LA-LB Rail Dwells Spike To Two-Year High Amid Record Imports In September

10/17/2024

The Los Angeles-Long Beach port complex, the largest US port complex, faced a significant challenge due to a surge in import volumes from Asia in September. This surge surpassed previous records and was partially attributed to retailers diverting cargo from East and Gulf coast ports due to potential labor disruptions.

The influx of containers led to a significant increase in rail container dwell times, reaching their highest levels in over a year. Some terminals struggled to handle the increased volume, with containers remaining on-dock for extended periods. To manage the situation, terminals implemented various strategies, such as activating temporary storage yards and optimizing operational procedures.



While import volumes are expected to decrease in November, the overall situation remains fluid. Factors like labor negotiations between the International Longshoremen's Association (ILA) and East and Gulf coast employers could influence future trends. If the negotiations drag on, retailers may continue to ship through Southern California to avoid potential disruptions on the East Coast.

Source: JOC

ILA Strike Update

10/4/2024

Maritime employers and the International Longshoremen’s Association (ILA) have reached a tentative deal to reopen container terminals at East and Gulf Coast ports after trading new wage offers that would bring dockworker pay up over 60%. Longshore workers will work under a three-month contract extension until a formal deal is reached. 

The USMX is offering the ILA a $4 per hour increase to get talks restarted on the condition that the ILA agrees to an extension through January 15 on the current contract that would allow ports to reopen while negotiations resume. ILA President Harold Daggett has repeatedly said union members would not work under a contract extension.

The offer represents a 62% increase in top wages for longshore workers.

The impact of this strike will most likely be felt for some time; as the more than 100 waiting vessels must berth and be unloaded. As a reminder, many of the ocean carriers have already implemented congestion-related surcharges. 

Mallory has our very sophisticated, real-time myMallory platform to help you monitor your cargo with updates on actual arrival and container availability.  Couple that with Mallory's excellent customer service teams, we will work to help you navigate through this tough time as the industry works to get back on track!

Should you have any questions or concerns, please reach out to your Mallory Sales or Customer Service representative.

ILA Strike Update

10/1/2024

The International Longshoremen’s Association (ILA) went on strike as of midnight, October 1st, 2024. The strike, which has forced the closure of all major container terminals from Maine to Texas, has scrambled the expected arrival during October of some 80 container ships to ports along the East and Gulf coasts. This is the first strike at USEC ports since 1977.

Despite the high stakes, the Biden administration has indicated that the president does not plan to invoke the Taft-Hartley Act, which allows presidential intervention in labor disputes that create a national emergency.

There are currently no estimates when the strike will stop. ILA President Harold Daggett told a crowd of ILA members early this morning: “Whether it’s one week, two — I’m hoping by three it’s over, I’m hoping — you are making history here,”.

To that end, ocean carriers have already begun to declare force majeure. Ocean Network Express (ONE) made their announcement, reserving all rights for force majeure under their Bill of Lading Terms; namely Clauses 17 & 18.

Ships are already planning to discharge cargo at non-affected ports. Hapag-Lloyd said Monday that vessels in its Caribbean Express Service that would have called the Port of Virginia this week now plan to call Canada’s Port of Saint John. In addition, the carrier’s South America East Coast Service is now preparing to call Mexico’s Port of Altamira instead of the US Gulf Coast ports it normally calls the US Gulf Coast ports.

Mallory will be monitoring this situation very closely and will provide regular updates as soon as new information becomes available. 

Please feel free to contact your local Mallory representative with any questions or concerns you may have.

Mexico Is Building a $7.5 Billion Trade Route to Compete With Panama Canal

9/24/2024

For decades, the Panama Canal has been a maritime juggernaut, facilitating the movement of billions of dollars worth of goods worldwide. However, its reliability has been compromised due to dwindling water levels, leading to increased tolls and restrictions on ship traffic. This has prompted a search for alternative routes, and Mexico has emerged as a potential contender with its $7.5 billion Interoceanic Corridor.

This ambitious project aims to revitalize a historic railway connecting the Atlantic and Pacific Oceans across the Isthmus of Tehuantepec. While the Panama Canal offers a more direct route, Mexico's alternative promises to alleviate congestion and potentially reduce shipping costs. However, the feasibility and efficiency of this new corridor remain uncertain.

Mexico's previous attempt to capitalize on its strategic location with a similar railway in the early 20th century was ultimately overshadowed by the Panama Canal. However, recent developments, including the country's economic aspirations and infrastructure improvements, have made the project more viable.

The Interoceanic Corridor is not just a transportation route but also a catalyst for regional development. It promises to bring economic benefits to impoverished areas, stimulate tourism, and attract foreign investment. However, realizing this potential requires significant funding, infrastructure upgrades, and cooperation from global shipping companies.

