Supply chain outlook and port updates
As we move into the third quarter, the supply chain is still dealing with disruption from congestion at major ports used in the wine and spirits beverage trade, regional equipment supply shortages, ocean carrier service changes, and of course weather delays. The longer lead times to secure equipment and bookings can make it challenging for import scheduling, so you can request the July Trade Dashboard report from our shipping partner.
View posted vessel wait times and port updates, published weekly in the link below or on the port updates page.
Strike potential – Europe, US West Coast
There are reports in transport media that we might to expect to see higher strike activity in Europe this summer over working conditions and cost of living pressure. While the bulk of our members are focusing on deep sea shipments, even disruptions to road, rail and air networks can impact the flow of goods out of countries. Read more in this article from trade journal JOC.
We continue to monitor the situation on the US West Coast ports and are happy to report that the contract expiration did not generate any immediate shipping disruption or strike action. The contract negotiations are not public, but we’ll continue to share updates as they are made available.
California AB5 Impact / Potential Strike action
In California, a court recently struck down a contest to state legislation AB5 regarding the classification of independent contractors as employees. An article from Bloomberg indicates that more than 70% of truckers operating at California ports are owner-operators and AB5 will impact their business relationships. More on the topic in this article from Bloomberg. There is rumored to be a group of independent contractors planning to picket at marine terminal gates at Los Angeles / Long Beach port complex on Wednesday July 13, 2022.
US East Coast Ports
Expect some longer delays out of East Coast ports (New York / New Jersey and Savannah especially) as they work through extra vessels and service changes in anticipation of West Coast port labor disruption. The extra volumes will add to the already significant challenge on drayage operations for pickups before last free day and the availability of empty container return locations. More in this article from Journal of Commerce
US West Coast service from Mediterranean Ports
It is important to highlight some of the service changes from Mediterranean ports (Italy, Spain, south of France) to US West Coast ports. Currently Mediterranean Shipping Company (MSC) is the only carrier offering all-water service, and ports calls to Seattle are subject to change (no sailings for July). Other carriers are routing via US East coast ports with rail service westbound. Please reach out to your local representative to discuss alternative port routings or cross-docking options or air freight for urgent consignments.