March 1: Cost of ‘Land Bridge’ Alternative to Panama Canal Too High for Carriers – The Loadstar
Liner operators say they are unlikely to emulate Maersk in using land transport to circumvent the Panama Canal restrictions, as moving containers by land in the Americas could drive costs up more than 30%.
In January, the Panama Canal Authority increased the number of daily transit slots to 24, despite first announcing a reduction to 18 for February. However, this is still fewer than the usual 36 daily transits through the waterway.
March 4: Empty Container Movements Increase by 20% – WorldCargo News
The demand for transporting empty containers has surged much more than the demand for transporting full ones, with back-haul trades expanding 2½ times faster.
By analyzing data sourced from Container Trade Statistics (CTS) on the movement of full containers between regions, it is evident that the expansion of empty container volumes, when compared with 2019 (excluding the significant fluctuations caused by the pandemic), has hovered around the 20% threshold over recent months.
March 6: Contracts: Shippers and Forwarders Wary of Usual 12-Month Deals – The Loadstar
The annual transpacific contract tender bartering season is in full swing at the S&P Global TPM24 conference and networking event in Long Beach, California.
The meeting rooms and halls of the vast venue are populated with formal, informal and sounding-out conversations on rates and routings for Asian container imports for the traditional May to April 12-month period.
However, this could be the year when the timeline of those contracts is reset – perhaps for good.
Indeed, ahead of those meetings, several shippers said they felt the lines were being unreasonable in their first rate increase requests.
And some indicated that they would look to sign for a shorter duration in order not to commit at too high a rate level for the second half of the year, when analysts are predicting rates will fall sharply against a background of the huge influx of newbuild tonnage.
March 11: Deadly Ship Attack Means Red Sea Voyages Need Rethink, Union Says – American Journal of Transportation
A major transport union urged a full halt of merchant ships sailing through the Red Sea, adding to calls for vessels to reconsider the voyages after a Houthi militant attack killed three sailors.
“We call on the industry to divert ships around the Cape of Good Hope until safe transit through the Red Sea can be guaranteed,” the International Transport Workers’ Federation said in a statement. “No delivery window is worth the loss of seafarers’ lives.”
The ITF lobbies for seafarer rights by acting alongside more than 700 affiliate trade unions. It followed a similar appeal by Nautilus International, one of the world’s largest crewing unions on March 7.
March 11: Finnish Port Workers Start Two-Week Strike, Anticipate Delays and Disruptions – WorldCargo News
The Central Organization of Finnish Trade Unions last week instructed its member unions to engage in industrial action following unsuccessful negotiations with the government regarding employee rights and social security.
Among the participating member unions is the Finnish Transport Workers’ Union, which predominantly represents workers in the stevedoring industry and has announced a port strike. The strike was scheduled to start on March 11 at 6 am and will continue until March 25 at 6 am.
Consequently, disruptions in operations are anticipated across all container ports, resulting in vessel loading and unloading delays.
March 12: Panama Canal Authority Adds Three More Daily Transit Slots – Splash
Solid amounts of rain have allowed the Panama Canal Authority (ACP) to add three extra slots per day at its panamax locks, taking the total daily maximum transits to 27, still more than 10 shy of the waterway’s normal maximum, but a sign that the worst is over from the record drought that has been plaguing the canal since June last year.
Two additional slots will be offered through auction for transit dates beginning March 18, and an additional slot will become available for transit dates beginning March 25.
March 14: Tribunal Rejects Montreal Port Employers’ Bid to Rule Dockworkers as Essential – CityNews Halifax
A federal tribunal on March 14 reiterated its stance that Montreal port employers cannot require employees to work during a strike, paving the way for negotiations to resume ahead of potential job action.
In a summary decision, the Canada Industrial Relations Board rejected a request by the Maritime Employers Association to deem port work an essential service in a bid to prevent a strike on the waterfront.
The employers and the union representing 2,100 port workers failed to secure a new collective agreement before it expired on Dec. 31, but the case was before the tribunal at that time, postponing possible labour action.
Explaining its ruling, the board cited a 2020 decision that the employers association failed to demonstrate “imminent and serious risks to the health and safety of the public” – the criteria for essential activity – in the event of a work stoppage.
March 15: Maersk CEO Says Container Rates Have Hit Unsustainable Levels – WorldCargo News
“Freight rates have fallen significantly since the good years of 2021 and 2022, and have fallen actually to an unsustainable level,” said Maersk CEO Vincent Clerc on March 14.
According to Clerc, further headwinds are emerging on the supply side, with an additional 11% of containership capacity expected to be added to the global fleet this year, followed by 7% more in 2025.
March 19: Local 514 Bargaining Update – BCMEA update
The BC Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union Ship & Dock Foremen Local 514 have been engaged in negotiations with the assistance of conciliation officers from the Federal Mediation and Conciliation Services since January 19. In anticipation of the conclusion of the initial 60-day conciliation period on March 19, the parties have mutually agreed to a 30-day extension to conciliation.
This agreement extends the conciliation period to April 18. At the end of the conciliation period, the 21-day cooling-off period will begin (ending on May 9). Any further extension to the conciliation period can be made only by mutual consent of the parties. Accordingly, the parties have meeting dates scheduled in April.
March 19: Box Throughput Improves, but Delays Still Endemic at South African Ports – The Loadstar
Crane breakdowns and adverse weather are exacerbating delays at South Africa’s ports, despite a recent improvement in container throughput at its main gateways.
The South African logistics crisis has been escalating for years, and a lack of government investment into supply chain infrastructure has left the country’s ports, railways and roads extremely susceptible to disruption.
However, for the week ending March 15, the South African Association of Freight Forwarders reported that ports had handled an average of 8,838 containers a day, up significantly on the 7,755 handled the week before.
And state-owned port operator Transnet reported in its February figures that 23% more containers were handled than in January and 26% year on year.
March 22: Strike Paralyzing Finnish Ports Extended After Talks Collapse – The Loadstar
The two-week strike by Finnish transport workers that has effectively shut down the country’s ports is set to enter a third week, after union members voted to extend the action until April 1.
Around 7,000 workers across the transport, industrial and electrical sectors, and including the AKT transport workers union, have been on strike since March 11 in protest at proposed labour reforms by the Finnish government.
March 26: At Port of Montreal, Fewer Containers, Same Salary, Complains Employer – La Presse
More and more longshoremen at the Port of Montreal with job security are being paid even if they don’t “work” due to the drop in container volume, their employer complains. The Maritime Employers Association (MEA) blames this on the uncertainty of union bargaining and is asking a federal court to order a bargaining blitz.
The MEA is criticizing the Port of Montreal Longshoremen’s Union, which is affiliated with the Canadian Union of Public Employees (CUPE), in its application recently filed with the Canada Industrial Relations Board (CIRB). The employer accuses the union – which represents some 1,100 longshoremen – of showing “bad faith” by refusing to make itself available to negotiate.
After a series of meetings since last September, there have been no talks since January 16, the MEA points out. The employer accused the union of dragging things out, fueling instability and causing cargo to “flee from the Port of Montreal.”
March 27: Baltimore Bridge Collapse Impacts I-95 Shipping, Rail, Trucking and Port of Baltimore – American Journal of Transportation
The collapse on March 26 of the Francis Scott Key Bridge, after it was hit by a container ship, will disrupt shipping, rail, trucking, the Port of Baltimore and the Mid-Atlantic region served by the I-95 highway corridor, according to one shipping executive.
The executive said: “At this point, nobody knows how long the Port of Baltimore will be closed. It could be weeks, it could be longer. There are still containers in the water, and they have to be retrieved. There is still the damage assessment to the ship to be taken into account. There is also the environmental impact. Right now, we are scrambling to redirect our ships either to Norfolk or to New York/New Jersey and our concern is whether there is sufficient capacity to take the redeployments …”
The shipping executive went on to say: “In terms of the traffic, the loss of this bridge is huge: There’s a lot of vehicles that cross that bridge a day. There is also the impact on trucking and especially on hazmat cargoes that were transiting the bridge that may not use the tunnels. Rail, in and out of Baltimore, will be impacted, both the CSX and the Norfolk Southern.”
March 28: Finland Strikes Extended for Another Week, Port Disruptions Expected to Continue – WorldCargo News
The Executive Board of the Central Organisation of Finnish Trade Unions has extended its national program of political strikes for another week.
The extended strike began at 6:00 am on March 28 (coinciding with the anticipated conclusion of the current two-week strike) and will conclude at 6:00 am on April 8.
The Executive Board will reconvene this week to assess the situation and determine any further continuation of industrial action.
March 28: Cargo Companies Start to Reroute Away from Montreal amid Fears of Port Strike – Today’s Trucking
A major transport company has rerouted cargo away from the Port of Montreal over fears of a potential strike, prompting concerns that others may follow in its wake.
Delmar International, a Quebec-based logistics firm that counts 1,500 employees across 17 countries, said all Montreal-bound freight will now flow through the Port of Halifax in a pre-emptive move to curtail fallout from possible job action.
Association spokeswoman Isabelle Pelletier said employers are “very worried” about the consequences of mounting fears that a strike is looming.
“We have strong signals that cargo will be rerouted because of the uncertainty at the Port of Montreal,” she said in an email.
March 5: Lufthansa Cargo Woes Continue as Ver.di Union Vows to Fight On – The Loadstar
Following repeated strikes at its hubs across Germany, Lufthansa is to engage in further negotiations with trade union ver.di.
Ground staff at Lufthansa Cargo have been striking intermittently since the start of the year, calling for a 12.5% increase on their basic salary, among other conditions.
The last round of negotiations between the German carrier and union were on February 21 and proved unsuccessful. The next round is set for March 13 and 14.
If the involved parties again fail to reach an agreement, the head of aircrew alliance at ver.di, Dennis Dacke, warned that ver.di is prepared to up the ante.
March 19: Exporters Nervous as Air Cargo Congestion Builds in Delhi and Mumbai – The Loadstar
Airlines are dealing with considerable cargo backlogs across major international airports in India as volumes spike, according to industry updates.
“The effect has been most [noticeable] at Delhi and Mumbai airports,” a source at Air India said.
The source also noted that ocean trade diversions, in the wake of lingering Red Sea-linked pain points along with the traditional peak season for air cargo during March and April, had caused the acute capacity overhang.
March 6: CN Committed to Milton Logistics Hub Despite Court Ruling – Progressive Railroading
After a Canadian federal court rejected the federal government’s approval of CN’s planned Milton Logistics Hub, the Class I reiterated its commitment to the $250 million project in the Greater Toronto Area.
The court recently ruled that the government failed to settle whether the CN facility will have a harmful impact on air quality and, by extension, human health. The court’s decision sets aside the approval issued by the federal government in January 2021 and sends it back for reconsideration.
Authorization to build the project was subject to Canada’s most extensive environmental review process, resulting in an approval that includes 325 conditions designed to protect both the community and the environment, CN officials said in a press release.
CN officials also said they’re still reviewing the decision. But they reiterated that the project is a critical piece of infrastructure in Canada’s busiest and fastest growing region, where new capacity is needed to meet the growing demand for goods.
March 4: B.C. Container Truckers Will See Rate Increase in July – Today’s Trucking
The Office of the British Columbia Container Trucking Commissioner (OBCCTC) has increased the minimum rates for drivers that move drayage containers to and from the Vancouver ports and within the Lower Mainland.
As of July 1, 2024, independent owner-operators will see a 3.9% increase in wages, while company drivers will receive a minimum of $33.66 per hour.
The change applies to drivers with 2,340 hours of experience, while truckers with less than the required hours of experience will receive a $32.26 per hour rate until they reach 2,340 hours.
March 19: ‘Massive’ Rate Increase Needed to Finance Projected $1 Trillion U.S. Electric Trucking Conversion – Commercial Carrier Journal
Battery electric trucking is an almost $1 trillion proposition, and that doesn’t include the cost of acquisition for the actual trucks, according to a report released by the Clean Freight Coalition, an alliance of truck transportation stakeholders whose founding members include the American Trucking Associations and Truckload Carriers Association, among others.
The report was compiled by Roland Berger, an international management consultancy headquartered in Munich, Germany.
The group pegs full electrification of the U.S. medium- and heavy-commercial truck fleet at a cost of nearly $1 trillion in infrastructure investment alone: upwards of $620 billion from the trucking industry in chargers, site infrastructure and electric service upgrades, and $370 billion from utilities in upgrades to grid networks to meet the surge in demand of just commercial vehicles.
“An industry with a yearly turnover of about $800 billion and a profit margin around 5% cannot invest $620 billion without financial support or a significant increase in freight rates,” said Dr. Wilfried Aulbur, Roland Berger senior partner responsible for the firm’s global commercial vehicle, construction and agricultural business.
March 20: 5,000 Commercial Truck Parking Spaces Needed in Metro Vancouver – Daily Hive
There is a shortfall of 5,000 large parking spaces for oversized commercial trucks across Metro Vancouver, according to the Canadian Trucking Association of BC (CTABC).
This includes the need for 2,000 spaces within Surrey, where many of the region’s truck drivers reside, and where many logistics, warehouse-based and other types of traditional industrial businesses are located.
“The issue has been left unresolved for more than 20 years and the planners and politicians have never shown any real intention to resolve this issue. They need to get this issue resolved in partnership with the industry before it is too late,” said Amit Kumar, the president of the CTABC.
According to the City, a shortfall of available industrial lands in the region has created pressures in the trucking industry in Surrey and other areas within the South of Fraser. Without designated truck parking facilities, there have been growing issues with unpermitted truck parking lots, which create issues such as noise complaints, safety concerns and damage to roads not designed for heavy-duty trucks.
March 21: U.S. FMCSA to End MC Numbers, Overhaul Registration System to Stamp Out Fraud – Overdrive
The U.S. Federal Motor Carrier Safety Administration on March 21 admitted its system for motor carrier, broker and freight forwarder registration and updates has fallen behind and in part enables rampant fraud, while pledging to completely overhaul its verification processes and improve the “customer experience.”
The changes include ending MC numbers and using USDOT numbers as the sole identifier for carriers, brokers, forwarders and others, and also would require some work on the carriers’ part.
Much of the details of the change await finalization, and many will have to wait for a full rulemaking process to take place through publications in the Federal Register, where industry stakeholders can comment. Furthermore, FMCSA plans to hold an “industry stakeholder day” on May 29 to communicate the changes and gather feedback.
The changes are aimed mostly at security and fraud prevention.
March 29: U.S. EPA Announces New Strict Emissions Rule for Heavy Trucks – Commercial Carrier Journal
The U.S. Environmental Protection Agency on March 29 set strict emissions standards for heavy-duty trucks covering model years 2027 through 2032.
The new rules are somewhat more strict than those proposed last year. For example, motor carriers will have more time (2027-2030) to build out a zero-emissions infrastructure, but the flip-side is stronger emissions limits in 2031 and 2032. Under the final rule, roughly 30% of heavy-heavy-duty vocational trucks would need to be zero-emission by 2032 and 40% of regional day cabs.
The EPA Phase 3 rule does not specify any particular emissions solution in its rules, maintaining its promise of a “technology-neutral” approach. However, it will be difficult to hit emissions benchmarks without some integration of either hybrid, battery-electric or hydrogen-electric trucks.
March 13: CIFFA Writes to Minister of Transport Ahead of Budget 2024
CIFFA wrote this week to Pablo Rodriguez, Canada’s Minister of Transport, to “emphasize the importance to our membership of adequate funding for the new Supply Chain office” in the coming budget.
The letter said, in part:
As you will recall, this new organization was one concrete action by your government in response to the disasters which befell Canada’s supply chain during the Covid pandemic and the floods in British Columbia.
The Budget of 2024 will be the first time your government can equip this Office with the resources it needs to have a positive impact, increasing the security and resiliency of our supply chains.
We also recognize that the government is consulting on the development of the National Transportation Supply Chain Strategy and opportunities for collaborative action, and we look forward to seeing the strategy outlined and in place, with concrete deliverables.
March 18: Executive Director’s Statement – Milton Logistics Hub: Oversight or Roadblock?
The year has started with a very upsetting development affecting supply chain fluidity. On March 1, the Federal Court of Canada ruled that it was blocking approval of the CN Logistics Hub planned for Milton, Ontario. Proposed in 2015, the $250-million investment would handle four trains a day, transferring cargo to approximately 800 trucks into or out of the rail yard.
The Federal Court’s decision is especially frustrating because the project had passed through a multi-year environmental assessment as requested by the Minister of Environment and Climate Change Canada. The Minister established 325 legally binding conditions, to protect the environment and human health, which would make this the most stringently regulated hub in North America, all of which were satisfied by CN.
After the licence was issued by the federal government, opponents sued to stop the project and the Federal Court did so, ruling that the assessment was flawed and failed to consider potential health risks relating to air pollution from the diesel fumes. Thankfully, CN has pledged to continue its attempts to develop the Hub.
February 1: Strikes at DPW Ports Across Australia Exacerbating Empty Box Shortage – The Loadstar
Dock worker strikes across Australian ports operated by DP World are amplifying the Red Sea crisis equipment crunch being felt largely in Asia.
Following shipping delays caused by diversions from the Red Sea, empty-container shortages have been reported on high-yielding trades from Asia.
Peter Sundara Swamickannu, head of global ocean freight product at Visy Global Logistics, said: “I think equipment shortage is hitting many of us… Especially in China, we require these containers, but most of the surplus is in Europe.
Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which estimated the cost to the Australian economy at A$86m ($56m) a week.
The Maritime Union of Australia has extended its strike action to February 10.
February 2: Dock Workers Down Under End Strike at DP World – The Loadstar
Australian shipping stakeholders have cause to celebrate as DP World and the Maritime Union of Australia (MUA) have reached an agreement that will end protected industrial action at Australian ports.
Dock workers throughout Australia have been striking since October in a pay dispute against port operator DP World, which it is estimated has cost the Australian economy A$86m (US$56m) a week.
February 6: Ocean Freight Industry Lagging in Digitization, Report Finds – Inside Logistics
A new study has found that 40 percent of ocean freight carriers are not using digital solutions to expedite operations. The report, based on a large-scale survey conducted by ODeX, provides in-depth insights into the operational challenges, adoption of digital documentation and the evolving landscape of maritime logistics.
The survey, which garnered responses from a diverse group of industry professionals, revealed the following findings.
Three quarters of respondents experience operational bottlenecks frequently or occasionally, with 50 percent citing documentation issues as a major challenge. The most common issues included delays, errors and difficulties in obtaining originals. Approximately 30 percent cited logistical challenges such as blank sailings and roll overs as significant bottlenecks. Around 20 percent of participants pointed out delays and complexities related to customs and regulatory compliance.
February 7: Revised Carrier Schedules Bedding-in, Say Shippers, But They See Trouble Ahead – The Loadstar
Amid continuing attacks on commercial shipping by Houthi rebels, scheduling issues caused by re-routing of services away from the Suez Canal and around the Cape of Good Hope (CGH) have begun to stabilize.
Director of Global Shippers Forum James Hookham said: “There was a bit of a lull in ports while the diversions were in place, so there were a lot of ships that didn’t turn up when they were expected to, but they are on their way and they’re starting to arrive.
“We should see stability in schedules and arrivals now – albeit it will take longer for goods to get here – but they should bed down into the new arrangements and start to get back to the regular pattern shippers are expecting.”
February 12: First Rays of Optimism Are Shining on South Africa’s Struggling Ports – The Loadstar
From Durban’s shoreline, the immediate horizon of the Indian Ocean is still decorated with freight vessels on anchorage, waiting for berthing slots in South Africa’s largest port, a legacy of several months’ of port congestion. Although it was hoped the backlog could be cleared by late January, industry experts now say the whole of February is needed to clear the congestion at the country’s eight main ports that has seen shipping rates soar and some major lines pare down port calls.
