by A1 WorldWide Logistics | Jan 28, 2025 | Shipping Logistics, Supply Chain, Transportation
Shipping during China’s New Year can have numerous challenges you should know when starting. The Chinese New Year (or Spring Festival) is a 15-day celebration of the new year in the lunisolar Chinese calendar. In 2025, the holiday will begin on January 29th and conclude with the Lantern Festival on February 12th. The first seven days are holidays in China. During this time, shipping companies, ports, and factories shut down or limit operations. As a result, shippers that move cargo internationally feel the effects of the shutdowns. This article will explain how the Chinese New Year impacts shipping and how to prepare when moving cargo.
What Should You Know When Shipping During China’s New Year?
In international shipping, China is considered one of the biggest global exporters, responsible for nearly 14% of the world’s exports. Due to widespread shutdowns during this period, supply chain disruptions can grow during the Chinese New Year. Along with production and port halts, workers tend to go on vacation to visit families during this period. A significant impact for U.S. importers is that port congestion has become more common. Before the holiday begins and factories close, there is a massive import surge from China. As a result, ports in the U.S. can become congested due to higher volumes, which can also lead to delays. Port congestion can also impact domestic shipping, causing delays in transporting goods to the final location.
As a result of the congestion, shippers may have to pay higher rates due to limited capacity. A higher volume of containers at the port can also increase the likelihood of demurrage and detention charges. Higher costs for the shipper and carrier also fall directly on the customer. Delays come from ports in factories in China working at limited capacity and workers going on vacation. Longer wait times look unfavorable to shipping companies and businesses that deliver products under a specific timeframe. The recovery period after the Chinese New Year can also take a while, meaning a gradual recovery for supply chains.
How Can You Prepare?
With the Chinese New Year’s disruptions in supply chains, shippers should prepare beforehand to mitigate any disturbances. You must understand what to expect and plan to avoid delays. This can include booking container space beforehand and rerouting to different ports in the U.S. If possible, this can mean importing from countries other than China and diversifying suppliers to reduce vulnerability. Switching the conveyance method to air is beneficial for shipments that must move under a specific timeframe. Having extra stock in a company or third-party warehouse in the U.S. can also help in case of delays.
Despite a holiday potentially causing disruptions to supply chains, it should not stop cargo movement internationally. However, shippers should take the necessary steps to prevent disruption. An ideal way to navigate scenarios like the Chinese New Year is by using the assistance of a logistics provider. Logistics providers like A1 Worldwide Logistics have various solutions for shipping goods into and out of the U.S. These services include transportation, customs clearance, warehousing, and much more. They also explain the best steps to mitigate supply chain disruptions. Contact us at info@a1wwl.com or 305-440-5150 to speak to a freight forwarder or customs broker regarding your shipment’s success.
by A1 WorldWide Logistics | Jan 16, 2025 | Economic trends, Importing, Shipping Logistics
Various situations in the international shipping industry are resulting in U.S. retail imports surging. The Global Port Tracker is predicting that the import volume for December 2024 will be up 14.3% y/y. This number is 19% over the NRA’s (National Retail Association) predicted volume. The NRA also predicted that the total TEUs (twenty-foot equivalents) in 2024 will total 25.6 million. This is more than 15% of the TEUs in 2023. Scenarios from a potential port protest (that shippers avoid) and freight tariffs are causing the surge. This article will explain why importations are surging and how to prepare when importing into the U.S.
Why Are U.S. Retail Imports Surging?
Imports into the U.S. were rising before 2025 due to situations like a port strike. A contract extension between the ILA (International Longshoremen’s Association) and the USMX (United States Maritime Alliance) expired in 2025. Unresolved talks regarding wage increases and automation between the parties have increased the chances of an East and West Coast port strike on January 15th. Due to the fear of port shutdowns, shippers began importing a significant volume in late 2024, including retail freight. Although the parties reached a new contract avoiding a potential shutdown, the NRA predicts that imports will continue to rise. Another reason imports are growing is the tariff increases President Trump will introduce on the first day of office.