While the Panama Canal remains the dominant player in the maritime industry, Mexico's Interoceanic Corridor offers a promising alternative. Its success will depend on factors such as cost-effectiveness, efficiency, and the ability to attract and retain business. As the global supply chain continues to evolve, the competition between these two routes could reshape the landscape of international trade.

Source: WSJ

Report: Biden Wont Block Dock Strike

9/18/2024

President Joe Biden has decided not to use the Taft-Hartley Act to intervene in a potential strike by union longshore workers at East and Gulf Coast ports, as reported by Reuters. This act allows presidents to impose an 80-day cooling-off period during labor disputes deemed a threat to national security. An administration official stated, “We’ve never invoked Taft-Hartley to break a strike and are not considering doing so now,” urging all parties to continue negotiations.

The International Longshoremen’s Association (ILA), representing 45,000 dockworkers, plans to strike on October 1 if a new contract isn't reached, citing unresolved issues related to wages and automation. A coalition of 177 trade groups has urged Biden to facilitate stalled contract talks between the ILA and employers, warning that a strike would exacerbate existing supply chain issues and impact the critical holiday retail season.

Despite previous successful interventions by the White House in labor negotiations, this situation remains unresolved, with port employers expressing disappointment at the ILA's reluctance to negotiate further unless their demands are fully met. Both sides are encouraged to resume discussions to avoid disruption to port operations.

Source: FreightWaves

World Trade Bridge Traffic Advisory

9/18/2024

Effective Monday, September 16th, 2024, the World Trade Bridge in Laredo, Texas, has been temporarily closed to commercial motor vehicle traffic.

To accommodate the increased traffic volume, the Laredo Police Department has implemented a rerouting plan. All commercial vehicles will now be directed to the Laredo Colombia Solidarity Bridge via Columbia Toll Road (State Highway 255).

Traffic officers will be deployed to key intersections to manage the flow of traffic and minimize congestion. The Laredo Police Department urges the community to be patient during this time and to follow their social media channels for the latest updates.

Source: WTBtrafficadvisory

ILA Locals Prepping For Coordinated Strike At US East Gulf Coast Ports

9/6/2024

The International Longshoremen's Association (ILA) is poised to strike at East and Gulf coast ports if a new contract is not agreed upon by the end of September. The union is demanding significant wage increases and stronger protections against automation.

The ILA and its employers, represented by the United States Maritime Alliance (USMX), are far apart on contract terms, particularly regarding wages. The union seeks a 78% increase in its top wage rate, while USMX is offering around 40%.

Both parties are also at odds over automation. The ILA wants stricter protections against automation in marine terminals, accusing Maersk's APM Terminals of violating the current contract by implementing automation technology at its Port of Mobile facility.



The ILA has formed 13 committees to coordinate labor actions if a strike becomes necessary. The union's leadership emphasizes the importance of being prepared to hit the streets on October 1, 2024.

Source: JOC

Surging Shipping Delays At Singapore Port

8/15/2024

The Port of Singapore, a linchpin in global trade, is grappling with unprecedented congestion. A perfect storm of factors has converged to create this crisis. Soaring cargo volumes, primarily driven by increased economic activity and preemptive stockpiling ahead of potential trade tariffs, have overwhelmed the port's capacity.

Compounding this issue are the lingering effects of the COVID-19 pandemic, including labor shortages and disrupted supply chains. Moreover, geopolitical tensions have forced ships to reroute, adding to the congestion.



The consequences of these delays are far-reaching. Businesses worldwide are facing increased costs, supply chain disruptions, and stock shortages. The ripple effects extend to consumers who ultimately bear the brunt of higher prices. Singapore has responded by implementing measures to boost efficiency and capacity, but experts warn that sustained efforts are crucial to prevent future crises.

As a vital artery of global commerce, the port's challenges highlight the fragility of the interconnected global economy. The ability of Singapore to overcome these hurdles will be a test of its resilience and its capacity to adapt to the evolving landscape of international trade.

Source: TLMagazine

NS implementing reservation system for container drop-offs from Sept. 4

8/8/2024

Norfolk Southern Railway (NS) will soon require trucking companies to schedule appointments to drop off containers. This new system aims to improve efficiency at NS terminals but may also create challenges.

Similar to other major railroads, NS will implement a reservation process for both domestic and international containers starting in September. This change will move the railway from a first-come, first-served model to a more structured approach, similar to airline ticketing.

The goal is to better match container supply with train capacity, reducing delays and improving predictability for shippers. However, there are concerns that this system could lead to limited availability, especially during peak periods or disruptions. NS emphasizes that export containers will be prioritized to meet shipping deadlines.

While the new system is expected to benefit many shippers by providing more reliable transportation options, it may also require adjustments in shipping operations to accommodate reservation requirements.

