Eastern Shipping Worldwide

North American cargo crime takes big jump as thieves get more organized Cargo theft in North America surged 49% in the first half of 2024, with thieves increasingly targeting high-value goods, leading to an 83% rise in average losses per incident to $115,230. Southern California was hit hardest, accounting for 36% of thefts, particularly near major freight hubs like the ports of Long Beach and Los Angeles. Electronics were the top target, followed by home and garden products, clothing, and food. The ongoing rise in cargo crime highlights the need for shippers to adopt robust, multilayered security measures and carefully vet their carrier networks. https://lnkd.in/dBWEWdiG

Panama Canal seeks more long-term clients Starting in October, the Panama Canal will implement a new long-term slot allocation system for its larger neopanamax locks to enhance transit certainty and flexibility. This system will allow clients to book multiple slots in one transaction through various packages tailored to different market segments. The first sealed bidding period will cover bookings from January 5, 2025, to January 3, 2026. In response to a severe drought affecting operations for the past year, the Panama Canal Authority (ACP) is also preparing a $2 billion expansion of a water reservoir, with a 18 to 24-month timeline pending Supreme Court approval. https://lnkd.in/gEteda6x

The Canadian rail strike, which began with a shutdown by 9,300 workers from Canadian National Railway Co and Canadian Pacific Kansas City, ended within 18 hours after authorities swiftly intervened. The government issued a back-to-work order and initiated binding arbitration between the unions and the rail companies. Although operations are expected to resume soon, Canadian National Railway anticipates it may take up to a week to clear the backlog of shipments. https://lnkd.in/gPeFZ7sW

Canada’s two largest railways shut down On August 22, 2024, Canada's two largest railways, Canadian National Railway Co (CN) and Canadian Pacific Kansas City (CPKC), halted operations after failing to reach a pay agreement by a midnight deadline. This unprecedented simultaneous shutdown, affecting 9,300 workers, threatens major disruptions to North American supply chains, particularly impacting ports and freight rates. With potential strikes looming at US ports, shipping companies are implementing contingency plans, including rerouting vessels and increasing fees, while Canadian ports prepare for significant operational challenges. https://lnkd.in/engt6Z3d

American port strike looms as shipping’s next major chokepoint A potential dockworker strike beginning October 1 at ports along the US east and Gulf coasts could severely disrupt supply chains through 2025, according to Copenhagen research. Negotiations between the International Longshoremen’s Association (ILA) and port operators have collapsed, with the current agreement expiring September 30. The ILA, representing 45,000 dockworkers at major ports, has demanded a 76% pay increase. Danish carrier Maersk and Sea-Intelligence warn that even a short strike could lead to extensive delays and backlogs, with recovery potentially stretching into 2025. The ILA is planning internal meetings and strategic discussions about the strike, which could also drive up costs for American consumers due to increased congestion and freight rates. https://lnkd.in/eePuESMG

Looming strike in India triggers more uncertainty in the container market A major port strike in India is set to disrupt container shipping, with dockworkers at the 12 largest ports planning to strike from August 28 due to unresolved contract negotiations. This could worsen existing supply chain issues, leading to delays and higher costs at key transit hubs such as Colombo and Singapore. Additionally, truck drivers have threatened a strike starting August 20, which could further impact operations at Nhava Sheva Port and lead to increased transportation delays. https://lnkd.in/gjne--jq

Canadian National Starts Phased Shutdown of Rail Network in Canada Canadian National Railway has initiated a phased shutdown of its Canadian rail network, starting with a suspension on hazardous cargo, due to stalled negotiations with unionized workers. The company announced it would enforce a lockout starting August 22 if no progress is made with Teamsters Canada Rail Conference or through arbitration. Concurrently, Canadian Pacific has embargoed certain hazardous goods and warned of potential lockouts if an agreement is not reached. Both rail operators face the prospect of idling around 10,000 workers, which would disrupt cargo movement and impact supply chains and trade. Industry groups are urging the government to intervene to prevent significant economic repercussions and potential damage to Canada's international trade relationships. https://lnkd.in/g3p7_Usg

Eastern's President's Desk Newsletter is a monthly publication that provides updates on air, ocean & land transport, as well as customs brokerage news. It is an excellent way to stay informed about the latest developments in the transportation industry. In our August newsletter, we provide an overview of recent developments and key changes in the industry. This issue includes updates on a new draft limit at the Panama Canal and a major port closure in Ningbo that are affecting global trade. We also address recent changes to customs fees and delays in U.S. tariff increases. Additionally, we highlight Eastern’s participation in supporting Ronald McDonald House Charities during their Annual Golf Classic. 

Ningbo explosion closes port, adds to worsening Asian bottlenecks The port of Ningbo has been closed indefinitely following a massive explosion aboard a Yang Ming vessel exacerbating existing bottlenecks on major Asian export trade lanes. The explosion, caused by a container loaded with dangerous goods, occurred on the YM Mobility at Ningbo's Beilun terminal. This closure, alongside delays at other major Asian ports such as Shanghai and Hong Kong, is expected to worsen schedule disruptions during peak import demand in the US and Europe. The situation adds pressure on already congested ports in North Europe, with delays expected to continue worsening through the year. https://lnkd.in/eiq-xY8N

Panama Canal raises draught for Neo-Panamax locks On August 5, the Panama Canal Authority raised the maximum authorized draught for Neo-Panamax vessels to 14.94 meters (49 ft) and increased daily transits from 34 to 35, in response to current and projected water levels in Gatun Lake. This follows previous increases, with the canal nearing its design limits of 36 daily transits and a 15.24-meter (50 ft) draught for Neo-Panamax locks. https://lnkd.in/gC6qedBG