But in a sector beleaguered by over a decade of difficulties, including neglected infrastructure, aging equipment and a stagnated economy, that maritime horizon looks set to start clearing metaphorically as well as literally, with local industry favourite Michelle Phillips taking the helm as the acting CEO of Transnet National Ports Authority.
“We’ve seen some really good moves from Transnet in recent months, especially with changes to the executive board, which have helped a lot,” said Jacob van Rensburg, R&D head of the South African Association of Freight Forwarders. “It’s very promising and good things are starting to happen, but this is against a backdrop of 10 to 15 years of stagnation, so a lot of hard work is taking place behind the scenes.”
February 15: Ocean Carriers Propose “Feebate” Carbon Levy – The Maritime Executive
The World Shipping Council, the industry body for ocean carriers, has joined the call for a “feebate” bunker tax-and-subsidy program – but with a new twist.
The idea of the “feebate” is straightforward: Fossil bunker consumers pay a levy, and the proceeds are used to subsidize the price of expensive green fuels. This makes green fuels more competitive on the market and paves the way for broader commercial adoption.
The International Chamber of Shipping has proposed what may be the best-known feebate structure. ICS’ levy would start at an initial $20-$40, and would remain at that level until IMO member states vote to raise it, without an automatic mechanism to increase fees over time.
WSC’s bunker levy would start at a comparable level, but would increase automatically to match the expansion of the green-fueled fleet.
February 21: Carriers Still Desperate for Capacity to Guarantee Emergency Schedules – The Loadstar
Ocean carriers are struggling to maintain weekly sailings from Asia to Europe via the Cape of Good Hope routing, despite the delivery of some 425,000 TEU of newbuild capacity this year.
According to an analysis by Alphaliner, the extended voyages are proving a challenge for carriers endeavouring to keep to revised proforma schedules.
“At least two, and preferably three, extra vessels need to be added to each loop to guarantee all scheduled departures,” said the consultant.
However, to plug the gaps in their networks, carriers have adopted a hybrid strategy of adding some extra vessels and speeding-up ships, supplemented by additional sailings with any size ship they can fix on the charter market.
February 23: Carriers Face Chilly Response to Their New Transpacific Contract Rates – The Loadstar
Transpacific container spot rates remain high as the contracting season moves into gear; however, new contract proposals from carriers may get the cold shoulder.
Xeneta’s XSI Asia-U.S. west coast component ticked up 1% last week, to an average of $4,762 per 40ft, which compares with the reading for the same week of last year of just $1,329 per 40ft.
Meanwhile, reversing consecutive weeks of decline, the Freightos Baltic Index (FBX) Asia to U.S. east coast average spot rate increased 3% last week, to an average of $6,764 per 40ft, more than double the spot rate a year ago.
With ocean carriers, BCOs, shippers and freight forwarders assembling in their hundreds for the JoC TPM conference in Long Beach in a week’s time – the traditional start of the transpacific contract season – the lines will believe they are in the perfect position to push for substantial contract rate hikes.
However, anecdotal reports suggest carrier account negotiators at TPM24, endeavouring to persuade customers to sign up for long-term deals, will be in for a challenging few days across the meeting rooms and halls of the Long Beach convention centre.
February 23: U.S. FMC Releases Final Rule on Detention and Demurrage – Supply Chain Dive
The U.S. Federal Maritime Commission released a new rule on detention and demurrage billing practices as part of its compliance with the Ocean Shipping Reform Act of 2022.
Detention and demurrage billing practices were major problems for shippers during the pandemic. Ocean carriers collected about $6.9 billion in detention and demurrage costs from 2020 to 2022, according to the FMC’s final rule shared on February 23.
February 5: January Pushes Air Cargo Volumes Up 10% as Red Sea Conflict and Lunar New Year Combine – American Journal of Transportation
Global air cargo volumes rose by 10% year on year in January as shippers’ concerns over hostilities in the Red Sea and an early Lunar New Year more than compensated for an anticipated post-Christmas drop in ecommerce traffic, according to the latest weekly market analysis by Xeneta.
With plenty of available air cargo capacity in what is traditionally a quieter month for demand, however, fuller cargo holds are yet to translate into higher rates. Globally, general air cargo spot rates in January declined 12% month on month, to an average US$2.27 per kg, consistent with the trend of the global dynamic load factor, which dropped three percentage points to 56% versus December. Xeneta’s dynamic load factor analysis measures air cargo capacity utilization by considering both cargo volume and weight perspectives of cargo flown and capacity available.
Overall, the year-on-year growth of global air cargo market supply slowed down in January, as much of the missing capacity was restored last year.
February 21: Shein, Temu and Other E-Commerce Retailers Are Upending Global Air Cargo Industry – CBC News
The rapid rise of fast-fashion e-commerce retailers such as Shein and Temu is upending the global air cargo industry, as they increasingly vie for limited air-cargo space to woo consumers with rapid delivery times, industry sources say.
Shein, PDD Group’s Temu and ByteDance’s TikTok Shop, which recently launched online shopping in the U.S., ship the majority of their products directly from factories in China to shoppers by air in individually addressed packages.
Shein and Temu together send almost 600,000 packages to the United States every day, according to a June 2023 report by the U.S. Congress, and their growing popularity is boosting air-freight costs from Asian hubs like Guangzhou and Hong Kong, making off-peak seasons almost disappear and causing capacity shortages, the sources said.
According to data aggregated by Cargo Facts Consulting, Temu ships around 4,000 tonnes a day, Shein 5,000 tonnes, Alibaba.com 1,000 tonnes and TikTok 800 tonnes. That equates to around 108 Boeing 777 freighters a day, the consultancy said.
February 20: Canada’s Two Major Railways Could See Strike in May: Teamsters – Today’s Trucking
Tensions between the Teamsters Canada Rail Conference (TCRC) union and railways Canadian National and Canadian Pacific Kansas City (CPKC) are ramping up after the December 31, 2023 expiration of three major collective agreements.
About 9,300 workers at the railways are covered by the agreements.
Negotiations have come to a standstill and CN and CPKC have filed notice of disputes with the federal government, requesting government mediators be appointed. Teamsters points out the notice of dispute starts the legal countdown to a possible strike or lockout, which could come as soon as 81 days after government mediators are appointed. This could lead to a labour disruption as early as May.
February 2: International Student Cap to Squeeze Driving School Enrolment – Today’s Trucking
The federal government on January 22 capped the number of international student permits over the next two years. It will approve approximately 360,000 undergraduate study permits for 2024, a 35% reduction from 2023.
Each province and territory will get permits according to population, and Ontario is likely to see a 50% cut from present numbers.
“Driving schools in Brampton are fed by international students,” said Manan Gupta, regulated Canadian immigration consultant and president of Skylake Immigration based in the city. “Their intake is going to suffer.”
Raj Walia, owner of Trukademy based in Mississauga, Ont., said international students form a large part of trainees at truck driving schools in the area. He added there are schools in Brampton whose trainee intake is 60% to 70% international students, and they will be affected. “It will impact the training business and the overall trucking industry down the road,” he said.
February 2: Lower Mainland Authorities Placed 58% of Inspected Trucks Out of Service in 2023 – Today’s Trucking
Burnaby RCMP’s Traffic Services and 10 partner agencies placed 58% of the commercial vehicles they inspected out of service (OOS) during enforcement operations across the Lower Mainland in British Columbia last year.
Authorities conducted 50 operations in 2023, inspecting 1,715 trucks and placing 999 OOS, according to a news release. The RCMP said there were 3,974 violations recorded and 1,298 tickets issued.
“Though the percentage of trucks placed out of service has inched down slightly this past year, there is still a lot of room for road safety improvement,” Corporal Mike Kalanj with the Burnaby RCMP said in the release.
February 1: CIFFA Selects 2024 Canadian Young Logistics Professionals Award Winner – The Forwarder Blog
Every year, CIFFA offers an award to a young freight forwarder who best demonstrates industry knowledge and skills to become a true international freight forwarding professional in the future.
After a review process of industry experience and a written dissertation demonstrating technical knowledge, CIFFA is pleased to announce that Rashaad Francisco D’Gama Rose of DSV Global Transport and Logistics has been selected as the 2024 Canadian Young Logistics Professionals Award winner.
CIFFA would like to acknowledge the good efforts and exceptional work of the Young Logistics Professionals Award competition runner up, Dhiraj Kochar.
February 9: CIFFA Submission: Supply Chain Regulatory Review
On January 26, CIFFA sent a submission to the Treasury Board Secretariat for its pending Supply Chain Regulatory Review. The review, “Let’s Talk Federal Regulations,” will examine federal regulations and practices, with the goal of supporting supply chain efficiency and resilience.
Following the review, the Government of Canada will develop a Regulatory Roadmap, outlining initiatives to improve the federal regulatory framework to better support economic growth and innovation.
Submissions were due by February 5. CIFFA commented on the issues of Duplication of Reporting Requirements and Weakness of Canadian Competition Legislation.
February 26: CIFFA’s Pre-Budget Submission
CIFFA has submitted, to Deputy Prime Minister Chrystia Freeland, a pre-budget document outlining our key priorities for the upcoming federal budget.
As we approach the next federal budget, our industry is experiencing reduced volumes of freight, owing to a decline in consumer demand due to inflation. The very severe human resource problems that afflicted the shipping sector following the COVID pandemic have somewhat declined, as a result. We see rising investor caution across our sector.
We have often stated that Canada’s supply chains are fragile at best, and frequently nearly broken. There has been ample evidence to support this over the last several years as environmental disasters, a pandemic, labour issues and infrastructure woes, not to mention geopolitical factors, contributed to that fragility.
But as the concept of a fluid supply chain becomes more recognized and championed for its contribution to our country’s GDP, productivity and reputation as a trading nation, we are hopeful that things will improve over the long term for Canadian consumers and businesses.
The Supply Chain Office created by this government is a good indicator that the role of a strong supply chain is supported.
We cannot ignore the weak spots, including the current labour environment, continued climate shocks and an economy with tightened monetary controls. And so we await with great anticipation a budget that recognizes these constraints and addresses concrete solutions.
December 1: Five Carrier CEOs Call for Regulatory Partnership and End to Fossil Fuel Ships – The Maritime Executive
The CEOs of five of the world’s largest shipping companies took the unusual step of joining together to outline a shared vision to accelerate the decarbonization of the global maritime industry. Timed to the conclusion of the UN’s COP 28 conference in Dubai, the executives of CMA CGM, Maersk, MSC, Hapag and Wallenius Wilhelmsen called for cooperation, including an alliance with the International Maritime Organization, and the definitive regulatory measures needed to create the investment conditions critical to accelerating the industry’s green transition.
As four of the largest container shipping companies, along with the leader in vehicle logistics, each of the companies highlights that they have taken steps to drive the transition. They are investing in efforts within their fleets and reiterating their belief that the importance of shipping achieving the IMO’s greenhouse gas targets is very clear.
December 1: Quebec City Longshoremen Reject Mediator’s Recommendation to End Lockout – CUPE press release (translated from French)
At a meeting on December 1, longshoremen at the Port of Quebec voted 70% against the proposal from a mediator. With the holidays approaching and the possibility of a second Christmas on the picket lines, the members rejected the offer as insufficient.
“It’s a … message to the employer that, after 15 months of lockout, there can be no half-deal. The parties need to get back to the bargaining table and find common ground that satisfies both parties,” said Nina Laflamme, CUPE union representative.
The longshoremen have been locked out since September 15, 2022. To carry out the work at the port, the employer uses replacement workers.
December 7: Strike Across Flemish Waterways Disrupts Antwerp Port Operations – The Loadstar
Strikes across Flemish waterways have hit operations at Antwerp – the second biggest container port in Europe.
Action by marine pilots and public service workers, which has spread across Flanders, Belgium, has resulted in lock closures and congestion, as unions VSOA and ACOD respond to reforms to the Flemish civil service statute.
The Port of Antwerp said the industrial action started on December 4, and it was “very hard to predict” how long it would last.
Inchcape Shipping Services (ISS) said on December 7 there were 49 ships waiting for arrival or departure at Antwerp, and raised concern that knock-on effects to wider supply chains could be expected if the strikes continued.
December 7: More Liner Services Avoiding Canals to Head for the Cape – The Loadstar
Confidence in the Panama Canal to process container vessel transits appears to have completely bombed over the past week.
“Multiple carriers have revealed changes to imminent voyages by removing the Panama Canal, signalling a continued loss of confidence in the passage in the weeks to come,” said eeSea operations and forecasting analyst Destine Ozuygur.
However, expectations that this might result in an increase in vessels transiting the Suez Canal have been dented by the recent attacks on commercial shipping by Houthi rebels, off the coast of Yemen.
“It seems many vessels that had originally planned to utilize a divergent route through the Suez Canal are now avoiding the area for fear of the safety of their crew and the vessels,” Ozuygur said. “For the first time in recent memory, we could possibly see a significant downturn of traffic through the Suez and the Panama canals, with a high volume of vessels preferring passage past the Cape of Good Hope.”
December 7: Container Shipping Outlook 2024: Rising Risk of Delays, Disruptions – American Shipper
The supply chain crisis is long over, but America’s importers still have a lot to keep them up at night as they plan for 2024.
Two key container shipping “chokepoints” – the Panama Canal and the Bab-el-Mandeb Strait in the Red Sea – are simultaneously under threat. Container-line financials are under severe pressure, forcing ever more vessel sailings to be canceled. The dockworkers union serving East and Gulf Coast ports is threatening to strike next October. While freight rates are low, concerns over delays in import shipments are high.
For an overview of the disruption risks in the year ahead, and advice on how U.S. importers can mitigate those threats, read this interview with Nerijus Poskus, global head of ocean procurement for Flexport.
December 15: Maersk and Hapag Pause Red Sea Runs as Industry Calls for Immediate Action – The Maritime Executive
Shipping giants Maersk and Hapag-Lloyd both confirmed on December 15 that they have paused all planned transits of the Red Sea and the Bab al-Mandab Strait, while the shipping industry is calling for immediate actions and a stop to the “flagrant breach of international law” that is risking the lives of seafarers and global trade. The actions came after the recent escalation, which saw a missile land close to a Maersk containership on December 14, a confirmed strike on a Hapag vessel on the 15th, and two MSC containerships targeted by the Houthi with one possibly struck.
December 15: Panama Canal Reverses Cuts in Daily Transits and Adjusts Reservations – The Maritime Executive
The Panama Canal Authority is delaying some of the scheduled reductions in daily transits that it was planning to implement starting next month due to slight improvements in the reservoir’s water levels and, at the same time, further adjusting its system for reservations. The changes come as good news for the shipping industry, which is increasingly diverting vessels as the conflict in the Red Sea threatens to choke off a critical alternate route.
The announced changes will restore two slots that had been removed from the daily transits for a total starting in January 2024 of 24 daily transits. The Panama Canal is currently restricted to 22 transits split with six at the Neopanamax locks and 16 at the Panamax locks. The plan called for the number of slots to be lowered to 20 in January and further reduced to 18 in February. The Panama Canal Authority highlights that today’s announcement allows for an increase of six daily slots above the projected low that was scheduled to take effect in about six weeks. It adds 30 percent from the previously announced daily low starting in February.
November’s rainfall was less adverse than projected by the forecasters plus the Panama Canal Authority highlights the positive outcomes of its water-saving measures. They implemented steps ranging from water recycling to short locking to decrease the amount of water lost from each transit.
December 17: OOCL Stops Serving Israel Because of ‘Operational Issues’ – The Maritime Executive
Chinese container carrier OOCL has decided to suspend all shipments to and from Israeli seaports, the company announced on December 16.
“Due to operational issues, OOCL will stop cargo acceptance to and from Israel with immediate effect until further notice,” the firm said in a one-sentence statement on its website.
At least four container lines have abandoned shipping through the Red Sea and the Suez Canal because of the ongoing threat of attack from Houthi forces in northern Yemen. MSC, CMA CGM, Maersk and Hapag-Lloyd have all signaled that they will take the Cape of Good Hope route, avoiding the risk of missile strikes, drone attacks or hijackings near Bab el-Mandeb.
The Houthi movement has threatened to attack any ship carrying cargo to Israel, and the militant group has the full width of the Red Sea in range off Hodeidah. By stopping service to Israel, OOCL appears to satisfy the Houthis’ political conditions for safe passage.
December 19: U.S. Announces Naval Coalition to Defend Red Sea Shipping from Houthi Attacks – The Guardian
The U.S. has announced the creation of an enhanced naval protection force operating in the southern Red Sea in an attempt to ward off mounting attacks from Yemen’s rebel Houthis on merchant shipping.
Britain said it would be among the countries participating, but notable absentees were Arab nations Egypt and Saudi Arabia. Analysts speculated that shipping would continue to be disrupted and attacks continue.
Lloyd Austin, the U.S. defence secretary, said the new effort would be called Operation Prosperity Guardian and was necessary to tackle the “recent escalation in reckless Houthi attacks originating from Yemen.”
Other participants in the effort, Austin said, included Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles and Spain.
December 19: Brace for Increased Shipping Rates as Lines Avoid Red Sea – Inside Logistics
Four of the top five largest container carriers will be avoiding the Red Sea and the Suez Canal until security is restored to the waterway. Together with ZIM, who was already diverting its Red Sea traffic, these carriers represent 56 percent of global capacity, meaning an estimated 17 percent of global volumes will be taking a longer, more expensive route from Asia around the southern coast of Africa.
Container diversions will take an extra seven to 14 days in transit time depending on the lane, and mean a 15 to 20 percent increase in costs for carriers. In addition to longer voyages and higher costs, disruptions to scheduled arrival times could cause congestion at destination ports and some equipment shortages, as empty containers take longer to get back to origin ports.
December 19: Houthi Leaders Vow to Keep Up Attacks on Shipping – The Maritime Executive
After a month of missile and drone attacks by Yemen’s Houthi rebel group, the United States has convened a group of 10 partner nations to assist in restoring maritime security in the Red Sea – but industry players, defence experts and Houthi leaders question whether it will have the desired effect.
“The American-formed coalition is to protect Israel and militarize the sea without any justification, and will not stop Yemen from continuing its legitimate operations in support of Gaza,” said Houthi spokesman Mohammed Abdel-Salam in a statement. “Whoever seeks to expand the conflict must bear the consequences of his actions.”
December 20: Carriers ‘Tear Up Schedules’ in Race to Get Diverted Box Ships to Port – The Loadstar
European and U.S. container ports and forwarders are scrambling to obtain revised ETAs for vessels from Asia that have been rerouted around the Cape of Good Hope.
Meanwhile, there is speculation that ships heading for North Europe may be instructed to increase speed to grab terminal slots ahead of their competitors.
At an average service speed of 18 knots, diverting around Southern Africa will add around 10 days to voyage times to North Europe and could add 15 days to transits to eastern Mediterranean ports. Asia-U.S. east coast services will see voyages extended by approximately seven days.
December 22: Carriers Are ‘Price Gouging,’ Claim Shippers as FAK Rates Skyrocket – The Loadstar
Shippers are accusing Asia-North Europe ocean carriers of ‘price gouging’ as FAK (freight all kinds) rates being quoted for January shipment go through the roof.
The Loadstar has been inundated with messages from shipper contacts who just cannot believe the level of rates being quoted by carriers.
“We expected our rates to be increased next year, but not to this level, and apparently they are non-negotiable,” said one UK-based NVOCC.
“This has cemented their $3,000 January GRIs and more,” said a forwarder contact.
