New data from a UN trade and development body highlights the impact of the Houthi attacks in the Red Sea. By breaking down the metrics affecting rising shipping costs, we gain some insight into just how much can be attributed to the Houthi campaign. At a percentage change of just over 160% in costs between October 2023 and June 2024, about 140% can be blamed on the Red Sea crisis. Unfortunately, this is a problem that persists with no imminent...

Will the upcoming U.S. elections disrupt supply chains? Potentially. A few concerns include growing geopolitical uncertainty, strikes, and fluctuating consumer behavior. A new administration could also introduce regulations around sustainability, trade, and manufacturing, all of which would require businesses to adapt quickly. Some experts feel technologies like AI and supply chain collaboration can help companies stay agile and resilient. Another way to mitigate risk might be to diversify suppliers in readiness for any potential policy changes or trade restrictions. A new...

The International Longshoremen’s Association (ILA) is preparing to finalize its contract demands and potentially strike on October 1st if an agreement with the United States Maritime Alliance (USMX) is not reached. They’re seeking significant wage increases, citing record profits by companies, and opposing the use of automated systems in ports. They haven’t returned to the bargaining table, instead, they’ve officially notified employers of the contract’s expiration on September 30th, as required by federal labor law. Shippers should be prepared for potential...

The most recent air freight data reveals that global air cargo rates only saw a slight increase of 0.7% in the week ending July 29, despite the global IT outage that happened in mid-July. This is somewhat unexpected, considering air cargo was already under pressure due to increased demand driven by the ongoing issues in the Red Sea and strength in e-commerce. The capacity through the Panama Canal is increasing, thanks to recent heavy rains. Typically, the canal can handle...

Written By Jessica Horwitz, Alison FitzGerald and Andrei Mesesan | On July 20, 2024, an Order Amending Canada’s Export Control List (ECL) (SOR/2024-112, or the Order) came into effect. This amendment adds five new controls under Item 5506 of the ECL, extending Canada's export regulation of certain advanced semiconductors and quantum computing technology. These changes are unilateral strategic export controls implemented by Canada, but they are aligned with similar controls in force or in development by international allies such as...

Headlines for Q3 2024 Elevated ocean rates, Labor issues looming in N. America, and Cybersecurity   Global Ports The Headlines: Port congestion in Asia, particularly in Singapore, has intensified, causing delays of up to seven days and affecting over 450,000 TEU of vessel capacity. In response, shipping rates have risen from Asia, with spot rates from North Asia to the U.S. West Coast reaching the highest they’ve been since late 2022. Singapore is attempting to expand its handling capacity; however, delays are...

The fallout from the CrowdStrike outage highlighted the fragility of several industries and supply chains. Even though the outage impacted a mere 1% of Windows devices, the disruption had huge economic and logistical consequences, emphasizing the need for higher standards in managing third-party computer updates, especially since the time it takes to recover can be much greater than the time of the actual incident. The event has experts calling for improved resiliency and contingency planning. The threat to commercial shipping in...

Container shipping rates have doubled since February in some key lanes and continue to rise — but remain well below the peak reached during the pandemic. Rising rates are leading to frustration among importers and raising concerns about a cost bubble. The main reason for the increase is, not surprisingly, the continued closure of the Suez Canal due to attacks by Yemeni rebels, forcing ships to take a longer route around Africa which is creating a need for more ships...