US importers of Europe-sourced goods are facing a challenging autumn with potential disruptions on both coasts. The rail shutdown in Canada could impact North American gateway ports later this week, while a dockworker strike at US East and Gulf Coast terminals looms at the end of September.
Concerns over delays have led importers to increase inventory and frontload orders, boosting trans-Atlantic westbound trade volumes, according to Hapag-Lloyd CEO Rolf Habben Jansen. However, uncertainty remains about the outcome of the dockworker contract negotiations set to expire on September 30.
The International Longshoremen’s Association (ILA) is locked in tense talks with port employers, with the risk of a strike growing. The potential for simultaneous disruptions from a Canadian rail shutdown and an ILA strike could severely impact importers relying on Canadian and East Coast ports.
Some companies are starting to fast-track orders, while carriers are introducing “peak season surcharges” ahead of potential disruptions. Spot rates on the westbound trans-Atlantic route have already risen 4.6% this week, signaling the market’s anticipation of further challenges.
As always Radius International is here for you! Please reach out with any questions or concerns!
Follow us on Linkedin and Instagram for more updates by clicking below!