And a shipper contact, importing bulk commodities into the UK from China, said carriers were refusing to accept his heavy boxes, although he said one line had quoted him $3,000 for each 20ft.
“I was only paying $435 per 20ft a month ago,” he said, “I have no hair left!”
December 26: Red Sea Drone and Missile Attacks Continue Undeterred Despite Coalition – The Maritime Executive
Attacks on commercial shipping coming from Yemen continued on December 26, apparently undeterred by the multinational coalition led by the United States. While no vessels reported being hit, the Houthi rebels reiterated that they are targeting Israeli shipping interests and ships trading with Israel.
U.S. Central Command reported that U.S. forces shot down 12 one-way attack drones, three anti-ship ballistic missiles and two land attack cruise missiles over a 10-hour period on December 26.
The U.S. Pentagon asserted that more than 100 drones and missiles have been launched against commercial ships from 35 nations.
December 14: Shippers and Forwarders Expected to Target Longer-Term Deals in 2024 – Air Cargo News
Shippers and forwarders are returning to longer-term and fixed-capacity agreements as the air cargo market continues to normalize.
In a recent market update, Flexport vice president and global head of airfreight Zeid Houssami said that this switch to longer fixed-capacity contracts was partly driven by the rise of e-commerce demand, with some companies looking to secure predictability in terms of cost and speed.
The switch is also driven by improving shipper confidence that next year’s market will be more predictable and consistent as supply and demand is more balanced.
December 19: New Calgary Airport Property Owner Shifts Focus to Air Cargo – American Shipper
A jungle gym, indoor go-kart track and other mismatched businesses will eventually be moved out of a logistics complex at Calgary International Airport to make way for cargo operators that can utilize the airside access for its intended purpose – moving commerce – according to the property’s new owner.
Realterm, a global investment manager focused on logistics infrastructure and a developer of cargo real estate at airports, last week announced it had acquired control of more than 502,000 square feet of industrial property adjacent to the Calgary airfield.
Three of the five buildings in the logistics centre sit along the tarmac and have the capability to host freighter aircraft. In the 13 to 15 years since they were built, none of the facilities have had dedicated air cargo tenants, said Alexi Lachambre, Realterm’s vice president of investments.
December 20: Exporters Explore Air Freight Options as Red Sea Chaos Deepens – Yahoo Finance
Exporters are scrambling to find ways to get key consumer goods to buyers, including by air, as a wave of attacks in the Red Sea adds to ocean freight supply chain problems.
Companies are now trying to switch to intermodal transport to maintain global supply chains, which involves a combined sea and air route, said Jan Kleine-Lasthues, Chief Operating Officer, Airfreight with German freight forwarder Hellmann Worldwide Logistics.
That means goods being transported first by sea to a port in Dubai, from where they are moved by air freight, he said.
“This alternative route allows customers to avoid the danger zone in the Red Sea and the long voyage around the southern tip of Africa,” Kleine-Lasthues told Reuters.
December 28: Airfreight Rates Bounce Back to 50% Above Pre-COVID Levels – Air Cargo Week
Preliminary figures for week 50 (December 11 to 17) indicate that global tonnages and average worldwide rates were stable compared with the previous week, after recovering more quickly than last year from the seasonal post-Thanksgiving dip last month, based on the more than 400,000 weekly transactions covered by WorldACD’s data.
Comparing weeks 49 and 50 this year with the preceding two weeks (2Wo2W), overall tonnages increased 1%, and overall global average rates continued to rise, by 2%, with capacity up 1%. The figures indicate that demand and pricing are levelling off, as they usually do in the second half of December, after rallying in the last three months.
Although the main driver for the recent increases has been a surge in tonnages and rates ex-Asia Pacific, especially China, volumes ex-Asia Pacific have now flattened, although there have still been some modest rises in average rates ex-Asia Pacific, especially to North America (+4%), on a 2Wo2W basis.
December 7: CN to Acquire Iowa Northern Railway – Progressive Railroading
CN has signed and closed an agreement to acquire Iowa Northern Railway (IANR), which operates 275 track miles in Iowa connecting to CN’s U.S. rail network.
The transaction closed into an independent voting trust pending regulatory review of the transaction by the Surface Transportation Board (STB), CN officials said in a press release. An STB decision on the acquisition is expected in 2024, according to CN.
IANR serves upper Midwest agricultural and industrial markets covering many goods, including biofuels and grain. The transaction creates single-line service to North American destinations, while preserving access to existing carrier options, CN officials said.
December 1: Truck Drivers Want More Training, MELT Falling Short: Survey – Today’s Trucking
Surveyed Canadian truckers want future truck drivers to undergo substantially more training than they did themselves, with almost half expressing concerns about mandatory entry-level training (MELT) requirements.
Fifty-one percent of those who responded to a survey said mandatory entry-level training has failed to improve the quality of entry-level truck drivers.
Twenty-six percent said students should complete up to 125 hours of formal training before being licensed to drive, while 12% set the benchmark at 125-149 hours, 29% at 150-299 hours, 18% at 300-599 hours, and 15% at 600 hours or more.
In contrast, 59% of those who were surveyed received less than 100 hours of formal training before being licensed themselves.
December 15: Teamsters, B.C. Container Commissioner Square Off – Today’s Trucking
The Office of B.C. Container Trucking Commissioner (OBCCTC) and unionized trucking companies in Greater Vancouver are in heated debates over a new policy that applies port rates to off-dock trucking.
OBCCTC believes this is the way to achieve stability and equal driver pay in the Lower Mainland.
But the Teamsters, who represent both licensed and unlicensed companies, say that enforcing regulated port rates for non-port work exceeds OBCCTC’s jurisdiction, causing financial issues for licensed trucking companies and putting unionized jobs and business stability at risk. According to a recent Teamsters press release, unlicensed trucking companies that are not paying port rates ‘can swoop in and undercut the unionized competition.’
December 15: B.C. Pilots Vehicle-to-Grid Bidirectional Charging – Today’s Trucking
Lion Electric is one of several companies that are participating in a B.C. pilot project aimed at providing the feasibility of vehicle-to-grid (V2G) technology, in which electric vehicles not only draw from, but also return unused electricity to the grid.
The project is led by Coast to Coast Experiences (CTCE), which says this is Canada’s first vehicle-to-grid pilot project for medium- and heavy-duty vehicles.
Fleet owners will be able to monetize their electric vehicles by selling power back to the utility using V2G technology.
December 7: CIFFA to Appear Before House of Commons’ Standing Committee on International Trade
CIFFA was asked by the House of Commons’ Standing Committee on International Trade to appear on December 7 as part of a panel of witnesses in view of its study The 2023 strike at the Port of Vancouver: Selected Impacts, Responses and Port-related Innovation. CIFFA’s Executive Director Bruce Rodgers and Director, Policy and Regulatory Affairs Julia Kuzeljevich appeared before the committee.
December 19: CIFFA Signs MOU with Pledge Earth Technologies
CIFFA recently signed a memorandum of understanding with Pledge Earth Technologies Ltd., a carbon-emissions measurement and offsetting platform.
This new partnership will provide research documents for member benefit, as well as informational webinars to educate members in the new year.
Pledge offers software solutions to empower logistics service providers to support their clients in meeting their sustainability goals. It provides accessibility and transparency to freight emissions measurement, reporting and offsetting, allowing businesses to offer these services without increasing operational costs. To learn more, visit www.pledge.io.
November 3: Maersk Cutting 10,000 Jobs in Face of ‘Worsening Market Conditions’ – American Shipper
Maersk revealed on November 3 that it is “intensifying” job cuts in light of the “worsening market conditions” in ocean shipping.
“Given the challenging times ahead, we accelerated several cost and cash containment measures,” said Vincent Clerc, CEO of A.P. Moller-Maersk.
“We are in a very uncertain trading environment with significant further downside risk potential – one that could stay with us for quite a while,” Clerc said on a call with analysts.
Maersk began the year with 110,000 global employees. Year to date, it has cut 6,500 jobs, which it had not previously disclosed. It has now decided to cut a further 3,500 jobs, including 2,500 by year-end and 1,000 in 2024. The total reduction – 10,000 layoffs – will reduce the company’s global headcount by 9%.
November 8: MSC and Maersk Unwind Transatlantic Fleets as Rates Hit New Low – The Loadstar
The unravelling of MSC and Maersk’s 2M vessel-sharing alliance (VSA) fleet is continuing ahead of the termination of the east-west trades cooperation, slated for early 2025.
Alphaliner said the 2M partners were “increasingly moving away from services run with a mixed fleet of vessels.”
The consultant said the embattled transatlantic tradelane was the latest 2M route to be split into services operated individually by the partners, thereby making the dissolution of the alliance smoother, and allowing the VSA to be ended by mutual consent earlier than planned.
November 8: $4 Million Lets Shipper Cut to Front of Line at Panama Canal – Transport Topics
A shipper has paid nearly $4 million to jump to the front of the line at the congested Panama Canal waterway, a record high.
Japan’s Eneos Group paid $3.975 million in an auction on November 8 to secure the crossing, bidding documents show. That comes on top of the regular transit fees companies pay, which can be hundreds of thousands of dollars more.
A queue of ships waiting to use the canal has been growing in recent months amid a deep drought. To manage the situation, the canal’s managing authority has announced increasingly drastic restrictions for the depleted thoroughfare. It also lets companies bid on the chance to speed things up and move to the front of the line. Last month, the Panama Canal Authority held 140 auctions, it said. Three of those came in above $1 million.
November 10: Ocean Carriers Are Driving the Rates Race to the Bottom – ‘They’re All at It’ – The Loadstar
Carriers are themselves driving the rates ‘race to the bottom’ they warned would lead to a “dire situation” in 2024 – Maersk singled out as one of the worst offenders.
Announcing the group’s third-quarter flop, the Danish carrier’s CEO Vincent Clerc told investors that, without an uptick on the spot market in the final three months, the coming year would prove difficult for ocean shipping.
His comments, though, received sharp shrift from the wider supply chain, with Rhenus’s head of ocean freight for the Americas, Stephanie Loomis, describing them as “comical.”
She noted on social media: “I find it comical that Clerc is warning of a ‘dire’ situation if rate levels did not improve before the end of the year. These under-market Maersk offers keep ‘showing up’ in co-loaders’ rate sheets, week after week.”
But Maersk is not the only carrier behaving like this: sources claim “they are all at it.”
November 10: ‘Cybersecurity Incident’ Prompts Shutdown of DP World Australia Terminals – The Maritime Executive
DP World, one of the largest terminal operators in Australia, reported on November 10, that the company had suspended all port terminal operations due to what it is calling a “cybersecurity incident.”
“Our teams are working diligently to contain the situation and determine the impact on our systems and data,” DP World Australia said in a statement. The company reports that it is engaging with cybersecurity experts and notifying the relevant authorities while continuing to investigate the scope of the breach.
The work stoppage was reportedly launched for all shoreside operations at the company’s terminals in Sydney, Melbourne, Brisbane and Fremantle after the breach was discovered on that day.
November 13: DP World Hack: Port Operator Gradually Restarting Operations Around Australia After Cyberattack – The Guardian
Australia’s biggest ports operator, which has been the target of a cyberattack, has begun gradually restarting its operations, but key exports could be subject to prolonged delays.
DP World Australia closed its Sydney, Melbourne, Brisbane and Fremantle port operations after detecting the breach on November 10, leaving cargo and containers stuck on the docks.
The company disconnected its internet, which stopped ongoing unauthorized access to its network. This also resulted in key systems linked to its port operations not functioning normally.
November 20: Durban Warns It Could Take 15 Weeks to Clear Backlog as 60 Ships Wait – The Maritime Executive
Port officials in South Africa are reporting it is likely to take until 2024 and possibly till February to clear the current congestion that has built up at the container port in Durban.
Consistently at the bottom of port rankings for efficiency, Durban is facing a crisis, with more than 60 vessels reportedly waiting offshore and importers now saying they will not have expected merchandise in time for Christmas.
November 21: More Surcharges Loom for Shippers as Panama Canal Restrictions Tighten – The Loadstar
French carrier CMA CGM is set to become the first major carrier to apply a new surcharge on shipments transiting the Panama Canal, in response to the ongoing capacity reductions.
The shipping line said the series of reduced capacity measures introduced by the waterway authority this year – and forecast to continue into 2024 – are pushing up its costs.
“The lack of precipitation over the summer has forced the Panama Canal Authority to reduce the number of vessels transiting a day. As a consequence, by 1 January, booking windows for transiting the canal’s neopanamax locks will be reduced by 30%.
“These restrictions, combined with an increase in the canal tariff implemented earlier in the year, are taking a severe toll on CMA CGM’s operations,” it said.
November 21: Global Shipping’s $3.6 Billion Carbon Bill is Six Weeks Away – The Uncontained
Ships sailing to European ports face a combined carbon emissions bill of $3.6 billion next year, the start of a levy that’s almost certainly going to rise as the continent steps up efforts to combat climate change.
The figure is an estimate of the total price of complying with the European Union’s Emissions Trading System from Drewry Shipping Consultants Ltd.
Under the regulation, which takes effect January 1, vessels going into and out of EU ports must pay for their carbon pollution.
The global shipping industry spewed more than a billion tons of CO2 into the atmosphere in 2018 and is almost exclusively powered by oil-derived fuels, which are significantly cheaper than low-carbon alternatives. Folding it into the ETS is part of the EU’s plan to decarbonize the sector to combat climate change.
November 22: More Shipping Lines Set to Plunge into Losses in Q4 – The Loadstar
Ocean carrier operational profits fell below pre-pandemic levels in the third quarter – and results for Q4 are likely to be a whole lot worse.
Alphaliner’s assessment of the reported earnings before interest and tax (EBIT) of the nine largest carriers saw the average operating margin fall to 1.5% in Q3, which was lower than recorded in any of the quarters in 2019.
November 24: Ashcroft Terminal and Vancouver Fraser Port Authority Partner to Increase Supply Chain Resiliency – American Journal of Transportation
Ashcroft Terminal Ltd. and the Vancouver Fraser Port Authority have signed a letter of intent concerning a long-term arrangement for the transportation of Canadian imports and exports. The organizations will work together to invest in, build and operate rail infrastructure at Ashcroft Terminal to reduce congestion within the Port of Vancouver, support capacity growth and enhance resiliency within the critical Asia-Pacific Gateway trade corridor. This partnership is expected to advance the efficient movement of imports and exports in Western Canada and help deliver goods to market faster.
Ashcroft Terminal Ltd. – an inland terminal located approximately 300 kilometres east of Vancouver – will provide infrastructure to supply railcar storage and staging for improved resiliency and cargo fluidity along the Asia-Pacific Gateway Corridor. This will help remove bottlenecks along this major transportation corridor. The parties anticipate the railcar storage program to be operational by fall 2024.
November 24: ‘Dire’ Scenario for Shipping Lines More Likely as Spot Rates Fall Back – American Shipper
There’s a lot at stake for container lines’ 2024 bottom lines in the last few weeks of 2023. If lines can’t push up spot rates very soon, next year’s annual contract rates will reset much lower versus this year’s.
That scenario – which would have a very negative financial effect on liners – looks increasingly likely. Time is running out for a fourth-quarter rebound, and indexes show spot rates falling, not rising.
Shipping lines’ attempts to use general rate increases (GRI) this month to improve their negotiating hand for annual contract resets have failed. They have one last chance in December, but their track record of getting GRIs to stick has been poor.
November 28: The Panama Canal Is So Backed Up Ships Are Rerouting Through the Suez – American Journal of Transportation
A bottleneck at the Panama Canal due to low water levels has prompted shippers to divert to the Suez Canal, the Cape of Good Hope or even through the Strait of Magellan off the tip of South America.
The Panama Canal Authority, which normally handles about 36 ships a day, announced on October 30 that it will gradually reduce the number of vessels to 18 a day by February 1 to conserve water heading into the dry season. Panama had the driest October on record due to a drought caused by the El Niño weather phenomenon, the authority said.
November 10: Flights Get Longer as Airlines Are Forced to Skirt War Zones – American Journal of Transportation
The Middle East has long been a global crossroads for air travel, with hundreds of aircraft bisecting the region every day on long-distance journeys connecting the U.S., Europe and Asia.
Plying those routes has become more challenging, with rising tensions forcing airlines to curtail services as a safety precaution. The war between Israel and Hamas, in a region already studded with hot zones, has added to the complications of flying between east and west.
That’s after Russia’s invasion of Ukraine already added hours to many journeys by shutting down vast airspace to many transnational operators – including the Great Circle routes through Siberia, a popular gateway between the continents.
Each extra hour of flight added $7,227 to the variable cost of a typical widebody journey in 2021, based on Federal Aviation Administration estimates. Expenses such as fuel and labour have only increased since then, said John Gradek, an expert on aviation operations and lecturer at McGill University in Montreal.
November 10: Cargojet to Sell Off New B757 Freighters, Pause 767 Conversions – American Shipper
Cargojet, which operates a nationwide air cargo network in Canada for e-commerce express companies plus international services, is moving more aggressively to cap fleet growth and preserve strong cash flows in response to the continued slowdown in shipping demand.
The airfreight specialist has a surplus of Boeing 757 converted freighters and recently listed four of them for sale. The planes were recently converted and had their engines overhauled.
The move follows an earlier decision not to proceed with converting four 777-300 passenger jets.
November 13: Pricing Index Shows Airfreight Rates Creeping Steadily Upwards – Air Cargo Eye
The August to September uptick on airfreight rates on major Asia-outbound lanes is gradually continuing, pricing analysts say.
Nevertheless, there was little change in the first week of November, according to the latest data from air cargo pricing monitor TAC Index.
The Baltic Air Freight Index (BAI) was overall slightly lower, down by 0.5 percent, in the week to November 6, leaving its year-on-year change at 28.8 percent down – but with the ‘firmer tone’ of peak season generally continuing, a statement says.
Rates on the biggest air cargo routes out of China continued to climb during the week.
November 16: WestJet Cargo and Flexport Collaborate on Airfreight Solutions to Asia – American Journal of Transportation
WestJet Cargo has signed an agreement with Flexport to offer new airfreight solutions for Canadian exports into Asia.
Under the agreement, WestJet Cargo will deliver Canadian cargo to O’Hare International Airport (ORD), where Flexport operates dedicated freighters from the U.S. to key air freight hubs in Asia, including Incheon International Airport (ICN), Shanghai Pudong International Airport (PVG) and Hong Kong International Airport (HKG), effectively expanding the global reach for WestJet Cargo and its customers.
November 8: CN Announces New Intermodal Service to Port of Gulfport – CN press release
CN has signed a memorandum of understanding (MOU) with the Mississippi State Port Authority at Gulfport and Ports America establishing a new intermodal service. The trial run of the service will launch in the coming weeks.
The goals of the MOU include identification and development of a best-practices vision through productivity improvements for the supply chain, and collaboration in implementing those supply chain improvements to leverage and increase market share.
November 3: 70% of Drivers in U.S. Violate Hours-of-Service Regulations Due to Lack of Parking: ATA – Transport Routier (translated from French)
The American Trucking Associations (ATA) and its 50 affiliated organizations are calling on the governors of every state in the U.S. to put truck parking at the top of their infrastructure spending priorities.
In a press release, the ATA said the lack of parking spaces for truckers has been a long-standing concern of the industry, adding that it raises safety issues that affect all road users.
The association also cites a study by the U.S. Department of Transportation, which found that 98% of truck drivers regularly struggle to find a safe place to stop and rest, often forced to park at unsafe or outright illegal sites. That’s 23% more than four years ago.
