Disruption for U.S. supply chain & potential economic cost of $4+ billion daily

Thousands of dockworkers from Maine to Texas are on strike for second day, demanding higher pay and better working conditions, threatening to disrupt the U.S. supply chain and potentially costing the economy over $4 billion daily. The strike, initiated by the union representing about 45,000 workers, has shut down 36 major U.S. ports, including those in New York/New Jersey, for the first time since 1977. Workers began picketing along the East Coast early Tuesday. A prolonged shutdown could lead to price increases and shortages at retailers as the holiday season approaches. The International Longshoremen’s Association is specifically demanding significant wage increases (77% over 6 years) and a ban on the automation of essential cargo handling equipment at these key ports, which handle half of the nation’s shipping cargo. (FOX 5 NY, by Michael Stallone, New Jersey, 10/2/24) SEE VIDEO

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Shippers encouraged to taper off container cargo business

The Port of New York-New Jersey, the second-busiest U.S. ocean container port, has advised shippers to reduce cargo operations ahead of a potential strike by union dockworkers. Port Director Bethann Rooney informed customers of contingency plans as preparations for a strike escalate. The International Longshoremen’s Association (ILA), representing 25,000 workers under a contract with the United States Maritime Alliance (USMX), is set to walk off the job when their current agreement expires at midnight on October 1. This contract covers labor at multiple ports along the East Coast, managing around $92 billion in freight annually. Details regarding contract negotiations remain sparse, with no immediate comments from either the ILA or USMX. (More at: FreightWaves, "Port of NY-NJ details strike operations plan” by Stuart Chirls, 9/24/2024)

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Fairfield, ME, (September 19, 2024) – Parsifal Corporation congratulates several employees who recently achieved impressive milestones ranging from 15 all the way up to 35 years of service. Mark Olsen, President and CEO shared that, “Long term tenure continues to be the backbone of our company.” (See 'Read More' for full Press Release)

According to the National Hurricane Center, as of 5:00 P.M. CT, Hurricane Francine made landfall in southern Louisiana as a dangerous Category 2 hurricane, lashing the state with life-threatening impacts. FreightWaves reported yesterday that the Port of New Orleans, a key cargo hub for containers and breakbulk, was operating with limited service on Tuesday and plans to close Wednesday, reopening Thursday. Port Fourchon in Louisiana has advised non-essential personnel to evacuate as the storm is expected to bring heavy rain over next couple of days. Additionally, the American Logistics Aid Network will begin coordinating and sharing requests for donated logistics aid 24 to 72 hours after the storm, Francine, makes landfall. This nonprofit assists the supply chain with disaster relief efforts. (See more at: FreightWaves, Gulf Coast ports brace for Francine …” Brinley Hineman, 9/10/2024)

CMA CGM Belem losing99 containers

‍Severe weather conditions off South Africa's east coast has led to the Maltese-flagged container ship CMA CGM Belem losing 99 containers, marking a repeat incident from a month ago. The South African Maritime Safety Authority (SAMSA) reported that the ship encountered adverse conditions near Richards Bay, resulting in a substantial stow collapse of its cargo. Following the incident, SAMSA issued a navigational warning and called for public assistance in spotting any floating containers. The vessel, which initially sought refuge at Maputo Bay, is now en route to Port of Ngqura (at Gqeberha) and is expected to arrive by August 18, 2024. (See: WorldCargo News, “Another CMA CGM vessel loses containers …” by WCN Editorial, 8/19/2024)

CBC News has reported that as an unprecedented railway stoppage nears, logistics firms are turning to trucks as an option to transporting goods normally moved by rail, though this approach is not optimal. Since February, shippers have been preparing for this scenario by increasing trucking capacity as a backup, according to Stephen Laskowski, president of the Canadian Trucking Alliance. Calgary-based Jori Logistics began this shift last week, focusing on the ocean container segment, which usually relies on rail for port transport, said company president Sam Woods. Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) are at risk of locking out thousands of workers Thursday if they can't resolve contract disputes with the Teamsters union, which represents “9,300 engineers, conductors, and yard workers.” (CBC News, Paula Duhatschek, 8/20/2024, updated 8/21/2024)