Source: JOC

Maersk CEO says port strike along US East, Gulf coasts is ‘highly unlikely’

8/8/2024

The potential for a strike by dockworkers on the US East and Gulf coasts, a scenario that could severely disrupt supply chains, is currently low according to Maersk CEO Vincent Clerc. Despite heightened tensions and strike threats from the International Longshoremen’s Association (ILA), Clerc remains optimistic about reaching a contract agreement before the September 30 deadline. While acknowledging the potential for significant congestion and delays if a strike occurs, he anticipates negotiations to result in either a contract extension or a mutually agreeable deal.

However, industry experts caution that the ongoing labor dispute introduces an element of uncertainty into the upcoming peak shipping season. Retailers and logistics providers are closely monitoring the situation as they prepare for increased demand. A strike would exacerbate existing supply chain challenges, potentially leading to product shortages and higher prices for consumers.

Source: JOC

TMF at Ports of Los Angeles and Long Beach to Increase 6.0% on September 1, 2024

8/8/2024

The West Coast Marine Terminal Operator Agreement (WCMTOA) has announced a 6% increase in the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach, effective September 1, 2024. This adjustment aligns with recent wage increases for longshore workers.

The TMF will rise to $37.71 per 20-foot container or $75.42 for larger containers. This fee applies to most containers but excludes empty containers, cargo transported through the Alameda Corridor, and transshipment cargo.

To manage port congestion, the OffPeak program encourages truckers to work night or weekend shifts. This initiative, launched in 2005, has diverted over 63 million truck trips from daytime traffic. Additionally, container terminals use appointment systems to control truck traffic.

The TMF funds extended port operating hours, with labor costs being the primary expense.

Source: PierPass

West Coast Ports Say Ready To Handle Peak Season Bump After Front-Loading Surge

7/29/2024

West Coast ports are experiencing a resurgence in import activity, yet they're handling the increased volume with surprising efficiency. Despite record-breaking import figures, container dwell times—the amount of time containers spend at ports—have significantly decreased. This improvement is attributed to collaborative efforts between ports, marine terminals, and railroads.

A combination of factors is driving the import surge, including retailers front-loading inventory for the upcoming holiday season and potential cargo diversions from the East Coast due to looming labor disputes. To accommodate the influx of goods, West Coast ports have invested in infrastructure and expanded operations. Additionally, they've implemented advanced data sharing systems with railroads to optimize cargo flow.



While the Pacific Northwest has encountered some temporary congestion due to the rapid increase in imports, overall, West Coast ports are operating smoothly and report ample capacity. The industry is confident in its ability to manage the upcoming peak shipping season, a period traditionally characterized by heightened import volumes.

By proactively addressing challenges and fostering strong partnerships, West Coast ports have demonstrated resilience and adaptability in the face of unprecedented import growth. This positive trajectory bodes well for the overall supply chain and consumer confidence.

Source: JOC

More Danger To Box Ships As Houthis Expand Red Sea Attack Arena

7/23/2024

There are growing worries that Houthi rebels are expanding their attacks on commercial ships in the Red Sea. This follows a recent drone strike on Tel Aviv by the Houthis, which prompted Israeli retaliation. An industry expert believes this could mean more areas of the Red Sea are at risk for shipping.

The attacks have already caused major problems. A report says container traffic in the Red Sea has plunged by 90% since late last year. The cost of shipping through the Red Sea has become much higher due to factors like war-risk insurance and longer routes to avoid the area.

There were two attacks on cargo ships over the weekend. One ship was hit by a missile, while another had drones explode near it. The Houthis claimed one of the ships belonged to an American company, but that was not true.

An expert says the situation is dangerous because the attacks are happening farther away from the Red Sea. He predicts that many shippers will avoid the Red Sea altogether until next year, and that shipping rates will continue to rise.

Source: Loadstar

Ocean Carriers Face New FMC Rules On Dealing With US Exporters

7/23/2024

The U.S. Federal Maritime Commission (FMC) established new regulations to improve fairness for American exporters dealing with ocean carriers. These rules address situations where exporters believe carriers are unfairly refusing to ship their cargo.

A key requirement is for carriers to submit yearly "documented export policies" outlining their services, pricing, and equipment availability for U.S. exports. This information will be used by the FMC to assess complaints of unreasonable refusal to ship exports.

The FMC also restricted unreasonable practices by carriers, such as extremely short notice for schedule changes or cancellations ("blank sailings") and early ship departures that leave cargo stranded. Additionally, excessively high quotes for export services can be considered a refusal to deal.

However, carriers can still refuse exports for safety or operational reasons and are not obligated to accept cargo on "sweeper" vessels used to reposition empty containers. The FMC will still review situations where a carrier classifies a ship as a sweeper.

