Almost all conversation about delays and disruptions in supply chain for the past two to three years have pointed their finger directly at the pandemic. Not this time!
Here is a great article from an interview with Descartes’ Chris Jones by George Lauriat at the American Journal of Transportation. Chris explains that while looking at the ocean market in 2023 and comparing it to 2019, we can see the ocean volumes this year were following pre-pandemic volumes. This suggests a return to normalcy post-pandemic. That is until it was time for the ports to form a new collective agreement. At this point, Jones’ data showcases a shift between normal east and west coast port TEUs and volumes as some shipments were redirected in what appears to be an anticipation of labour negotiation backlog. Put simply, some west coast volumes shift east during April and May as freight forwarders, logistics companies, and shippers assess their options.
Now with labor disputes tentatively resolved, the volumes for west coast ports should continue to increase each month to the end of the year as volume comes back from the East. The specific impacts of this agreement going forward will be an interesting case study for both shippers and logistics companies, especially in a post covid ocean market. We will continue to monitor to determine if the new labor deal improves the delays as anticipated.
As shippers know, the international freight market has been changing, and having the right partners to navigate and interpret challenging market data is critical. Organizations can benefit from being members of CIFFA (Canadian International Freight Forwarders Association), or FIATA (International Federation of Freight Forwarders Associations). Both organizations provide great industry training, and market trends are a huge benefit for managing customers' first-mile freight.
Wellington Group of Companies is now a member of CIFFA and is excited to expand our own international service options in order to provide end-to-end solutions for shippers who are working through challenges just like our recent ocean markets have created.
That is all for this week! Thank you for reading and please share our newsletter with all those who would benefit.
See you next week!
Bill Robinson
