Stern warning: Ports will be completely shut down, dozens of container ships will be forced to stop sailing! Logistics delays!

With only five days left until October 1, the scheduled date for the U.S. East Coast dock workers' strike, the Port of New York-New Jersey, the largest container port in the East Coast and the second largest in the United States, issued an open letter through its Port Authority Director Bethann Rooney, issuing the most severe warning to relevant shipping companies, shippers and logistics companies regarding the handling of all incoming and outgoing cargo during the upcoming strike, especially hazardous goods and refrigerated container cargo.

The letter emphasized that in response to possible strikes, terminal operators APM Terminals, Maher and Port Newark Container Terminal have announced the extension of gate opening hours, but the port truck service center will be closed during the strike. In addition, the last train in and out of the port will be completed before next Monday. Norfolk Southern Railway has closed several port gates in advance and asked shippers to make alternative plans for the transportation of dangerous goods, high-value and refrigerated goods.

 

The strike was triggered by a contract dispute between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX), involving 25,000 workers in more than 30 ports from Maine to Texas, handling cargo worth about $92 billion annually. The focus of the dispute is wages, benefits and port automation. The union rejected the employer's 40% wage increase and demanded a 77% wage increase within the six-year agreement. Despite pressure from all sides, US President Biden has made it clear that he will not stop the strike.

 

Several ports in the eastern United States have issued emergency notices, advising cargo owners to act quickly and pick up their cargoes. Some ports have even provided convenience measures such as extending the departure time. However, most ports have warned that they will no longer monitor refrigerated cargoes after September 30. The Georgia Ports Authority, the Port of Virginia, and the Port of Jacksonville, Florida, have also announced their own emergency measures and closure schedules.

 

Peter Sand, chief analyst at Xeneta, pointed out that the long-term strike at ports along the eastern and Gulf coasts of the United States will have a huge impact on the global container supply chain, and even if the strike lasts only a few days, it may spread to 2025. He particularly mentioned that ships waiting for berths at anchorages may have a chain reaction, affecting the punctuality of shipping companies in other trade routes.

 

According to eeSea liner database analysis, 39 container ships are expected to dock at the Port of New York-New Jersey next week, many of which have been delayed. If these ships cannot dock as planned, they may be forced to wait outside the affected ports until the strike ends. Peter Sand further emphasized that this situation will lead to congestion at US ports and delay the return of ships to the Far East for the next voyage, which will in turn affect shipping plans at the end of December and January next year.

▲Trucks queue up to enter the terminal at the Port of New York New Jersey

As the strike date approaches, ports along the East Coast and Gulf Coast of the United States are at risk of a complete shutdown. This will not only seriously disrupt the US economy, but may also trigger a "logistics storm" in the global supply chain. Industry experts warn that if the strike continues, it will lead to a shortage of empty containers, which will in turn affect the shipping boom before the Spring Festival, and the global supply chain will face greater pressure.

Faced with this urgent situation, the shipping industry is ready to respond, but the final solution still depends on whether labor and management can reach a new agreement before the contract expires. If the strike cannot be avoided, the consequences will be far-reaching and serious, requiring the global logistics industry to respond together.

 

FMC warns shipping companies not to charge extra fees during port strike

 

The Federal Maritime Commission (FMC) has warned shipping lines not to impose additional charges such as detention and demurrage on shippers amid a potential strike at U.S. East Coast ports.

 

In its announcement, the FMC noted that all regulated entities must comply with the rules and regulations administered by the FMC, even during strikes. The FMC stressed that it will investigate any reports of illegal conduct and prosecute offenders to the fullest extent of the law.

Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) on a new labor agreement have reached a deadlock. If the two sides cannot resume negotiations in the short term, dock workers may go on strike from October 1, affecting about 70,000 dock workers.

 

This could lead to serious disruptions to operations at ports on the East Coast of the United States. The FMC’s warning is a clear reminder to shipping companies to comply with the law. The FMC also reminds shippers that they have the right to file complaints with U.S. authorities against shipping companies that violate regulations.

Despite the potential risk of complaints, major shipping lines such as Hapag-Lloyd and Maersk have announced surcharges on containerized cargo shipped to the East Coast of the United States.

 

Maersk said the surcharge was intended to cover higher operating costs due to the disruption and ensure the sustainability of the business.

 

Maersk announced that the surcharge will be $1,500 per 20-foot container, $3,000 per 40-foot container, and $3,780 per 45-foot container from October 18, 2024. The surcharge will apply to imports from all ports in Northern Europe, the Mediterranean, Africa, the Middle East, the Indian subcontinent, Oceania, and Latin America to the East Coast of the United States.

 

Hapag-Lloyd announced last week that it would introduce a surcharge of $1,000 per TEU.

Lars Jensen, shipping analyst at Vespucci Maritime, believes that the FMC's announcement is a clear reminder to shipping companies to comply with the law. Nevertheless, Jensen predicts that possible bottlenecks at ports could lead to new charging issues after the strike ends.

