Global trade continues to shift to new ports, airports, and manufacturing locations. Flexible supply chains can make changes with little to no problem, but supply chains that do not have such investments are experiencing higher costs and potential delays.

In this month’s international shipping news recap:

• The threat of a strike at U.S. East and Gulf Coast ports draws ever closer, resulting in shippers frontloading shipments ahead of the busy holiday peak season.
  
  
• Political unrest in Bangladesh led to the prime minister's resignation and a temporary shutdown of its vital apparel manufacturing sector, which has caused delays for major retailers like H&M and Zara.
  
  
• Canada may have dodged a bullet by declaring binding arbitration between its Class I railroads and its union, but it’s not entirely over. In addition, Canada may face a strike at its largest passenger airline in September.
  
  

Read on to learn more about the recent news and trends that are shaping international shipping, and know that 3rdwave is here to help international shippers and beneficial cargo owners navigate this constantly shifting marketplace.

US East and Gulf Coast on Edge

The International Longshoremen's Association  (ILA) sent all employer groups the required 60-day strike notices indicating the current contract “would not be extended.” The union also reported that its Wage Scale Committee would meet on September 4 and 5 to review demands the ILA will make to the USMX. According to Bloomberg, a strike would impact six of the ten busiest U.S. ports. The growing threat of a possible strike is prompting US importers to restock inventories and frontload orders, with volume rising on the trans-Atlantic westbound trade lane, according to Hapag-Lloyd CEO Rolf Habben Jansen.

Coup, Congestion, and Flooding in Bangladesh

Increasing anti-government protests led to the resignation of Bangladesh’s prime minister and impacted apparel manufacturing, which makes up 90% of Bangladesh’s exports, according to the International Monetary Fund. According to the World Trade Organization, Bangladesh was the world's third-largest exporter of clothing last year. Retailers such as H&M, Marks & Spencer, and Zara are customers of the country’s manufacturers and have experienced delays since manufacturing facilities across the country closed for four days. However, as manufacturing catches up, flooding is occurring, impacting road, rail, and ocean ports across the country.

Saying Goodbye to China?

IBM is the latest American company to reduce its presence in China amid heightened tensions between Washington and Beijing. IBM will shut down its research and development department in China, impacting about 1,000 jobs. Meanwhile,  HP is looking to shift more than half of its personal computer production away from China and is setting up a "backup" design hub in Singapore to reduce geopolitical risks around China and Taiwan, according to Nikkei Asia. In late July, news broke that Apple Inc. will assemble its Pro and Pro Max models of its upcoming iPhone 16 series in India for the first time through its partner Foxconn, increasing its manufacturing presence in the country as part of a plan to diversify production beyond China.

Oh, Canada! Dealing with Labor Strife

Canadian Class I railroads, CN and CPKCS, narrowly escaped a strike as the Canada Industrial Relations Board (CIRB) imposed binding arbitration between the two railroads and the Teamsters Canada Rail Conference (TCRC). The CIRB has also ordered that no further labor stoppage, including a lockout or strike, can occur during the arbitration process. This means the strike notice recently issued to CN by the Teamsters has been voided.

In response to the ruling, the union has said it will comply but will also appeal the CIRB ruling to federal court. Thus, uncertainty surrounding intermodal services from Canada’s ports will be extended for now.

Meanwhile, pilots at Air Canada, Canada’s largest passenger airline, could walk off the job as early as Sept. 17 after 98% voted in favor of giving their union a strike mandate. Air Canada Cargo is Canada's largest air cargo provider by capacity and is in over 50 countries.

The Right Partnership Can Help Shippers Tame Turbulent Times

As disruptions and uncertainty linger in the market, shippers face higher costs and delays. 3rdwave can help shippers by offering a robust AI-powered platform to help international shippers and BCOs manage transportation and trade compliance.

In addition, our products include:

• Automated Customs Management – Formalize and automate the translation of shipment data into “customs data” for perfect entries every time.
• Shipment Execution – Monitor shipments from origin to destination with integrated air and ocean visibility to gain real-time updates against your schedule.
• Inbound Management – Gain process control and product-level visibility with real-time alerts and integrated ocean vessel and terminal messages.
• Port Management – A control tower view of ongoing activities at the port: inbound, at the port, and outbound.

Don’t let disruptions and uncertainty get the best of you. To learn more about 3rdwave and our proprietary Shipment Execution Platform™, contact us for a demo.

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