Maritime
November 6: Trump Presidency Will Reignite U.S.-China Trade War and Threaten a Spike in Ocean Container Rates: Xeneta – American Journal of Transportation
Donald Trump’s victory in the U.S. presidential election is ‘a step in the wrong direction’ for international trade, as importers fear another spike in ocean container shipping freight rates.
Data from Xeneta – the ocean and air freight intelligence platform – shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.
Peter Sand, Xeneta Chief Analyst, said: “Shipping is a global industry feeding on international trade, so another Trump presidency is a step in the wrong direction.
“The knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.”
November 13: ILA Breaks Off East Coast Port Contract Talks – American Shipper
The International Longshoremen’s Association has broken off contract negotiations with East and Gulf Coast port employers, accusing them of pushing automation technology into a new coastwise labour pact that would eliminate union jobs.
The ILA and employers represented by the United States Maritime Alliance this week resumed bargaining on a new six-year master contract covering 45,000 union workers involved in container handling at dozens of East and Gulf Coast ports.
In a statement posted to social media and then taken down, the ILA said that in meetings in New Jersey, “USMX introduced language in their proposal for semi-automated equipment to be used at ILA ports, which this union outright rejected. The ILA recognized this as a renewed attempt by USMX to eliminate ILA jobs with automation and broke off talks.”
November 27: Australian Wharfies to Expand Job Action at Bulker/General Cargo Terminals – The Maritime Executive
Australian port terminal operator Qube becomes the latest in a long list of port operations to be facing potential strikes by dockworkers. The National Maritime Union (NMU) of Australia anticipates that 10 Australian ports will be involved by late December as it seeks to expand its industrial action against the company.
The NMU asserts that the real value of wages paid to its members by Qube has declined 14 percent due to inflation since the pandemic. The union’s demands include pay increases that catch up with inflation and protect dockworkers’ purchasing power. They cite the principle of “same job same pay,” demanding increases for all workers.
Air
November 9: Revision of Liability Limits Under the Montreal Convention 1999 – FIATA
Effective December 28, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 will increase, as announced by the International Civil Aviation Organization (ICAO).
According to the changes, the limit for destruction, loss, damage or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram.
The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at US$1.33038 on October 25 this year.
The limits are set to increase in line with the Convention’s built-in review mechanism, to adjust for inflation every five years so as to ensure that passenger and cargo compensation remains appropriate over time.
These updates will affect freight forwarders, as they will need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for the increased liability limits.
November 19: Changes to U.S. Air Cargo Advance Screening Requirements and Guidance – FIATA
New TSA emergency air cargo security measures and updates to the ACAS program are aimed at strengthening the security of cargo entering or transiting through the United States. Supply chain players, including freight forwarders, must comply with these more-stringent pre-loading advance cargo information (PLACI) requirements.
Changes have been made to requirements related to data elements, the “established business relationship” and more.
Rail
November 19: Canadian Railways Seek Solutions to Frequent Labour Disruptions – Trains
If there’s a silver lining to the spate of labour disruptions that have affected Canadian railways and ports over the past 15 months, it’s that Ottawa now recognizes there’s a problem.
“That’s the first step in fixing it,” Canadian National CEO Tracy Robinson said at the recent RailTrends conference. CN executives were scheduled to meet with federal officials about labour matters in the week of November 18, she said.
Canadian ports and railways are losing traffic to their U.S. rivals due to recent work stoppages. CN and CPKC have seen significant growth in their international intermodal traffic for more than a decade as Canadian ports have become gateways to the U.S. Midwest. Frequent labour disruptions put that traffic at risk, the railways have said.
The railways are advocating for changes in Canadian labour law that would make it mirror the U.S. Railway Labor Act, which seeks to avoid strikes by sending unions and railroads to binding arbitration or mediation when contract talks are deadlocked.
The Teamsters Rail Canada Conference, which represents train crews on CN and CPKC, is bitterly opposed to any changes to existing labour regulations.
Marc Brazeau, CEO of the Railway Association of Canada, says the railways respect workers’ right to strike, but notes that a relatively small number of unionized workers should not be able to shut down the country’s economy.
November 25: CN Rail Mechanics, Clerks Vote Overwhelmingly to Approve Strike Mandate – CBC News
Mechanics and clerks at Canadian National Railway Co. have voted overwhelmingly in favour of a strike mandate that could see workers walk off the job as early as New Year’s Day.
Unifor says 97 percent and 96 percent of the two groups, respectively, cast their ballots in favour, paving the way for potential job action on January 1.
One group comprises 2,100 mechanics, technicians, crane operators, machinists and electricians, and the other includes 1,500 administrators and customer support staff. They are calling for improved job security, compensation and working conditions at CN.
Unifor says negotiations are resuming in Montreal and will continue through December 8.
Trucking
November 6: Stakeholders Concerned Over Deteriorating Safety, Compliance Standards in Ontario Trucking Industry – Today’s Trucking
Trucking industry stakeholders have raised the alarm about an increasing number of companies, schools and drivers in Ontario who do not rise to the minimum professional requirements, and in many cases disregard complying with laws and standards.
A release signed by the Ontario Safety League, Ontario Trucking Association, Truck Training Schools Association of Ontario, Private Motor Truck Council of Canada, Professional Truck Training Alliance of Canada, Teamsters Canada and Women’s Trucking Federation of Canada says, “It is distressing to admit the standards of safety and compliance are eroding rapidly in our industry.”
The stakeholders believe the Ontario trucking industry is being dominated by carriers whose operating model is built on widespread non-compliance and who have little to no commitment to vehicle and driver safety and the environment.
They have no respect for labour standards and mandates, contempt for employee and contractor classifications, and willfully neglect their obligation as corporate citizens to contribute to Canada’s social systems, the release adds.
November 19: FMCSA Proposes New Rules on Broker Transparency – FreightWaves
Federal regulators have issued a long-awaited proposed rule in response to allegations of fraud in the rate-making process raised by owner-operators against truck brokers.
In May 2020, the Owner-Operator Independent Drivers Association and the Small Business in Transportation Coalition petitioned the Federal Motor Carrier Safety Administration to improve broker transparency.
OOIDA’s petition requested that brokers automatically provide transaction information within 48 hours of the completion of contractual services and that brokers be prohibited from including any contract provision that requires a carrier to waive its rights to access the transaction records.
SBTC also wants brokers to be prohibited from requiring carriers to waive their rights to review transaction records, and wants FMCSA to adopt new regulatory language stating that broker contracts cannot exempt brokers from having to comply with transparency requirements.
FMCSA’s proposal stops short of outright prohibitions as requested, however.
“Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC,” the agency stated in a notice.
November 29: Trucking Companies Hit with $165 Million in Nuclear Verdicts in the U.S. in 2023 – Today’s Trucking
Trucking companies across the U.S. faced US$165 million in nuclear verdicts – jury awards exceeding $10 million – in 2023, according to the latest Marathon Strategies report.
To address such challenges, Iowa became the first state in the U.S. to cap liability damages against trucking companies, helping companies affected by nuclear verdicts. The legislation limits such damages to $5 million. It does not include cases where a trucking company acted negligently, such as through hiring, training, supervising, or trusting an employee driver involved in a crash, according to the report.
Louisiana continues to be one of the hardest-hit states for trucking-related verdicts. Last year, the state accounted for 15 nuclear verdicts for the trucking, oil and gas, and pharmaceutical industries, ordering nearly $10 billion in payoffs. Meanwhile, Florida ordered companies in trucking, automobile, real estate and tobacco industries to pay more than $33.2 billion in 175 verdicts since between 2009 and 2023.
