From labor disputes to e-commerce booms, global supply chains have had a big week. First, Canadian railroad workers are pushing back against a government-mandated arbitration while their U.S. counterparts secure promising labor deals. Meanwhile, Chinese retail giants Temu and Shein flood parcel carriers with unprecedented volumes, raising questions about sustainability and regulations. At the same time, U.S. ports are seeing a resurgence in cargo traffic, while Oregon's Port of Portland fights to keep its vital container terminal operational. Let’s get started.

Railroad Rumble: Teamsters Take on Binding Arbitration

Canada's railroad workers are flexing their muscles, challenging a government order that ended their brief lockout last week. The Teamsters Canada Rail Conference, speaking for 9,300 workers at Canadian National and Canadian Pacific Kansas City, will not let this train leave the station without a fight.

David vs. Goliath on the Tracks

Armed with legal paperwork instead of picketing signs, rail workers are squaring off against the mighty Canada Industrial Relations Board. The union claims they've been robbed of their bargaining rights, with spokesperson Christopher Monette warning that they can't push for better pay or safer conditions without these rights. It's a classic underdog story with the added twist of keeping the nation's economy on the rails.

Trains Roll, But Tensions Simmer

While the legal gears grind slowly, Canada's trains keep chugging along. The rail companies are playing nice with the government's orders, but there's an undercurrent of tension. Canadian National tried to smooth things over, calling arbitration a "neutral process," but the Teamsters aren't buying it. They're betting big that their court challenge will derail the government's plans and put momentum back in the hands of the workers.

While Canada Stumbles, U.S. Rail Giants Score Labor Deals

That said, there’s a different trail labor narrative in the US from two major rail carriers. Norfolk Southern and BNSF Railway recently hammered out tentative agreements with several unions months before the next round of national bargaining kicks off that promise better pay, improved healthcare, and more time off for thousands.

Norfolk Southern Takes the Lead

Norfolk Southern didn't waste time. The company inked deals with five unions, covering a whopping 55% of its unionized workforce. These agreements offer a 3.5% average annual wage bump over five years, sweeter vacation benefits for newer employees, and enhanced healthcare packages. Tony Cardwell, president of the Brotherhood of Maintenance of Way Employes Division, called the deal a "historic milestone," praising the open dialogue between the company and the union.

BNSF Jumps on Board

Not to be outdone, BNSF Railway joined the party. The carrier reached tentative agreements with two additional unions, building on earlier deals with four others. BNSF CEO Katie Farmer emphasized the importance of these early agreements, stating they reflect the company's commitment to its people and customers. Union leaders from the International Brotherhood of Boilermakers and the National Conference of Firemen and Oilers echoed her enthusiasm, lauding the comprehensive nature of the deals.

Will the Temu and Shein Package Flood Keep Flowing?

Parcel carriers are riding high on a wave of e-commerce deliveries, with Temu and Shein leading the charge. These Chinese retail giants have inundated U.S. delivery networks, each sending out about 900,000 packages daily in July alone. But can this torrent of cheap goods keep flowing, or will regulatory pressures turn it into a trickle?

‍Carriers Cash In on Low-Cost Volume

UPS finally broke its two-year volume slump, reporting a 0.7% year-over-year increase in average daily U.S. volume for Q2 2024. The company's CEO, Carol Tomé, pointed to "explosive" growth from two new e-commerce customers — a thinly veiled reference to Temu and Shein. While these budget-friendly packages may not be the most profitable, they keep trucks and routes busy. Smaller carriers like SpeedX are also jumping on board, using the steady stream of cross-border deliveries to build density and attract domestic customers.

Regulatory Storm Clouds Gather

The ultra-low prices that fuel Temu and Shein's popularity rely heavily on the $800 "de minimis" import exemption. However, U.S. lawmakers and customs officials are eyeing changes that could disrupt this model. If regulations tighten, these e-commerce giants might need to adjust their supply chains, potentially raising prices for budget-conscious shoppers. A $10 pair of jeans bumped up to $12 might not seem like much, but it could send customers looking elsewhere, especially if Amazon can offer next-day delivery for just a couple of dollars more.

Tides of Trade: US Ports Ride the Waves of Shifting Cargo Volumes

Cargo ships are crowding American ports again, signaling a potential return to pre-pandemic norms. After the chaos of 2021 and 2022, when U.S. seaports handled over 53 million twenty-foot equivalent units (TEUs), 2023 saw volumes settle at 46.67 million TEUs — just above the 2019 record. Now, port managers and economists alike are watching closely to see where things stand.

West Coast Rebound Leads the Charge

July brought a surge of activity to West Coast ports. Behind this spike? An influx of holiday goods and back-to-school gear that arrived fashionably early. Long Beach saw a staggering 53% year-over-year increase, processing 882,376 TEUs. Los Angeles wasn't far behind, with a 37% jump to 939,600 TEUs. Even Oakland got in on the action, notching its eighth straight month of growth.

East Coast Ports Hold Steady, Houston Lags

While their Pacific counterparts grabbed headlines, East Coast ports demonstrated resilience in their own right. Virginia saw a 3% year-over-year increase in July, moving 307,611 TEUs. South Carolina reported an 8% uptick, handling 224,407 TEUs. Meanwhile, Gulf Coast giant Houston bucked the trend slightly, with a 5% dip to 325,277 TEUs, its first decline of 2024.

Port of Portland Fights to Keep Container Service Alive at Vital Terminal

Oregon's only international container terminal faces a make-or-break moment. The Port of Portland just handed Governor Tina Kotek a lifeline plan to rescue Terminal 6 (T6) from the brink of closure. After bleeding $30 million over three years, T6 planned to halt container intake by October. But, a coalition of shipping stakeholders is now doggedly pushing back to keep this important trade gateway open.

From Red Ink to Renewed Hope

T6's financial woes sparked panic among local businesses and lawmakers. The potential loss of Oregon's sole international container hub sent shockwaves through the state's economy. Governor Kotek responded by dangling a $40 million carrot — but only if port stakeholders crafted a solid turnaround strategy. They delivered, outlining an ambitious vision to double container volumes at T6 by 2032. The port didn't shy away from tough decisions either, hiking carrier rates by 16-20% in 2023 to boost revenue.

All Hands on Deck  

Port of Portland executive director Curtis Robinhold bluntly stated that the only way to ensure container service remains available for Oregonians and regional businesses is to provide a blend of public and private support. The stakes couldn't be higher because of T6’s role as a vital cog in Oregon's economic machine. More help might be coming, with lawmakers mulling an additional $35 million in the upcoming state budget. But the clock is ticking. September's legislative session will decide whether or not T6 gets the financial boost it needs.

Decoding the Transport Tangle: Your Logistics Edge

Let's be real — the transportation world is wild. It feels like trying to predict the weather in four different seasons simultaneously. But here's the silver lining: you have a partner in Vizion to succeed in the midst of the chaos:

• Real-Time Container Tracking: Gain end-to-end supply chain visibility of your shipments with real-time container tracking data.
• TradeView: Track shipments 30-90 days in advance, assess 500 million suppliers, and analyze 10 years of historical data to make informed decisions, improve ESG transparency, and optimize your global trade management.  
• Port Performance Monitoring: Access comprehensive data on 60+ global ports, including vessel movement times and container gate-out durations.

Ready to take your logistics management to the next level? Book a demo with Vizion API today and experience the future of efficient and informed shipping and rail operations.