Maritime Cargo Market Trends
ILA plays President-elect Trump card in standoff with USMX
ILA Executive Vice President Dennis Daggett, left, and President Harold Daggett, right, met with President-elect Donald Trump
this week at Mar-a-Lago. (Photo by: ILA)
U.S. President-elect Donald Trump has weighed in on contract negotiations between the International Longshoremen's Association (ILA) and its employer (USMX), stating that he supports the union's stance against increased port automation. Trump posted a statement on Truth Social on Thursday, December 12, saying that investments in automation at U.S. ports are not worth the “pain, hurt, and harm they cause to American workers, and in this case, our long-term workers.” He added that terminal operators and ocean carriers considering such investments should “spend their money on the good men and women on the docks” instead of “expensive, constantly replacing machines.” Trump's comments came after a two-hour meeting with ILA President Harold Daggett and Vice President Dennis Daggett this week, the second meeting Trump has had with union leadership. Trump recently expressed hostility toward the carriers, noting that they “made big money in America,” after the ILA released an estimate that USMX's container carriers made a net profit of $385 billion between 2020 and 2023. The ILA union has gained support from President-elect Trump, further increasing the likelihood of strikes to advance union demands.
North America Vessel, Rail Dwell time (Week 50 / Flexport)
=> Rail delays remain in most of the western US ports such as LA/LGB, SEA and Canada VAN, Prince Rupert,
etc.
Winter storm in the northern U.S. and other winter weather (Reminder)
As we enter the winter season in earnest, there is an increased risk of disruptions to truck transportation and rail connections due to snowstorms and severe cold, especially in the northern US. Cargo traveling through Seattle or New York to the northern U.S. should plan ahead to account for disruptions.
Air Cargo Market Trends
Canada Post Strike Update
The Canadian federal government asked the Canada Industrial Relations Board to issue a cease-and-desist order on Dec. 13. The federal government proposes to suspend the strike until May 22 next year and negotiate a new labor agreement during that time. The union is strongly opposed to federal intervention, but the CIRB is expected to grant the federal government's request for a cease-and-desist order as early as next week, according to government officials.
Alaska Airlines to launch service to South Korea next October
Alaska Airlines, which recently merged with Hawaiian Airlines, announced that it will begin service between SEA and ICN in October 2025. Alaska Airlines plans to develop Seattle as a global hub and establish at least 12 new nonstop international routes by 2023. Meanwhile, the SEA/TYO route is scheduled to open next May.
U.S. Economy
The U.S. Consumer Price Index (CPI) rose 2.7% year-over-year in November, the Labor Department announced on Dec. 11. After slowing to 2.4% in September and rising to 2.6% in October, the CPI rose to 2.7% in November. Excluding volatile items such as energy and food, core CPI was 3.3% year-over-year, unchanged from October. Both data points were in line with consensus expectations, increasing the odds that the Federal Reserve (Fed) will lower its benchmark interest rate at its December 17-18 meeting. The Nasdaq Composite Index broke above the 20,000 level for the first time on expectations of a rate cut. Meanwhile, the unemployment rate rose to 4.2% in November, up slightly from 4.1% in October, but still indicative of a robust labor market.
In an interview with NBC that aired on December 8, President-elect Donald Trump stated that he would guarantee Fed Chairman Jerome Powell's term, which runs through August 2026. Trump also said he would not order an investigation into President Joe Biden. “I don't want to go back to the past. I want to make our country successful, and retribution will come through success,” he said. Meanwhile, major universities, including Harvard, Cornell, USC, MIT, and Yale, are advising international students to come to the U.S. before Trump's inauguration on Jan. 20, the New York Times reported on Jan. 11. This is due to fears that Trump will revive a ban on foreigners from some countries that was imposed during his first term seven years ago.