Freight Forward: Potential Strikes Ahead

Welcome to Freight Forward, where each Monday, I’ll recap what happened in supply chains the previous week through JOC.com articles and additional sources and also what to expect for the week ahead.

I’m Cathy Roberson, a supply chain writer and researcher. For this weekly series, I serve as a research analyst for the Journal of Commerce (JOC), for whom I identify trends, provide thoughts and input into stories, and assist with express and parcel last-mile queries.

• Terminal operator PSA International signed a deal to acquire a majority stake in Polish intermodal operator Loconi International writes Greg Knowler. The acquisition of Loconi significantly grows PSA’s intermodal volume and reach. Loconi runs 220 trains every month across five corridors in Poland and handles 250,000 TEUs a year.

• Wan Hai Lines and Yang Ming Marine Transport are investing an estimated combined $2.5 billion on new and second-hand vessels on the back of big gains in their respective first-half net profits writes Keith Wallis.
• HMM became the latest Asian carrier to report a significant gain in first-half profitability writes Greg Knowler. HMM also pledged to adjust its network and deploy new and second-hand vessels to serve changing supply and demand patterns.

• Strong demand and rising freight rates powered Evergreen Marine to report a first-half net profit of $1.4 billion, up from $318 million in the same period one year ago writes Keith Wallis. Analysts said Evergreen’s volumes rebounded to 5 million TEUs in the first half, up from 4 million TEUs in the same period last year, based on company data.
• Hamburg’s main container terminal operator reported a 2.2% increase in volume in the first half as Europe’s third-largest port capitalized on increasing trade with the US and growing feeder volume from disrupted shipping schedules writes Greg Knowler.
• From Splash 24/7 - Dockworkers across India’s 12 largest ports have agreed to go on an indefinite strike from August 28, after long-running pay negotiations have failed to conclude. More from The Maritime Executive. ?
• Hapag-Lloyd CEO Rolf Habben Jansen warned that the probability of a longshore strike closing ports along the US East and Gulf coasts has increased since spring, saying shippers have already reacted to the threat by frontloading seasonal cargo writes Michael Angell.

“In terms of [the US] East Coast, if you’d asked me in January, I would’ve said I’m not so worried about that,” Habben Jansen said. “Right now, when you look at the rhetoric that’s out there, I think that — unfortunately — the chance that there will be some disruption has definitely gone up. If customers start worrying [about disruption to shipments] today, then they are too late; there’s nothing they can do anymore.”

• Maritime employers along the US East and Gulf coasts say they are prepared to offer “industry-leading wage increases” and other benefits as part of a new master contract for longshore workers. But the dockworkers’ union says talks on a new six-year deal remain at an “impasse” over salary questions and the ongoing dispute with APM Terminals over its use of automated gate technology at the Port of Mobile writes Michael Angell.
• The degree to which container lines can increase spot rates from Asia to the US in the coming week will determine the strength of the trans-Pacific market for the remainder of the peak shipping season this fall writes Bill Mongelluzzo. Carriers and non-vessel-operating common carriers (NVOs) said the coming week should determine if carriers have established a floor for spot rates to the West Coast or if the additional capacity drags pricing farther below the high-water mark set in early July.

Columns

• When it comes to the Red Sea diversions, the world is moving on, Peter Tirschwell

Air

• Despite global air cargo markets being in the middle of what has historically been the slow summer season, there has been no slowdown in demand across all major trade lanes, and especially those out of Asia writes Greg Knowler.

“There is a consensus that it could get pretty messy in Q4. I am even hearing companies talking about imposing peak season surcharges at the end of August or beginning of September, which is early,” said Xeneta chief air freight analyst Niall van de Wouw.

• From Air Cargo Next and Air Cargo News - U.S. Customs and Border Protection opened the nation’s first airside centralized examination station at Dallas-Fort Worth International Airport to boost efficiency and security for handling a growing number of international e-commerce and cross-border shipments. Dnata will operate the CES at DFW. CBP will also open a non-airside CES at John F. Kennedy International Airport (JFK), operated by Worldwide Flight Services, in the first quarter of 2025.

Inland

• US shippers are paying more for both truckload and less-than-truckload (LTL) transportation, although truckload costs continue to lag year-ago pricing, according to data released by several sources writes Bill Cassidy.

• Canada’s Labor Minister Steve MacKinnon declined a request by Canadian National Railway (CN) to invoke a labor law the railroad had argued would “secure industrial peace” in contract talks with Teamsters Canada Rail Conference (TCRC) writes Michael Angell. In response to the letter, CN said it has begun a phased shutdown of its Canadian network, adding that if no deal is struck with TCRC, it will lock out employees on Aug. 22. CPKC will do the same and will stop accepting new shipments of hazardous materials, though it will allow non-hazardous intermodal containers to be brought to its terminals until those facilities are full.
• Threatened rail and port strikes in Canada and the US could potentially roil trucking markets this fall, tightening capacity and disrupting an otherwise muted outlook for demand and pricing, speakers at Journal of Commerce’s Midyear Trucking Report: The Second-Half Outlook webcast moderated by Bill Cassidy.
• From Trucking Dive – Acquisitions in the trucking market including TFI acquiring CMW Express and its sister company FRL Express which serve the Canadian provinces of Quebec, the Maritimes, Ontario and the eastern U.S. and ?DC Logistics acquiring GLS Group’s U.S. less-than-truckload and brokerage operations. DC Logistics CEO Judas Castro said the move accelerates his company’s goal to “become a Top 20 LTL carrier in the United States.”
• From Supply Chain Dive - FedEx published higher surcharges for peak season this week. UPS published their peak season surcharges last month.

That's it for now. Thank you for reading! For readers interested in reading more Journal of Commerce stories, click here to subscribe. Enter code FFNL20 at checkout to receive a 20% discount on any subscription option. (Note that this is only for first-time subscribers or for upgrading a current subscription). What did I miss? Have a question? Let me know in the comments. I’ll be checking back throughout the week to answer questions, address comments, and share additional insights. In the meantime, here’s wishing everyone a good freight week ahead.

-Cathy