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December 2024

   
   

Industry News

Algeciras Port

FMC to investigate Spain’s refusal to handle US freight

The Federal Maritime Commission (FMC) is launching an investigation into potential violations of U.S. shipping laws by Spanish authorities, following their refusal to allow two Maersk vessels to dock at Algeciras over suspicions of carrying arms for Israel’s military. This decision aligns with Spain’s ban on such cargo, citing legal concerns about exacerbating conflicts. The FMC is assessing whether these actions breach international agreements or U.S. shipping laws, as Maersk’s U.S.-flagged vessels often carry diverse cargo, including humanitarian aid. A report claims substantial shipments of military goods for Israel have transited through Spanish ports, raising questions about broader implications for international trade. Read more

     
Mumbai Port

India averts port worker strike with wage deal ratification

The Indian government approved a tentative wage contract between port authorities and trade unions, preventing a nationwide dockworker strike scheduled to begin December 17. This agreement, endorsed by the Indian Ports Association, revises wage scales retroactively to January 2022 and increases pension benefits for retirees. Union leaders confirmed the withdrawal of the strike following the government's approval. Industry sources praised the swift resolution, emphasizing the importance of uninterrupted port operations, especially given ongoing global supply chain challenges. Read more

     
Halifax Container Port

Canada moves to sunset shipping anti-trust exemption

Canada’s Competition Bureau has recommended ending the Shipping Conferences Exemption Act, which shields carrier rate-setting agreements from competition oversight, as international trends shift against such exemptions. The Bureau stated that modern anti-trust laws, strengthened with broader investigation powers and uncapped penalties, are sufficient to oversee carrier alliances and vessel-sharing agreements. Transport Canada is reviewing the exemption, originally granted to improve market efficiencies, as global regulations shift and shipping conferences have evolved into operational alliances. While the Bureau can address collusion, it cannot regulate high freight rates or service issues without evidence of anti-competitive practices. This review follows high freight rates and service problems during the COVID-19 pandemic, prompting a need to update shipping regulations. Read more

     

Schedule reliability remains key challenge for China-Europe rail

Rail freight between China and Europe via the middle corridor offers faster transit than ocean shipping but struggles with reliability. Delays at modal transfer points and border crossings stem from equipment shortages, customs procedures, and rail gauge differences, eroding confidence in on-time performance for high-value shipments. Express rail services with nine-day transit times have heightened customer expectations, especially in e-commerce, but require precise coordination, advanced booking systems, and efficient customs processes to avoid disruptions. Although the middle corridor provides a viable alternative to the northern route amid geopolitical concerns, stable and reliable service is crucial for maintaining competitiveness in global freight. Read more

     
Port of Veracruz

Mexico sourcing competitive even with US tariff threat: CPKC, UP

Executives from Canadian Pacific Kansas City (CPKC) and Union Pacific Railroad (UP) assured investors that proposed tariffs on goods from Mexico and Canada would not significantly disrupt cross-border trade. They emphasized the competitive advantage of Mexico’s skilled labor and proximity to North American trade partners, which continues to drive intermodal traffic growth. Despite a decline in intermodal volumes this year, particularly in automotive shipments, both railroads have invested in new services connecting Mexico to the U.S. Midwest and Southeast. They remain prepared for potential changes in tariff policy and its impact on trade flows. Read more

     
EU-Mercosur

Mercosur trade deal offers Europe-Latin America backhaul boost

South American forwarders and shippers anticipate a boost in backhauls on the Europe-to-Latin America trade lanes with the EU-Mercosur agreement, signed on December 6, which will reduce tariffs on EU imports by over 90% starting late 2025. This agreement, pending approval from the European Parliament and Council, will lower costs for importing goods like wine, cars, and machinery to Mercosur countries. The trade lane has seen minimal growth, but significant tariff cuts could shift import patterns. Despite high origin costs in Europe, the agreement could create a billion-dollar trade zone, though opposition from some EU members may delay its ratification. Increased demand for EU perishables might also drive more refrigerated container equipment to Latin America. Read more

     
Cargo ship at unloading containers

FMC halts Premier Alliance start for more information

The Federal Maritime Commission (FMC) has delayed the start of the Premier Alliance, involving Ocean Network Express, HMM, and Yang Ming, due to insufficient information for a complete competitive analysis. The alliance, set to begin in February, was formed after Hapag-Lloyd left THE Alliance to join Maersk in the 2M Cooperation. The FMC has 45 days to review the details and issue approval, with a 15-day window for shipper feedback starting next week. Requests for additional information are common, as seen with the Gemini Cooperation in July, which was later cleared of competitive concerns. Read more

     
   

Customs Brokerage News

Indian Factory Workers Folding and Wrapping Textiles

Products made with forced labour to be banned from EU single market

On December 6, 2024, the European Parliament approved a regulation to ban the sale, import, and export of products made with forced labor in the EU. The law grants EU authorities the power to investigate suspicious goods, supply chains, and manufacturers. If a product is found to be made with forced labor, it will be removed from the market, including online platforms, and shipments will be intercepted at EU borders. Manufacturers of banned goods must withdraw their products, with the possibility of fines for non-compliance. The regulation, passed with 555 votes in favor, 6 against, and 45 abstentions, will be formally approved by the EU Council and published in the Official Journal. EU countries will have three years to apply the law. Read more

     

Europe rolls out its advance cargo filing ICS2 program

The European Union launched its Import Control System 2 (ICS2) regulation, developed to improve supply chain security and modernize customs processes. While many carriers, including OOCL, CMA CGM, and Hapag-Lloyd, have already implemented the system, the regulation requires forwarders to submit the Entry Summary Declaration (ENS) at least 24 hours before cargo loading. Compliance is critical to avoid delays or fines. The system aligns EU regulations with those of major markets like the US, Canada, and Japan, but concerns remain about cargo owners' readiness for the system's strict data accuracy requirements. Read more

     
Mechanical multistory parking garage for cargo container chassis

Canadian investigation again raises questions of Chinese chassis origin

Canada’s Border Services Agency (CBSA) is investigating whether Ocean Trailer violated trade regulations by using Chinese components in chassis assembled in Vietnam. A Canadian chassis producer claims Ocean Trailer bypassed antidumping and countervailing duties by marketing 1,330 chassis as made in Vietnam while incorporating Chinese subcomponents such as steel, axles, and suspension systems, impacting its business with key customers. This investigation follows a similar case in the U.S., where authorities determined that a supplier violated trade rules by relying heavily on Chinese components. Ocean Trailer denies the allegations, asserts compliance with trade laws, and will cooperate fully with the CBSA. Read more

     
   
   

Eastern News

Eastern Supports the Humane Society of Greater Miami

At Eastern, giving back to the community is integral to the company’s values. Eastern proudly supports the Humane Society of Greater Miami, a no-kill shelter that cares for over 400 animals daily. This partnership includes initiatives like the adoption booth at Aventura Mall, open Wednesday through Sunday, which helps match adoptable pets with responsible families. Catherine Wagner, Eastern’s HR leader, volunteers twice a month at the shelter, supporting the adoption process and animal care. Through these efforts, Eastern fosters meaningful connections and supports the mission of finding forever homes for pets in need. Read more 

     
   
   
   

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