Source: JOC

Near-Normal Water Levels Allowing More Ship Transits Through Panama Canal

7/1/2024

The Panama Canal is bouncing back after a rough year. Water levels are recovering thanks to recent rainfall, allowing the canal authority to increase traffic and cargo capacity.

Here is a breakdown:

• More ships, more cargo: Starting in August, the canal will accommodate nine giant neo-Panamax ships daily (up from the current eight) and nineteen slightly smaller super-Panamax ships (up from eighteen). This brings the total daily capacity to 35 ships, compared to just 24 in May.

• Drought woes over: This increase follows a rough period caused by a drought in mid-2023. Low water levels in Gatun Lake, which supplies the canal's locks, forced restrictions. At its worst, the canal limited daily traffic to only 18 ships.

• Rainy days bring relief: Thankfully, the drought is over. Rainfall has refilled Gatun Lake to its normal July depth of around 83 feet. This improvement has enticed shipping companies to resume using the canal.



• Deeper pockets for cargo: The canal authority has also relaxed depth restrictions for neo-Panamax ships, allowing them to carry more cargo by permitting a draft of up to 48 feet (previously limited to 45 feet during the drought).

Source: JOC

BSC Port Strikes Deal With ILA To Fully Open Leatherman Marine Terminal

6/27/2024

The Port of Charleston's newest terminal, the Hugh K. Leatherman, is finally set to become fully operational after a lengthy disagreement between the port authority (SC Ports) and the dockworkers' union (ILA) was resolved. This conflict revolved around who would staff the new terminal's crane operator positions. The agreement lets current crane operators decide if they want to stay state employees or join the ILA. This gives the ILA a say in staffing the terminal, something they argued they had the right to do all along.

This deal signifies the end of a legal battle and paves the way for the terminal to operate at full capacity. This will be a major boost to the Port of Charleston's cargo handling capabilities. The new terminal itself is a significant addition, increasing the port's capacity by a third. With room for expansion, it has the potential to more than double that increase in the future.

The backlog of cargo ships currently waiting to be unloaded at Charleston highlights the need for this additional capacity. Maintenance at another terminal has reduced its functionality, forcing ships to wait or divert to Savannah. While a temporary solution is planned during a maintenance break in July, the port won't be fully operational again until November. The Leatherman terminal's opening will significantly ease these congestion issues.

While the labor problems at Leatherman were not officially part of Contract renewal discussion between the ILA and USMX (the entity that represents Shipping Lines in Contract discussions), having this matter put to rest leaves only some local issues at the Port of Mobile, wages/benefits in general, and automation as the remaining items to be clarified for a new Labor Contract for the US East Coast and Gulf ports.

Source: JOC

Baltimore Port Key Channel Reopens Following Bridge Collapse

6/11/2024

After a massive cleanup effort, authorities have reopened the key shipping channel following the March 26th collapse of the Francis Scott Key Bridge. The incident, caused by a cargo ship collision, tragically took six lives and disrupted trade for months.

The U.S. Army Corps of Engineers completed the removal of 50,000 tons of debris, ensuring safe passage for two-way traffic at the original channel depth and width. This marks the culmination of a two-month operation involving over 1,500 responders and specialists, utilizing a fleet of boats from various agencies.

While the main channel is operational, work continues to remove any remaining steel structures underwater to avoid future dredging complications. The wreckage is being transported to a designated processing facility.

Investigations into the bridge collapse are ongoing. The FBI is conducting a criminal probe, while the National Transportation Safety Board is looking into the cargo ship's reported electrical issues before the crash. Rebuilding the bridge is estimated to cost nearly $2 billion and is expected to be completed by fall 2028.

Source: Reuters

ILA Halts Talks Over New Contract Until Maersk, AMP Clarify Port IT Projects

6/11/2024

Negotiations for a new labor agreement covering East and Gulf Coast ports have stalled after the union representing dockworkers accused a major shipping company of violating the current contract by implementing automation technology.

The International Longshoremen's Association (ILA) said it suspended talks scheduled for this week with the United States Maritime Alliance (USMX) due to the alleged use of an automated gate system at the Port of Mobile, Alabama by APM Terminals, a subsidiary of Maersk. The union claims this system cuts out dockworker jobs and violates their existing agreement.

"There's no point in negotiating a new deal if one of the biggest companies is breaking the current one to eliminate our jobs with automation," said the union's lead negotiator. The ILA is demanding the automation issue be resolved before talks resume on a new master contract set to expire in September.

Maersk, on the other hand, denies violating the contract and expressed disappointment that details of the negotiation became public. They say they are committed to finding a solution that benefits both sides.

