Trendwatch: Global disruptions, e-commerce drive September air cargo volumes; Port of Long Beach reports record box volumes; Canada Labor Minister calls for mediator to resolve Port of Montreal labor dispute

Global disruptions, e-commerce drive September air cargo volumes

Air cargo demand was up 9% year over year in September, sustained by modal shifts in container shipping disruptions, typhoons, ongoing e-commerce demand and a cargo surge ahead of China’s Golden Week holidays, according to an Oct. 2 report from Xeneta.

But October may be a “whole new ball game” as supply chains are expected to take four to six weeks to recover from the shortlived, 3-day strike at U.S. ports, leading into November which is the busiest month for air cargo volumes, said Chief Airfreight Officer Niall van de Wouw.

Port of Long Beach reports record box volumes

Increased demand for holiday-related goods nudged the Port of Long Beach (POLB) to its most active September and busiest quarter on record, as shippers continued to move goods ahead of a labor contract deadline for seaports on the East and Gulf coasts, which resulted in a three-day strike at the start of October.

POLB’s dockworkers and terminal operators moved 829,499 TEUs in September, up just 70 TEUs from the previous record set in September 2023. September also marked the Californian port’s fourth consecutive monthly year-over-year cargo growth.

Canada Labor Minister calls for mediator to resolve Port of Montreal labor dispute

Canada's labor minister Steven MacKinnon is pushing to appoint a federal mediator to resolve an ongoing labor dispute at the Port of Montreal.

Dockworkers with the Canadian Union of Public Employees (CUPE) at the Port of Montreal conducted a 72-hour work stoppage in late September, and have been on an indefinite overtime strike since October 10. The CUPE Local 375 has been locked in negotiations with the Maritime Employers Association (MEA) over a new collective bargaining agreement for months, after the previous deal expired in December of 2023. In early October, the CUPE claimed that talks had stalled out over how the MEA manages employee scheduling, with the union pushing for a better work-life balance. 

EU, China face hurdles in clinching EV deal before tariffs start

Trade negotiations between the European Union and China have been plagued by major disagreements, with planned tariffs on Chinese-made electric vehicles likely to kick in at the end of the month.

The EU and China have pledged to work toward an alternative agreement that would avoid the need for levies after EU member states agreed earlier this month to adopt levies as high as 45% on EVs made in China. Chinese negotiators left Brussels last week after eight rounds of talks ended without a deal. 

China has threatened to raise tariffs on large-engine vehicles and said it will start collecting duties on cognac, in moves that would hit the EU’s two largest economies, Germany and France. The EU did €739 billion ($806 billion) in trade with China last year.

Congestion fears as box lines plan to dodge EU carbon tax with UK first-call 

The UK appears to have become the hot EU ETS-dodging destination du jour, with many carriers adding a call there before going on to EU ports on Asia-Europe routes. 

While the UK has its own emissions trading system (ETS), shipping will only be included from 2026 – and even then, only voyages that depart from and arrive at UK ports.

This means shipping lines that would be paying a 50% EU ETS levy on a voyage from Asia to Europe, had they called first at an EU port, would only need to pay the 50% on the hop from Britain to Europe.