Freight rates for international shipping routes in the United States have surged
The threat of strikes at ports along the East Coast and Gulf Coast of the United States may prompt importers to
accelerate efforts to protect the shipping supply chain,
creating a vicious cycle of disruptions in shipping container transportation.
The International Dockworkers Association (ILA) announced on Monday that it
has suspended negotiations with the United States Maritime Union (USMX) on new
labor contracts for port workers on the US East Coast and Gulf Coast. The existing agreement will expire on September 30th.
Peter Sand, Chief Analyst of Xeneta, said, "Due to concerns about the continued impact
of the Red Sea conflict on the supply chain, we have seen shippers load imported goods
ahead of the traditional peak season in the third quarter. If there is further significant risk
of damage to the eastern United States and Gulf Coast later this year,
they may accelerate this approach now.".