Even more worrisome, 70% of drivers have been forced to violate federal hours-of-service rules because of these all-too-common situations, the ATA said.
November 8: Truck Drivers Still Eligible for Express Entry After List Removal: IRCC – Today’s Trucking
Transport truck drivers remain eligible for Canada’s Express Entry immigration program for skilled workers, but may find it a bit tougher to secure permanent residence status under changes made by Immigration, Refugees and Citizenship Canada (IRCC).
An IRCC administrative update has removed National Occupational Classification Code 73300 for transport truck drivers from the list of occupations eligible for a Certificate of Qualification (CoQ) – a criterion that helped boost scores in the permanent resident application process.
“It has been determined that transport truck drivers do not have a CoQ-equivalent certification that some other tradespeople have [e.g. carpenters, welders, etc.]. Therefore, IRCC has removed the occupation from this list,” said an IRCC official.
November 14: Heightened Cargo Theft Trends Continue in Q3 – FleetOwner
In a trend that shows no signs of slowing, cargo theft for the third quarter of 2023 increased 59% year-over-year after comparable increases in quarters one and two, according to a report from freight security network CargoNet.
CargoNet recorded 692 instances of theft across the U.S. and Canada last quarter, largely as part of a continuing trend of shipment misdirection attacks, a type of fraud in which thieves use stolen motor carrier or broker identities to obtain freight. In total, thieves stole over $31.1 million in shipments in the third quarter of 2023.
November 15: FMCSA Issues Final Rule for Brokers, Forwarders – Trucking Dive
The Federal Motor Carrier Safety Administration released details on a final rule to help ensure brokers and freight forwarders have sufficient money posted to compensate carriers.
The rule sets parameters on what forms of security would be eligible and ineligible. Brokers and freight forwarders with financial security falling below $75,000 could have their operating authority suspended.
“This rule will result in benefits to motor carriers,” the agency said, noting it’s seeking to address how some brokers withhold payments to motor carriers. Provisions of the rule go into effect on January 16, 2025 and a year later.
November 30: Congestion in U.S. Cost Truckers Nearly $100 Billion in 2021 – DC Velocity
If you’ve been thinking highways are more crowded these days, you’re right. After dropping during the pandemic years, traffic congestion has returned with a vengeance, creating snarls and delays throughout the U.S.
And those delays are costing the trucking industry a bundle. According to the American Transportation Research Institute (ATRI), the nonprofit research arm of the American Trucking Associations (ATA), traffic congestion on U.S. highways added $94.6 billion in costs to the trucking industry in 2021. That represents the highest level in six years, according to the institute’s latest “Cost of Congestion” study.
September 5: Ocean Carriers’ Record Rejections Are Last-Ditch Effort to Bolster Spot Rates – American Shipper
Back in May, American Shipper warned that a second-half rebound in U.S. containerized import volumes was highly unlikely, as it was becoming increasingly clear that importers were facing a clear shift in consumer spending (from discretionary goods to more essential goods) and a nagging surplus of inventories that were carried over from last year. The reverse bullwhip effect was clearly going to crack any chances of a robust peak season. It also warned that this dismal outlook for future U.S. import demand may drive carriers to go to extreme lengths to keep upward pressure on spot rates.
Fast-forward to today and the tide is indeed turning quickly, with recent data from SONAR’s Container Atlas showing new booking volumes plummeting over 35% from their peak reached on August 1, a key indicator that U.S. import demand is rapidly deteriorating. While this significant drop in future demand is undoubtedly increasing the downward pressure on spot rates, ocean carriers have been pulling out all of the stops to help offset this downward pressure. This means going beyond blank sailings and rejecting a record amount of U.S.-bound containers in a seemingly desperate, last-ditch attempt to bolster spot rates ahead of (and after) their proposed general rate increase on September 1.
September 6: Cars in Containers the Norm as Ro-Ro Sector Capacity Crunch Continues – Seatrade Maritime News
Lack of capacity and congestion in the car carrier sector has driven some freight forwarders and manufacturers to move cars in containers rather than delay exports until space becomes available.
However, differences between insurers on the questions of safety and the movement of cars in containers, particularly electric vehicles (EVs), have emerged following the publication by the International Union of Marine Insurance (IUMI) of the findings of a recent study.
Soaring freight rates, congestion and a lack of ro-ro capacity have seen delays of up to three months or more in the shipment of cars, as sky-high demand adds to the sector’s problems.
One freight forwarder who specializes in the handling of cars said, “The cost of moving cars in containers is on a par with ro-ro because, although the freight is cheaper, the cost of loading and unloading containers is greater.”
September 7: MSC-Zim Alliance Strengthens, with VSAs ‘Across Multiple Trades’ – The Loadstar
The world’s largest container line, MSC, is joining in an alliance with tenth-ranked Zim across “multiple trades,” as both carriers prepare for life outside their cooperation with Maersk within the 2M Alliance.
The Israeli carrier said it had made “a new operational agreement with MSC, encompassing several trades.”
Zim explained: “The cooperation scope includes services connecting the Indian subcontinent with the east Mediterranean, the east Mediterranean with Northern Europe and services connecting East Asia with Oceania.”
It added that the agreements included vessel sharing, slot purchases and slot swap arrangements.
September 7: Time to Start Worrying Again About Rising Cost of Ship Fuel – American Shipper
At this time four years ago, before the pandemic and the Ukraine-Russia war stole the headlines, the cost of fuel was the big topic in shipping.
The industry was about to implement a sweeping new global regulation, IMO 2020, requiring the use of more environmentally friendly and more expensive very low sulfur fuel oil (VLSFO), with a sulfur content of 0.5%. Added fuel costs would be passed along to cargo shippers, and ultimately, consumers.
Fuel costs spiked as predicted after the regulation went into force on January 1, 2020. Then COVID struck. Demand for gasoline and diesel collapsed, the price of oil plunged, and with it, the cost of ship fuel. By mid-2020, vessel fuel was 30% cheaper than it was prior to IMO 2020. Fears over regulatory fallout waned.
Now, ship fuel costs are rising yet again. The cost of VLSFO is back near highs reached soon after the IMO 2020 first came into effect. Bunker adjustment factors (BAFs) – the fuel surcharges shipping lines levy on their customers – are headed up. And the cost of freight is all the way back down to where it was before COVID – and before IMO 2020 – meaning the pass-along cost to shippers from expensive VLSFO is now a much higher proportion of their total cost.
September 14: Montreal Dockworkers Union Says Changes Made to Hiring List Criticized as Nepotistic – CBC News
The union representing dockworkers at the Port of Montreal says it has ended a long-standing hiring practice that has been criticized for fostering nepotism – to the point where workers’ preschool offspring were placed on a list of potential employees.
For decades, the association of shipping companies that use the port has hired longshore workers from a list supplied by the union – a list created by asking each union member to provide a single name.
But the Maritime Employers Association has argued the list is a recipe for nepotism, resulting in few women candidates or members of ethnic minorities, but in some instances children who were barely out of diapers.
In April, a labour arbitrator ordered a series of changes after finding it was impossible for people to get their names on the list unless they were related to current dockworkers.
September 18: Box Lines Hit by Rising Fuel Costs as OPEC Cuts Supply – The Loadstar
As global freight rates continue to fall, container shipping lines are being hit by a huge spike in fuel costs.
This will inflict further damage on the bottom line of the financials of weaker carriers already challenged by second-quarter losses.
According to Ship & Bunker data, the price of Rotterdam-sourced industry-standard low-sulphur fuel (VLSFO) jumped on September 15 by another $8 per ton to $643 and has now increased by 22% since the end of June.
In theory, carriers have fuel cost mechanisms in place to adjust bunker surcharge amounts payable by shippers, but in practice some lines have waived increases within the heavily discounted period of the past few weeks.
September 21: Container Shipping Rates Sinking Further into the Red – American Shipper
It’s not looking good for container shipping lines. Peak season is running out of whatever limited steam it previously had. Spot rates are sliding into loss-making territory.
Rates “continue to lose ground, bending under the pressure of insufficient demand and growing overcapacity,” said Alphaliner.
According to Linerlytica, “Container market sentiment continues to deteriorate, with freight rates still slipping and little prospect for a rate rebound in October despite carriers’ efforts to contain capacity availability through blanked [canceled] sailings.”
September 25: Transport Committee Calls for Thorough Review of Canadian Ports – National Newswatch
The government needs to conduct a thorough review of the capacity of Canadian ports and their long-term infrastructure requirements, says the Commons transport committee.
In a 26-page report to the Commons, the committee made 12 recommendations for the government to act on to ensure the 17 Canada Port Authorities (CPA) can fulfill their critical role in handling exports and imports. The Conservatives and NDP offered some additional suggestions.
In addition to the review, the government should reduce red tape and regulatory burdens on the CPAs as much as possible to ensure a more timely, predictable review process for large port infrastructure and expansion projects, the report said.
September 26: As Canadian Shoppers Tighten Their Belts, Vancouver Port Shipments Plummet – CBC News
The number of shipping containers passing through Canada’s largest port fell sharply in the first half of the year, driven down by weaker consumer demand and a sputtering economy.
Container volumes at the Port of Vancouver fell 14 percent in the first six months of 2023 compared with the same period a year earlier, the Vancouver Fraser Port Authority said on September 25.
In a phone interview, interim CEO Victor Pang said the figures reflected a stalling economy, which contracted slightly in the second quarter.
“There’s some economic softness, overall and for Canada. And you’re seeing that through our container numbers,” Pang said, noting that the decline was not unique to Canadian ports.
September 29: B.C. Mayor Sounds Alarm over ‘Rampant’ Crime at Local Port as Expansion Looms – CBC News
The federal government’s failure to fund a police force dedicated to Canada’s ports is a threat to national security that needs to be dealt with immediately, says Delta, B.C., Mayor George Harvie.
Delta is home to the Roberts Bank Terminal, and expansion plans over the coming years will see millions more containers move through the Port of Vancouver annually.
Harvie says Canada’s ports are the federal government’s responsibility, but the “total absence” of uniformed police at the facilities makes them obvious targets for criminal elements to set up shop, from Mexican drug cartels to biker gangs.
“We’re witnessing a relentless flow of illegal drugs, weapons and contraband into Canada through our ports and that threatens our national security,” said Harvie.
The City of Delta released a report on September 28 that it had commissioned about policing of Metro Vancouver port terminal facilities that says there’s “literally no downside” for organized criminals to set up shop. “Recently, ports scored very high in British Columbia’s provincial threat assessment with respect to the potential for infiltration and corruption,” the report says.
September 30: Panama Canal Trims Vessel Passage Quota Again to Deal with Severe Drought – Reuters
Daily ship crossings on the Panama Canal will be reduced to 31 from 32 to soften the impact from a severe drought that is expected to last until next year, the authorities managing the canal said.
The Panama Canal Authority (ACP) in recent months has imposed various passage restrictions to conserve water, including cutting vessel draft and daily passage authorizations, which are normally 36 per day.
ACP said on September 29 that, due to the ongoing water crisis, it “finds it necessary to implement additional changes,” with the new rules implemented from November 1.
September 6: Why It’s Time for Shippers to Re-evaluate Their Air Cargo Agreements – Supply Chain Dive
With air cargo demand stabilizing and capacity up, shippers are re-evaluating contracts as air freight rates drop, industry executives say.
Following COVID-19’s capacity-strapped market, which put air carriers in the driver’s seat, shippers are now in a position to negotiate their rates, said Hellmann Worldwide Logistics Airfreight COO Jan Kleine-Lasthues.
“I believe we will see more and more RFQs coming out and shippers [trying] to secure the low rate level which we have at the moment for a longer period,” Kleine-Lasthues said. He anticipated possible contract agreements of six to 12 months.
September 22: Air Cargo Tonnages and Rates on the Rise – Air Cargo Week
Global air cargo tonnages showed a positive development in the second full week of September, after stabilizing at the beginning of the month, with average rates also on an upward trend, reaching $2.31 per kilo, according to the latest figures from WorldACD Market Data.
Figures for week 37 (September 11 to 17) show a jump in tonnages of 4%, compared with the previous week, while average worldwide air cargo prices increased slightly (+1%), based on the more than 400,000 weekly transactions covered by WorldACD’s data.
September 11: CN and Norfolk Southern Unveil Domestic Intermodal Service – FreightWaves
Canadian National and Norfolk Southern are pairing up to launch a domestic intermodal service that they say will allow customers in CN-served markets in Canada and the Upper Midwest to access markets in the U.S. Southeast.
The service, which will start October 2, will utilize steel-wheel interchanges in Detroit and Chicago and enable CN customers to gain access to markets in Atlanta and Kansas City, Missouri, via NS.
The two Class I railroads say the new service aims to operate “like a single-line intermodal product” and convert shippers from truck to long-haul rail. The service will also provide opportunities for customers to optimize their cargo loaded weights and give customers the ability to lower their shipment-related greenhouse gas emissions.
According to a webpage about the service, going between Atlanta and Toronto might take 3.3 to 3.7 days in transit time, while going between Atlanta and Calgary might take 7.1 days.
CN and NS’ service follows another partnership that CN has with other major freight railroads: the Falcon Premium service between CN, Union Pacific and Mexico’s Ferromex, established in the spring.
September 26: Canada’s Railways Mark Progress in Emissions Reduction Efforts – Progressive Railroading
The Railway Association of Canada’s latest Locomotive Emissions Monitoring (LEM) report confirms that greenhouse-gas (GHG) emission intensities improved across all railway operations, the association announced on September 25.
In 2021, the latest year available for LEM data, GHG emissions intensity for freight-rail traffic decreased 1.2%. Total freight-rail GHG emissions intensity has fallen 25.9% since 2005 while traffic rose 25.5% in that same period, RAC officials said in a news release.
September 13: CleanBC Heavy-duty Vehicle Efficiency Program Unveils Next Intake: Offers Carriers Rebates for Fuel Efficiency Upgrades – BCTA press release
The CleanBC Heavy-duty Vehicle Efficiency (HDVE) Program, administered by the British Columbia Trucking Association (BCTA) and funded by the Government of B.C., announces the launch of its latest intake. Designed to promote sustainable transportation practices, reduce emissions and provide economic benefits to carriers, the CleanBC HDVE Program offers an outstanding opportunity for carriers to enhance their fleets’ efficiency while contributing to a greener future.
Under the program, eligible carriers are empowered with fuel-management strategies that align with the province’s commitment to environmental stewardship. The HDVE Program also includes a rebate system, providing carriers with a financial incentive to adopt fuel-efficient technologies. Carriers can receive rebates of up to $20,000 per vehicle, and an impressive $150,000 per fleet for the purchase and installation of approved fuel-efficient equipment.
September 18: Truck Drivers Among First Round of Express Entry Invitations for Transport Occupations – Today’s Trucking
Marc Miller, Minister of Immigration, Refugees and Citizenship, announced that the first round of invitations for transport occupations through category-based selection in Express Entry will occur this week. This focus on candidates with experience in the transport sector – including commercial truck drivers, pilots and aircraft assembly workers – will help the sector attract the skilled talent it needs across the country, according to a news release.
“The transportation sector is crucial to our economy, and if we want to keep things moving, we need to invest in the people that move travellers and transport our goods,” said Pablo Rodriguez, Minister of Transport.
“With this new initiative, we are helping address a critical skills shortage while also attracting new, talented people to communities across Canada. Truck drivers, pilots, aviation mechanical engineers and seafarers play a critical role in our economy and Canadians’ lives. Filling vacancies in these professions will boost economic growth and create stronger and more resilient supply chains,” he added.
These category-based selection rounds will continue throughout the year, alongside general and program-specific invitation rounds.
September 20: Illegally Parked Trucks, Dropped Trailers Add to Parking Woes in Ontario’s Peel Region – Today’s Trucking
Out-of-town truck drivers trying to find parking spots at the handful of available places in Ontario’s trucking heartland are complaining that they are being squeezed out by illegally parked trucks, abandoned vehicles and dropped trailers.
Michael, a longhaul driver from New Brunswick, was left frustrated and worried on a recent evening as he failed to find a parking spot at a truck stop in Mississauga. Running out of drive time, he was forced to park on the street.
“I was lucky I didn’t get a ticket. People are dropping tailers next to a sign saying, ‘no dropping trailers’, and they sit there for weeks,” he said.
September 25: Cargo Thefts from Trucks, Warehouses Spike During Q2 – FreightWaves
Truckload carriers across the U.S. saw a sharp rise in cargo thefts during the second quarter – with thieves targeting everything from electronic goods to food and beverage products and construction materials.
Verisk Analytics’ firm CargoNet, which tracks voluntarily reported cargo thefts, said there were 566 incidents in the U.S. and 16 in Canada in the second quarter, a 57% year-over-year (y/y) increase compared with 2022.
“In total, thieves stole over $44 million in goods in the second quarter of 2023 and the average shipment value per event increased nearly $100,000 to $260,703 per theft as cargo thieves focused on high-value shipments,” said CargoNet.
September 28: Broker Dodges Liability in Illinois Case, Had No ‘Control’ over Carrier – FreightWaves
In a case with strong parallels to C.H. Robinson vs. Miller and the case known simply as Ye, an Illinois appellate court has removed a 3PL from a more than $18 million decision against a carrier whose truck struck a teenager in 2016.
The decision in the Alliance case was handed down by a unanimous three-judge panel.
Much of the panel’s decision was driven by its conclusion about the control that 3PL Alliance had over the carrier and by extension its driver. The question, it said, is whether they were “agents” of Alliance or an independent contractor.
September 25: CIFFA Writes to Minister of Labour Regarding Negotiations at Port of Montreal
CIFFA was notified on September 24 that the executive committee of CUPE 375 sent a Notice of Dispute to the Minister of Labour after only one meeting with the Montreal Port Authority at which initial demands were exchanged.
As a result of this action, CIFFA sent a letter to Labour Minister Seamus O’Regan seeking government engagement and assistance.
CIFFA has asked the minister and his department “to do everything possible to ensure the continued reliability of port services in Montreal.”
August 1: Record Containership Deliveries Dash Carriers’ Rate-Recovery Hopes – Seatrade Maritime
Containerships commissioned in June hit a record, with more than one ship delivered every day, adding 300,000 TEU of capacity.
According to analysis by ocean and air freight data specialist Xeneta no fewer than 40 ships joined the fleet over the month. In its most recent market report, the Oslo-based firm said that a total of 990,000 TEU of capacity was delivered over the first half, with a similar volume expected between now and the end of the year.
The firm reported that long-term freight rates have crashed, sinking to a two-year low in July. Its XSI® Shipping Index fell a further 9.5% from the June figure. Long-term valid contract rates have now sunk by 57.8% since the same period in 2022.
August 1: Unifor Members Working for the St. Lawrence Seaway Management Corporation Reject Tentative Agreement – Unifor press release
Members of Local 4211 in Ontario and Local 4319 in Quebec who work for the St. Lawrence Seaway Management Corporation have rejected the tentative agreement presented to them at a July 12 meeting.
Negotiations got under way on June 21 in St. Catharines, Ontario. During the second week of bargaining, the parties decided to apply for conciliation in order to facilitate the contract talks. After two weeks of intensive negotiations, the parties reached an agreement in principle that was rejected by a majority of Local 4211 and Local 4319 members.
The union has contacted the conciliator to express the union’s desire to resume talks with management.
August 4: ILWU Canada Members Ratify Negotiated Agreement – BCMEA press release
BCMEA has received confirmation that the ILWU Canada voting membership have ratified the four-year negotiated tentative agreement that was achieved with the assistance of the Canada Industrial Relations Board last week. The BCMEA ratified the agreement on July 31.
