As a logistician or shipper, you need to remain up-to-date on logistics news. You need a go-to source that you can rely on. You should trust O’Neill Logistics as your source for logistics news! Subscribe now to receive trending logistics news every week! Additionally, share important logistics news with your colleagues and friends! You won’t regret it!
Western Canada dockworkers retract Saturday strike notice
Longshore workers at Western Canadian ports retracted a 72-hour notice of a strike. The workers planned to strike Saturday morning. A federal labor board ruled that strike action taken Tuesday night was illegal. Following the ruling, the union issued the strike notice for Saturday. The ILWU then retracted the strike notice hours later.
ILWU Canada said it is remaining steadfast in seeking increased jurisdiction of maintenance work at terminals. The union also said that employers have the financial resources to appropriately compensate workers for higher living costs. The employers experienced record profits in 2021 and 2022.
The ILWU recently rejected a tentative agreement. The BCMEA said that ILWU Canada was harming Canada’s economy and international reputation. They also said that the union was harming the livelihoods of Canadians that rely on the stable supply chain.
Canada’s ministers of Labor and Transport expressed disappointment in the union’s rejection of the agreement. The joint statement described the tentative agreement as “fair and balanced.” They also emphasized that ports needed to be open. The parties did not disclose the terms of the tentative deal.
Many want Canada’s Parliament to end the strike. However, the Liberal Party and the Conservative Party will need to join forces to overcome the Democratic Party’s objections to any back-to-work legislation.
Warehouse vacancies rose in Q2, but market still healthy
US industrial real estate vacancies rose to 4.1% in Q2. However, experts say the market is still “healthy.” Net absorption totaled 44.9 million square feet in the second quarter. In Q1, net absorption was 71.4 million square feet. The vacancy rate was 3.5% in the same period.
New projects expected to meet pent-up e-commerce needs are now being delivered amid waning demand. Therefore, vacancies are expected to climb to about 5.5% through 2024.
Prologis has been paying especially close attention to the Southern California market. Their current portfolio is over 97% leased. However, buyers and lessees are rethinking entry into the market. This is due to record rental prices, declining volumes at ports, and a year of uncertainty over labor negotiations.
Southern markets contributed to more than 60% of the Q2 absorption. Savannah, Dallas, and Houston led the charge. All three markets absorbed more than 3 million square feet of space.
Cheaper land, a lower cost of doing business, the increasing attraction of being near Southeast ports, and a growing population are all factors that benefit these three regions.
About O’Neill Logistics
O’Neill Logistics is a leading third party logistics provider. We operate in California, Savannah, New Jersey. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
Please reach out to us if you have any questions or need assistance with your logistics solutions!