In particular, Trump will impose a tariff increase of 25% on all imports from Mexico and Canada. The hike will also include a 10% tax on all Chinese goods entering the U.S. Retailers import a high volume of cargo before the inauguration date to avoid potential cost increases. The customer will pay these costs. The NRF predicts that the tariffs could cost American customers $46 to $78 billion in annual spending power. To prevent the impact of tariff increases, retailers are looking for solutions like importing from different parts of the world. Various retail companies have already announced plans to reduce imports from China.
Will The Trend Continue To Rise?
Even with Trump imposing tariffs, the NRA believes the momentum will continue through the first quarter of 2024. The NRA predicts that February won’t increase much due to the Chinese New Year. An agreement reached between the ILA and USMX could also decrease the import volume by lessening urgency. Shippers must be ready to navigate scenarios like surging import volumes. When cargo growth comes into U.S. ports, this can sometimes lead to port congestion and delays. To prepare for potential disruptions, a shipper must be current with any news affecting their shipment. They can do this by constantly reading news reports and speaking to professionals.
When importing into the U.S., a shipper must also understand the regulations they must follow. Failure to know the procedure can lead to delays and loss of cargo. Due to the numerous guidelines, it may be beneficial to use the assistance of a customs broker when importing. Customs brokers are individuals or firms that act as intermediaries between importers and U.S. customs. They ensure customs clearance by offering various services like documentation, calculating taxes, and customs compliance. Brokers also educate shippers on the importation process while helping them save time. Contact A1 Worldwide Logistics at 305-440-5156 or info@a1wwl.com to speak to a broker regarding clearing your goods from customs.
by A1 WorldWide Logistics | Jan 9, 2025 | East Coast Protests, Economic trends, Shipping Logistics
The ILA and USMX reach an agreement nearly a week before the original contract extension expires. In a January 8th, 2025, announcement, the two parties agreed to replace the expiring contract with a tentative 6-year contract. A joint statement stated, “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf Coast ports.” The new deal encompasses an estimated 25,000 workers across 14 port authorities from Boston, Massachusetts, to Texas. However, the contract does not include ILA workers in RORO (roll-on/roll-off) jobs across the locations. This agreement averted a potential second port strike by the ILA that would have severely disrupted international shipping.
Why Was There A Potential Strike?
On October 1st, 2024, the ILA had a strike in East and Gulf Coast ports across the U.S. For over a year, the ILA has been protesting for better employee wages and to stop automation at ports. During the pandemic, the USMX made approximately $400 billion in revenue, which the ILA felt was not paid back. Especially with growing inflation and as the cost of living increases. Another issue has been the introduction of automated equipment at ports, which threatens job security. The ILA believes that the USMX is replacing workers to increase corporate profit. USMX has the opposite belief that automation will create an opportunity for new jobs to maintain the equipment.
After a three-day strike in October, the ILA and USMX agreed to extend the contract. Along with a 61.5% pay increase, the extension included a $4 an-hour wage growth yearly over six years. The original contract ending the October 2024 protests expired on January 15th, 2025. Talks that started on January 7th resulted in a finalized master contract between the parties lasting six years. The new contract benefits ILA and USMX by increasing wages and job security while allowing automation. While the two sides will continue to operate under the current contract, they will meet with the Wage Scale Committee to ratify the final terms of the agreement.
What Will Be The Impact As The ILA and USMX Reach An Agreement?
The most significant impact of the new deal is the potential disruptions that the two parties have avoided. Analysts reported that the October 1st strike resulted in an economic deficit of nearly $5 billion daily. A second strike could further hurt the economy, with port stoppage and congestion causing container buildup. With a financial loss for importers and exporters, customers, ports, and truckers felt the strain. The backlogs of containers would have severely hurt businesses by creating massive delays in supply chains.
Trade groups and businesses positively welcomed the news since it provided certainty and avoided further disruptions. Another effect of the new contract is that shippers may regain the confidence to ship internationally. While moving cargo may seem like an opportunity for your business, shippers must take steps to prevent disruptions. This can include speaking to a logistics provider for assistance to get started. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-425-9752 for a quote for importing into or out of the U.S. We are with you from the start of the shipping process until the goods reach the final destination.
by A1 WorldWide Logistics | Jan 8, 2025 | East Coast Protests, Economic trends, Shipping Logistics
Port labor talks are resuming between employers and dockworkers, with the current contract extension expiring on January 15th. Negotiations between the ILA (International Longshoremen’s Association) and the USMX (United States Maritime Alliance) have stopped since October 2024. The pause was after a strike on October 1st that lasted after three days. A tentative agreement ended the protest by extending the existing contract to January 15th, 2025. The agreement promised an hourly pay increase of 10% in the first year and 62% over the six-year deal. Over the last year, ILA workers have been protesting for higher and against using automation at ports. Specifically, they are fighting for wage hikes like West Coast ILWU dockworkers received in 2022.
