MSC Launches $10,000 Guaranteed Freight Rate

Rail Strike Deferred as CIRB Reviews SubmissionsCanadian Pacific Kansas City (CPKC) has announced that a potential rail strike will not occur this month, as they await a decision from the Canada Industrial Relations Board (CIRB). This decision follows a request from CIRB for submissions from CPKC, Canadian National (CN), and the Teamsters Canada Rail Conference (TCRC) union, with a deadline of May 21.Submissions and ReviewThe CIRB has asked for comprehensive submissions from all involved parties, which must be filed by the end of the month. The board will review these submissions to make a well-informed decision regarding the potential strike. Until the CIRB makes its ruling, a legal strike or lockout cannot take place. Furthermore, any potential strike would require a 72-hour notice before commencing.Maintenance of Service AgreementCPKC has proposed to the TCRC that both parties agree on the services that should be maintained in the event of a strike or lockout. This proposal aims to eliminate the need for the CIRB's involvement and provide clarity on the timing of any potential industrial action. Based on past experiences, if no agreement is reached, it is unlikely that a strike can commence within the next 60 days.Background and Government InvolvementEarlier this month, rail workers from both CN and CPKC voted overwhelmingly to strike as early as May 22. In response, the federal government intervened, requesting the CIRB to investigate whether the strike would have safety implications. This move underscores the government’s concern about the broader impacts of such industrial actions on public safety and commerce.Referral：https://www.canadiancattlemen.ca/daily/rail-strike-wont-happen-this-month-cpkc-says/Canada Logistics and Transportation UpdateCustoms Clearance Status- Canada: Normal- UPS Operations: NormalPorts and Railways1. Vancouver Port (Vanterm/Delta/DP): - Container release time: Approximately 3-5 days. - Containers can be loaded onto trains in about 1-2 weeks after unloading in Vancouver and Prince Rupert ports. - Additional fees for returning containers to DP(Centerm) if required by shipping lines.2. Toronto Yard: - Increased wait times for container releases. - Difficulty in returning containers to CMA; some containers require special returns to Etobicoke, with additional fees if not done by the weekend.3. Long Distance/Special Return Addresses: - Additional fees for returning containers to distant or special locations.Amazon Warehouse Update1. Toronto Region: - Normal delivery operations.2. Vancouver Region: - Alleviated congestion at the YVR3 warehouse.3. Edmonton Region: - YEG2 warehouse experiencing congestion, with an expected wait time of 3-5 hours.4. Calgary Region: - YYC6 requires approximately 7 days for appointments, with wait times of 2-5 hours. - YYC4 requires about a week for appointments. Currently, PODs signed at this warehouse can only receive signatures, not stamps.5. Montreal Region: - YOW1 and YOW3 warehouses have wait times of 2-3 hours.Recommendations- For large items, consider transferring them to YYC6 and YGK1 warehouses for better handling.- Be aware of additional fees associated with special return locations and plan accordingly.Check Amazon Fba Warehouse Locations in Canada：https://globalshippingauto.com/amazon-warehouse-locations-canada

MSC Revives $10,000 Guaranteed Freight Rate Amid Global Shipping ChallengesMSC, the world's largest container shipping company MSC, has reintroduced its "Diamond Tier" freight rate, originally implemented during the pandemic. This premium rate guarantees space for shippers, a significant aid given the current market conditions.Rate DetailsThe Diamond Tier guarantees space at the following rates between May 15 and May 31:- $8,000 per 40-foot container for the West Coast of the United States- $10,000 per 40-foot container for the East Coast of the United StatesCurrently, rates are around $4,200 for West Coast shipments and $5,300 for East Coast shipments, making the guaranteed rate nearly double the current market prices.Check our freight rate：https://globalshippingauto.com/fcl-shipping-from-chinaMarket ResponseDespite MSC's move, major shipping companies and freight forwarders have yet to confirm similar measures. Other companies have only announced a $1,000 per container increase for US-bound shipments and a $1,500 increase for Europe-bound shipments starting May 15 [citation:1][citation:9].Impact on ShippersThe surge in freight rates is causing significant strain for shippers. Congestion and container shortages have spread from Ningbo Port to Shanghai Port and now affect major ports across the country. Consequently, shippers face delayed shipments, increased costs, and potential impacts on subsequent orders, reflecting broader logistical challenges in the face of growing demand and supply chain disruptions [citation:5][citation:9].Industry ImplicationsFor container manufacturers and shipping companies, this situation has resulted in a more favorable business environment. Companies like China International Marine Containers (CIMC) reported a significant recovery in their container business, with dry cargo container sales nearly quintupling year-over-year in Q1 2024.

Key Forecasts and Transformations Shaping the 2024 Freight LandscapeThe 2024 freight market is expected to experience significant trends and market shifts, with key factors influencing both air and ocean freight sectors, as well as broader supply chain operations.Key Trends in Air Freight1. Stabilization of Market Rates: Demand for air freight is anticipated to increase, driven partly by nearshoring and changes in consumer spending. However, this will be tempered by constricted capacity that keeps market rates relatively flat for the majority of the year before a potential surge in Q4.2. Impact of Global Conflicts: Ongoing conflict in the Middle East and Ukraine is predicted to affect oil prices, thereby impacting air freight costs significantly.3. Technological Advances: The adoption of technologies such as generative AI for capacity matching and supply chain optimization is also transforming the air freight sector.Key Trends in Ocean Freight1. Overcapacity Issues: The ocean freight sector is likely to face an overcapacity situation, as new capacity outpaces demand. This is reflected in a record low Drewry Supply/Demand Index of 74.3 for 2024, far below the market equilibrium benchmark of 100.2. Rate Management by Carriers: Carriers are expected to employ strategies like blank sailings and slow steaming to manage the excess capacity and stabilize rates, even though low-rate levels are projected.3. Influence of Major Canals: Potential disruptions in the Suez Canal and recovery operations in the Panama Canal are influencing the freight landscape by impacting delivery times and operational strategies.U.S. Customs and Trade Policies1. Enhanced Enforcement: The U.S. Customs and Border Protection (CBP) will escalate enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), placing more responsibility on U.S. importers to ensure compliant supply chains.2. New Data Requirements: Partner Government Agencies (PGAs) will mandate new data elements, changing the compliance landscape for importers.Global Macroeconomic and Logistical Shifts1. Revised GDP Growth: Global GDP growth has been revised downward, influenced by softening economic conditions in APAC and China, but with improved projections in the U.S. for the second half of 2024.2. Nearshoring: The trend of nearshoring, particularly to Mexico, is expected to continue, driven by a noteworthy increase in foreign direct investment in the country. This strategy aims to mitigate supply chain disruptions and enhance operational resilience.3. Contract Logistics Growth: The demand for outsourced logistics services remains strong, with significant growth in contract logistics predicted despite inflationary and geopolitical pressures.In summary, the 2024 freight market is poised for complex dynamics with stabilization in air freight rates, overcapacity in ocean freight, strict enforcement of trade policies, and a strategic shift towards nearshoring to navigate global uncertainties.