Escalations Across The Board

The Canada Industrial Relations Board (CIRB) made this decision following a request from Labor Minister Steven MacKinnon, who argued that the strike was jeopardizing Canadian livelihoods and supply chains.

While the railways are resuming operations, the Teamsters union, representing nearly 10,000 workers, expressed discontent and plans to appeal the ruling.

The dispute, centered on scheduling and crew fatigue, had disrupted North American supply chains, affecting the transport of key commodities like coal and wheat.

Despite this, seasonality is expected to stabilize volumes through the fourth quarter, with strong bookings anticipated in September.

Port congestion remains an issue, exacerbated by record volumes in May and June, leading to delays and extended shipment durations.

The global fleet's capacity remains tight, with only 0.6% of vessels idle, despite the addition of 2 million TEUs this year.

Carrier executives are preparing for potential overcapacity but are considering strategies like slow steaming to manage costs if demand weakens in Q4.

Hapag-Lloyd reports that rail container dwell times at Tacoma's terminals are significantly above normal, with no major improvement expected in August.

Ocean Network Express (ONE) is adjusting its trans-Pacific services to call at Vancouver first due to the severe congestion.

The surge in imports, driven by an early peak season and diversions from Vancouver, has led to a 51% year-over-year increase in imports at the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma.

Union Pacific and BNSF railroads are working to manage the increased volume, with some improvements in dwell times at specific terminals, but challenges remain at Tacoma's UP-served terminals.