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 | 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.
by A1 WorldWide Logistics | Oct 17, 2024 | Economic trends, Shipping Logistics, Supply Chain
Nearly a week after the storm hit Florida, there are numerous reports of Hurricane Milton disrupting supply chains. On Wednesday, October 9th, hurricane Milton landed near Tampa, Florida, resulting in heavy rains and strong winds. Local weather services issued over 125 tornado warnings in various counties nationwide. Along with the damage to infrastructure and economic loss, Milton impacted supply chains for importers and exporters. With Florida being an entry point for supply chains nationwide, the potential ripple effect could be more substantial. While the storm has left Florida, Milton has already done the damage, and shippers are still determining the full impact.
How Is Hurricane Milton Disrupting Supply Chains?
Located between the Gulf of Mexico and the Atlantic Ocean, Florida is known by shippers as a critical freight market. Its strategic location is a gateway for trade between North and South America. An immediate disruption from the storm was the shutdown of ports like Port Tampa. Port Tampa is a significant hub for steel, cement, petroleum, construction aggregates, and foods. As the seaport suspended operations, it created a backlog that could take a while to clear. As a result, ships are diverting to other ports along the Gulf Coast, potentially raising volume and creating congestion. The Gulf Coast ports are still recovering from the aftereffects of the ILA’s (International Longshoremen’s Association) recent strike.
Milton also impacts supply chains in Florida’s agricultural industry by damaging farmlands that produce agriculture. The damage that occurred two weeks ago from Hurricane Helene remains, which may add to it. Importers in other countries could soon experience shortages and price increases from decreased delays in U.S. exports. Perishable cargo imports that are time-sensitive are at risk from port and infrastructure shutdowns resulting from power outages. Along with shipping internationally, Hurricane Milton affected domestic freight movement. Damaged roads and port closures resulted in delays and made it difficult for shippers to move goods by truck. As a result, freight rates may go up from limited capacity.
What Can Shippers Expect When Shipping During a Hurricane?
When importing or exporting during a hurricane, there are many expectations shippers should be aware of. There may be immediate delays in transportation for air, land, and sea cargo from port closures. To avoid potential slowdowns, importers could reroute to alternative ports. However, this can also increase transit times and transport costs. Price increases could come from limited carrier capacity due to paused services. There can also be significant communication challenges between shippers and carriers, such as power outages and telecommunication disruptions. Shippers must plan by staying updated with weather conditions and constantly communicating with the various players in the supply chain.
Understanding what to expect during a hurricane and how to prepare is vital for a shipment’s success. Along with the ways that the article mentions, preparation shippers can also do this by speaking to a 3PL provider. 3PLs (Third-party Logistics) companies handle numerous supply chain functions for the client. Their services include freight forwarding, customs clearance, domestic shipping warehousing, and more. They also provide supply chain consulting to navigate distributions like a hurricane. Contact A1 Worldwide Logistics at info@a1wwl.com or 305-425-9456 for assistance with shipping to and from the U.S. We have ideal solutions for ensuring that your goods reach the final destination regardless of the situation.
by A1 WorldWide Logistics | Oct 4, 2024 | East Coast Protests, Shipping Logistics, Supply Chain
The ILA port strike ends after days of protests across East and Gulf Coast ports. Since October 1st, nearly 45,000 International Longshoremen’s Association (ILA) dockworkers walked out of ports and protested for better contracts. Their previous six-year contract with the United States Maritime Association (USMX) ended on September 30th with no resolution. Disagreements on wages and use of automation at ports have stalled talks for months. On the days leading up to the deadline, both parties made offers to prevent the strike, but to no success. When the ILA started walking out of their jobs, ports began shutting down. As a result, this significantly impacted the international shipping industry.
On October 3rd, the ILA and USMX reached a tentative agreement to extend the contract until January 15th, 2025. The agreement was a 61.5% pay raise and a $4 an-hour yearly wage increase for the next six years. Despite the ILA’s fight for a 77% wage increase, this is more than the USMX’s previous 50% offer. A final master contract will have to be negotiated by the parties before the extension date. In a statement released by the White House, Biden notes, “I want to applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports.”
What Can The Shipping Industry Expect As The ILA Port Strike Ends?
