Union dockworkers and representatives for US Gulf and East Coast ports are expected to resume negotiations on a new master contract on 7 January, just more than a week ahead of the 15 January deadline.

Meanwhile, global container shipping major Maersk is encouraging customers to pick up laden containers and return empty containers at US East and Gulf Coast ports before 15 January to help mitigate any potential disruptions at the terminals.

Global container shipping major Hapag-Lloyd will implement US port strike surcharges on 20 January, the same day that President-elect Donald Trump will be inaugurated.

All these factors are keeping upward price pressure on Asia-US container rates.

ILA PORT STRIKE

An October strike by the International Longshoremen’s Association (ILA), representing dockworkers, was paused after three days when an agreement on wages was reached with the United States Maritime Alliance (USMX), representing the ports.

The parties set a 15 January deadline to negotiate the remaining issues – the key one being the implementation of automation at the ports.

The union has criticized semi-automated rail-mounted gantry cranes (RMGs) for eliminating jobs and posing national security risks in a post on its website, while the USMX responded, defending automation as essential for port modernization and addressing land constraints.

In a 12 December post on social media, President-elect Donald Trump expressed his support for dockworkers in the labor dispute.

The Alliance for Chemical Distribution (ACD), an industry trade group, is urging both sides to push back the deadline, pointing to economic impacts felt after the short work stoppage in October.

INCREASED TARIFFS

Adding to shipping issues at the start of 2025 are possible tariff increases on imports from Canada, Mexico and China, as proposed by Trump.

Trump has announced his intent to levy increased tariffs, primarily on imports from Canada, Mexico and China, including a high tariff rate of up to 60% against Chinese goods.
Analysts at ocean and freight rate analytics firm Xeneta said that US importers who have goods or materials that can be stored and have access to warehousing likely have been bolstering their inventories, which could then be followed by a pause.

A surge of imports ahead of possible tariffs would put upward pressure on rates.

For recyclers with outbound materials, that could affect how and whether they can find empty containers, Xeneta said.

Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets.

They also transport liquid chemicals in isotanks.

Source: ICIS by Adam Yanelli