Suez & Panama see US shippers going west

Photo: Archive

Shippers are currently opting for US West Coast terminals to avoid trade union action and disruptions on both the Panama and Suez Canals, said Jon Gold, VP for Supply Chain and Customs Policy at the National Retail Federation, recently in The Freight Buyers’ Club podcast, produced in partnership with Dimerco Express Group.

With the Panama Canal experiencing low water and the Suez Canal now de facto closed due to Houthi militant attacks, freight rates are soaring for the Asia to US East Coast routes. “Sabre rattling” by dockworker unions, such as the International Longshoremen’s Association, is also spooking retailers, increasing pressure on shippers. The coastal transfer sees shippers turning to West Coast terminals. Trans-Pacific negotiations between shippers and carriers are to begin in February.

“I think as contract negotiations pick up in the next couple of months, you'll start seeing some more of that shift,” underlined Gold in conclusion. (mk) 

https://thefreightbuyersclub.co

Link to the podcast: https://www.youtube.com/channel/UCNTMBfqco5uSRwUv9X7YPuw