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.

In response to the increasing interest among Canadian companies to diversify their market presence beyond the United States and China, local governments are stepping up to support these businesses. One such example is B.C.’s Trade Diversification Strategy, which focuses on bolstering export development and investment attraction by capitalizing on British Columbia’s competitive advantages. The strategy targets new markets such as Mexico, Taiwan, and Vietnam, while also expanding in key existing markets.

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.

Canadian small and medium-sized companies can benefit from the Canadian Federal government’s innovative grant programs, but many are not aware of their existence. These programs include trade commissioners, IRAP, subsidies, and export programs that help businesses expand and succeed internationally.

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?

The trans-Pacific air freight market is expected to remain subdued through the second quarter of 2023 due to slowing demand, high inventory levels in the North America, and abundant capacity on trans-Pacific container ships at low cost. North American retailers are focused on reducing inventory to lower carrying costs, which has resulted in weak demand for Asian imports.

The container shipping industry is anticipating an increase in rates through the 2023 peak season as demand for freight is expected to recover in Q2 of 2023. According to the container price sentiment index (xCPSI), industry professionals’ short-term price expectations have turned from negative to positive in April, showing confidence building for the coming quarter. Despite the postponement of inventory replenishment cycles by retailers who overstocked, there is an expectation of a subdued rebound in demand as retailers begin to deplete their excess stock leading up to the peak season.

Canadian Pacific and Kansas City Southern have officially combined to form Canadian Pacific Kansas City (CPKC), the only railway connecting North America and offering unrivaled port access on coasts around the continent. The acquisition, completed on December 14, 2021, resulted in the new combined company operating approximately 20,000 miles of rail and employing close to 20,000 people. CPKC plans to invest over US$275 million in new infrastructure over the next three years to improve rail safety and capacity. The full integration of CP and KCS is expected to take place over the next three years, unlocking the benefits of the combination.

Longshore workers from the International Longshore and Warehouse Union (ILWU) Local 13 have been conducting job actions at the ports of Los Angeles and Long Beach for the past week. The ILWU has been “red-tagging” cargo-handling equipment at the ports’ three automated terminals, which designates the equipment as unsafe, although it was fine, and forces an inspection. These tactics have forced the terminals to halt operations for an eight-hour shift or an entire day, disrupting port activities.

The International Longshore and Warehouse Union (ILWU) Canada has filed a “notice of dispute” with the Canadian federal government’s Minister of Labor, asking for assistance in negotiating a new contract with maritime employers. The existing contract between ILWU Canada and the British Columbia Maritime Employers Association (BCMEA) expired at the end of March. The two sides have had five face-to-face bargaining sessions since formal negotiations began on March 6, but the union is seeking significant wage increases, and the automation of cargo-handling equipment remains a source of tension.

Starting in April 2023, Air Canada Cargo will begin their Boeing 767 freighter service from Toronto to Liege, Belgium, with a stop in Halifax on the way. It will also start a service to Basel, Switzerland.

Trucking HR Canada has announced that Canaan Group is one of the best Canadian fleets to work for in the trucking and logistics industry in their 10^th annual Top Fleet Employers Program. Canaan Group has been a Trucking HR Canada member since 2015 and has won the Top Fleet Award for 8 consecutive years.

On April 14^th, Canadian Pacific and Kansas City Southern will officially merge to create Canadian Pacific Kansas City (CPKC). This final decision follows approval from the U.S. Surface Transportation Board on March 15, 2023 of CP’s US$31 billion acquisition of KCS on Dec. 14, 2021.

In a recent survey of 305 US & European executives of transportation and manufacturing corporations, Deloitte uncovered five major forces that will impact the transportation industry’s future success:

The last half of 2023 will have six separate North American longshore unions engaged in contract talks with ports, unless there are any breakthroughs. This rare occurrence is causing shippers to be nervous, as containerized trade cannot happen without unionized port workers.

Due to a decrease in freight rates and the recent dissolution of the 2M alliance between Maersk and MSC, concerns have arisen regarding the stability of existing alliances. At the TPM Conference last month, there were reassurances that existing alliances will remain unchanged. Hapag-Lloyd CEO has also recently issued an announcement saying, “Our alliance is pretty strong and stable, and we have a contract together until 2030.” All this means that shipment services to North American will remain as is.