During and after the pandemic, international shipping rates surged to incredible amounts. Specific container rates rose from $2,500 to $12,000. From 2020 to 2023, the USMX reportedly made nearly $400 billion. ILA President Harold Daggett noted, “Since COVID, they’re making billions of dollars, but they don’t want to share it.” International shipping companies have already announced container surcharges in the scenario that a strike does occur. They advise customers to retrieve their containers and return empty ones before January 15th. If the parties fail to reach an agreement by the date, associations like the NRF (National Retail Federation) are pushing for another extension.
The Reason Why Port Labor Talks Are Resuming
The reason why negotiations are resuming is to avert a situation similar to October’s port strike. While the October strike only lasted three days, a potentially longer one can have numerous consequences. Analysts approximate that a prolonged strike can result in an economic loss of $0.5 to $5 billion daily. Numerous supply chains rely on the ports, and disruptions can lead to delays and monetary loss. Shippers have already rerouted their shipments to ports away from ports affected by possible protests. The results of the talks are noteworthy, with East and Gulf Coast ports handling significant volumes of U.S. imports.
Automation Is A Primary Concern In The Talks
Although the October 2024 talks ended the strike last year, they did not address the issue of port automation. Automation is a huge concern due to the belief that it threatens the job security of ILA dockworkers. Dennis Daggett, the union’s vice president, stated, “It’s about replacing workers under the guise of progress while maximizing corporate profits.” The ILA also doubts the effectiveness of implementing automated systems and that the cost will outweigh the productive gains. Conversely, the USMX argued that semi-automated cranes are essential for improving efficiency and making U.S. ports competitive globally. Ports in countries like China have increased the volume of cargo movement due to these technologies.
The USMX also believes that automation will create new jobs for handling and maintaining the strategies. President-elect Donald Trump has backed the ILA’s stance against automation, noting that it will hurt American workers. Despite the concern that a potential port strike may cause, it should not stop you from moving your shipment. You should, however, take preventive steps beforehand and be up-to-date with the current situation. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-425-9513 for a quote to move your goods internationally. We find the best action to ensure cargo moves to the final destination.
by A1 WorldWide Logistics | Jan 3, 2025 | 3PL, Economic trends, Shipping Logistics
In recent social media posts, it has become clear that President-elect Donald Trump wants the Panama Canal. Trump announced that he would demand that Panama hand over its canal to the U.S. due to the “ridiculous” fees. Rates for vessels passing through have recently increased, driven by a severe drought. Since the U.S. is the primary canal user, they have faced the most significant impact. Originally a U.S. territory until 1999, the handover was a sign of Panama’s sovereignty and a vital economic symbol. Threats to overtake the canal can result in conflict between the two countries and disruptions in global trade.
Why Trump Wants The Panama Canal
One of the primary reasons why Trump wants the canal is because of the fees that Panama is charging. He believes the country imposes excessive rates for U.S. vessels to pass through. Along with costs, Trump has also cited concerns over the canal’s management and importance to the U.S. There have been growing concerns about Panama allowing Chinese soldiers to take control of the canal as well. China is the second largest canal user after the U.S., and Trump believes the country wants more significant influence. A fear is that China could embed surveillance in the canal’s infrastructure, giving critical insight into the U.S.’s logistics.
At a conference, Panama’s President Jose Raul Mulino noted that the canal belongs to his country. Mulino rebuked Trump’s claims, stating that Panama’s sovereignty and independence were non-negotiable. In the news conference, he replied, “There are no Chinese nor any other world power at the canal.” Mulino stated that experts consider factors like supply and demand when determining vessel fees. Despite the threats to take back the canal, various legal obstacles can get in the way. For example, the Neutrality Treaty states that a move to take control of the canal will breach international law and damage U.S. relationships with Latin America.
