Capacity constraints, labor unrest, and potential labor unrest pose challenges to the global supply chain as we move through Week 24.
LABOR UNREST: CANADA WEST COAST, U.S. EAST & GULF COASTS
In the U.S., the International Longshormen’s Association (ILA) suspended labor talks with the United States Maritime Alliance (USMX). Talks halted on
June 10, 2024, due to automation displacing workers at some port terminals. Talks between the rail worker Teamsters Union and CN railroad also halted after the first day of talks posing a more serious threat of labor action as the June 14 deadline approaches. Shippers are rerouting or choosing routes that avoid the Pacific Northwest and the U.S. East and Gulf Coasts to avoid potential delays due to concerns of labor action in these regions.
VESSEL CONGESTION GROWS: PORTS OF CHARLESTON & SAVANNAH
Port Congestion in Charleston and Savannah continues to grow as a result of a previous major software outage and ongoing construction. Analysts expect this congestions to remain through July and, potentially, into August.
U.S. IMPORTS TRIGGER PRE-SEASON SURGE
U.S. importers are starting peak shipping season early due to concerns about port congestion, potential port worker strikes, and higher tariffs on Chinese-made goods.
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