The disruption in talks raises the possibility of a strike, as the union has threatened to walk off the job if a new contract isn't reached by the expiration date. The ILA has historically been resistant to automation efforts, and the current contract restricts the development of fully automated terminals.

While the exact nature of the technology in question remains unclear, the union alleges APM Terminals did not follow proper procedures for implementing such changes. Maersk has invested in automation startups in the past, suggesting a continued interest in this area.

The company maintains they are complying with the contract and committed to a safe work environment for all employees.

Source: JOC

Charleston Port Delay Notice

5/31/2024

There have been recent developments at the Port of Charleston that may impact your upcoming shipments.

We've been made aware of several challenges currently affecting the port's ability to process vessels efficiently, potentially leading to delays in vessel schedules over the coming weeks. These factors include:

• An ongoing construction project limiting the availability of large-capacity vessel berths.
• A recent hazardous material spill that temporarily shut down another berth.
• A system outage that impacted port operations for over 24 hours (all critical systems have since been restored).

Mallory Alexander is closely monitoring the situation and is committed to providing you with the most up-to-date information. We'll share any specific actions taken by ONE and the Port of Charleston to address these challenges as soon as they become available.

In the meantime, if you have any questions about your specific shipments or require additional information, please don't hesitate to reach out to your dedicated Mallory Alexander representative.

Source: ONE

BC Port Foreman Contract Talks Stall as Government Delays Rail Strike Threat

5/14/2024

Canada's West Coast ports, still recovering from last year's longshore worker strike, face another potential disruption as contract negotiations between the British Columbia Maritime Employers Association (BCMEA) and Local 514 of the International Longshore and Warehouse Union (ILWU) have reached an impasse.

The BCMEA filed a complaint with the Canadian Industrial Relations Board, accusing the foremen's union of intentionally dragging out negotiations for a new four-year contract covering 730 workers. This comes just a day after the federal government intervened, asking the labor board to assess the potential impact of a rail strike on public health and safety, effectively delaying it.

The BCMEA claims they made a competitive wage offer, mirroring the 19.2% increase agreed upon with dockworkers last year. However, with the mandatory 21-day cooling-off period after mediated talks concluded without a deal, the union has the option to provide a 72-hour strike notice. While no such notice has been issued yet, negotiations are reportedly still ongoing.

The BCMEA blames the union's "intransigence" for the stalled talks, highlighting the potential risk to Canada's already strained supply chain and global trade reputation. This situation adds another layer of complexity to the transportation sector's labor landscape. With a potential railroad strike planned for May 22nd and ongoing contract negotiations at the Port of Montreal, Canada could face significant disruptions across its key trade routes.

Additional Points:

• The investigation launched by Labor Minister O'Regan last year into the "structural issues" behind West Coast longshore strikes, including the separate bargaining unit for foremen, is expected to be completed in March 2025.
• A potential walkout by foremen could significantly impact container operations at Vancouver and Prince Rupert due to their supervisory roles.
• It remains unclear whether longshore workers would join a foremen's strike, but the situation raises concerns about further disruptions to cargo movement.

Source: JOC

Bad Weather Causing Delays, Congestion At Major Asian Load Ports

4/30/2024

Major shipping lines are reporting delays of up to a week for vessels arriving at key Asian ports. Thick fog in China, particularly around Shanghai and Ningbo, is causing significant disruptions. Other parts of Asia, like Malaysia and Singapore, are experiencing issues with heavy rain and low visibility. These conditions are preventing ships from docking, and as more vessels arrive, congestion is worsening. Yard congestion in Singapore is adding to the delays there.

These delays add to existing problems for shippers, who are already facing extended voyages due to rerouting around the خطر (Arabic for "danger") in the Red Sea.

Some of the most impacted terminals include the Shanghai East Container Terminal, where delays can reach seven days, according to Maersk. Other Shanghai terminals and ports in eastern and northern China are experiencing delays of up to three days. Similar delays are being reported at Port Klang and Singapore.

Shipping lines are confirming disruptions to trans-Pacific and intra-Asia shipping schedules due to the bad weather and port congestion. An example is the Seaspan Bellweather, which is several days behind schedule due to congested berths at all its port calls in Asia.

Source: JOC

General Average Declared Over Dali's Key Bridge Collision

4/17/2024

In response to the recent incident of the M/S Dali that collided with the Francis Scott Key Bridge in Baltimore, MD, the vessel owner Grace Ocean has declared General Average (“GA”). General Average is a maritime legal term whereby all parties with a stake in the voyage; including the ship owner, cargo owners, and potentially shippers, will share the financial burden of salvaging the vessel and its cargo.

Key points regarding General Average:

-Unlike typical insurance claims where the insurer shoulders the cost, general average spreads the financial responsibility across all stakeholders.

