Did You Know That...

• ILA US East Coast Port Strike. Some 36 major ports on the US east and Gulf coasts have now shuttered, despite a last-minute near-50% wage increase offer from employers’ association USMX. In a statement, the USMX said: "In the last 24 hours, the USMX and ILA have traded counteroffers related to wages. The USMX increased our offer and has also requested an extension of the current master contract, now that both sides have moved off their previous positions." Shipping lines are beginning to declare force majeure as the strike enters its second day. Any hope that the government might intervene to halt the economically damaging strike was dashed, as the White House sided with the union. The administration also warned carriers against ‘price-gouging’ as the strike continues. President Biden urged both sides to restart collective bargaining, stating, "the best way for workers to get the pay and benefits they deserve."

• Trucking capacity, storage costs, and rates are expected to come under pressure as shippers reroute cargo inland due to the US east and Gulf coast port strike. Truckers that transload containers won’t be able to pick up or drop off containers as scheduled, impacting operations.

• Anchorages fill up outside ports as the ILA strike enters its second day, with container terminals across the seaboards now closed. Initial signs indicate that carriers may opt for different strategies for vessels unable to dock at the affected ports.

• Far East to North Europe trade report from FS China: Between July 1 and September 18, the XSI’s average short-term rate on the Far East to North Europe trade declined by 29%. There are no signs of increased cargo volume in the market before the Golden Week, and it is expected that the market will further decline after the long holiday. Currently, the FAK rate is between USD 3000 and USD 3200 per 40HQ.

• Saudi ports affected by Red Sea contingency plans. The Gemini carriers, Premier Alliance, and MSC have revealed two network options for customers in preparation for a potential Red Sea return. Carriers' dual east-west trade offerings for 2025 indicate that Jeddah and King Abdullah ports will bear the brunt of sustained rerouting around the Cape of Good Hope.

• CNC becomes the first foreign-owned container line in the Philippines. A subsidiary of CMA CGM, CNC, is now the first foreign-owned container line in the country after recent law changes. The new service will improve connectivity between key ports in the Philippines and offer Filipino seafarers opportunities to gain experience in international-standard operations and training.

• China wins 80% of all containership orders in 2024. Chinese shipyards have dominated the surge in orders for containerships this year, now holding 61% of the total orderbook for boxships. Competitive pricing, early delivery slots, and a stable workforce give Chinese yards an edge over South Korean competitors when negotiating newbuilding contracts.

• K Line partners with Kamigumi to boost logistics operations. K Line has allied with Japanese logistics provider Kamigumi to form a joint venture, integrating their logistics businesses. This move reflects the trend among ocean carriers to expand their landside operations, offer end-to-end services, and enhance competitiveness.

• New associate in Norway. We have a new associate joining us in Norway, and we will announce details of this exciting collaboration shortly.

• European Regional Meeting in Vienna. In two weeks, we will organize the European Regional Meeting in Vienna, hosted by Columbus-Cargo. Preparations for this event are in full swing.

• Preparations for AGM 2025 in Boracay, Philippines have already begun. We are pleased to see significant enthusiasm for the conference, which will be held from March 10-14. A quick pre-registration scan has shown 85 participants from 40+ countries, and we anticipate welcoming over 100 participants from 60+ countries.

• Is kindness the new workplace trend? Kindness is making waves in the business world, with books like The Power of Nice and Kind gaining popularity. LinkedIn is filled with videos showcasing improbable acts of generosity, and companies are embracing compassionate values. One manufacturer even speaks of "offering grace internally" as part of its organizational culture.

• China and Russia share the record for the most countries bordered — 14 each. China has the longest land border of any country, spanning 22,117 km, followed by Russia with 20,241 km.

• A surprising fact from a decade ago: A study revealed that half of the US population cannot swim.

Enjoy the rest of the week!