT, early Monday, which meant none of the equipment could be used until inspected by a mechanic, thereby causing vessel operations at the terminal to come to a standstill. OICT is operated by SSA Marine, which operates Terminal 5 at the Port of Seattle. That has been the site of an inter-union work jurisdictional dispute that has forced the broader West Coast contract talks to be put on hold. ILWU targeted OICT to pressure SSA to make a concession in that jurisdictional dispute.
N.Y.-N.J. STILL HANDLING MORE THAN L.A.
With the Port of New York-New Jersey continuing to ease congestion and equipment shortages, they continue to handle more containers than ever. For October, total volumes coming through the port were 792,548 TEU, marking the third consecutive month that New York-New Jersey topped the Port of Los Angeles in volume. Much of New York-New Jersey’s growth has stemmed from importers shifting volumes away from West Coast to East and Gulf Coast destinations to avoid prolonged labor negotiations occurring at those ports. Ongoing congestion issues have also been a deterrent in regularly utilizing these ports.
LOGISTICS INSIGHTS: PROJECT CARGO
Project cargo logistics is a highly specialized service for the shipping industry. Here, we’ll take a look at what project cargo logistics entails, from the types of cargo involved, to the process of working with a freight forwarder to find a solution … READ MORE
Unions continue to vote on whether to ratify the tentative rail labor agreement currently on the table. This new agreement has been in the works since January 2020. In order to help resolve the conflict, the Biden Administration appointed three independent experts to serve on the Presidential Emergency Board (PEB), which resulted in a 124-page report listing recommendations on how the freight railroads and unions can work toward a new labor agreement. As of now, two unions are not accepting this agreement. This means there could be a rail strike that begins on December 5 (the end of the previously agreed-upon cooling off period). Essentially, if one union decides to strike, the others will follow in solidarity. More on this to come as the situation progresses.
TERMINAL CONGESTION UPDATE
Due to increased volume and labor shortages, most U.S. terminals continue to experience congestion. Here are some of recently reported vessel waiting times:
- Oakland: 18 days
- Houston: 15 days
- Long Beach: 2 days
- New York-New Jersey: 2 days
PORT OF OAKLAND RESUMES OPERATIONS
The Port of Oakland’s largest container terminal was fully operational last Tuesday after the loading and unloading of vessels was halted on Monday, due to “job action” taken by members of the International Longshore and Warehouse Union (ILWU). This action was in response to coastwide contract talks and an ongoing jurisdictional dispute in Seattle. Oakland International Container Terminal (OICT) accounts for about 70% of the port’s container volume. ILWU had workers red-tagged equipment inside OICT, early Monday, which meant none of the equipment could be used until inspected by a mechanic, thereby causing vessel operations at the terminal to come to a standstill. OICT is operated by SSA Marine, which operates Terminal 5 at the Port of Seattle. That has been the site of an inter-union work jurisdictional dispute that has forced the broader West Coast contract talks to be put on hold. ILWU targeted OICT to pressure SSA to make a concession in that jurisdictional dispute.
N.Y.-N.J. STILL HANDLING MORE THAN L.A.
With the Port of New York-New Jersey continuing to ease congestion and equipment shortages, they continue to handle more containers than ever. For October, total volumes coming through the port were 792,548 TEU, marking the third consecutive month that New York-New Jersey topped the Port of Los Angeles in volume. Much of New York-New Jersey’s growth has stemmed from importers shifting volumes away from West Coast to East and Gulf Coast destinations to avoid prolonged labor negotiations occurring at those ports. Ongoing congestion issues have also been a deterrent in regularly utilizing these ports.
LOGISTICS INSIGHTS: PROJECT CARGO
Project cargo logistics is a highly specialized service for the shipping industry. Here, we’ll take a look at what project cargo logistics entails, from the types of cargo involved, to the process of working with a freight forwarder to find a solution … READ MORE
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