U.S. consumers are not as eager right now to open their wallets to purchase a lot, but that does not mean anticipated lower volumes cannot create any logistical hiccups. They still can.
Shippers are taking advantage of the longer transit around the Cape of Good Hope and the wait at the Panama Canal due to water restrictions. They don’t need the products, and they are more than happy to have their containers on the water and not racking up warehouse bills.
But while this present strategy is good, the attractiveness of longer transit times may start to wane for a variety of reasons.
The first is contract season. Paying more for a less productive route for a year may not make fiscal sense when you are heading into peak season.
The second is fears over a possible East Coast labor strike. Who wants to be locked in for a year with that threat looming? The labor contract between United States Maritime Alliance (USMX), representing employers at 36 ports on the East and Gulf coasts, and the International Longshoremen’s Association (ILA) union, which represents around 70,000 dockworkers, expires Sept. 30.
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marvin j del cid
yup climate is a really hoax i lost my job working for ports from LA&LB becouse of climate hoax l love califas but regulations are killin owner opp and anyone else trying to survive LA&LB regulations trucks?
Peter Ely
Very Good Article!
I’ll give Paul a call and let him know where
ITS Logistics can store all those excess containers for few days. ILWU will love more work and ILA will settle in a few days if any..
Thanks for the update!
Capt Okland
The economy is in a recession and credit card debt is well past $1 Trillion.
The peak season will not be much of a season.
People are loosing their jobs as DC is working on making people poor and the climate hoax is still a hoax.