Why Ocean Container Prices Will Remain High and What to Expect

Ocean container rates from Asia to the US have surged in 2024 and are likely to remain elevated due to several factors. Key reasons include increased shipping demand, port congestion, geopolitical disruptions like Houthi attacks causing rerouting and delays, and early peak season surcharges starting in June. Additionally, ongoing supply chain adjustments and resilient Asian production contribute to higher costs. As a result, businesses should plan for sustained high rates by exploring alternative shipping methods and booking shipments well in advance.

Labor Negotiations Stalled: Potential Strike Looms at U.S. Ports

The labor negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are at a standstill due to a dispute over an Auto Gate system that autonomously processes trucks without ILA labor. The ILA officials explained that it cancelled Master Contract talks with the USMX upon learning that APM Terminals and Maersk are using this system. The current contract is set to expire on September 30, 2024, and ILA President Harold J. Daggett has indicated that the likelihood of a strike is increasing, while urging the White House to address foreign-owned companies undermining American jobs. Meanwhile, the National Retail Federation is emphasizing the importance of reaching a new agreement to avoid disruptions during the peak shipping season, as retailers bring in back-to-school and holiday merchandise.

National Airline's Boeing 777 Purchase Indicates Air Freight Market Surge Amid Ocean Challenges

National Airlines has signed a letter of intent to purchase its first Boeing 777 freighter aircraft, with plans to finalize a contract for four 777 freighters to join their fleet, as Boeing projects significant growth in the air cargo market. Boeing estimates that the air cargo market will increase by two-thirds by 2043, leading to a projected need for 2,845 additional freighters.