by Scott Frederick | Oct 3, 2024 | Global Logistics Alerts
10/3/24 Update: Montreal Port Strike Has Ended
A three-day strike by unionized Montreal port workers that shut down two container traffic terminals ended early on October 3rd, announced the Montreal Port Authority. The partial strike affected the Viau and Maisonneuve terminals, which account for about 40% of the port’s container traffic. Talks between the employer and union remain in a deadlock over wages.
For more information, please visit: https://www.reuters.com/world/americas/montreal-port-says-strike-by-workers-is-over-clients-can-expect-delays-2024-10-03/
by Scott Frederick | Sep 30, 2024 | Global Logistics Alerts
This notice reflects proposed amendments discussed by the Freight Classification Development Council (FCDC) at the public meeting on September 30, 2024, and the action of the FCDC on each proposal.
Amendments resulting from the dispositions herein will be published in a supplement to the National Motor Freight Classification® (NMFC®) that is scheduled to be issued on October 31, 2024, with an effective date of November 30, 2024. ClassIT® will be automatically updated on November 30, 2024.
Subject 1 – Organic Peroxides
The proposal to change #45463 – Organic Peroxides was disapproved. Therefore no changes.
Subject 2 – Candy –
Various items applying on candy and other related commodities are canceled with reference to a new item, which, as modified, provides classes based on density breaks at 10 and 15 pcf, with a one-class adjustment from density guidelines to reflect the identified negative handling, stowability, and liability issues. The “viz.” listing in item 73260 is amended, as shown, as is Note, item 73262. Note, item 39921 is canceled with reference to new Note, item 40101, and multiple other Notes are canceled with no further application. As modified, Note, item D-NEW is be established.
Subject 3 – internal combustion engines
As modified, items 120790 and 120800 are canceled with reference to new item 120850, naming “Engines, internal combustion, NOI,” which provides classes predicated on packaging and density, with breaks at 8, 12, and 15 pcf. Notes, items 120791, 120801 and 120804 are canceled with no further application, and, as modified, Notes, items 120803, 120805 and 120806 are canceled and reestablished attendant to item 120850.
Subject 4 – Countertops and tabletops
Item 88580 is canceled with reference to new item 79270, naming “Countertops or Tabletops, NOI,” which provides classes predicated on greatest dimension and density, with a single break at 12 pcf. Note, item 90503 is amended, and item 90500 is updated accordingly. New Note, item 79271 is established attendant to item 79270, and, as modified, Note, item 79271 is referenced in item 79270. Note, item 90506 is canceled with no further application, as is Package 94F.
Subject 5 – Thermos bottles
As modified, item 28660 is canceled with reference to new item 28670, naming “Bottles, Cups or Tumblers, insulated, or Jacketed Vacuum Bottles (Thermos Bottles),” which provides the FCDC’s standard 11-subprovision density scale. Additionally, Note, item 28661 is canceled with no further application.
Subject 6 – Item 63160 Switches, Switch boxes, etc. . .
Item 63160 is amended to include, “Surge Arresters, Protectors or Suppressors” in the “viz.”
Subject 7 – Item 108520 – Kits or Sets, visual teaching or visual management aid
Item 108520 is amended to include the term “Simulators.” Concurrently, Note, item 108522, is canceled with no further application.
Subject 8 – Pipe bending or metal bending machines
: Items 126680 and 126720 are canceled with reference to item 133300 to address interpretive concerns.
by Scott Frederick | Sep 26, 2024 | News
As widely reported, if workers at East and Gulf Coast ports strike on Oct. 1, manufacturing supply chains throughout the U.S. will be severely impacted. The National Association of Manufacturers (NAM) published a very insightful, interactive map of the ports that will be potentially impacted and some interesting import/export facts for many of them. Check it out here:
https://nam.org/mapping-the-impact-of-a-port-strike-32072
According to NAM, here some key data points:
- More than 68% of all containerized exports and more than 56% of containerized imports flow through East and Gulf Coast ports, representing an average daily trade value of more than $2.1 billion.
- They handle more than 91% of containerized imports and 69% of containerized exports of pharmaceutical products.
- They also process more than 76% of containerized vehicle exports and more than 54% of containerized vehicle imports.
- For air and spacecraft, more than 77% of containerized exports and more than 51% of containerized imports go through these ports.
To prepare for a potential labor strike by the International Longshoremen’s Association (ILA) on the Gulf Coast and East Coast, importers and exporters can consider several contingency plans:
- Reroute Cargo: Explore alternative shipping routes. Ports on the U.S. West Coast, Canada, and Mexico can serve as viable alternatives. For example, cargo can be diverted to ports like Los Angeles, Long Beach, or Vancouver.
