Canada rail strike averted after short disruption

This intervention mandated binding arbitration between the carriers and the union, leading to the cessation of the lockout and the withdrawal of a strike notice by the Teamsters. By Monday, rail operations had resumed. The anticipation of the lockout had already caused diversions from Vancouver, exacerbating congestion at Tacoma terminals. It’s estimated that the backlog from the shutdown could take a week to clear.

There is ongoing concern over a potential strike by ILA port workers in October at East Coast and Gulf ports in the US. This has prompted some shippers to accelerate shipments from Asia, impacting spot rates to the East Coast which have remained high since mid-July. Conversely, rates from Asia to North Europe and the Mediterranean have decreased. The threat of a strike has also influenced transatlantic shipment strategies, though rates in this lane have stayed stable.

West Coast shipping prices, after decreasing, have seen a recent increase attributed to mid-month General Rate Increases (GRIs) by carriers. Despite some carriers offering discounts, there is skepticism about the permanence of these rate hikes. An October strike could further elevate West Coast rates as shippers divert volumes from the East Coast, potentially causing a backlog of containers and vessels.

In India, port worker unions are negotiating to avoid a strike that could impact the country’s major ports. Such a strike could lead to significant backlogs and congestion. Meanwhile, Bangladesh is facing logistical challenges due to recent floods affecting road logistics and container transport to and from Chittagong.

The US Customs and Border Protection is reportedly heightening scrutiny on customs brokers and considering stricter reporting requirements for de minimis imports, primarily to regulate the influx of e-commerce shipments from China. Despite potential stricter regulations, e-commerce is expected to continue driving air cargo demand, with the Freightos Air Index indicating elevated rates from China to North America and Europe, suggesting a strong peak season for air cargo.