Update: Labor Negotiations and Ocean Freight Market

1. Gulf & East Coast Labor Negotiations Update

• Negotiations Status: Talks stalled in December and are set to resume January 7th.

• Potential Strike: If no agreement is reached, a slowdown or strike could begin as early as January 15th.

• Terminal Workflow: Expect disruptions and "choppy workflow" at Gulf and East Coast terminals during this critical period as union pressure increases.

• Core Issue:

  • Automation & Technology:

    • Management seeks efficiency improvements via automation, similar to global standards.

    • The ILA Union opposes this due to potential job reductions.

2. Ocean Freight Market Update

• Rate Increases:

  • January rates are up by $1,000+ per container, ahead of Chinese New Year (CNY).

  • Many carriers are also implementing an ILA Strike Surcharge of $1,000 per container for Gulf and East Coast shipments, effective January 10th.

  • These increases come on top of December’s $1,500–$2,000 hikes, with further increases likely around January 15th.

• Market Outlook:

  • High cargo volumes and limited space persist due to pre-CNY activity.

  • Potential for rate relief after CNY exists but remains speculative.

3. CIF Holiday Schedule (January 2025)

Please note the following holiday closures for CIF offices across regions:

• JMC Taiwan: Jan 1 (New Year), Jan 25–Feb 2 (Chinese New Year)

• JMC China: Jan 1 (New Year), Jan 28–Feb 4 (Chinese New Year)

• JMC Hong Kong: Jan 1 (New Year), Jan 29–Feb 3 (Chinese New Year)

• JMC Vietnam: Jan 1 (New Year), Jan 25–Feb 2 (Lunar New Year)

• JMC Indonesia: Jan 1 (New Year), Jan 27 (Isra Mi'raj), Jan 29 (Chinese New Year)

Please plan accordingly for any shipments during these dates.

Next Steps

JMC Global will continue to monitor these developments closely and will provide updates as they arise. Feel free to reach out to any of our representatives with any questions or concerns.

Let us know how we can leverage our expertise to help you with your upcoming logistics needs. 

Please call our main number at 832-381-2500, or click the names below to contact Lindsay Robinson, Alexandra Wells or Kelly Morgan.

Sources: Freight Waves, The Times, Business Insider, Reuters,  U.S. Department of Agriculture (USDA), & Environmental Investigation Agency (EIA)