Logistics Hot Spots April 1st

As usual, there is a lot going on in the global supply chain and this week we focus on legislative issues as well as logistics issues.

OSRA22: The US Senate voted in favor of the Ocean Shipping Reform Act this week. Ocean Shipping Reform legislation was first introduced in the House of Representatives under OSRA21, and a slightly different version of the bill has now passed the Senate. OSRA22 includes provisions intended to ensure reasonable and fair practices by ocean carriers, including obligations to follow the Federal Maritime Commission’s guidelines on Demurrage and Detention, and provides the FMC with greater enforcement powers. The next step is for the bill to move into conference committee where both the House and Senate can agree to a final version that would go to the President for signature. Should anyone like to receive more details on this legislation, please let us know.

ILWU Negotiations: The negotiations between the International Longshoremen and Warehouse Union and the PMA (Pacific Maritime Association) are scheduled to commence on May 12. The ILWU represents approximately 15,000 workers at 29 U.S. West Coast ports and they are paid by the PMA based on contractual terms. The current contract expires on July 1, 2022. The fear of the potential disruption should a strike or work slow down occur has driven thousands of parties and dozens of associations to reach out to their elected officials and directly to the President to encourage the parties to reach a speedy resolution with no disruption in workflow. 

US West Coast Rail Congestion: An article in the Journal of Commerce reports, “West Coast port and terminal sources say several factors in recent weeks have converged to create the current conditions that the terminals say could get worse before they get better — IPI bookings are increasing rapidly after the Lunar New Year lull, railroads are not taking railcars out of storage quickly enough to meet fresh demand, and rail ramps in the interior US are becoming congested again” Bill Mongelluzzo. "Lack of Equipment spurs rail crisis at West Coast ports."  Journal of Commerce. March 31, 2022. www.joc.com. 

While the congestion is most severe in the LA/LB terminals, Oakland and Seattle/Tacoma are also getting backed up. The railroads have not started metering railcar movement, but this could be utilized should the inland points get completely jammed.

Spain: We have been reporting on the trucking situation in Spain for the last week. There were talks earlier in the week, and the situation dramatically improved in the areas of Barcelona and Valencia as of March 30. However, the situation in Algeciras, Cadiz, and Bilbao remains in critical status with almost complete closure of the ports due to trucker action. On Monday, the leaders of the strike will be meeting in Madrid to decide on next steps and actions, creating further uncertainty as to what will happen in the upcoming days. 

Boston Port Update: MSC has updated the plans for Boston service from Europe, adding an additional string called the “Boston Express” connecting the ports of Antwerp and Le Havre directly to Boston with the first vessel deployment expected in mid-April. This is great news for the Boston area importers and exporters. Should you want additional information, please let us know.