The agreement was reached after five months of negotiations, conciliation and mediation, and five weeks of labour instability at B.C.’s ports.
The renewed collective agreement includes increases in wages, benefits and training that recognizes the skills and efforts of B.C.’s waterfront workforce, while providing certainty and stability for the future of Canada’s West Coast ports.
August 4: Asia-U.S. Spot Rates Top Contract Rates for First Time Since 2022 – American Shipper
Shipping lines have been in the red in the trans-Pacific trades for months. They may have just inched back into the black again, courtesy of the rise in spot rates over the past five weeks.
Annual trans-Pacific contract rates reset to sharply lower levels in May. Even so, multiple ocean carrier execs insisted on conference calls that they did not sign annual contracts at levels that locked in a year’s worth of losses.
The problem for carriers in recent months: A portion of their trans-Pacific volume – in some cases 50% – was booked in the spot market, at rates much lower than newly inked contracts, dragging the overall mix into loss-making territory.
Now, according to data from Xeneta, average trans-Pacific spot rates have just edged above average contract rates. If carrier execs are telling the truth about not signing loss-making contracts, and if spot rates are at or above contract levels, it implies a more sustainable market for shipping lines.
August 8: Panama Canal Draught Restrictions Start to Bite, Sparking Liner Surcharges – The Loadstar
Evergreen’s latest addition to its neo-panamax fleet had to offload 1,400 containers to pass through the Panama Canal, due to low-water restrictions. The event starkly highlights the problems the vital waterway and its users are facing.
The Ever Max, capable of carrying 17,312 TEU, had to offload the boxes before it could enter the canal’s neo-panamax locks. They had to be moved by rail across the isthmus for pick-up at the Atlantic end of the waterway.
The cause was draught restrictions imposed by the Panama Canal Authority (ACP) in response to persistent low water levels from the drought that has hampered transits since May. Rainfall in the first four months of the year brought water levels roughly to a par with 2019 – the lowest level in two decades.
Container lines like CMA CGM and Hapag-Lloyd have reacted to the restrictions by adding canal transit surcharges ranging from $300 per TEU to $500.
August 9: Statement by Labour Minister Regarding Disruption Caused by Recent Labour Dispute at B.C. Ports – Government of Canada press release
The Minister of Labour and Seniors, Seamus O’Regan Jr., yesterday issued the following statement.
“The recent dispute between the International Longshore and Warehouse Union Canada and the British Columbia Maritime Employers Association caused serious disruption to our economy. The deal reached by the parties brought stability to our supply chains.
But another dispute and disruption on that scale is still possible, and that’s not good enough. The workers and businesses that depend on our ports deserve long-term solutions. They deserve answers.
I will be initiating a process under Section 106 of the Canada Labour Code to examine the structural issues underlying this recent dispute, as well as similar disputes that have occurred at our ports across Canada.
Previous governments have commissioned reports on past disputes and analysis on these issues has already been done. So, we will begin by immediately reviewing that work. That will determine the next steps, and it will be done in short order.
It’s high time we dig into these underlying issues to develop long-term solutions; solutions that create a harmonious working environment between unions and employers, respect the collective bargaining process, and secure the fundamental stability of our supply chains in the interests of each and every Canadian.”
August 9: Panama Canal Pileup Due to Drought Reaches 154 Vessels – CNBC
The number of vessels waiting to cross the Panama Canal has reached 154, and slots for carriers to book passage are being reduced in an effort to manage congestion caused by ongoing drought conditions that have roiled the major shipping gateway since the spring. The current wait time to cross the canal is now around 21 days.
August 18: More Blanked Voyages and a ‘Newbuild Elephant’ Approaching the Room – The Loadstar
Container spot rates on the transatlantic came under renewed pressure this week, obliging ocean carriers to cut supply on the route by blanking more sailings.
The lowest spot rates on the trade are now well below $1,000, with the percentage of higher-rated contract business in sharp decline. With backhaul demand weak, and rates from the U.S. to North Europe below $500 per 40ft, transatlantic carriers are racking up loss-making voyages.
But they are now taking aggressive action to ‘stop the rot.’
August 25: Latest Data Wake-up Call for Shippers, Says Xeneta – Indian Transport & Logistics News
Long-term ocean freight rates may have started bottoming out after around a year of persistent, often dramatic monthly falls, says Xeneta in its latest update.
“The latest General Rates Increases (GRIs) from carriers appear to have held relatively firm, pushing spot rates up above long-term rates on key corridors. As such, long-term prices may now follow suit and rally, meaning now is the time for cost-conscious shippers to assess strategies and negotiate new contracts.”
Looking at the key Far East to North Europe trade lane, Xeneta’s real-time data shows that, even though spot rates have fallen by around $100 per FEU since early August’s GRIs, they are still around a third higher than prices in early July, the update added. “This is in contrast to GRI moves earlier this year, which largely failed to influence a market hamstrung by weak demand and rampant over capacity.”
Emily Stausbøll, an analyst at Xeneta, says: “This is a definite, eye-catching change, and shippers should view this as a bit of a wake-up call.”
August 25: Panama Canal Authority Warns Restrictions Will Stay in Place for at Least 10 Months – Splash
Global shipping bodies have been urged to come together to share transit plans at one of the world’s key maritime chokepoints with officials at the Panama Canal Authority warning that water-conserving measures will be in place for at least the next 10 months.
Faced with an unprecedented drought this year, combined with the onset of the El Niño weather phenomenon, administrators at the Panama Canal have cut the draft restrictions for ships transiting its larger neopanamax locks by 2 m as well as slashing the volume of daily transits by 20% to just 32 vessels a day. These measures have seen ships backing up in significant numbers at either end of the canal. Today’s official total count is 129 ships, down from the peak of 165 earlier this month, but still 43% higher than the average.
August 31: U.S. West Coast Port Workers Ratify Contract Agreement – Reuters
U.S. dockworkers have ratified a six-year contract that improved pay and benefits for 22,000 employees at 29 ports stretching from California to Washington State.
Members of the ILWU voted 75% in favour of approving the West Coast port worker agreement that will expire on July 1, 2028. The deal, which is retroactive to July 1, 2022, includes a 32% pay increase over the span of the contract as well as a one-time bonus for working through the early days of the COVID pandemic.
August 10: Air Canada Ranks Last in On-Time Performance Among 10 Biggest North American Airlines – CTV News
A new report says Air Canada ranked last in on-time performance among the 10 largest airlines in North America, as some carriers north of the border struggle to find their post-pandemic footing despite much better outcomes than the travel chaos of 2022.
Canada’s biggest carrier landed 51 percent of its flights on time last month, according to figures from aviation data firm Cirium.
WestJet, which placed seventh, saw 62 percent of its trips make it to the gate on time – defined as within 15 minutes of scheduled arrival.
August 4: Yellow Shutdown May Lead to Sticker Shock for Shippers, Analysts Say – Supply Chain Dive
Yellow Corp.’s shutdown has left shippers without a major player in the less-than-truckload space – a development that means higher costs are likely in store, according to trucking industry analysts.
“There’s probably going to be an increase in the pricing charged to the shipper,” said Craig Decker, who leads investment banking activities across supply chain, logistics and transportation areas at Brown Gibbons Lang & Co.
The price difference could be a 20% to 25% price per pound increase depending on the circumstances, DAT Chief of Analytics Ken Adamo suggested on a weekly market update show. All together, he said the price increases could be 7% to 10%.
August 7: Industry Responds to Heightened Cargo Theft – FleetOwner
Cargo theft trends came out of 2022 with severe momentum. That trend has continued with elevated numbers for the second quarter of 2023, causing industry stakeholders to caution carriers and offer information on how to protect freight.
“Cargo theft is at a 10-year high right now,” said Scott Cornell, transportation lead and crime and theft specialist at Travelers. “January was up 61% year over year, February was up 49% year over year, and March was up 82% year over year.”
Cargo theft security network CargoNet recorded 582 thefts across the U.S. and Canada in the second quarter of 2023, a 57% increase compared with the second quarter of 2022. These shipments were valued at over $44 million altogether. Notably, the average shipment value per theft increased nearly $100,000 to $260,703 as thieves focused increasingly on high-value shipments.
Strategic theft, or theft using deceptive means such as stolen identities instead of force or the threat of force, are primarily to blame for the increase. According to CargoNet, much of the increase is due to ongoing shipment misdirection attacks, a kind of strategic cargo theft in which actors use stolen motor carrier and logistics broker identities to obtain freight and misdirect it from the intended receiver so they could steal it.
“If you separate out the strategic theft category,” Cornell said, “from November to March… that’s up over 600%.”
August 8: Today’s Freight Fraudsters Are Sophisticated, Brazen, and Coming for Your Cargo – Today’s Trucking
Loadboards in the U.S. have recently taken steps to increase their screening of the brokers and carriers in their networks to help prevent double brokering crime. Fortunately, such sophisticated freight fraud is less prevalent in Canada than in the U.S., according to Claudia Milicevic, president of Canada-run Loadlink Technologies.
However, that’s not to say double brokering doesn’t exist here. A recent white paper titled Double Brokering in the Canadian Trucking Industry, produced by the Canadian International Freight Forwarders Association (CIFFA), indicated it’s a major – and growing – problem.
“The practice of double brokering is now rampant in the industry,” the white paper declared. It raises three “potential perils” of double brokering: the load is diverted and not delivered to its destination; the carrier the load is double brokered to is involved in a crash; or payment may not find its way from the shipper to the carrier that delivered the double-brokered load to its final destination.
“With each added layer in the logistics equation there is increased risk that there will be a failure in payment,” the white paper asserts.
August 11: AI Helps Fleets Navigate Risk Management – Transport Topics
Insurance companies and brokers are finding the benefits in artificial intelligence to better assist trucking companies with their risk management needs. The technology has helped by quickly collecting and deploying data, enhancing safety and potentially paving the way to lower insurance costs, technology and insurance experts said.
“Insurance companies are using data and AI technology on the route, on the origin, on the destination, how the driver is driving, to ultimately price insurance,” said Lisa Paul, Hub International’s chief strategy officer, specializing in transportation.
Artificial intelligence has utilized data from electronic logging devices, telematics systems and dashcams to address issues like driving behaviour and problematic routes. AI is also beneficial in proposing and revising agreements with shippers.
August 18: Federal Funding Available to Repower Equipment, Buy Low-Carbon Trucks – Today’s Trucking
Natural Resources Canada has opened a second funding stream under its Green Freight Program to help offset the costs of engine repowers and shifts to low-carbon fuels.
Funding will cover up to 50% of the costs – up to $5 million per company – to repower existing equipment and convert it to run on low-carbon diesel alternatives. Fleets can also earn up to half the incremental costs of new trucks that run on low-carbon fuels.
Any repowers must be permanent. Eligible projects include replacing the engine or drivetrain, adding kits or introducing dual-fuel options.
August 24: ‘No Profit Right Now’: Trucking Industry Facing Leaner Times as Consumer Demand Drops – CTV News
For Jas Singh, the road to profit just keeps getting narrower. “It’s slow right now, not too many loads,” said the owner of JK Transport, a Brampton-based trucking company Singh launched 15 years ago.
On top of fewer shipments, costs have shot up while freight rates have plummeted. A new tractor now costs him $225,000, up from the $135,000 he paid in 2019, Singh said. Trailers for his fleet of 15 semi-trucks have doubled in price to $80,000. And he can only charge $1.50 per mile for deliveries that reaped $2.30 per mile last year.
“A lot of problems this year,” the 45-year-old said in a phone interview.
He’s not alone. The entire Canadian trucking industry faces a shaky market as cargo volumes and rates continue to fall – in step with downward consumer demand – compared with the soaring highs seen during the pandemic.
August 31: Minister of Transport Announces Funding to Support Clean Energy Adoption in the Trucking Sector – Government of Canada press release
The Government of Canada is taking additional action to accelerate the integration of zero-emission technologies in the trucking industry.
The Minister of Transport, the Honourable Pablo Rodriguez, announced an investment of nearly $3 million under the Zero-Emission Trucking Program to support of three projects in Quebec, British Columbia and Nova Scotia.
Of this investment, $1.5 million will be used to establish a Zero-Emission Trucking Testbed in the Montreal area. The Testbed, launched in collaboration with FPInnovations, will collect real-world performance data in Canadian conditions to speed up the reduction of pollution from medium- and heavy-duty on-road transportation.
July 4: B.C. Ports Strike Could Inflict Damage That Takes Months to Correct, Warns CN – Strathroy Age Dispatch
CN says the ongoing workers’ strike at ports in British Columbia could increase costs and inflict economic damage that could take months to correct.
“A labour disruption can create significant impacts on shippers’ decisions to use Canada’s ports,” spokesperson Jonathan Abecassis said in a statement. “Given the integrated nature of ports and rail corridors, a work stoppage can create disruptions that take weeks or even months to correct.”
He urged the parties to come to an agreement and added that CN Rail encourages the federal government to “remain engaged and prepared to act to end the labour disruption.”
July 13: BCMEA, ILWU Reach Tentative Agreement – BCMEA press release
A tentative agreement has been reached between the BCMEA and ILWU Canada, with operations to resume as soon as possible.
The British Columbia Maritime Employers Association (BCMEA) and International Longshore and Warehouse Union (ILWU) Canada officially advised that the parties have reached a tentative agreement on a new four-year deal “that recognizes the skills and efforts of B.C.’s waterfront workforce.”
The tentative agreement is subject to ratification by both parties and, consequently, details of the agreement have not been released.
July 18: ILWU Leadership Rejects Mediator’s Tentative Deal Without a Member Vote – BCMEA press release
ILWU Canada’s internal caucus leadership rejected the tentative agreement before it was taken to a vote of the full union membership. The union communicated that it would re-engage in strike activity on July 18.
July 19: Canada Industrial Relations Board Ruling – Illegal Strike Action Declared – BCMEA press release
The Canada Industrial Relations Board (CIRB) ruled that the union was in violation of the Canada Labour Code by not providing 72 hours notice to BCMEA, and has ordered the union to cease and desist its illegal strike action effective immediately.
July 19: ILWU Canada Removes 72-Hour Strike Notice – BCMEA press release
ILWU Canada communicated that, effective immediately, the 72-hour strike notice issued for July 22 at 09:00 has now been removed.
July 21: Tentative Deal to Go to ILWU Membership for Ratification Vote Week of July 24 – BCMEA press release
The BCMEA has received communication from ILWU Canada that the ILWU Longshore Caucus approved and will recommend to their membership the Terms of Settlement that was proposed by the senior federal mediator and ratified by the BCMEA on July 13.
The tentative deal will be sent for a ratification vote by the ILWU voting membership, expected late in the week of July 24, with results anticipated shortly thereafter.
July 28: ILWU Canada votes down tentative agreement – BCMEA press release
The ILWU Canada voting membership rejected the four-year tentative agreement that was proposed by the senior federal mediator and recommended for ratification by the ILWU Bargaining Committee and their Longshore Caucus.
July 29: Minister of Labour Refers B.C. Dispute to the Canada Industrial Relations Board – BCMEA press release
On July 29, the Minister of Labour announced use of his authority under section 107 of the Canada Labour Code to “preserve industrial peace” and has formally directed the matter to the Canada Industrial Relations Board (CIRB).
The Minister has directed the CIRB to determine whether the union’s rejection of the tentative agreement has eliminated the possibility of a negotiated resolution. If the Board determines that to be the case, the Minister has directed it to either impose a new collective agreement on the parties or impose final binding arbitration to resolve outstanding terms of the collective agreement.
July 30: ILWU Canada, BCMEA Reach Negotiated Collective Agreement – joint ILWU Canada, BCMEA press release
ILWU Canada and BCMEA have concluded a negotiated collective agreement with the assistance of the Canada Industrial Relations Board. The parties are recommending ratification of the collective agreement to the union’s membership and member employers, respectively.
July 6: Ships Leaving Chittagong Half Empty due to Factory Closures – The Loadstar
With Bangladeshi factories remaining shut throughout the week, due to Eid-ul-Azha holidays, vessels are having to leave Chittagong port half empty owing to a lack of cargo. The factories closed on June 26, and will reopen this weekend.
But shipping executives said ships will not be fully laden until the end of next week, with factories requiring three to four days to produce goods.
July 6: IMO Agrees to Nonbinding Target to Achieve Net Zero “Around 2050” – The Maritime Executive
IMO member states have reached a tentative deal on the thorny question of bringing shipping into line with the Paris Agreement. The newly agreed MEPC climate roadmap calls for reaching net-zero emissions “by or around, i.e. close to, 2050.”
IMO and the shipping industry negotiated an exception from the landmark 2016 climate agreement, on condition that emissions would be regulated by the IMO. Along with aviation, shipping is one of only two sectors in the world not subject to national-level Paris pledges. The nature of the IMO’s climate regulation has been a matter of constant debate over the intervening nine years. The deal announced on July 6 begins to resolve that question, and it includes elements of proposals from NGOs, developing nations and climate action opponents – like China, which has pushed for greater flexibility on the target date and less ambitious emissions policies.
The specific targets in the agreement include a 20 percent cut in emissions by 2030 and a much deeper 70 percent cut by 2040 (relative to 2008 levels). The first goalpost would be broadly achievable with proven interventions like slow steaming, just-in-time arrival, technical efficiency upgrades and add-ons like rotor sails. The 2040 target would require deeper changes to shipping’s fuel supply.
July 10: D&D Charges in Freefall as Carriers Vie to Keep Shippers Onboard – The Loadstar
Detention and demurrage (D&D) charges have plummeted over the past 12 months, as carriers try to keep hold of their shippers in a slackening market.
Container xChange’s annual D&D survey found that, across 65 international gateways, average D&D charges fell 25% year on year, and were below pre-pandemic levels for the first time in three years.
July 24: Trans-Pacific Shipping Rates Rise as Carriers Make Capacity Cuts – American Shipper
Shipping lines finally seem to be making some headway in managing vessel capacity in the Asia-U.S. trades.
Spot rates have been on the rise for three straight weeks, rebounding to levels last seen in early 2023 and late 2022, according to several index providers. U.S. import bookings remain above pre-COVID levels, and multiple analysts are now highlighting increasing rates from reduced vessel capacity.
July 7: Minister of Transport Announces Funding to Increase Supply Chain Capacity at Toronto Pearson International Airport – Transport Canada press release
Minister of Transport Omar Alghabra announced an investment of nearly $94 million under the National Trade Corridors Fund for a cargo development project at Toronto Pearson International Airport.
The project will improve cargo capacity by building two new facilities: the South Cargo Transfer Development Facility (YYZ South) and the North Cargo Apron Development (YYZ North). YYZ South will increase capacity for incoming cargo, and YYZ North will build additional infrastructure for more cargo aircraft parking spaces, which will also increase cargo capacity.
July 10: IATA CASSLink Information and Next Steps for Wave 3 Go-Live
IATA has announced that the new CASSLink platform is scheduled to go live for Wave 3 markets, including Canada, on October 3. A detailed schedule will be made available in the coming months.
A migration checklist will help users prepare during this transition. More information on the changes to the new CASSLink can also be found here.
The system will be open for user setup starting on September 11. Your company CASSLink administrator must set up your users prior to the go-live date in order to continue operations in the new CASSLink. Find more information here.
July 17: Price War Keeps Air Cargo Rates Below Natural Level – American Shipper
Amid a burgeoning price war, pessimism is growing in air cargo circles that a market in prolonged recession could drift further downward, after a short pause, reducing the chance of a modest recovery during the traditional preholiday shipping rush.
Logistics professionals had hoped for an upturn by now that would steadily build into the second half, but that hasn’t happened. Freight forwarders and, increasingly, cargo airlines have responded by chasing volumes without regard to cost, which observers say is accelerating a decline in rates.