-Determining how much each party owes hinges on the value of their stake in the voyage. For cargo owners, this is the value of their goods on board. It can get complicated since the exact contents of some containers might be unknown.

-Shippers without proper cargo insurance could be facing a significant bill, as general average contributions can be substantial. The estimated salvage cost for the M/S Dali, ranging from $2 billion to $4 billion, highlights the potential financial impact.

-Figuring out each party's share can be a lengthy process, taking up to five years in some cases. Insurers meticulously calculate the value of all cargo to ensure fair contribution.

General Average law is governed by the York-Antwerp Rules 2016. Click here to view the full legal doctrine governing GA (https://comitemaritime.org/wp-content/uploads/2018/06/2016-York-Antwerp-Rules-with-Rule-XVII-correction.pdf)

In an update on the status of this incident, officials reported significant progress in removing the M/V Dali cargo ship as of April 11th. With roughly 38 containers successfully lifted off the vessel, they've cleared a crucial hurdle towards safely relocating the Dali and fully reopening the Fort McHenry Channel. This container removal helps lighten the ship's weight, a necessary step for refloating it. The U.S. Army Corps of Engineers is aiming for a full channel reopening by the end of May, restoring the port's usual capacity. Their plan prioritizes clearing the channel first, which involves removing the bridge section obstructing the ship's bow and clearing debris from both the vessel and the waterway itself. Once the channel is clear, they'll refloat the Dali and move it away from its grounded position. The final step involves dismantling and removing the collapsed bridge, along with any remaining debris scattered throughout the channel.

Source: World Cargo News

FMC Building Case For New Container-Data Sharing Rules

4/17/2024

The Federal Maritime Commission (FMC) is seeking more information from shippers and shipping lines about how container shipment data is shared. This information will be used to create a new regulation that could require companies to share more data.

The FMC believes that sharing more data will improve the efficiency of the supply chain. This could lead to fewer delays, lower fees, and more predictable arrival times for cargo.

The new regulation is still being developed, and the FMC is asking for comments from shippers and shipping lines to help them finalize the details. We are pleased to advise that by virtue of having a seat on the National Shipper Advisory Committee, Mallory Alexander is participating in the development of the new Regulations:

 Some key points of this new regulation could include:

• It would require companies to share more data about container shipments, such as pickup and return times.
• Participating parties could include BCO’s, Shipping Line’s, Marine Terminals operators, Rail depots, Customs Brokers, Freight Forwarders, and even the Trucking community.
• One of the goals is to improve the accuracy and timeliness of estimated arrival times at container ports.
• Another goal is to reduce the volume of erroneously billed demurrage or detention charges associated with poor container availability information
• The regulation would apply to all intermodal cargo shipments in the U.S.

We shall provide routine progress reports regarding the new Regulation as it moves through the development process.

Source: Freight Waves

Panama Canal's Future Is Dark And Stormy, Much To Shippers Relief

4/17/2024

The Panama Canal Authority (ACP) is cautiously optimistic about the future after a difficult six months. Drought caused by El Niño led to historically low water levels in Gatun Lake, the canal's main source of water. This bottlenecked traffic, with some categories like container ships dropping to 60% of normal levels. However, recent rainfall has provided some relief and the ACP expects to gradually increase the number of ships passing through in the coming weeks. They are aiming for a full return to normal capacity by 2025, although weather remains a key concern.

The situation was further complicated by the fact that Gatun Lake also supplies drinking water for millions of Panamanians. This dual function of the lake became a major issue leading up to the country's presidential election. Candidates faced pressure to address both water needs and the canal's economic importance.

The ACP proposed a solution: a new reservoir and tunnel project to increase water supply. However, this plan has been criticized by farmers who fear land loss due to flooding.

There's a glimmer of hope on the horizon though. Forecasts predict an end to El Niño and a potential shift to La Niña, which could bring more rain. This would be a major boost for the canal's recovery and global trade. The Panama Canal is crucial for the flow of goods, especially for US ports like Savannah which rely heavily on traffic from Asia. Delays caused by the canal's issues have significantly impacted wait times at these ports. A full recovery of the canal would be a welcome relief for international trade.

Source: Freight Waves

Baltimore Preps For Limited Port Reopening By End Of April

4/8/2024

The Baltimore port is aiming to be partially operational within a month, with full capacity expected by the end of May. This is a quicker than expected recovery after a ship accident blocked the main channel. Other East Coast ports have absorbed Baltimore's cargo without major issues, but some shipping companies are adding fees for these reroutes.

The US Army Corps of Engineers plans to clear the debris by May, allowing full access to the port again. A temporary, shallower channel will open by the end of April for limited cargo movement. This will allow some container barges and roll-on/roll-off ships to operate again.

While other ports have capacity for Baltimore's cargo, some shippers are being charged extra fees for the rerouting. The Federal Maritime Commission is reminding carriers to keep these fees reasonable.