 

He encouraged shippers to check if shipping lines have alternative discharge points for empty containers during port closures. If shipping lines have alternative discharge points, shippers may still be charged additional fees during the strike if they do not return empty containers on time.

The FMC's warning and actions show that the United States is working to protect shippers from additional costs during the strike. However, the port bottlenecks and supply chain disruptions that may arise after the strike ends may lead to new charging issues and disputes.

 

 

Explosion and fire at container port, lithium battery container is the culprit

 

On September 23rd local time, a container containing 15,000 kilograms (15 tons) of lithium batteries caught fire at the Port of Montreal, Canada.

 

A fire broke out in a container holding 15,000 kilograms of lithium batteries at the Port of Montreal 

 

 

It is reported that the fire broke out at around 3:15 pm local time on September 23. A container containing lithium batteries stored at the container yard of the Port of Montreal caught fire, and a large cloud of smoke could be seen for several kilometers around.

The fire produced a lot of smoke, prompting the Montreal City Government to issue a blockade order for residents. Residents living near the port were told to stay indoors, close doors and windows, and turn off external ventilation systems. The blockade order was lifted around 10:30 p.m. on the 23rd.

▲Trucks queue up to enter the terminal at the Port of New York New Jersey

 

According to local media reports, for safety reasons, Montreal firefighters chose to soak the outside of the container with water instead of trying to enter the inside.

 

"A lithium battery generates its own heat, so when it catches fire, it generates a lot of heat and ignites the next battery," said fire department chief Martin Guilbault. "Because lithium batteries are made in series, these batteries are small. That's why these battery fires are difficult to put out."

 

"Our only recourse is to pour water on them so we can cool down all the batteries and stop the chain reaction."

 

The fire was basically under control at around 10 o'clock that evening, but a firefighter suffered a minor knee injury while fighting the fire at the port.

 

It is reported that the Port of Montreal is the second largest container port in Canada, with a container throughput of 1.5 million TEUs in 2023.

▲Port of Montreal

 

The Port of Montreal is located at the confluence of the middle reaches of the St. Lawrence River and the Ottawa River and is a key port in eastern Canada. As the largest inland port in North America, the Port of Montreal connects trade between North America and Europe and is an important hub for container transportation. The port has modern terminals and warehousing facilities and uses the latest technologies, such as artificial intelligence, to predict the best time for drivers to pick up or unload goods, improving the efficiency of port operations. The Port of Montreal also plans to build a fifth container terminal with an estimated annual capacity of 2.1 million TEUs.

 

 

 

my country's Ministry of Commerce conducts anti-discrimination investigation into Canada's restrictive measures against China

 

According to the website of the Ministry of Commerce, the Ministry of Commerce issued an announcement, deciding to launch an anti-discrimination investigation into Canada’s relevant investigated measures from September 26, 2024.

 

The objects of this investigation are the restrictive measures such as additional tariffs that Canada will take on relevant products imported from China, including but not limited to:From October 1, 2024, a 100% additional tax will be imposed on all electric vehicles manufactured in China; from October 15, 2024, a 25% additional tax will be imposed on steel and aluminum products imported from China; Limit the range of countries that can receive Canada’s clean energy vehicle subsidies.

 

In addition, the Canadian governmentA 30-day public consultation will be launched on September 10 on the taxation of batteries and battery components, solar products, semiconductors and key minerals imported from China.The relevant measures subsequently taken by the Canadian government are also within the scope of this investigation.

 

 

The United States intends to ban the use of Chinese software and hardware in smart connected cars

 

On September 23rd local time, the U.S. Department of Commerce issued a proposed rule, proposing to ban the sale and import of smart connected vehicles that integrate certain software and hardware developed by China or Russia in the United States for national security reasons, regardless of whether the vehicles are manufactured in the United States. The ban applies to all wheeled vehicles on public roads, including cars, trucks and buses.

 

This move may be the last large-scale cutoff of Chinese products entering the United States during Biden's presidency. The proposed regulations will be followed by a 30-day public comment period. After the comment period, the final regulations will be drafted and are scheduled to be officially announced before the end of Biden's term in January next year. According to a statement from the U.S. Department of Commerce, the ban on automotive software will apply to models from 2027 and later, and the hardware ban will apply to models from 2030 and later; for cars without a model year (model year refers to the year mark common to all vehicles produced by an automaker in a year), the ban will take effect in 2029.

 

 

California issues "total plastic ban" to take effect in 2026

 

According to the Associated Press report on the 23rd, California Governor Newsom recently signed a new law banning the use of plastic shopping bags in supermarkets and grocery stores. The bill will take effect from 2026.

 

According to reports, California actually passed a ban on plastic bags as early as 2014, prohibiting supermarkets and other consumer places from providing thin plastic bags, but allowing sellers to provide thick plastic bags that are said to be recyclable or reusable. However, environmentalists said that few people recycle or reuse these plastic bags. The California Public Interest Research Group said that the introduction of the new law finally realized the original intention of the "plastic ban", that is, a comprehensive "plastic ban".

