- ILA/USMX Contract Negotiations: As reported last week, negotiations should reconvene this month. It is rumored that meetings will start next week in New Jersey for 4 days of negotiation. The ILA and USMX issued a joint statement on October 24 advising that they will “look to agree on terms for a new Master Contract Proposal”. There is a level of optimism in the shipping community that an agreement will be reached prior to the January 15 deadline, but we will watch this closely and look for any warning signs that negotiations are stalled.
- Election Impact on Tariffs: We will be providing a general update on the potential impact of the administration change on trade and tariffs. It is a complex situation ahead and we will be working closely with all industry associations to protect the beverage alcohol industry as much as we can.
- Montreal: The Montreal Port Authority is asking Prime Minister Trudeau to intervene to end the weeklong strike that is disrupting the port. Earlier this week Montreal Gateway Terminal suspended their rail operations until further notice. Despite this closure, the truck gates remain open. The container handling operations are experiencing significant slowdown and with multiple vessels at anchorage and one at berth, carriers will have to decide to wait at anchorage or turn around. We will advise as more news comes regarding the delays and the potential intervention of the Government.
- Vancouver and Port Rupert: Terminals at ports on Canada's west coast are also shut down due to strike action involving the International Longshore and Warehouse Union (ILWU 514) and BC Maritime Employers Association (BVMEA). The strike began last Monday and is ongoing. All container terminals are impacted, Centerm, Deltaport, Fraser Surey, and Vanterm. As of November 7th, Loadstar reported that the anchorage situation was getting critical, and this has been exacerbated by recent poor weather conditions. Reports indicate that there have been no new talks between the two sides, with calls for the federal government to intervene, like the Montreal situation. The Business Council of British Columbia reports that “The shutdown of West Coast ports endangers approximately $800 million in daily trade in goods”.
- Hamburg: The Port of Hamburg has issued a statement implementing a temporary regulation for export containers. Due to the late arrival of ships and premature delivery of export containers the Container Terminal Altenwerder (CTA) is exceeding capacity. To prevent this development, CTA has implemented a measure, which took effect November 4th, which will regulate the delivery of export containers on a ship-by-ship basis. CTA will provide carriers with a daily update with delivery times for the respective vessels. Our teams are monitoring the situation and will advise if any shipments are affected.
- Valencia: The storm DANA that struck Valencia, Spain, last week continues to cause major disruption to the region. Despite the damage, Valencia Port has resumed operations without major disruptions and most of the container depots are open. The road transportation remains impacted with heavy vehicles only allowed to move at night on all the main roads. Authorities are providing alternative routes to the port, but this involves significant increases in distances and associated cost. Furthermore, and because of the many trucks and drivers affected, operational capacity has been significantly reduced and there continues to be major difficulties in road transport operations. The rail corridor between Valencia and Madrid remains closed and is not expected to be operational for a few weeks. Finally, some logistics centers and warehouses are starting to operate but not at full capacity as employees and trucks face difficulties getting to the facilities. We suggest using alternative ports for urgent shipments, and we will continue to update as the restoration process unfolds.
- General: After the protests at the Pass Los Libertadores last week, everything this week has normalized and there are no significant delays or issues to report. Overall, the situation in Chile ports and vessels remains at tight capacity due to continued cut and run operations and a reduction in overall capacity by ocean carriers. It is also the height of cherry export season which always impacts reefer equipment for a few weeks.
If you have any questions, please feel free to contact us or email us for information at: [email protected]
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