Aggressive price discounting, and reports that some carriers are shelving older aircraft, suggests companies are increasingly nervous that demand won’t improve this year in a world with excess capacity. In fact, freight rates are lower than supply and demand fundamentals actually support because freight forwarders and carriers, eager to generate some cash from committed airlift, are undercutting each other on price to keep bookings and steal business, transportation managers and analysts say.
July 25: Flight Delays at Canadian Airlines Far Outstrip Peers in U.S., Despite Improvements – BNN Bloomberg
Canada’s two biggest airlines have seen a far higher proportion of their flights delayed this summer than many of their American peers, according to figures from an aviation data firm.
Overall, only half of Air Canada’s 31,168 flights were on time between June 19 and July 16, statistics provided by Cirium reveal.
In comparison, 64 percent of WestJet’s 14,998 flights touched down late.
Flights are considered on time if they reach the airport within 15 minutes of their scheduled arrival time.
The numbers contrast with on-time performances that range between 68 percent and 83 percent for the five biggest airlines in the United States.
July 23: CN Customer News: Eastern Washouts
CN advises that heavy rainfall in Nova Scotia has resulted in delays across the Atlantic region. Damages from the rainstorm on the railway’s Bedford and Dartmouth subdivisions are impacting service to/from the Port of Halifax.
Once the rain event has passed, CN’s focus will be to enable crews to clean any debris, assess any damages and prepare for any repairs that may be required.
July 26: Tariff Update – CN 9100, Effective August 25
CN has announced updates to its Tariff 9100 (Intermodal) effective August 25.
A major change will be put in place on that date to Item 6500 – Storage of dry and reefer steamship units–loads. Storage free time and chargeable start time will change from 00:01 to 07:00.
July 27: Rail Freight from Canada to U.S. Continues to Drop After Ports Strike – CNBC
Rail traffic from Canada into the U.S. had a third-straight weekly drop as a result of the on-again, off-again strike at the West Coast Canadian ports.
The vessel and container gridlock is raising concerns for chemical companies who have critical materials stuck as a result, creating supply chain issues.
Total rail volume from Canada to the U.S. was down 12%, according to the Association of American Railroad’s latest rail traffic report for the week ending July 22. This was an improvement, given the first full week of the strike saw a 46% decrease in rail trade from Canada, and the second week suffered a 36% decrease.
July 28: B.C. Port Strike Cost Canadian Pacific’s Newly Amalgamated Railway $80 Milllion, Exec Says – CBC News
The B.C. port workers’ strike deprived Canadian Pacific Kansas City Ltd. of scores of millions of dollars, its chief marketing officer said, tacking on a costly coda to a tough quarter.
“At this point, we’re estimating the strike had a negative impact of about $80 million in revenue, much of which we will work hard to claw back over the remainder of Q3 and Q4,” John Brooks told analysts.
The 13-day strike – plus a brief wildcat job action – earlier this month halted operations at most ports along the West Coast. In the first week alone, it depressed the number of containers hauled by Canadian railways to barely half the level reached during the same period in 2022, according to the American Railroad Association.
July 30: CN Update Regarding Eastern Washouts
CN reported that its service on the Bedford Subdivision near Truro, Nova Scotia, was restored on July 27 after heavy rains affected rail lines for several days in the area.
July 7: New Federal Fines for Hours of Service, ELDs Range from $300 to $2,000 – Today’s Trucking
Truck drivers and carriers face 60 new federal fines for hours-of-service violations – including those specific to mandated electronic logging devices (ELDs).
Coming in three tiers, the fines range from $300 to $1,000 for drivers, and $600 to $2,000 for motor carriers.
The lowest tier includes administrative and minor recordkeeping contraventions. A second tier includes on-duty/drive limitations; off-duty requirements; more serious recordkeeping contraventions that increase risk; and contraventions that make it difficult to enforce carrier compliance.
Topping the scales are fines for tampering, falsifying or obstructing records, and the most serious on-duty/driving limitations and rest requirements.
July 13: Canada’s Share of Women Truckers Lags Totals in North American Survey – Today’s Trucking
A Women in Trucking (WIT) survey has concluded that women account for nearly 12.1% of North America’s professional drivers, but preliminary 2021 Census data suggests Canadian-specific totals are actually far less than that.
Women now hold 16.4% of Canadian jobs in trucking, logistics and warehousing – up from 15% in 2015 – but account for just over 4% of Canada’s truck drivers, according to the Census results.
While the increase in the overall share of women may seem relatively small, Trucking HR Canada chief program officer Craig Faucette says the preliminary results might underestimate current totals. The 2021 Census data was conducted in the middle of the pandemic when many women left the industry to take care of their families, he explains.
July 18: ‘Nuclear’ Lawsuits Against Truckers Continue to Rise in U.S. – Transport Topics
A new study by the U.S. Chamber of Commerce Institute for Legal Reform found that trucking in America is “under siege by litigation.”
“Verdicts in trucking accident cases accelerated in size starting in the 2000s but have skyrocketed over the last 10 years, despite a decreased rate of serious trucking crashes over that time frame,” the study said. “Moreover, with the inflation of verdicts and settlements, the search for deep pockets is expanding and the circle of potential defendants is widening.” A review of 154 trucking litigation verdicts and settlements from June 2020 to April 2023 revealed a statistical mean plaintiffs’ award of $27.5 million and a statistical median award of $759,875 for settlements.
July 19: U.S. Court Enters Huge Win for Freight Brokerage Industry – FreightWaves
The freight brokerage industry began humming Meat Loaf’s 1977 power ballad “Two Out of Three Ain’t Bad” Tuesday when the U.S. Court of Appeals for the 7th Circuit became the third federal appellate court to consider the extent to which negligence claims against freight brokers are preempted by federal law.
While the decision governs only federal courts in Illinois, Indiana and Wisconsin, it naturally provides highly persuasive authority for courts elsewhere across the country.
July 26: B.C. to Commence ELD Enforcement August 1 – Today’s Trucking
The B.C. Ministry of Transportation and Infrastructure said that, as of August 1, enforcement officers in the province may issue violation tickets to carriers who fail to equip a commercial motor vehicle with a certified electronic logging device (ELD).
The fine amount is $520, which results in a ticketed amount of $598 when the victim surcharge is included, said the ministry.
Recently, the federal government imposed 60 new fines on truck drivers and carriers for hours-of-service violations – including those specific to mandated ELDs.
July 27: Strategic Tactics Drive Cargo Theft Rise – Transport Topics
The trucking industry has faced an increase in cargo thefts this year, with thieves developing more sophisticated and strategic tactics.
Verisk Analytics’ CargoNet in a second-quarter report released July 18 found that “supply chain risk events” increased 57% year-over-year, with 582 reported incidents across North America. This accounted for over $44 million in stolen shipments.
The report noted that much of the increase was attributable to a type of strategic approach known as shipment misdirection attacks.
“We have clever criminals here, but it’s become more of a global problem in regard to the organized crime piece,” said Keith Lewis, vice president of operations at CargoNet. “When they steal by fraud, use the internet and use surrogates to do their dirty work that don’t know they’re involved in a crime, they can do it so much easier and so much faster. And now they can target and hit, with a bull’s-eye, high-value commodities.”
July 11: CIFFA Launches International Education Brand: TraversEd – CIFFA press release
CIFFA has officially launched TraversEd, its new educational arm designed to meet the needs of freight forwarding organizations and learners outside of Canada.
TraversEd builds on CIFFA’s 40-year legacy of successfully educating Canadians in freight forwarding and logistics, and aims to extend this expertise to a global audience.
Currently, CIFFA delivers training to over 300 freight forwarding member firms and partners with colleges across Canada, registering 10,000 students annually for the CIFFA Certificate in international freight forwarding.
TraversEd offers flexible, customized world-class education and certification through two distinct delivery methods:
Many international business, supply chain and global logistics programs do not cover specific competencies required to fulfil the complicated role of an international freight forwarder.
TraversEd will ensure that students receive specific education on the competencies sought after by employers.
CIFFA members with international offices can now benefit from the same great training offered by CIFFA through TraversEd. Additional savings will be provided to freight forwarding companies outside of Canada who are linked to members in Canada.
July 27: CIFFA’s Canadian Young Logistics Professional of the Year Wins Americas Contest – CIFFA press release
Congratulations to Viktoriia Rudyk, who has won the Americas Region competition in the 2023 Young Logistics Professionals Award competition.
Viktoriia was selected by CIFFA in January as the Canadian Young Logistics Professional of the Year, after a review of her industry experience and a written dissertation demonstrating her technical knowledge.
Next, as the Americas regional winner, Viktoriia will compete at the FIATA World Congress, where she will present her dissertations to the Award Steering Committee that will subsequently announce the 2023 Young Logistics Professional of the Year.
June 1: Vancouver Fraser Port Authority Announces Leadership Transition for CEO – VFPA press release
Vancouver Fraser Port Authority CEO Robin Silvester has announced that he will be leaving the port authority after more than 14 years leading the organization.
Robin will be staying on to support a leadership transition, with more details to follow in the coming weeks. The board of directors will undertake a global search for a new president and CEO.
June 2: Labour Flareup Affects Operations at Several U.S. West Coast Ports – Supply Chain Dive
Labour shortages at several West Coast ports led to limited terminal operations on June 2.
The Port of Oakland and Port of Los Angeles had limited some terminal operations, spokespeople at the two ports confirmed.
The terminal closures come as the International Longshore and Warehouse Union and Pacific Maritime Association are negotiating revisions to a coast-wide master contract. Talks have now been ongoing for more than a year, but prior to the terminal disruptions, negotiators had said they were optimistic that a deal could come soon.
June 4: Panama Canal’s Continuing Draft Reductions Pose Threat to Trade – The Maritime Executive
Concern is growing that a significant climate event is unfolding at the Panama Canal, with the potential of impacting one of the world’s most important shipping routes. Last week, the Panama Canal Authority (ACP) said drought conditions in the region persist, affecting water availability for passage through the locks and raising the potential of further restrictions.
The ACP reports that May 2023 was the driest since 1950. Climatologists are saying that this is expected to worsen due to the arrival of the El Nino phenomenon, which is associated with warmer weather conditions across the Central American region. In this case, water-saving measures will continue to be a priority for the ACP.
The ACP has so far announced six draft-level adjustments, forcing ships to reduce the volume of cargo they carry. Starting in April, the ACP lowered the maximum from 50 feet first to 47.5 feet and then on a sliding scale down to 46 feet as of mid-May.
June 5: ILWU Canada Issues Strike Vote Notice – BCMEA update
On June 5, ILWU Canada’s Negotiating Committee authorized the ILWU Longshore Locals to conduct a strike vote in their negotiations with the B.C. Maritime Employers Association. The votes will be held on June 9 and 10.
June 7: Major Ocean Carriers Set Course for More-Profitable Routes – The Loadstar
Ocean carriers constantly reassess network coverage to cope with the impact of demand fluctuations but, post-pandemic, this has translated into widely different trading patterns for the top-ranked lines.
A survey by Alphaliner reveals that, compared with a year ago, most of the top ten carriers have reduced their fleets trading between Asia and North America – MSC in particular having cut the percentage of its tonnage deployed on the transpacific from 16% to just 9%.
June 8: Transpac Rates Head North as Carriers Face Panama Canal Restrictions – The Loadstar
Transpacific spot rates from Asia are set to spike as a consequence of industrial action at U.S. West Coast ports and Panama Canal draught restrictions.
And the prospect of a lengthy period of labour unrest at the ports will accelerate the coastal shift of cargo to the U.S. east and Gulf coast gateways.
However, the largest ships deployed on the Asia to U.S. east coast Panama loops are facing new draught restrictions at the neopanamax locks. This will see vessels obliged to transit the waterway with significantly reduced load factors.
Several carriers implemented surcharges from June 1 and there are rumours of specific GRIs being announced for transpacific Panama Canal loops.
June 8: Record Growth Trajectory to Ramp Up for Port Saint John Focus of Port Days Keynote – American Journal of Transportation
Last year, Port Saint John and its partners exceeded the milestone of 100,000 TEUs of cargo passing through the port, going on to end the year with more than 150,000 TEUs in throughput and an annual growth rate of 72 percent – the largest container volume the port has ever processed in a single year. With hundreds of millions in investments from the private sector, government and the port itself, Port Saint John will soon have capacity to reach 800,000 TEUs.
“In many ways, Port Saint John and our region are entering a bold new era. With our partners, we’ve created a new global gateway in Saint John and in New Brunswick. There’s no other place on the Eastern Seaboard that has been able to make this happen,” says Craig Bell Estabrooks, President and CEO of Port Saint John. “We are emerging as significant players to support national supply chain fluidity and the world economy. And we’re just getting started.”
June 8: FMC Orders Hamburg Sud to Pay $10 Million for Retaliating Against Shipper – The Maritime Executive
The U.S. Federal Maritime Commission’s Chief Administrative Law Judge filed an order on June 7 ordering Hamburg Sud to pay one of the largest judgments awarded as a violation of the Shipping Act and the actions of carriers during the pandemic. The FMC sided with a Florida-based e-commerce home goods retailer, ordering the subsidiary of Maersk to pay nearly $10 million for having retaliated against the shipper in a refusal-to-deal violation of the Shipping Act of 1984.
June 12: ILWU Canada Confirms Strike Vote Mandate – BCMEA update
ILWU Canada has confirmed a mandate in favour of strike action if needed.
The timeline for possible strike or lockout action has not changed; the parties cannot acquire the legal right to strike or lockout before June 21. Further, the BC Maritime Employers Association and ILWU Canada have mutually agreed that no 72-hour strike or lockout notice will be filed before June 21. The earliest either party could exercise the right to strike or lockout is 12:01 am PT on June 24.
The parties are continuing to meet with the assistance of the Federal Mediation and Conciliation Service.
June 12: Cyclone Shutters Already Congested Ports on India’s Busy West Coast – The Loadstar
All Indian ports along the coastline of Gujarat have halted operations until further notice in the wake of Cyclone Biparjoy heading towards the country’s north-west corridor.
The affected ports are some of the country’s leading container handlers, such as Mundra, Pipavav and Hazira.
Across the ports, ships already at berth have been shifted from jetties and authorities have been told to halt further vessel movements and immediately secure harbour equipment.
June 12: Port of Vancouver Places Second Last on Global Efficiency Ranking – The Daily Courier
The Port of Vancouver placed second to last on a global ranking of hundreds of container ports, after some cargo ships waited weeks to unload their cargo last year.
Compiled by the World Bank and S&P Global Market Intelligence, the container port performance index lists Vancouver at No. 347 out of 348 – and dead last among ports of similar size.
The study uses vessel wait times as an indicator of overall efficiency.
The low grade speaks not just to port operations in isolation, but the vast supply network they sit within as well as snarls and bumps specific to Canada.
June 13: Blank Sailings Under Scrutiny as U.S. Maritime Commission ‘Looks for Clarity’ – The Loadstar
Following the $9.8 million penalty imposed on Hamburg Süd last week, the U.S. Federal Maritime Commission (FMC) is to revise OSRA 22 to give a clearer definition of “refusal to deal.”
The FMC found Hamburg Süd in violation of the act’s provision 41104(a)(10), ‘refusal to deal,’ ruling that the carrier shut out complainant OJ Commerce, a Florida-based furniture importer, in retaliation for legal action against the carrier.
The evidence was uncovered during the examination of an email exchange between Hamburg Süd employees, showing the company made the decision to “disengage” from fulfilling its contract agreements with OJC, in light of “potential litigation.”
FIATA was chief among those concerned, saying many of the measures used by shipping lines to manage capacity could be co-opted for the purpose of squeezing out certain customers.
June 14: Port of Vancouver Disappointed by Poor Efficiency Ranking, Says Change Is Coming – CBC News
After placing near the bottom in a global port efficiency ranking two years in a row, Peter Xotta, the Vancouver Fraser Port Authority’s vice president of operations and supply chain, said port expansions and investments will buck the trend, even as he called into question the accuracy of the ranking system.
Xotta said he was disappointed the port placed second last of 348 container ports in a ranking compiled by World Bank and S&P Global Market Intelligence.
The study used vessel wait-times as an indicator of overall efficiency, with Vancouver ranking third-last in its 2022 report.
“I think the ratings system is challenged to be accurate at a time when we’ve got this level of volatility in the supply chain,” he said, referring to the ongoing fallout from issues like the COVID-19 pandemic and the 2021 atmospheric river that paralyzed B.C.’s road and rail systems.
Xotta said each port is different and questioned the methodology authors used to make fair comparisons.
June 15: Tentative U.S. West Coast Port Contract Deal Reached – Reuters
The Longshore union and employers of 22,000 dockworkers at U.S. West Coast ports on June 14 said they have reached a tentative deal on a new six-year contract, ending 13 months of talks and easing supply chain worries.
The deal was reached with assistance from Acting U.S. Labor Secretary Julie Su, the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) employer group said in a joint statement.
The agreement, covering workers at ports stretching from California to Washington State, is subject to ratification by both parties. The ILWU and PMA declined to provide details on the deal.
June 20: ‘Extreme’ Measures Under Consideration at Drought-Hit Panama Canal – Splash
New draft restrictions from the drought-stricken Panama Canal will mean that from next month the waterway will have slashed its draft by more than 2 metres, with authorities warning daily transits may have to be cut by up to 25% in order to save water.
Panama has been suffering one of the worst dry spells in its history this year, with repeated announcements of draft restrictions on the canal, something likely to worsen with the onset of El Niño, a weather pattern that tends to bring dry weather to Central America.
As of June 19, ships transiting the newer neopanamax locks must have a maximum draft of 13.41 metres, going down to 13.26 metres next week and to just 13.11 metres on July 19, a significant drop from the maximum draft of 15.24 metres. By July 19, the old panamax locks will be able to welcome ships with drafts of just 11.73 metres.
Further restrictions are possible, with meteorologists warning water depths in Lake Gatun, which is in the centre of the canal, could hit historic lows by July.
June 21: Barge Operators Impose Surcharges After Rapid Fall in Rhine Water Level – The Loadstar
A rapid decline in water levels along the Rhine has resulted in barge operators imposing low-water surcharges (LWSs).
MSC announced it will pass on to customers LWSs imposed by its barge operator partners on services to or from Antwerp and Rotterdam.
“Navigation’s still possible but with reduced capacity,” the carrier told customers. “As a result, reaching closings in the ports of Antwerp and Rotterdam cannot be guaranteed. Furthermore, all cost arising from this situation, such as demurrage, detention and storage, is not for account of MSC.”
Cargo owners have grown used to chaos along Europe’s inland transport sector, congestion frequently stretching into days. One former barge owner said news of the surcharge only “added to the difficulties cargo owners wanting to use European transport were grappling with,” adding that the industry as a whole “remains in deep crisis.”
June 26: Carriers Face Cargo Logjams as Congestion Persists at Mundra – The Loadstar
The congestion plaguing Mundra Port over the past week, following cyclone-related disruption along India’s western coast, has severely crimped carriers’ ability to maximize export lifts amid increasing vessel capacity utilization woes.
According to industry sources, container terminals in the private harbour – Adani Group’s flagship entity – have tightened the time allotted for cargo gate-in as they attempt to mitigate vessel congestion.
That means “carriers are facing challenges connecting all planned loads,” said a ship agent in Mundra, with shippers facing significant delays to exports already at the port or in transit from inland locations.