 

Currently, 12 states, including California, have implemented statewide bans restricting the use of certain types of plastic bags. Hundreds of cities in 28 states across the United States have also introduced their own plastic bag bans.

 

 

 

Türkiye adopts new rules for imported electric vehicles

 

On September 20, the Turkish Ministry of Trade set strict conditions for plug-in hybrid vehicles imported from China and other countries.Importers are required to have 20 authorized service shops in seven different locations within their territory.The regulation will take effect in 30 days. This is another move by Turkey after restricting the import of electric vehicles in June this year. Analysts said that no importer can meet these conditions at present, which will put pressure on Chinese automakers.

 

Türkiye has previously imposed high tariffs on imported electric vehicles.

 

 

 

South Korea to compel disclosure of electric vehicle battery information from October

 

The South Korean government decided on September 6, 2024 to make it mandatory to disclose electric vehicle battery information and implement a series of other countermeasures to ease growing concerns about electric vehicle fires.

 

According to the government plan, the electric vehicle battery certification system, which was originally scheduled to take effect in February next year, will be trial-run ahead of schedule in October, which means that the government will conduct safety checks on batteries for domestic and foreign electric vehicles before they are produced. In addition to the battery capacity, rated voltage and maximum output currently required, electric vehicle manufacturers will also need to disclose key information about the battery, including the battery brand and main ingredients.

 

In routine inspections of electric vehicles, inspection items will be increased to include battery voltage, battery temperature, charge level, etc., and inspection stations will be equipped with corresponding equipment and infrastructure as soon as possible. The responsibilities of electric vehicle manufacturers and charging companies will also be strengthened by excluding manufacturers that do not have liability insurance from government subsidies and promoting legislation to force electric vehicle charging companies to purchase liability insurance.

 

At the same time, the government will update the battery management system (BMS), which can detect and issue battery condition warnings in real time, and increase its use among drivers to better detect fire risks in advance.

 

Cuba to make major changes to motor vehicle import and sales policies

 

According to a report by Cuba's Latino News Agency on September 3, Cuban Minister of Transport Rodriguez revealed in a Cuban television talk show that evening that the Cuban government will make major adjustments to its motor vehicle import and sales policies. The relevant laws and regulations are currently in the process of drafting and polishing and will be issued before the end of October.

 

He said that after this adjustment takes effect, any natural person residing in Cuba can purchase imported and domestically produced motor vehicles from authorized dealers, and the sale of vehicles between legal persons and natural persons will also be opened up. At the same time, various taxes and fees on motor vehicle imports will be significantly reduced.

 

 

 

Argentina removes technical barriers to bicycle imports

 

Argentina's El Financiero reported on September 12 that the Argentine State Secretariat of Industry and Trade issued Resolution No. 274/2024 in the government's Official Gazette on the 12th.Abolish relevant technical regulations on bicycle imports, and cancel relevant product manufacturer certification and product sample testing procedures.The Afghan government hopes to eliminate technical barriers to foreign trade, simplify the bicycle import procedures, stimulate free competition in the domestic market, and promote a significant reduction in prices in the domestic bicycle market.

 

It is reported that the current bicycle sales price in Argentina is higher than the international level. Compared with the sales prices in England, Spain, Mexico, Uruguay, the United States, France, Brazil and Chile, the bicycle prices in Argentina are the second highest. Among the 37 countries in Latin America, Argentina's per capita bicycle imports are the fourth lowest. In recent years, Argentina's bicycle imports have accounted for less than 10% of total consumption.

 

 

 

Nepal's imports of electric vehicles increased by more than 78% in the past two months

 

Nepal Customs data showed that the number of electric vehicles imported into Nepal increased by more than 78% in the first two months of Nepal's 2024-2025 fiscal year, which began in mid-July.

 

Data shows that as of mid-September, Nepal imported a total of 1,602 electric vehicles, while the number of electric vehicles imported in the same period of the 2023-2024 fiscal year was 898, an increase of 78.4%.

 

Among the imported cars, 1,125 were from China. Rabindra Prasad, an official at the customs office of Rasuwa Fort in Nepal, told Xinhua that the number of Chinese electric vehicles imported through the Rasuwa Fort port has also increased significantly recently, thanks to the expansion of exhibition and sales channels and other factors.

 

 

 

South Korea urgently imports Chinese cabbage

 

According to CCTV Finance, the price of Korean cabbage has risen significantly recently, with the average retail price up about 50% year-on-year. Due to tight supply, many well-known Korean food companies have recently suspended some kimchi sales.

 

In order to ease the tension between supply and demand and stabilize the price of cabbage, the South Korean government has decided to urgently import Chinese cabbage from China. This Friday, the first batch of about 16 tons of Chinese cabbage will arrive in South Korea, and the import volume will be expanded based on the production conditions in China. It is reported that the cabbage imported from China will be mainly supplied to restaurants and food processing companies.

 

 

 

Source｜First Shipping, Focus Vision, Today's Shipping, Shipping Network, etc.
Disclaimer: This article is for industry information sharing and reference only.