Mallory has identified all containers that have been either directly affected by the DALI collision or where their arrival port or schedule will most likely be affected. Our customer service teams will continue reaching out to our clients to alert them of any changes in Port of Loading / Port of Discharge and aid in developing a contingency plan for container pickup and delivery. 

We will be monitoring this situation closely as more information and updates from local authorities and our Ocean Carrier partners is made available.

Source:JOC

FMC Fears Glut Of Container Fee Disputes After Baltimore Bridge Collapse

4/5/2024

The closure of the Port of Baltimore due to the Francis Scott Key Bridge collapse is causing headaches for shippers and regulators. Shipping giant MSC is rerouting containers originally bound for Baltimore to other East Coast ports, but this move could lead to disagreements over fees.

The issue is that MSC is ending its delivery contracts at the new ports, instead of trucking the containers inland as originally planned. This could result in extra charges for shippers who were expecting their cargo to be delivered further inland.

The Federal Maritime Commission (FMC) is anticipating a surge of disputes related to container storage and late fees (demurrage and detention) due to these disruptions. The FMC recently implemented new regulations on these fees, which might help settle some arguments.

However, a bigger solution could be on the horizon. The FMC is developing a program called the Maritime Transportation Data Initiative (MTDI) that would provide real-time tracking information for containers and improve communication throughout the supply chain. This could prevent similar problems in the future by giving shippers a clearer picture of their cargo's location and estimated arrival time.

While some ocean carriers are hesitant about mandatory data sharing, the FMC is pushing forward with the MTDI in hopes of creating a more transparent and efficient shipping system.

Source: Freightwaves

FMC Unit Seeks $63 Million Fine Against MSC For Alleged Shipping Law Violations

4/5/2024

The US shipping regulator is proposing a hefty fine for a major ocean carrier, MSC. The Federal Maritime Commission (FMC) wants MSC to pay $63 million for allegedly violating US shipping laws in a number of ways.

The main complaint is that MSC overcharged customers for fees related to refrigerated containers. Specifically, the FMC says MSC charged higher rates for refrigerated containers even when they were being used as regular dry containers. This allegedly happened thousands of times in 2021, even after MSC said it had fixed the problem. The FMC also says MSC failed to properly update its rates and incorrectly billed some logistics companies.

MSC disagrees with the allegations and says it will fight the fine. The company claims it addressed the container fee issue and refunded some customers. They also argue that some of the accusations are outside the legal timeframe for penalties. The FMC disagrees, saying MSC's continued efforts to collect the fees mean the violations are ongoing.

The final decision on the fine will be made by a judge who will consider both sides' arguments.

Source: JOC

Baltimore Bridge Collapse Sends Vehicles Tumbling Into Water

3/26/2024

In the early hours of Tuesday, a 948-foot container ship collided with the Francis Scott Key Bridge in Baltimore, causing a section to collapse into the Patapsco River. Rescue efforts are ongoing, with two survivors pulled from the water and several individuals still missing. Maryland Governor Wes Moore stated it was likely an accident, with no indication of terrorism. The bridge collapse occurred during repairs, and initial investigations suggest no structural issues with the bridge. The closure of the Port of Baltimore, a vital car shipping hub, could disrupt supply chains and increase costs. The incident, a rare event, prompts concerns about bridge safety and port operations. The vessel involved, named Dali, is managed by Synergy Marine Corp, with no reported injuries among its crew. Baltimore Mayor Brandon Scott described the scene as resembling an action movie. The National Transportation Safety Board is investigating, and a state of emergency has been declared to expedite federal aid. The impact on other vessels and port operations remains unclear. The Francis Scott Key Bridge, built in 1977, spans 1.6 miles and is a key transportation route in the region.

In response, Mallory has identified all containers that have been either directly affected by the DALI collision or where their arrival port or schedule will most likely be affected. Our customer service teams will be reaching out to our clients to alert them of any changes in Port of Loading / Port of Discharge and aid in developing a contingency plan for container pickup and delivery. 

We will be monitoring this situation closely as more information and updates from local authorities and our Ocean Carrier partners is made available.

Source: Reuters

25% More Containers out of LA/LB Ports Possible: ITS Logistics



2/29/2024

Consumers are buying less, but that doesn't mean there won't be challenges for shipping companies.

Right now, shippers are choosing longer routes to avoid storage costs, but this strategy might not work in the long run.

There are two main reasons for this:

• Contract season is coming up. Paying extra for slower routes might not make sense financially, especially during peak season.
• There is a potential labor strike on the East Coast. Shippers are hesitant to commit to year-long contracts with this uncertainty.

These concerns will likely be discussed during contract negotiations between shippers and ocean carriers. Shippers will be looking for justification for the higher costs associated with East Coast routes.

