ITS Logistics June Port Rail Ramp Index: Volumes Expected to Increase Significantly at US West Coast Ports Due to Possible Strike at US East Coast Ports
June 24 2024 - 10:38AM
ITS Logistics today released the June forecast for the ITS
Logistics US Port/Rail Ramp Freight Index. This month the index
reveals that all markets have stabilized for ocean and rail
container demand. ITS encourages supply chain professionals to be
aware of significant volumes entering the US West Coast via
Seattle-Tacoma (SEATAC) and Los Angeles and Long Beach (LA/LB) and
for inland point intermodal (IPI) legs to be canceled.
“Port and rail operations have normalized, and volumes have
reduced due to extended dwell times for containers in Asia awaiting
export,” said Paul Brashier, Vice President of Global Supply Chain
for ITS Logistics. “Despite this positive news, we are keeping a
close eye on the current conditions, which could quickly change in
the coming months due to the potential for International
Longshoreman Association (ILA) strikes at US East Coast ports. The
potential impact of these strikes on the US West Coast ports is a
matter of concern. It's crucial for supply chain professionals to
monitor this situation closely and be prepared for any potential
disruptions.”
This month, the ILA, representing 85,000 port workers along the
eastern seaboard and Gulf Coast ports, requested substantial wage
increases for its members. The union, citing the high profits of
container lines, suspended contract negotiations with the US
Maritime Alliance (USMX), which represents employers at East and
Gulf Coast ports. The dispute centers around the automation of port
operations, with ILA leadership setting a stern boundary with
respect to remuneration in the new labor agreement due to begin on
October 1.
According to reports, the ILA is vying for wage increases in
excess of the 32% rise the International Longshore and Warehouse
Union (ILWU) obtained for its members at US West Coast ports last
year. This occurred during its six-year agreement with waterfront
employers, and last summer, the ILA indicated that a 40% increase
in both wages and benefits was secured by its Great Lakes
district.
“The potential for ILA strikes at US East Coast ports could
challenge that region if a deal is not reached this year,”
continued Brashier. “This will drive volumes to the US West Coast
as some shippers may hedge to avoid the US East Coast. Dwell times
at origin in Asia for export have also increased significantly.
While this is muting inbound volume and leading to improved port
operations, at some point, ocean carriers and non-vessel owning
common carriers (NVOs) will increase capacity to capture surging
trans-Pacific rates.”
Due to current freight being behind schedule, it will drive
through the quickest ingestion point in the supply chain. ITS
encourages industry professionals to monitor significant volumes
entering the US West Coast via SEATAC and LA/LB and the
cancellation of IPI legs. These occurrences will increase transload
and one-way trucking demand from those locations.
ITS Logistics offers a full suite of network transportation
solutions across North America and comprehensive distribution and
fulfillment services capable of reaching 96% of the U.S. population
within two days. These services include drayage and intermodal in
22 coastal ports and 30 rail ramps, a full suite of asset and
asset-lite transportation solutions, omnichannel distribution and
fulfillment, and outbound small parcel.
The ITS Logistics US Port/Rail Ramp Freight Index forecasts port
container and dray operations for the Pacific, Atlantic, and Gulf
regions. Ocean and domestic container rail ramp operations are also
highlighted in the index for both the West Inland and East Inland
regions. Visit here for a full comprehensive copy of the index with
expected forecasts for the US port and rail ramps.
About ITS LogisticsITS Logistics is a premier
Third-Party Logistics company that provides creative supply chain
solutions with an asset-lite transportation division ranked #19 in
North America, the #11 drayage and intermodal provider, a top-tier
asset-based dedicated fleet, and innovative omnichannel
distribution and fulfillment services. With the highest level of
service, unmatched industry experience and work ethic, and a laser
focus on innovation and technology–our purpose is to improve the
quality of life by delivering excellence in everything we do.
Media ContactAmber
GoodLeadCoverageamber@leadcoverage.com
A photo accompanying this announcement is available at
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