Vancouver and Prince Rupert, BC
All indications point to a dockworkers strike starting Saturday, June 24th. If these ports temporarily shut down from the strike, inbound cargo would probably be redirected to the U.S. West Coast ports, which would add to the congestion. The current challenge is that the U.S. West Coast ports have their own labour disruptions to deal with. 

We have gotten a lot of questions about the labour disputes at the West Coast ports, both in the United States and in Canada. Our team will be sending regular email updates on the latest news on the labour situation, so you can make the most informed decisions for your business.

The Spanish government has approved a €2.2bn plan to aid farmers and consumers in dealing with an ongoing drought worsened by the record-breaking dry and hot April. The measures, unprecedented according to the government, involve allocating €1.4bn for water management and availability, and €784m to support farmers and prevent food shortages.

Ocean freight rates seem to have found a floor, but there are no meaningful increases expected until demand becomes stronger again. In April, ocean carriers implemented a series of ad hoc cuts to trans-Pacific vessels to boost spot rates. In May, they have turned to a more regular pattern of changing weekly services into biweekly services.

The largest terminal at the Port of Long Beach closed today (Monday), caused by dock workers rallying for better pay. Similar disruptions happened at the Port of Oakland on Friday. However, all terminals at the Port of Los Angeles and the Port of Oakland remain open today.

The earliest that West Coast dockworkers could strike or be locked out is June 24. The federal government’s conciliation process with the BC Maritime Employers Association (BCMEA) and the International Longshore & Warehouse Union Canada (ILWU) is complete, and no deal has been reached yet. As of May 31, both sides enter a 21-day cooling off period, which ends on June 21, when both sides acquire the right to strike or lockout. Both parties agreed that no 72-hour strike or lockout notice will be filed before June 21, making June 24 the earliest date for a strike or lockout to begin.

During the ongoing 13-month labour contract negotiations at the U.S. West Coast ports, many importers had diverted shipments to alternative ports. Those same importers are bringing back some of that volume, as the route from China to the West Coast remains the fastest and most cost-effective option.

The first quarter financials for many container shipping lines are not looking good. For example, South Korea-based HMM had a 91% drop in net profit for the first three months of the year, compared to a year earlier. With the drops in revenue and profit and a gloomy outlook for the global economy, shipping lines are scrambling to mitigate losses by cutting costs, applying blank sailings, and re-focusing on profitable trade lanes.

Reports of truck drivers planning to boycott freight movement into or out of Florida have sparked a social media frenzy. The planned boycott is in response to a recently passed state law targeting undocumented immigrants, which mandates that employers verify the work authorization of their employees. The bill is scheduled to take effect on July 1.

The start of the Northern Hemisphere airline summer schedules in early April brought about the introduction of additional services, leading to a significant increase in bellyhold capacity within the air cargo market.

The trucking industry has two markets: the contract market and the spot market. In the spot market, truck capacity is bid on demand. In the contract market, there is a prearranged rate at which truckloads are moved. So, which is better?