June 26: Panama Canal Delays Draft Restrictions but Lowers Number of Transits – The Maritime Executive
The Panama Canal Authority delayed the planned further draft restrictions for vessels making the transit that had been due to go into on June 25. They publicly cited expected rainfall, while CNBC is reporting that they are also lowering the number of daily transits through the original locks to conserve water.
Economists have warned of the potential for a significant impact on global trade and especially in the United States, which remains the Panama Canal’s largest customer. The Panama Canal Authority reported that the draft restrictions are mostly impacting laden containerships. Forty percent of all U.S. container traffic travels through the Panama Canal every year, according to a report from CNBC. There have been reports of containerships offloading containers for shipment by rail as the canal increased the draft restrictions this year.
June 28: Port of Vancouver Operations Update – ILWU Canada Serves 72-Hour Strike Notice
The International Longshore and Warehouse Union (ILWU) Canada served a 72-hour strike notice to the British Columbia Maritime Employers Association (BCMEA) at 8:00 am PT on June 28. The notice enables legal strike action to commence effective 8:00 am on Saturday, July 1. Bargaining between the ILWU and the BCMEA continues.
The parties are scheduled to continue bargaining with the assistance of the Federal Mediation and Conciliation Service on June 29.
June 30: Schedule Reliability Reaches Three-Year High with Blank Sailings Down – The Maritime Executive
Schedule reliability for the global container shipping industry continues its rebound from the depths of the delays in 2021 and 2022 to reach a nearly three-year high in May 2023. Analytics firm Sea-Intelligence is highlighting the continued progress in its monthly reporting while carriers have also increased capacity back into the markets reducing the number of sailings blanked from their schedules.
“Global schedule reliability has continued to improve month-over-month, with the latest improvement of 2.7 percentage points in May 2023,” said Alan Murphy, CEO of Sea-Intelligence. “With this increase, schedule reliability is now up to 66.8 percent.”
June 7: U.S. Shippers Warned of Coming Stricter Security Rules for Large Air Cargo Loads – Air Cargo News
U.S. freight forwarders have been urged to prepare for stricter cargo security rules by the Airforwarders Association (AfA) or face not being able to fly larger shipments.
AfA executive director Brandon Fried said that, from October, shippers wishing to fly cargo that cannot be screened – due to size or volume restrictions – will need to be enrolled in one of the Transport Security Administration (TSA)’s authorized cargo security programs.
“There will only be three options after October 31: Join one of the programs, use seafreight instead of airfreight, or don’t ship cargo at all,” said Fried.
“TSA is holding the line on this, there will be no extension.”
June 7: Air Cargo Market Suffers Lowest Rates in May Since March 2020 – Cargo Trends
The global airfreight spot rate fell 40% in May from a year earlier, reaching its lowest level, at US$2.41 per kg, in over three years, just days after IATA predicted airline cargo revenues and yields could fall by more than 31% and 29% respectively in 2023.
Softening global air cargo demand saw a less severe year-over-year drop of 1% in chargeable weight in May, the smallest monthly decline in the past 12 months, but the influx of belly capacity for the peak summer leisure travel market applied more downward pressure on rates. Global air cargo capacity in May continued its double-digit increase, up 14% year-on-year.
June 14: The Next Step for CPKC: Fully Fusing and Fostering Growth as the Newest Class I – Progressive Railroading
“I think I just ran an ultramarathon,” said Keith Creel, the former Canadian Pacific leader who’s now president and CEO of Canadian Pacific Kansas City (CPKC), on March 16 – the day after the STB issued its favourable merger decision.
But a lot more endurance will be required by Creel & Co. to kickstart and drive CPKC. A newly formed executive leadership team now faces the challenge of fully integrating the two Class Is, forging and nurturing an entirely new organization, and cashing in on the new railroad’s reach and promise. The integration process alone could last up to three years.
June 2: Several U.S. Senators, Reps Push to Establish ‘Cop on the Block’ to Shut Down Double Brokering, Other Freight Fraud – Overdrive
In a letter to the Department of Transportation Inspector General Eric J. Soskin dated May 22, five U.S. Senators and three House reps urged Soskin to work with the Department of Justice and the Federal Motor Carrier Safety Administration to explore a permanent task force policing fraud in brokered and other freight markets.
The letter explicitly addresses the issues of organized double brokering and other freight fraud and its rise in prominence in the spot market over many years, particularly the last couple.
June 12: Protect Your Fleet from Double Brokering Scams – Today’s Trucking
Even a freight recession can bring new opportunities, new markets, new services and new customers. But no one group is hustling harder right now than the scammers who use load boards to double broker freight.
They take advantage of the urgency, anonymity and one-off nature of spot market transactions to steal identities, money, freight and reputations. And this April, the load board provider Truckstop said that reports of fraud on its network jumped 400% in the fourth quarter of 2022 compared with the same period in 2021.
June 15: U.S. FMCSA Issues Final Guidance to Expose Illegal Brokers – FreightWaves
Final guidelines issued on June 15 by the U.S. Federal Motor Carrier Safety Administration clarifying the agency’s interpretation of truck brokerages could help reverse a growing trend of illegal brokers and dispatchers infiltrating the industry, according to a group representing small-business truckers.
The new guidance, created in response to a mandate in the 2021 Infrastructure Investment and Jobs Act, updated interim guidelines issued by FMCSA in November, based on public comments the agency received since then.
Key to the updated guidelines, contends the trucking group Small Business in Transportation Coalition (SBTC), is a further explanation by FMCSA of how it interprets “allocation of traffic” as it pertains to brokers, dispatchers and agents.
“FMCSA intended this term to mean any exercise of discretion, choice or decision-making on the agent’s part about which motor carrier to assign a load,” the agency stated.
June 16: Trucking Trends: Canada’s Spot Market Bounces – Today’s Trucking
Loadlink Technologies reported a notable recovery in May spot market volumes, with loads up 22% from April. But capacity is also on the rise, with a 16% jump in equipment postings, reaching record levels.
The truck-to-load ratio increased to four trucks posted for every load on Loadlink, the company reported. It’s a decrease from the 4.16 trucks per load seen in April, but the ratio is up 138% year over year. A year ago May, there were just 1.68 trucks available per load.
June 22: FBI Says EVs Raise Risk of Cyberattacks – Transport Topics
Trucking companies that are considering electrifying their fleets must be on their guard for the heightened opportunities such decisions offer cybercriminals, according to the FBI, which is keen to help minimize the chaos such attacks can cause.
Electric vehicles have enhanced attack surfaces for cybercriminals to latch on to, said FBI Supervisory Special Agent David Smith.
Edison Electric Institute Senior Vice President of Security and Preparedness Scott Aaronson warned that cybersecurity vigilance needs to be on three fronts: software, hardware and meatware (or the people within an organization).
June 22: Customs Broker Systems Shutdown Causes Border Delays – Today’s Trucking
Carriers and truck drivers complained of delays at Canada-U.S. border crossings beginning June 21, after customs broker Livingston International “shut down select operating systems” because of a suspected cyber attack.
An official from a Mississauga, Ont.-based carrier said they were facing delays and downtime due to Livingston’s shutdown. “Multiple drivers are affected. It is affecting all border crossing locations as it is not a regional issue but a system-wide outage,” the official said.
June 27: Ontario Providing Free Training for Truck Drivers – Government of Ontario press release
The Ontario government is investing $1.3 million to prepare 54 women, newcomers and others from underrepresented groups for in-demand careers in the trucking industry. Across Ontario, at least 6,100 more truck drivers are needed to fill job vacancies and to ensure families and businesses receive goods on time and the province’s economy reaches its full potential. Only two percent of Ontario truck drivers are women, which is why the program will reimburse up to $4,500 for childcare and other living expenses.
Led by the Women’s Trucking Federation of Canada, this free project will provide participants with up to 200 hours of training needed to obtain AZ (tractor-trailer) and DZ (straight truck) licences. Instructors will use both virtual reality systems and in-cab, hands-on training to teach jobseekers how to operate a commercial vehicle, perform manoeuvers, conduct inspections, maintain the vehicles and understand commercial vehicle systems and controls.
June 11: CIFFA Urges Government to ‘Be Proactive and Swift in Taking Action’ on West Coast Port Negotiations
On June 9, CIFFA wrote a letter to several ministers and the Prime Minister’s office to draw attention to the ongoing labour negotiations at Canada’s West Coast ports.
The BCMEA and ILWU are negotiating two coastwide collective agreements on behalf of the Longshore Locals and Local 514 Ship and Dock Foremen.
The parties participated in a conciliation process that has now ended and they are currently in a 21-day “cooling off” period. There is not much evidence of coolness, unfortunately, and the union authorized a strike vote to start on June 9.
CIFFA’s 300-plus members regard this situation as one of the most significant impacts on Canada’s economy, with the potential to create very significant disruptions, which would undoubtedly increase consumer costs, fueling additional inflation, and severely impact businesses relying on imports of equipment or exports of products.
CIFFA is urging the federal government to ensure this bargaining process is well-supported and that government be proactive and swift in taking action to protect Canadian business and consumers.
May 4: Maersk: Downturn on Predicted Course, Liners Acting ‘Rationally’ – American Shipper
Pain during shipping downturns is often self-inflicted by the industry itself. A scramble for market share spurs a rate spiral; too many ship orders compound the losses. Maersk CEO Vincent Clerc maintained on a May 4 conference call that liners are avoiding at least some of these self-inflicted wounds.
Clerc said ocean carriers are managing capacity fairly well, demand is primarily down due to temporary inventory overhangs, and margins remain higher than pre-COVID levels.
The general message from the world’s second-largest container line operator: Market normalization is proceeding as anticipated.
May 10: Panama Canal: Drought, Shipping and the Supply Chain – Inbound Logistics
The past few months have been unusually dry across Panama and there is no sign of improvement over the next few weeks, let alone the rest of the spring season. In 2022, nearly 15,000 vessels with 520 million tons of cargo passed through the channel.
This year, there’s simply not enough water – leading to vessel restrictions and ultimately fewer goods able to travel through this area that normally moves about 6% of global maritime trade.
May 11: Ports of Montreal, Québec and Trois-Rivières taking the Net-Zero Challenge – press release
The Ports of Montreal, Québec and Trois-Rivières are taking the federal government’s Net-Zero Challenge.
Launched in August 2022 by the Minister of Environment and Climate Change, the Net-Zero Challenge is a voluntary initiative that invites organizations to develop and implement credible and effective transition plans to make their facilities and operations emission-free by 2050.
By announcing their collective participation in the Net-Zero Challenge, the ports of Montreal, Quebec City and Trois-Rivières are joining forces to accelerate the decarbonization of maritime transport on the St. Lawrence River corridor.
May 19: Container Shipping Under Pressure as Peak Season Hopes Dim – American Shipper
One of the earlier scenarios for container shipping’s 2023 peak season went like this: Importers would get cocky and keep much of their business in the spot market. Shipping lines would heavily curtail trans-Pacific transport capacity. America’s inventory overhang would evaporate just as holiday imports ramped up. Spot rates would jump and importers without sufficient contract coverage would get caught out.
No one’s really talking about that one anymore.
Inventory destocking has gone on longer than expected. Pressures on consumer demand are building. Trans-Pacific shipping capacity is not down as much as predicted. Spot rates bumped up in mid-April but have eased since and remain extremely weak.
The talk now is more about a moderate peak season at best, roughly in line with pre-COVID levels, with no fireworks.
May 19: ONE and Wan Hai Pay $2.65 Million in FMC Fines Over D&D Practices – The Maritime Executive
The U.S. Federal Maritime Commission is continuing its enforcement efforts regarding the fees charged by carriers, reporting that Ocean Network Express (ONE) and Wan Hai Lines agreed to pay a combined amount of $2.65 million to settle FMC actions related to detention and demurrage fees plus restitution to shippers. Both of these settlements related to actions brought by the FMC independent of the numerous complaints filed by individual shippers with the FMC against a range of carriers.
May 23: Major Financing and Operator Decisions Coming on Montreal’s Contrecoeur Container Project – American Journal of Transportation
As the clock ticks away, so do construction costs escalate in a high inflationary environment. Delays on the Contrecoeur project could mean the Port of Montreal will not have the container capacity it wants in place by 2027 to meet expected demand and thereby continue to compete effectively against key U.S. East Coast ports in a strong expansion mode – buttressed by the Biden Administration’s multi-billion-dollar infrastructure program. But latest developments point to important announcements this spring and summer on finalizing a financing package, followed by the selection of the terminal operator and a detailed construction schedule.
An announcement from federal Transport Minister Omar Alghabra outlining federal financial support for the Port of Montreal’s Contrecoeur container terminal project was described as “a question of weeks, not months” by Martin Imbleau, President and CEO of the Montreal Port Authority, during the port’s annual board meeting at end of April.
On the same occasion, Imbleau also said that an announcement could be expected this summer on the selection of the winner from three groups who made the shortlist of bidders to build, finance and operate the terminal that would increase Montreal’s container capacity by 1.15 million TEUs.
May 23: Vancouver Increases Container Throughput at DP World Terminal – The Maritime Executive
Vancouver Fraser Port Authority joined with terminal operator DP World to mark the completion of a major expansion project at one of the port’s terminals. The increased capacity is considered critical to the near-term growth of the port while Vancouver continues a long-term process to add a third terminal and operator to the port.
The expansion project was designed to increase throughput at the terminal by 60 percent. Construction on the US$260 million project was completed in February 2023 and, with the facilities now in operation, capacity has been increased to 1.5 million TEU a year, 40 percent over the previous capacity of 600,000 TEU annually. The terminal’s footprint was increased by 15 percent.
May 31: Long-Term Ocean Freight Rates Collapse by Almost 30% in a Month as New U.S. Contracts Reflect Market Reality: Xeneta – PortNews
Xeneta reports that the ocean freight industry saw a slump in global long-term rates of unprecedented proportions in May, as the contracted cost of shipping containers dived by 27.5%. The development, detailed by Xeneta’s Shipping Index (XSI®), marks the ninth consecutive month of rates drops, and is the largest ever monthly fall recorded on the XSI.
“If industry observers were left wondering just how bad it could get for carriers after the 10% fall in long-term rates seen in April, here’s the answer,” comments Patrik Berglund, CEO of Oslo-based Xeneta. “This is the largest drop we’ve ever experienced on the XSI, which charts real-time global rates developments, and it paints a bleak picture of the state of the industry.”
May 3: Cargojet Postpones More 777 Freighters, Tightens Belt as Shipments Slow – American Shipper
Cargojet, which operates an extensive middle-mile air cargo network in Canada for express delivery and e-commerce companies, has increased steps to cut costs and preserve cash amid weak shipping demand that contributed to a 32% reduction in gross profit margins during the first quarter.
The most dramatic step to maintain financial flexibility and match fleet size with demand is the unloading of a third secondhand Boeing 777-300 intended for conversion into a main-deck freighter, according to financial reports released on May 1. Cargojet confirmed it plans to finalize the sale of three 777-300s this year for a total of $110 million because of the slowdown in the global economy and air cargo shipping.
May 9: Summer Capacity Boom Hits Airfreight Rates – Air Cargo News
With the start of Northern Hemisphere airline summer schedules at the start of April, the addition of services has meant the availability of significantly more bellyhold capacity in the market.
In fact, industry analyst CLIVE Data Services has reported that “a flood of summer bellyhold capacity on major lanes,” coupled with a 4% drop in demand in April, means that the industry is facing a challenging four or five months.
CLIVE believes that the global air cargo market may have to wait will October for any meaningful recovery.
May 18: WestJet and Its Pilots Reach 11th-Hour Deal to Avoid Strike – Global News
Airline WestJet and its pilots have reached a last-minute deal, averting a strike ahead of the May long weekend.
Some 1,800 pilots at WestJet and Swoop had been poised to walk off the job overnight on May 19 after the Air Line Pilots Association, Int’l served a strike notice on June 15.
Already the airline had cancelled hundreds of flights in anticipation of its fleet being grounded.
May 30: Air Cargo Groups Join Forces to Enhance Standard Practices for Air Cargo – Inside Logistics
Quality standards organization Cargo iQ has forged a partnership with the International Federation of Freight Forwarders Associations (FIATA) and the Airport Services Association (ASA) to set shared goals for enhanced standard practices across the air cargo supply chain.
The objective of the alliance is to strengthen collaboration between forwarder, ground handler and airline communities, working on a global basis to achieve common standards and enhanced quality.
The decision was made at Cargo iQ’s most recent board meeting that FIATA’s director general, Stéphane Graber, and ASA’s director general, Fabio Gamba, will attend all Cargo iQ board meetings as observers and work together with the board members, with a view to intensifying co-operation in the future.
May 9: Customs Brokers, Forwarders and Shippers Ask U.S. Congress to Change Rail Storage Rules – American Journal of Transportation
More than 70 trade associations sent the U.S. House Transportation and Infrastructure Committee leadership a letter asking for clarification regarding rail storage fees charged as part of international ocean shipping: “Continuing to allow railroads to invoice importers and their agents directly without oversight undermines the purpose and intent of the Shipping Act.”
The May 2nd letter notes that there is a gap in authority between the Surface Transportation Board (STB) and the Federal Maritime Commission (FMC) to regulate these charges: “The lack of clear statutory authority for the FMC to address unreasonable rail storage charges assessed under ocean carrier through bills of lading is a gap that must be clarified.”
The letter adds: “… the railroads’ storage charges under through bills of lading should more appropriately be invoiced through the ocean carriers. Rail storage charges assessed against containers moving in International commerce, an as-yet unaddressed abuse of demurrage charges, should clearly and formally fall within FMC authority through an act of Congress.”
May 18: Why Canada’s Two Big Railways Are Livid over Justin Trudeau’s Attempt to Force Competition – The Financial Post
Ottawa is trying to curb the market power of Canada’s two major railways, setting the stage for a nasty public battle in the Prairies.
The railways have launched an aggressive campaign in response, with Keith Creel, chief executive of Canadian Pacific Kansas City Railway Ltd., calling the government plans “short-sighted and damaging,” and warning that they could clog the rail network that Canada depends on to get billions of dollars worth of commodities to ports for export.
But shippers say they’ve put up with subpar service from the railways for long enough, and the new rules deliver a desperately needed dose of competition into a Canadian rail system that is essentially controlled by two companies: Canadian National Railway Co. and Creel’s CPKC Railway.
May 1: U.S. to Lift Most COVID-19 Vaccine Mandates for Foreign Travellers – CBC News
The Biden administration will end most of the last remaining U.S. federal COVID-19 vaccine requirements next week when the national public health emergency for the coronavirus ends, the White House said on May 1.
Vaccine requirements for federal workers and federal contractors, as well as foreign air travellers to the U.S., will end May 11. The government is also beginning the process of lifting shot requirements for non-citizens at U.S. land borders.
May 12: Port of Montreal Plans Benefits for Greener Trucks – Today’s Trucking
The Port of Montreal plans to introduce incentives for carriers that use trucks that generate lower emissions, under plans revealed at a climate summit this week.
The port is looking to reduce greenhouse gas emissions by 55% as of 2030 and be carbon-neutral by 2050.
Benefits such as exclusive time slots, express routes or discounts on certain port fees will be made available to lower-emitting trucks by 2025.
May 15: Exodus of Fleets Reaches Historic Levels in Q1, U.S. Data Shows – FleetOwner
The tumbling freight spot market and historically high fuel prices are teaming up to push more small fleets out of the trucking industry – which is setting records in carrier departures this year, according to the latest U.S. data – amid the backdrop of a fits-and-start economy on the edge of recession.
This means many trucking companies – 31,278 of them in the four months to start the year, this data shows – are folding up shop and leaving the industry. Or their operators are leasing their services to larger fleets. And more are filling seats as company drivers, easing the driver shortage.
