One major international airline, Lufthansa, announced a decrease; other airlines are expected to follow suit.
New Oversized Cargo Service
Airbus Beluga Transport, a new cargo airline, rolled out its supersized capacity freighter aircraft shaped like a Beluga whale. The planes boast the largest cross-section, 50% higher and up to 10% wider than market alternatives.
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OCEAN FREIGHT
Red Sea Crisis
The situation is getting worse. Since November 19, 2023, 40+ vessels have been attacked in the Red Sea. Several steamship lines have suspended service to major Middle Eastern ports, and others are rerouting around the Cape of Good Hope, but this is adding significant transit time of roughly two weeks.
Panama Canal
The Panama Canal Authority announced that it will increase the number of daily slots available in the Panamax Locks on March 18th from 24 to 27 vessels per day.
Container Spot Prices
Spot pricing is declining but still prevalent in the market due to the rebalancing of equipment thrown awry by the Red Sea Crisis.
East and Gulf Coast Ports Labor Contract Negotiations
As we approach contract negotiations for East Coast and Gulf Coast ports, the landscape appears distinct from recent West Coast discussions. Previous cargo bottlenecks have eased, and ocean carriers are experiencing a decline in record earnings from the previous years. The International Longshoremen’s Association (ILA) aims to leverage recent wage gains by other transportation unions, such as the recent ILWU Local 13 contract ratification, signaling a potential strike threat if a new multiyear contract isn’t settled before the current one expires in September.
Harold Daggett, the ILA’s president, promises unprecedented benefits in the forthcoming contract to the rank-and-file union workers, which represents around 45,000 workers.
There are heightened concerns for retailers preparing for holiday sales amidst the looming possibility of a strike during the peak shipping season.
Speculation arises about the likelihood of a coast-wide strike, particularly given its timing before the U.S. presidential election.
Despite the optimism expressed by some industry officials, reconciling the ILA’s demands with carriers’ financial constraints poses a significant challenge, setting the stage for complex and pivotal discussions in the coming months.
