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ILWU negotiations shouldn’t disrupt port operations
U.S. West Coast supply chain stakeholders are more confident than in prior negotiation cycles that upcoming talks between longshore workers and their employers won’t deteriorate into the type of tit-for-tat actions that have accompanied some prior negotiations.
Talks between the ILWU and marine terminal employers are due to begin May 12th in San Francisco. The current contract expires July 1st.
Sources say that positive messaging from ILWU President Willie Adams was unique in that the union rarely communicates publicly before formal talks begin – much less saying something that projects optimism.
Asian ports, container lines prep for potential Shanghai fallout
The impact of cargo disruption in China due to extensive lockdowns is beginning to ripple across Asian ports as harbor authorities and shipping lines implement contingency measures to prevent China-bound cargo from worsening congestion and delays in the region.
In Vietnam, Saigon NewPort (SNP) is asking carriers to submit details of cargo clearance procedures at Shanghai and other Chinese ports before they make cargo booking reservations through the company’s facilities.
In Thailand, carriers have stopped accepting bookings for reefer and dangerous goods cargoes to Shanghai to prevent excessive free time at Thai ports. Shipping lines are asking shippers to change the unloading port or return shipments to Thailand.
Carriers see progress in U.S. empties sweeps
Ocean carriers have made headway in clearing out empty containers dwelling off dock throughout the U.S. However, issues remain with leased and shipper-owned empty containers and recurring terminal lockouts.
The five largest U.S. ports reported that empty container exports reached 12.1 million TEU in 2021, up 36% from the year earlier. The Ports of LA and LB led empty exports last year with 3.9 million TEU and 3.2 million TEU, respectively. The start of 2022 shows empty exports were up 18% through February. Since the start of the year, the number of empty sweepers that have called LA and LB is more than the total called during all of 2021.
Shanghai blank sailings could increase
Shippers could see a rise in blank sailings via Shanghai as the city’s ongoing Covid lockdown disrupts export and import shipments, giving carriers little incentive to call at the world’s busiest container port. Some carriers, including Maersk, have already stopped accepting reefer and dangerous goods cargoes into Shanghai.
The Shanghai port remains operational. However, the severe shortage of trucking capacity means the port is slowly being filled with import cargo that cannot be cleared. Similarly, widespread factory closures will likely hit export volumes.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. 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