The Canal’s Importance For International Shipping
The international shipping industry considers the Panama Canal a critical cornerstone for global freight movement. It accounts for 6% of global maritime trade and 40% of annual U.S. container traffic. Due to its strategic location, it’s ideal for connecting major global markets between Europe, Asia, and the Americas. Before the canal, shipments took longer journeys along the southern tip of South America instead of the shortcut. With its importance, Trump considers the canal a critical national asset for the U.S. The canal impacts the U.S. economy, with numerous industries relying on it for swift and money-shipping shipping routes.
Being current with any situation impacting your shipment is vital when shipping goods globally. It helps the shipper take the necessary action to avoid potential delays or other unfavorable circumstances. Shippers can also benefit from using the assistance of a third-party logistics (3PL) company. 3PLs are service providers that handle various parts of a company or individual shipper’s supply chain. Some of the parts that they handle include customs brokering, international and domestic shipping, warehousing, and more. They also give the best course of action to ensure the success of your shipment. Contact us at 305-440-5156 or info@a1wwl.com to speak to a 3PL provider regarding shipping your cargo internationally.
by A1 WorldWide Logistics | Dec 26, 2024 | East Coast Protests, Economic trends, Shipping Logistics
As the end of the contract extension approaches, seaports in the U.S. can see the ILA strike happening In January. Months of unsuccessful negotiations between the ILA (International Longshoremen’s Association) and the (U.S. Maritime Alliance) resulted in an October strike. The two parties disagreed on wages and the use of automation at ports. Port workers across the East and Gulf Coast began protesting until October 3rd, when they reached a tentative agreement. The agreement was a 61.5% pay raise and a $4 an-hour yearly wage increase for the next six years. USMX also extended the current contract to mid-January. With the January 15th, 2025, extension ending date nearing, it can have numerous implications for domestic and international shipping.
Why Could We See The ILA Strike Happening In January?
The chances of a port strike have increased with President-elect Donald Trump publicly backing the ILA. Trump recently met with the ILA President Harold Daggett and Vice President Dennis Daggett. After the meeting, Trump noted, “the financial benefits of automation are “nowhere near the distress, hurt, and harm the technology creates for workers”. Various components can contribute to a potential strike, including the minimal conversation between the parties. The ILA and USMX haven’t had any significant talks for over a month despite January 15th quickly approaching. Despite this, the ILA’s vice president voiced his displeasure regarding the growing use of automation earlier this month.
Despite the ILA’s disposition to automation, the USMX believes it is essential for moderation. The USMX views automation as necessary for building a more sustainable future for the U.S. maritime industry. They also argue that advanced technology will allow ports to handle more cargo while creating more jobs. Other players in the transportation industry believe that the strike may not happen and that the parties will reach an agreement. Along with Trump’s backing, an extension already includes more excellent pay and a yearly wage increase.
What Does The Strike Mean For The Shipping Industry?
Since the ILA handles approximately half of the U.S.’s ocean shipments, a potential strike can have significant effects. During the October 1st strike, 36 U.S. ports shut down, resulting in an economic loss of $5 billion daily. When a port stoppage happens, it can lead to congestion, which may disrupt numerous supply chains. To mitigate against delays, shippers could reroute their shipments to West Coast ports like the Port of Los Angeles. However, rerouting can have the opposite effect, extending the time it takes to ship the goods and causing congestion. They can also use different methods of conveyance like air or, if possible, land.
When shipping cargo internationally, you must take the appropriate steps to mitigate disruptions. Along with the ways the article lists, this can include being present with any news that may affect your shipment. Shippers have already begun importing cargo early to avoid a potential strike and other scenarios, like a tariff increase. Speaking to a logistics provider can also help find the right step to prevent delays. Contact A1 Worldwide Logistics at 305-440-5156 or info@a1wwl.com to navigate any situation impacting your supply chain. We have freight brokering, customs brokering, warehousing, domestic shipping, and more to guarantee the success of your shipment.
1035 NE 125th St Suite #320, North Miami, FL 33161.
a1worldwidelogistics.com
(305) 821-8995
Hours: 8AM - 5PM