Global Logistics Update

Market outlook into Q4: While ocean carriers prepare for the potential East Coast strike, they are taking advantage of the opportunity increase rates or apply various surcharges.  Surcharge announcements have also been published for cargo destined for the West Coast or Canda ports should a strike occur, based on expected surge of cargo and congestion in these regions. For Europe to the USA, all carriers are publishing increases in general, and may add surcharges on top of rate increases should a strike occur. Other wine and spirits trade lanes are remaining relatively stable for the USA market. The market will be affected dramatically by a strike, and each day of work stoppage will create longer lasting impacts.

USA ILA update:  In a facebook post on the ILA site late last week, Union leaders made it abundantly clear that they will insist on strike action if the USMX does not adhere to their demands on wages and other key contract issues. While USMX has expressed their desire to continue negotiations in order to avoid a strike, the ILA will most likely move forward with work stoppage beginning October 1st. Unless an agreement can be reached before the contract expiration, all stake holders in the logistics industry are preparing for a strike. If you have cargo scheduled to be routed through the East Coast, please plan for potential delays that will come about if the work stoppage is implemented. Should you have any questions on any aspect of the strike, the potential impact, contingency planning or demurrage and detention issues that could arise, please contact us.

SOE Reminder: September 19th remains the firm date requiring all importers of organic products to be fully certified by USDA designated certifiers to allow entry of organic products. If you have product on the water or shipping soon and you are not certified, your options for importation are limited. Both the USDA and the OTA/Organic Trade Association are advising that shipments with a valid NOPIC processed prior to September 19th but arriving after this date will be allowed entry, but with potential flagging for follow up. Please contact WSSA for more information should you be in this position. 

Hamburg Port Strike:  The issues at the port of Hamburg continue, but are getting markedly better. The past week has brought about some stabilization to the situation and the storage areas are gradually clearing out. Delays are now reported at the terminals between 7 and 14 hours - a drastic improvement from last Friday. Even so, please be aware that Eurogate in Bremerhaven is reporting a reduced number of trucks available due to construction.

Feeder vessel disruption in North Europe/UK: The feeder system in many areas in North Europe, Scotland and Ireland continues to experience delays and disruption, primarily due to congestion in the base ports such as Rotterdam. We are seeing significant delays in the Scandinavia system and from Grangemouth and working on all truck options whenever needed.

South America: While South America is heading into spring, there are still winter weather issues affecting the border between Argentina and Chile and issues at the Chilean port of San Antonio.  For the second week in a row, the Eurosal vessel had to cut and run, departing without loading all the cargo booked and waiting to load. This is creating a significant backlog and while this is primarily affecting cargo destined for Europe, it is creating congestion and can impact all cargo movement. Good news is that the pass between Argentina and Chile has been open the last few days and the backlog of trucks is minimal. The spring-summer season for the pass “Los Libertadores” began on September 1st, which means that it will be operational 24 hours a day, unlike the winter season, which is from 08:00 AM to 08:00 PM. 

South Africa: The Cape Town and Port Elizabeth ports are both still operating at a 2-berth limited capacity due to damaged vessels occupying berths at both ports. The vessels lost containers at sea due to extreme weather that hit the region at the end of August, and will be undergoing repairs for a minimum of 14 days. Heavy delays are expected at both ports due to the distressed vessels, so please plan for additional lead time if you have cargo coming out of the region.