Despite an extension of the contract, the international and domestic shipping industry has already felt the impact of the strike. Once the strike occurred, containerships started piling up at ports without dockworkers there to unload them. As a result, this created congestion that may lead to supply chain delays soon. While the temporary agreement resumed operations, it could take weeks for ports and supply chains to return to normality. To mitigate against delays, shippers rerouted to West Coast ports weeks before the strike occurred. Once ports shut down, importers of perishables like agriculture began fearing food spoilages from delays leading to loss and shortages.
Consumers reacted to the potential shortages by panic buying goods from stores. As the protest ends, the overall monetary loss could be less than anticipated by the shipping industry and the economy. The amount is still significant to the U.S. economy, with analysts reporting that a strike can cause a loss of nearly $5 billion daily. Ports across the East and Gulf Coast have begun opening and resuming operations. North Carolina Ports resumed normal operations at 8 am ET, while Port Houston will reopen at 1 pm CT. The Department of Transportation will work with supply chain stakeholders to ensure an orderly operation for the ports.
Is It Safe To Ship Cargo?
With the protest ending for the time being, shippers may find it safer to move cargo internationally. It is essential to understand that it may take time to clear the complete impact of the strike. When starting, it can be beneficial to use the assistance of a 3PL (Third-Party Logistics) provider. 3PLs help you navigate the world of international shipping by providing services like freight forwarding and customs brokering. They also guide you through the entire process and give you an idea of what to expect. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-425-9752 for assistance with shipping goods in and out of the U.S. We have freight forwarders and customs brokers that ensure the success of your shipment.
by A1 WorldWide Logistics | Oct 3, 2024 | East Coast Protests, Shipping Logistics, Supply Chain
Conflicts between the International Longshoremen’s Association and United States Maritime Alliance are resulting in the East Coast port protest continuing. On midnight, October 1st, ILA dockworkers across East and Gulf Coast ports left work on a strike. Negotiations with the USMX for a new contract have been unsuccessful, and the deadline has passed. The new contract they are fighting for includes fairer wages that reflect the cost of living and less port automation. A push for port automation has been an issue for the ILA since it threatens job security. As the strike continues, the impact on international and domestic shipping and various industries is rapidly growing.
What Is The Impact Of The East Coast Port Protest Continuing?
On Wednesday, 45 container ships were outside east and west coast ports, unable to unload due to port shutdowns. On Sunday, this number was three; however, the 45 vessels could double by the end of the week. The most significant impact of the protests is that global supply chains will feel the disruptions. Some of these goods affected by the strikes are produce products, with the ILA handling nearly 75% of banana imports and 90% of cherries. East and Gulf Coast ports also hold approximately 62% of machinery importers bring. As the backlog of ships continues to rise, delays will have other effects on supply chains, such as scarcity.
Consumers have recently begun buying goods from stores in fear of shortages in the near future. A shortage in everyday products could also cause inflation due to scarcity pushing prices higher. For importers and exporters, shipping costs can increase as shippers look for alternatives for moving their cargo. A popular alternative for moving cargo both domestically and internationally has been rerouting their shipments. This can lead to longer, more costly routes, and the cost goes directly to the customer. While choosing other conveyance has also been an alternative, it has its benefits and drawbacks. For example, switching to air can cut shipping time to a few days but may increase the overall cost.
How Long Could The Strike Continue?
The length of the protest depends on how long the ILA and USMX will take to find a resolution. A strike of one week can cost the U.S. economy over $2 billion, and a strike lasting over three weeks may take until 2025 to clear. Port employers reportedly offered the ILA a 50% wage increase over the next six years; however, they rejected it. The reason is that the union is seeking a contract with a higher yearly wage hike. Although no negotiations are currently in place, the USMX is willing to continue talks. Companies from various industries have been pleading for the Biden administration to intervene.
In response, Biden supported the dockworkers and scolded carrier companies for not paying them fairly. The administration notes that it will not invoke the Taft-Hartley Act to suspend the protests. Due to the severity of the protests, shippers must be up-to-date on the current situation. Importers and exporters should not stop transporting their shipments; however, they should take proper steps to mitigate disruptions. Contact A1 Worldwide Logistics at 305-425-9456 or info@a1wwl for updates and assistance moving your cargo. We educate you on the steps to take while constantly being with you throughout your shipment’s journey.
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