July 22, 2324 8:12 pm

Continued Development

USITC Investigations, Strike Updates, Russia Gets Involved, and Technological Advancements. Your weekly All-Ways round-up of Supply Chain news.
USITC Votes To Continue Investigations On Disposable Aluminum Containers, Pans, Trays, And Lids From China
The United States International Trade Commission (USITC) determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of disposable aluminum containers, pans, trays, and lids from China that are allegedly sold in the United States at less than fair value and subsidized by the government of China.

Chair Amy A. Karpel and Commissioners David S. Johanson, and Jason E. Kearns voted in the affirmative.  Commissioner Rhonda K. Schmidtlein did not participate in this vote.

As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of imports of disposable aluminum containers, pans, trays, and lids from China, with its preliminary countervailing duty determination due on or about August 9, 2024, and its preliminary antidumping duty determination due on or about October 23, 2024.

The Commission’s public report Disposable Aluminum Containers, Pans, Trays, and Lids from China contains the views of the Commission and information developed during the investigations. Status of proceedings and additional information for these investigations can be found at the Commission’s Investigations Database System (IDS). The report can be accessed here.

All-Ways will continue to monitor upcoming developments and will share them once they are published.

The Subject Of The Strike
With a strike threat looming over U.S. East Coast and Gulf Coast ports, the International Longshoremen’s Association (ILA) is intensifying its stance as the current contract has only 80 days left.

Talks are stalled due to the union's claim that Maersk’s APM Terminals' auto gate system infringes on their jurisdiction. The ILA has canceled master contract negotiations over this automation issue and won't resume talks until the Mobile port dispute is resolved.

ILA President Harold J. Daggett emphasized the urgency, warning that a coastwide strike on October 1, 2024, is increasingly likely unless the United States Maritime Alliance (USMX) addresses their concerns. The union opposes port automation, claiming it reduces the need for ILA labor and threatens their jurisdiction.

Economists and trade organizations warn a strike could disrupt already fragile supply chains, prompting calls for government intervention.

The ILA seeks recognition for their work during the pandemic and opposes increased automation, aiming for a favorable contract similar to the West Coast union's recent agreement.

Historically, the ILA and USMX have resolved contracts without disruptions, with ten successful agreements since 1977.

Russian Involvement
In The Red Sea
U.S. intelligence agencies warn that Russia may arm Houthi militants in Yemen with advanced anti-ship missiles in retaliation for U.S. support of Ukrainian strikes inside Russia.

This comes amid escalating Houthi attacks on Red Sea shipping, which current military operations are failing to deter.

The Biden administration has launched a confidential diplomatic effort to prevent Russia from delivering the missiles to the Iranian-backed Houthis, who have been attacking Red Sea shipping for eight months in solidarity with Palestinians in Gaza. The situation escalated on Friday when an armed drone launched from Yemen struck Tel Aviv, killing one person and injuring several others.

The Houthi protests have disrupted cargo movements, causing significant economic concerns. U.S. military actions have targeted Houthi capabilities, but the threat remains, exacerbated by potential Russian involvement.

Some U.S. officials believe more could be done to protect commercial shipping, including targeting larger weapons-storage facilities and Houthi leaders. The Houthis possess a diverse arsenal of weapons, many provided by Iran, but Russian anti-ship missiles would significantly enhance their capabilities.

Aiming Higher With AI
CMA CGM has announced a strategic partnership with Google to integrate AI into its global shipping operations and its subsidiary, CEVA Logistics.

The collaboration aims to optimize vessel routes, container handling, and inventory management to enhance efficiency, reduce costs, and lower carbon footprints.

Google's AI tools will initially be used to optimize CEVA’s 10.3 million square meters of warehouse space, as part of CMA CGM’s digital transformation strategy to improve customer service and adapt to market changes.

This partnership follows Google researchers' claims that their optimization plug-in could significantly improve shipping line profitability and efficiency.

Previously, CMA CGM committed €100 million to a Paris-based AI lab and has supported startups addressing logistics and transportation challenges through its Ze Box accelerators.

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