- Multi-Coastal Transportation Network: Establish a network that includes multiple coastal gateways. This can involve setting up transload operations or smaller volume operations that can be scaled up if needed.
- Extended Gate Hours: Take advantage of ports extending their gate hours to process as much cargo as possible before any potential strike. Ports like New York, New Jersey, and Savannah are offering extended weekend hours.
- Airfreight Options: For time-sensitive shipments, consider using airfreight, although it comes at a higher cost and with capacity concerns.
- Communication with Ports and Carriers: Stay in close contact with ports and carriers for the latest updates and advisories. Many ports are sharing daily updates about their contingency plans.
- Inventory Management: Increase inventory levels of critical goods to buffer against potential delays. This is especially important for industries relying on just-in-time inventory models.
- Legal and Contractual Preparations: Review contracts and legal agreements to understand the implications of delays and disruptions. Ensure there are clauses that cover force majeure events like strikes.
Working with an experienced capable freight forwarder, like Logistics Plus, importers and exporters can implement the above strategies and better navigate the potential disruptions caused by a labor strike.
by Scott Frederick | Sep 22, 2024 | Global Logistics Alerts
9/22/24 Update: U.S. East & Gulf Coast Port Strikes
The potential for an East Coast port strike on October 1, 2024, concerns global trade, retail, and consumers alike. The current 6-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports on the U.S. East and Gulf Coasts and runs from October 1, 2018, through September 30, 2024.
As a general warning on the East and Gulf Coast strikes, customers can expect rates and fees to fluctuate until a resolution is reached. Several ocean carriers (and more to come) have announced local port charge (LPC) increases due to significant increases in operational costs. Logistics Plus has seen the LPC charges range from $800 to $1,500 depending on the container size/type. It should also be noted that if a large number of U.S. exporters/importers re-route cargo to the West Coast, congestion and delays are likely to occur there as well.
As of 9/20/24, the Logistics Plus team received an update that a strike is expected in Houston. Cargo unable to in-gate for final vessel cutoffs prior to 09/30 will not be rolled to future vessels, and cargo already at the port waiting for sailings after 09/30 will need pickup scheduled by 09/27.
For more information, please visit https://www.usmx.com/resources/usmx-ila-negotiations-updates
by Scott Frederick | Sep 10, 2024 | News
Logistics Plus Renews Its U.S. EPA SmartWay Transport® Partnership for a 14th Year
Logistics Plus ranks among the top SmartWay Partners in carbon emissions per mile.
ERIE, PA (September 10, 2024) – Logistics Plus, Inc., a global leader in transportation, logistics, and supply chain solutions, is proud to announce that, for a fourteenth straight year, it has submitted and received approval for its current data submission to the SmartWay Transport Partnership, an innovative collaboration between the U.S. Environmental Protection Agency (EPA) and the industry.
Since 2004, SmartWay has helped partners avoid emitting 153 million metric tons of CO2, 2.7 million short tons of NOx, and 112,000 short tons of PM, which helps protect the environment and keep Americans healthy. Based on the most current 2023 rankings, Logistics Plus ranks among the top partners for the least amount of CO2 emission grams per mile among the 4,531 active SmartWay partners.
Earlier this year, Logistics Plus was recognized as a 2024 G75 Green Supply Chain Partner by Inbound Logistics magazine, and it received Plastic Neutrality Certification for a fourth year through the Ocean Integrity Blue Ocean Program.
About SmartWay
Since 2004, SmartWay has helped its 4,000 partners save 357 million barrels of oil- equivalent to eliminating annual electricity use in over 23 million homes. By helping America’s freight industry reduce its dependence on foreign fuel, we can invest more dollars at home and reduce our national trade deficit. For information about the SmartWay Transport Partnership, visit http://www.epa.gov/smartway.
About Logistics Plus, Inc.
Logistics Plus, Inc. (LP) is a 21st-century logistics company and a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions. LP works in the background to help businesses manage their supply chains in an ever-changing world. Founded in 1996, today LP has annual global sales of over $600M with more than 1,200 employees located in 50+ countries worldwide. LP is recognized as one of the fastest-growing privately-owned logistics companies, a top 3PL provider, a top 100 logistics company, a top freight brokerage and warehousing provider, and a great place to work. With a Passion For Excellence™, its employees put the PLUS in LOGISTICS by doing the big things properly, plus the countless little things that together ensure complete customer satisfaction and success.
