Spotlight
Port strikes in Europe mark summer start
Rolling one-day transport worker strikes in the main German ports of Hamburg and Bremerhaven and the inland port city of Bremen are putting shippers on alert for a potentially rocky summer . Seaport workers in Bremerhaven went on strike on June 13 , following the breakdown of second-round wage talks with the Central Association of German Seaport Operators ( ZDS ). That followed Bremen workers downing tools on June 12 and Hamburg dockers striking the prior week . Ports in France are also facing labor disruption ; transport unions launched a 24-hour strike on the same day as their German counterparts and had scheduled additional one-day walkouts for two days later in the month . The strikes , called by the Union of Transport and Logistics Companies of France , are in protest over pension reform that has increased the statutory retirement age in France . Industrial disputes have become more common in Europe since Russia began its invasion of Ukraine in 2022 , with wage hikes unable to match soaring energy and food prices and rising interest rates .
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Container shippers eye breakbulk market
Thanks to the extended trade disruption in the Red Sea , shippers are again requesting quotes for moving containers on breakbulk ships , at least in the major trade lanes . With container carriers again showing interest in chartering MPV ships , the Toepfer and Drewry multipurpose indices for June have ticked up another notch . While true spillover is not happening yet , container shippers and their logistics service providers are sending inquiries , according to global MPV carriers and breakbulk terminal operators on the US Gulf Coast . Rates are not yet high enough to tempt MPVs , one carrier executive told the Journal of Commerce , but in his opinion , “ it won ’ t be long .” Cargo may also be coming out of containers and into breakbulk modes . Peter Molloy , senior analyst for multipurpose and heavy-lift shipping with London-based Drewry , said brokers he speaks with regularly have noted an uptick in bagged cargoes , for example . “ In the shorter term , we still see some mode-malleable cargoes that we expected to flow to containers coming back toward MPVs ,” Molloy said . “ This could be thanks to disruption , the congested market and volatile container rates .” Drewry ’ s Multipurpose Time Charter Index came in at $ 9,094 per day for May , beating a forecast of $ 9,054 per day , and is expected to increase slightly in June , to $ 9,136 per day . Rates for larger MPVs increased in May while rates for smaller vessels were flat , according to the Drewry MPV report released May 30 .
FMC probing chassis rule compliance
The US Federal Maritime Commission ( FMC ) on June 18 said it is investigating allegations that chassis providers may not be complying with a February ruling by the agency that ocean carriers and their contractors cannot mandate which chassis a cargo owner uses on so-called merchant haulage business . The decision in a case between the American Trucking Associations ( ATA ) and the Ocean Carriers Equipment Management Association ( OCEMA ) immediately changed how chassis were regulated in five locations : Chicago ; Los Angeles ; Long Beach , Calif .; Memphis , Tenn .; and Savannah , Ga . Merchant haulage business refers to an agreement in which the ocean carrier is responsible for transit between ports , while the importer or exporter is responsible for inland transportation . In contrast , carrier haulage occurs when the ocean carrier handles the entire transit from door to door , including inland transportation . The February decision from the FMC said
ocean carriers can mandate which chassis to use for carrier haulage , but not for merchant haulage .
Produce season flush with truck capacity
Hopes that produce demand would absorb more US truck capacity this spring and summer , pushing truckload rates upward faster , are withering on the vine . US shippers and importers are finding plenty of trucks ready to haul produce as the growing season for fruits and vegetables kicks into higher gear . The availability of truck capacity was at least “ adequate ” for produce shippers in 16 of the 18 regions tracked by the US Department of Agriculture ( USDA ) in the week ending June 11 . Produce shipments by weight , both imports and domestically grown produce , were down 11.6 % in the
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6 Journal of Commerce | July 1 , 2024 www . joc . com