Logistics companies are preparing for increased activity on the West Coast. They are anticipating a rise in demand for storage space and transportation services due to concerns about the East Coast labor situation and shipping disruptions in the Red Sea.



In a year with lower overall cargo volume, logistics companies need to focus on providing excellent service and reliable technology. Clients are looking for certainty and dependability, not empty promises of disruption.

Next week, during contract season, logistics companies will be trying to secure the best deals and remain flexible in a challenging environment. Their ability to provide certainty in an uncertain time will be crucial for their success.

Source: FreightWaves

FMC Rules For Truckers In Chassis Dispute With Ocean Carriers

2/15/2024

The US Federal Maritime Commission (FMC) has ruled against ocean carriers mandating specific chassis for cargo owners and truckers in merchant haulage business. This ruling stems from a decision favoring the American Trucking Associations (ATA) made by a hearing examiner in 2023, which the Ocean Carriers Equipment Management Association (OCEMA) appealed. The issue revolves around the distinction between carrier haulage, where the ocean carrier handles door-to-door transportation, and merchant haulage, where the cargo owner manages inland transport. The FMC found ocean carriers in violation of the US Shipping Act of 1984 by mandating specific intermodal equipment providers (IEPs) under merchant haulage, leading to increased chassis rental rates. The ruling aims to promote competition and ensure a smoother cargo flow. Although limited to specific locations initially, the ruling may have broader implications for inland transportation. The decision clarifies the FMC's jurisdiction beyond ports, potentially extending its authority to issues like detention and demurrage in rail terminals.

Source: JOC

FMC asked to slow fast tracking of Red Sea-linked freight surcharges

2/9/2024

The Federal Maritime Commission (FMC) recently granted emergency waivers to container lines, allowing them to impose surcharges without the usual 30-day notice. These surcharges, linked to increased operational costs due to ships avoiding the Suez Canal amid Red Sea attacks by Houthi militants, vary widely, from $150 to $2,700 per container. Shippers worry that these waivers let carriers recoup more than actual costs, potentially burdening retailers with millions in extra expenses. While FMC Chairman Daniel Maffei acknowledges carriers' need to cover higher costs, he emphasizes the importance of justifiable surcharges with clear purposes and end dates. Industry voices argue that the swift approval of these waivers lacks proper review, leading to unfair surcharges that could disrupt trade flows and burden smaller shippers. Additionally, concerns are raised about potential port congestion if disruptions persist. While some appreciate carriers' efforts to maintain cargo flow, transparency and fairness in surcharges remain key concerns for the industry.

Source: JOC

Port Of New Orleans Gets $226M For International Container Terminal

1/24/2024

The federal government has provided a significant boost to efforts aimed at constructing an international container terminal at the Port of New Orleans, capable of accommodating ultralarge container vessels. The port has been granted an additional $226.2 million to support the $1.8 billion Louisiana International Terminal (LIT) project. The objective is to establish the port as the primary international container gateway in the Gulf of Mexico. Brandy Christian, the port's resident and CEO, expressed gratitude for the landmark grant, highlighting its global recognition and its status as the largest federal investment in a new container terminal by the U.S. Department of Transportation.



Scheduled for completion around 2028, the Louisiana International Terminal is designed to handle 2 million twenty-foot equivalent units annually and accommodate ultralarge container vessels transiting the Panama Canal. The project is a collaboration between the Port of New Orleans, Ports America based in New Jersey, and Terminal Investment Ltd., the investment arm of Switzerland-based Mediterranean Shipping Co. The partnership has already committed $800 million to the LIT project.

In addition to the recent federal grant, the Port of New Orleans received $73.77 million to advance the initial construction phase. Louisiana lawmakers have contributed nearly $30 million to cover early development costs for the container terminal. It is anticipated that the LIT Project will create 18,000 jobs in Louisiana and generate over $1 billion in total new state and local tax revenue by 2050, according to state officials.

U.S. Rep. Troy Carter Sr. highlighted that this investment would leverage the Port of New Orleans' extensive connectivity to interstate systems, railroads, waterways, and hubs. The Louisiana International Terminal is one of two major container facility projects underway along the lower Mississippi.

In a separate development, the Plaquemines Port Harbor and Terminal District recently announced a $500 million preliminary deal with APM Terminals to construct their container facility approximately 20 miles south of the Port of New Orleans. The initial construction phase will involve a 200-acre development, including a container terminal with on-dock railing and a berth that is capable of handling ships carrying 14,000 TEUs. Charles D. Tillotson, executive director of the Plaquemines Port, emphasized that this project would solidify Plaquemines as 'The Louisiana Gateway Port' due to its overwhelming geographic and strategic advantages.

Source: FreightWaves