Newsletter – June 14, 2023

OCEAN FREIGHT UPDATES

Blank sailings under scrutiny as US maritime commission ‘looks for clarity’

theloadstar.com
Following the $9.8m penalty imposed on Maersk-owned operator Hamburg Süd last week, the US Federal Maritime Commission (FMC) is to revise OSRA 22, itself a revision of the Shipping Act, to give a clearer definition of “refusal to deal”.
The FMC found Hamburg Süd in violation of the act’s provision 41104(a)(10), ‘refusal to deal’, ruling that the carrier shut out complainant OJ Commerce, a Florida-based furniture importer, in retaliation for legal action against the carrier. Read more here (login required).

Confusion reigns as labor dispute ‘fog’ blankets West Coast ports

freightwaves.com
There’s the fog of war and there’s the fog of West Coast port labor disruptions.
More than a year after negotiations began and over 11 months since the last contract expired, employers and dockworkers still haven’t come to terms over pay. Accusations are flying. Those speaking to the press have agendas, as do those remaining largely silent. Read more here.

GROUND AND RAIL FREIGHT UPDATES

CN Wildfire Relief Efforts

ciffa.com
Wildfires across Canada continue to blaze and devastate many communities.
With 449 active fires, according to the Canadian Interagency Forest Fire Centre (CIFFC), impacted populations in Northern Quebec, Nova Scotia, Alberta and British Columbia continue to struggle without access to essential goods.
If any of CN’s customers and supply chain partners would like to donate essential goods to those communities in need, CN and/or TransX will ship them free of charge to impacted areas.

Freight shipments, spend see largest y/y declines in nearly 3 years

freightwaves.com
Shipments and expenditures plummeted year over year (y/y) in May at the fastest pace in nearly three years, according to data provided by Cass Information Systems on Tuesday.
The Cass Freight Index recorded a 5.6% y/y decline in shipments during the month with expenditures falling 15.7%. Read more here.

CANADA BUSINESS – GOVERNMENT UPDATES

Canadian manufacturing at risk of falling behind

insidelogistics.ca
A shortage of skilled workers is threatening Canadian manufacturers’ ability to adopt necessary technologies to scale and compete globally, according to a new national survey by Canadian Manufacturers & Exporters (CME).
As the business landscape becomes more complex and competitive, manufacturers are looking to technology to improve profits, but are thwarted by ongoing skills shortages, high purchase costs, and the ability to finance these new innovations. Read more here.

Analysis: Prospects of another supply chain disruption rightly ringing inflation, economic alarm bells for B.C. business

biv.com
On the list of complications the Port of Vancouver and the rest of the Asia-Pacific Gateway do not need in 2023, a labour disruption is near the top.
On second thought, make that right at the top.
Word this week that the 7,400 unionized dockworkers and foremen employed at Canada’s West Coast ports voted almost unanimously in favour of strike action to back their demands in 2023 contract negotiations with the BC Maritime Employers Association (BCMEA) moves the potential for that labour disruption closer to reality. Read more here.