SHIPPERS WARNED OF CHAOTIC START TO 2025 FOR CONTAINER SHIPPING
DHL Global Forwarding said that stronger than expected demand container shipping is being seen in the final months of 2024. In its Ocean Freight Market Outlook December 2024, the company noted that Chinese exports were exceeding expectations due to expected tariff hikes by incoming US President Donald Trump. From day one of his Presidency Trump has promised to introduce 25% tariffs on imports from Canada and Mexico, along with at least a 10% tariff hike on Chinese imports. How quickly the administration will be able to introduce these increased tariffs in reality remains to be seen. Demand for container shipping is expected to continue to be strong until Lunar New Year at least driven by demand ahead of the holidays and the potential US tariff hikes. Currently the outlook does not look promising with the ILA walking a from negotiations in November over the key issue of automation and semi-automation at ports. Last week Trump backed the unions in its dispute over automation. A strike that leaves large numbers of vessel stranded outside US ports could further complicate the start of new container line alliance the Gemina Cooperation between Maersk and Hapag-Lloyd at the start of February. DHL’s Gregory said that the possibility of strikes at US East Coast ports could also tie up the vessels moving into Gemini, delaying its kick-off.
DCLI ADDING GPS TRACKING TO DOMESTIC CHASSIS FLEET
Chassis provider Direct ChassisLink Inc. (DCLI) said Wednesday it is adding GPS tracking technology to its fleet of more than 152,000 53-foot domestic chassis. The Charlotte, North Carolina-based company is the largest marine and domestic container chassis provider in the U.S., operating more than 415 locations near ports and depots. Its marine chassis fleet includes approximately 138,000 units. The upgrades will begin immediately with completion expected by the end of 2026. The amount of the investment required to retrofit the fleet was not disclosed. The real-time tracking technology will provide precise location data whether the equipment is in use, stacked or otherwise idle. Sensors will be able to signal that a container is mounted to a chassis, and geofencing technology can provide alerts to customers upon entry and exit at a location.
TRUMP AGAIN BACKS LONGSHORE UNION AS POSSIBLE PORT STRIKE NEARS
President-elect Donald Trump over the weekend doubled down on his opposition to automation as a possible strike by union dockworkers at East and Gulf Coast container ports draws closer. On Saturday, Trump reposted to more than 8 million followers on his social media platform, Truth Social, a Facebook message by Dennis Daggett, International Longshoremen’s Association executive vice president, praising Trump for his support of the union in its protracted contract fight with employers at Eastern Seaboard and Gulf Coast container ports. The reposting comes after the president-elect on Thursday backed the union in its contract dispute following a meeting with Daggett and his father, ILA President Harold Daggett, at Trump’s residence, Mar-a-Lago, in Florida. CMA CGM, in an advisory to customers, said, “If a strike occurs, we expect vessel operations to halt at 0001 hours on January 16th, 2025. Our dedicated teams are working on contingency plans to ensure that all … operations are completed prior to any labor disruptions.
HMM RETURNS TO TRANSATLANTIC TRADES
After a seven-year hiatus, HMM, South Korea’s top containerline, will return to the transatlantic trades next February. The new service – Transatlantic 1 (TA1) – connects Northern Europe and the US west coast, via the Panama Canal with stops including at Miami. It will be operated in conjunction with Ocean Network Express (ONE), its Japanese partner on
the soon-to-launch Premier Alliance. An HMM official said, “Together with the new launch of transatlantic service, HMM’s coverage will be further extended across the entire globe.”