Watching “revocations” of operating authorities with the Federal Motor Carrier Safety Administration (how the U.S. government measures fleet expansion and contraction) also indicates how volatile the trucking business has been since COVID-19 transformed the industry.
May 16: CTA, Teamsters and Carriers Take Driver Inc. Fight to Parliament Hill – Today’s Trucking
Crisis. Unsavory. Atrocity. Scam. Those were some of the words thrown around on May 16 as the Canadian Trucking Alliance (CTA), member carriers and Teamsters Canada went to Parliament Hill with their campaign against the Driver Inc. model of misclassifying employee drivers as independent contractors.
In some of their strongest language to date against Driver Inc., CTA representatives including president Stephen Laskowski and members Claude Robert (president of Robert Transport) and Scott Tilley (president of Tandet Group) – along with Teamsters Canada leaders – implored the federal government to take action against the growing scheme.
May 24: U.S. Shippers Put on High Alert over Double-Brokering Fraud – The Loadstar
Truckers and shippers in the U.S. are on high alert over double brokering, an illegal activity that is hitting the market to the tune of more than $500 million a year. The practice has been around for a while, but it recently has escalated to alarming dimensions, with a new variation gaining ground.
Essentially, double brokering occurs when an outfit successfully bids for a load posted by a broker or load board and then brokers it to a third party. In its most benign form, this can involve a trucker winning a load but deciding to offer it to other truckers because of lack of proprietary capacity to move the shipment. These instances often go unreported, as no party in the transaction is harmed, but the practice is nevertheless illegal if the approval of the shipper is not obtained.
Most cases of double brokering, however, are downright fraudulent. In the simplest form, the rogue carrier obtains a load from a brokerage and tenders it to a carrier, then receives payment from the broker but does not compensate the carrier, who is left holding the bag.
Loads also may be stolen. The fraudulent firm that obtained the load and tendered it again for carriage may contact the carrier and instruct it to deliver the cargo to a different destination, claiming that there has been a change of plan. As the carrier believes it is dealing with a bona fide broker, there is no cause to doubt the legality of this change.
Lately a variant called ‘load phishing’ has mushroomed.
May 25: Government Meets with CTOA on Incorporated Drivers, Pledges to Drop ‘Driver Inc.’ Term – Today’s Trucking
Federal Labour Minister Seamus O’Regan and several MPs met with members of the Canada Truck Operators Association (CTOA) last week, discussing the roles of incorporated truck drivers and vowing to end references to “Driver Inc.” when referencing how drivers are classified.
The meeting, held May 23 at MP Iqwinder Gaheer’s (Mississauga-Malton) office, included representatives from more than 20 CTOA member carriers, the labour minister, and MPs Charles Sousa, Sonia Sidhu, and Ruby Sahota, in addition to the host.
It came just one week after the Canadian Trucking Alliance (CTA) and Teamsters held a strongly worded press conference at Parliament Hill, condemning the misclassification of truck drivers under the scheme that CTA has labeled Driver Inc. But that’s not language you’ll hear from the federal government, according to CTOA leader Jaskaran Sandhu.
“There were a few things [O’Regan] made very, very clear in that meeting,” Sandhu said. “First and foremost, he assured and promised the industry and our association that, from here on in, the term Driver Inc. will never be used by the government. It is a deeply problematic term that unfairly maligns incorporated drivers. In fact, they stated you may have already noticed they don’t use that term anymore after learning how it was weaponized within some circles of our industry.”
May 26: Major Logistics Providers Join Forces to Set Freight Scheduling Standards – Transport Topics
Freight transportation is a fragmented industry whose players should collaborate to overcome entrenched inefficiencies. That is the message from major logistics companies and technology providers that have joined forces to alleviate a particular pain point hampering the industry – the making, keeping and adjusting of freight appointments.
“All of us have heard from our customers about the inefficiencies” at the dock level, and “opportunities to become more efficient,” said Spencer Frazier, executive vice president of sales and marketing at J.B. Hunt Transport Services.
The trucking and intermodal logistics company joined third-party logistics providers Convoy and Uber Freight in December to form the Scheduling Standards Consortium, which aims to establish industry standards for sharing scheduling information among shippers, freight brokers and carriers.
May 1: CIFFA Announces Two Recipients of 2023 Donna Letterio Leadership Award: Janet Wallace and Christina Forth – The Forwarder Online
CIFFA is pleased to announce two winners for its Donna Letterio Leadership Award this year: Janet Wallace, Managing Director, Cargo Operations and Transformation, with Air Canada Cargo, and Christina Forth, Director of Logistics Canada, Mass Logistik Inc.
CIFFA introduced the annual Donna Letterio Leadership Award in December 2015. The award is granted annually in memory of former CIFFA President Donna Letterio, who passed away in August 2013. The award recognizes a woman in the global freight logistics sector who has demonstrated, as Donna did, professionalism, commitment, leadership and a passion for excellence in her career and in her life. In addition to the award, CIFFA will prepare a cheque in each winner’s name for $1,000, which will be presented to Bladder Cancer Canada.
April 3: Conciliation Officers Appointed to Further Talks Between BCMEA and ILWU – BCMEA website
After the ILWU filed a notice of dispute to Canada’s Minister of Labour, two conciliation officers from the Federal Mediation and Conciliation Service were appointed to this matter on March 29.
The conciliation officers have a 60-day mandate from the day of appointment. An extension beyond 60 days can be made by mutual consent of the parties. At the end of the conciliation period, a 21-day cooling-off period would begin, if required.
April 4: Sharp Increase in Containership Schedule Reliability – The Maritime Executive
Coming back from the depths of the shipping surge experienced in 2021 and early 2022, the container shipping industry is recovering its schedule reliability to levels last seen at the onset of the pandemic. New data from Sea Intelligence shows the highest level of schedule reliability in 30 months, reaching levels not seen since August 2020 and approaching pre-pandemic norms.
“Schedule reliability was a staggering 26 percentage points higher” year over year, highlights Alan Murphy, CEO of Sea-Intelligence. The analysis firm’s data shows that the industry bottomed out a year ago, falling to a level where only one in three ships was on schedule. February 2022 showed just 34.2 percent global schedule reliability, continuing a two-year trend that began in January 2021 when reliability fell for the first time into the 30 to 40 percent range.
“Global schedule reliability increased sharply by 7.7 percentage points month over month in February 2023, reaching 60.2 percent,” says Murphy. Levels had begun nearly consistent monthly increases in May 2022, but February was the first time the level reached 60 percent.
April 5: ‘Nervous’ Box Lines Back-Pedal on D&D Charges in U.S. as New Rules Loom – The Loadstar
While U.S. ports and container terminals still resist a regulatory drive to curtail detention and demurrage (D&D) charges, several shipping lines have stopped charging cargo owners and truckers on days when terminals are closed.
The U.S. Federal Maritime Commission (FMC) has been questioning container terminals and the 11 largest box lines serving the U.S. on their policy of charging D&D fees when their facilities are closed.
Over the past couple of years, shippers and truckers have protested furiously over being charged when they had been unable to get access to congested terminals.
April 7: Los Angeles, Long Beach Port Terminals Shut Down Due to Labour Issues – Supply Chain Dive
Terminals at the Port of Los Angeles and Port of Long Beach effectively shut down as a result of a local longshore labour action that began on the evening of April 6.
The Pacific Maritime Association, which represents West Coast port employers, said a local union at the twin ports withheld some labour for the evening shift on April 6, leading to widespread labour shortages that halted operations. The actions continued, leading to closures on the morning of April 7 as well.
April 12: China’s Container Depots Fill Up as Exports Feel the Pinch – The Loadstar
Container depots in China are full and having to turn away new customers, following a slowdown in exports.
Container xChange CEO Christian Roeloffs said: “We hear from many customers that the demand for containers is still there, just that the supply is overshooting the demand.
“Due to this, we see ripple effects, such as depots working at maximum capacity and not being able to accept new clients.”
Container xChange’s latest report suggests China’s container depots are working at 90% utilization, adding: “Oversupply makes it harder for the depots to move boxes. And because depots make money by moving these boxes, as opposed to storing them, the current circumstances are rendering the depots inefficient in both operations as well as revenue generation.”
The increasing number of idle containers at terminals does not only mean ports are getting congested, but repositioning empty containers has become more expensive and inconvenient, making it difficult for the NVOCCs and shipping lines to open new markets globally.
April 13: Nanaimo Studies Port Expansion – Inside Logistics
The Nanaimo Port Authority has received federal funding to study the potential for expanding its facilities. The Port of Nanaimo is on the east coast of Vancouver Island, across the Strait of Georgia from Vancouver.
The federal government has committed up to $600,000, under the National Trade Corridors Fund, for the Nanaimo Port Authority to study the expansion of container handling capacity; the development of land near the port to support economic growth, job creation and trade; and the assessment of potential improvements to the transportation of cargo by sea over short distances between Vancouver Island and the Lower Mainland.
April 20: Government of Canada Approves Roberts Bank Terminal 2 Project in British Columbia, Subject to Strict Conditions to Protect the Local Environment – Government of Canada press release
Following an environmental assessment conducted by an independent review panel and significant work to address concerns highlighted by the panel report, the Government of Canada has decided the Roberts Bank Terminal 2 Project can proceed subject to 370 legally binding conditions to protect the environment, including to prevent harm to local species.
The project will increase the Port of Vancouver’s capacity by 50 percent.
The port can now apply for the additional authorizations and permits it requires from federal departments, as well as from the Government of British Columbia. This includes from Fisheries and Oceans Canada under the Fisheries Act and the Species at Risk Act.
April 20: ILWU, PMA Reach Tentative Deal on ‘Certain Key Issues’ – Supply Chain Dive
The International Longshore and Warehouse Union said in a press release Thursday that negotiators had reached a tentative deal on “certain key issues” with the Pacific Maritime Association. The longshore union did not specify which issues the new tentative agreements cover, and declined to share further comments.
The news marks the first deal publicly announced since July 26.
April 24: As Asia-U.S. Shipping Rates Rise, So Does Skepticism on Staying Power – American Shipper
Container lines have used general rate increases (GRIs) to forcibly push up Asia-U.S. spot rates, yet there’s widespread skepticism on rates’ staying power given the gravitational pull of weak demand.
Carriers introduced a round of GRIs on April 15 and are scheduled to implement the next round on May 1. But Linerlytica reported Monday that carriers are “already deferring the May 1 GRI” to mid-May because “cargo volumes are unable to support rate hikes despite the blank sailings planned in early May.”
April 28: Soft Demand Pushes Ocean Spot Rates to ‘Their Lowest Sustainable Level’ – The Loadstar
Weak demand in the three major ocean trades, coupled with the expected flood of new tonnage, will feed declining rates, according to the latest report by Maritime Strategies International (MSI).
And ONE CEO Jeremy Nixon said on April 28: “Demand in the last quarter [Q1 23] has been significantly weaker than the previous two years’ first calendar quarters.” But, he added, this was not unexpected, “since the COVID 2022 recovery cycle brought strong inventory ramp-up programs for consumer merchandise.”
Even though Nixon believes there has been an over-correction affecting sales and inventory levels, ONE is not expecting any signs of recovery until June or July.
MSI’s report describes spot rates as being “at their lowest sustainable level,” but they are stable, whereas contract terms are still under negotiation for many and “there is further room for weakening in terms of contract freight rates.”
April 6: Sporadic Strikes in France Are Causing European Flight Chaos – American Journal of Transportation
Walkouts among French air traffic controllers have led to thousands of flight cancellations since the start of the year. The French civil aviation authority DGAC has asked airlines to limit the number of flights on and off for weeks at Paris Orly and some other airports, at a time when the nation is being roiled by strikes over an unpopular pension reform.
Labour action by air traffic controllers not only affects flights to and from France but also leads to turmoil elsewhere in Europe, causing delays for planes that fly over the country to reach other destinations.
Ryanair Holdings Plc, Europe’s biggest low-cost airline, has gone so far as to ask passengers to sign an online petition urging European Commission President Ursula von der Leyen to “keep EU skies open” amid the walkouts. Twenty-five days of strikes among French air traffic controllers in the first three months of the year forced it to cancel 3,080 flights, leaving more than half a million passengers stranded with short notice, the carrier said.
April 18: WestJet Pilots Vote in Favour of Strike Mandate, Could Walk Before May Long Weekend – CBC News
The union representing WestJet pilots says they have voted overwhelmingly in favour of a strike mandate.
The Air Line Pilots Association says the 1,600 WestJet pilots it represents can launch a strike as early as the week leading up to the May long weekend.
April 20: WestJet Eyes Latin America as Freighter Services Set for Takeoff – Air Cargo News
On April 22, WestJet will launch its first-ever freighter service following the certification of its 737-800 Boeing converted freighters in March. The operation will initially start with three 737-800BCFs flying between Calgary, Halifax, Toronto, Vancouver, Los Angeles and Miami.
However, WestJet executive vice president for cargo Kirsten de Bruijn said that the carrier hopes to expand flights into Latin America after it adds its fourth 737, currently in modification in Costa Rica.
De Bruijn wouldn’t be drawn on exactly which countries the airline would target – as the carrier is still in the process of registering the aircraft in those countries – but said that they are likely to be in the northern part of Latin America.
Due to the range of the aircraft, the flights will need to include a stop in the U.S. to avoid breakage in the maximum payload, which for the 737-8000BCF is around 23 tonnes.
April 14: Canadian Pacific and Kansas City Southern Combine to Create CPKC – CPKC press release
Canadian Pacific and Kansas City Southern have combined to create Canadian Pacific Kansas City, as authorized by the U.S. Surface Transportation Board’s March 15, 2023 final decision, creating the first single-line railway connecting Canada, the U.S. and Mexico.
With its global headquarters in Calgary, CPKC is the only railway connecting North America and has port access on coasts around the continent, from Vancouver to Atlantic Canada to the Gulf of Mexico to Lázaro Cárdenas on Mexico’s Pacific coast. While remaining the smallest of six U.S. Class 1 railroads by revenue, the new combined company has a much larger and more competitive network, operating approximately 20,000 miles of rail, and employing close to 20,000 people.
Full integration of CP and KCS is expected to take place over the next three years, unlocking the benefits of the combination.
April 24: CN, UP and GMXT Announce New Mexico-U.S.-Canada Intermodal Service – American Journal of Transportation
CN, Union Pacific Railroad and GMXT have announced the creation of Falcon Premium intermodal service, a Mexico-U.S.-Canada service with a seamless rail connection in Chicago, Illinois. It will directly connect all CN origin points within Canada and Detroit, Michigan to GMXT terminals in Mexico: Monterrey, Nuevo Leon, and Silao, Guanajuato.
April 3: Trailer GHG Rules Delayed at Least One More Year – Today’s Trucking
Canada’s federal government is suspending proposed greenhouse gas (GHG) emission standards for trailers by up to one additional year, while a U.S. proposal on which those standards are based remains stalled.
Under proposed rules, trailer manufacturers would need to adopt fuel-saving technologies like side skirts and automatic tire pressure monitoring systems. But the United States Court of Appeals for the District of Columbia determined the EPA and NHTSA couldn’t apply such rules south of the border because trailers are not “motor vehicles.”
April 4: Owner-Operators Sound Off to FMCSA on Need for More Light on Brokered Rates – Overdrive
In an effort to gather more feedback from motor carriers and freight brokers regarding recent guidance and proposals related to brokers, the Federal Motor Carrier Safety Administration held a listening session on March 31, at the Mid-America Trucking Show.
During the session, FMCSA officially announced it would be issuing another rulemaking proposal at a later date, as it had granted a petition from the Owner-Operator Independent Drivers Association regarding brokered transaction transparency.
“It’s important to note that the decision to grant these petitions and commence a rulemaking proceeding does not mean that the regulatory changes in question will ultimately be adopted,” said Ken Riddle, FMCSA Office Director, Registration and Safety Information. “FMCSA determines whether a proposed provision is adopted as part of a final rule on the basis of all available information developed in the course of the rulemaking proceedings.”
April 5: Detroit-Windsor Truck Ferry Can’t Secure Funding, Plans to Close in September – Today’s Trucking
Efforts by the Detroit-Windsor Truck Ferry to secure government funding to continue operations in light of declining hazmat traffic have been unsuccessful, and the ferry will close at the end of September.
Ferry president Gregg Ward said that, “after September there will be no legal border crossing in Detroit-Windsor for flammable, corrosive, infectious, radioactive and explosive materials, until the Gordie Howe [bridge] opens in later 2025. Also, there will be no local border crossing for trucks over 12-ft. wide. As well, during border emergencies, there will be no local outlet for critical freight.”
Trucks carrying hazardous materials are not permitted to cross the Ambassador Bridge. When the ferry shuts down in the fall, Ward noted that hazmat vehicles will have no legal border crossing options at Windsor-Detroit. The detour to the Blue Water Bridge adds about $500 in costs and five hours of additional travel.
April 12: U.S. Vaccination Mandate Remains at Borders – Today’s Trucking
U.S. President Joe Biden has ended the national COVID state of emergency this week, but the border vaccination requirement for Canadians remains in place.
Previously, all COVID-related emergencies were slated to end May 11. The Canadian Trucking Alliance (CTA) has confirmed the vax mandate remains in place for non-U.S. citizens, including cross-border truckers.
April 21: Economic Trucking Trends: Q1 Earnings Paint Grim Picture as Freight Conditions Deteriorate – Today’s Trucking
Publicly traded U.S. fleets have begun reporting Q1 earnings, and they aren’t pretty. Spot market rates continue to be below operating costs, squeezing smaller carriers out of the marketplace. But equipment demand remains healthy, albeit at lower levels than we’ve seen.
Truck tonnage has seen its sharpest decline since the start of the pandemic, and industry forecaster FTR has reported worsening overall trucking conditions.
These are some of the economic highlights (lowlights?) from last week, delivered in the first Today’s Trucking’s weekly Economic Trucking Trends roundup.
April 28: U.S. Trucking Bloodbath Snares Fleets Large and Small – FreightWaves
America’s $875 billion trucking industry is struggling.
The number of authorized interstate trucking fleets in the U.S. declined by nearly 9,000 in the first quarter of 2023, according to federal data analyzed by Motive, a fleet management technology company. Several midsized fleets have already shuttered this year, and major freight brokerages have laid off 1,000 employees in 2023 alone.
Per FreightWaves’ Outbound Tender Rejection Index, trucking fleets are rejecting about 2.8% of load requests. That makes “early 2023 the softest sustained truckload market since the tender data history began in early 2018,” said FreightWaves’ Zach Strickland.
April 30: Reported Cargo Thefts Rise Sharply, and That’s Just Part of the Story – Today’s Trucking
The trucking industry is facing a sharp increase in cargo theft, even as insurance providers and police forces say the crime is underreported by those who suffer the losses.
Since last year, cases of cargo theft increased nearly 80% in Canada and the U.S., says Keith Lewis, vice-president of operations at Verisk’s CargoNet, which reports thieves stole $223 million worth of freight in 2022. Trucking-related fraud cases are up 700%.
In Canada alone, reported cargo losses increased 29.8% last year, compared with 2021, says Bryan Gast, vice-president, investigative services at Équité Association. Ontario continues to see the highest activity, accounting for 62% of total recorded cargo thefts in the country.
April 3: New CIFFA White Paper: Double Brokering in the Canadian Trucking Industry – CIFFA website
For freight brokers, the practice of double brokering poses potential legal and commercial risk.
CIFFA’s new white paper on this topic addresses three areas of enhanced commercial and legal risk where loads are brokered out by a selected carrier and something goes wrong during transit or in the freight billing cycle.