Trendwatch: U.S. East, Gulf Coast dockworkers inch closer to October strike; Air Canada prepares to shut down as talks with pilots union near deadlock; Union urges Hamburg port workers to agree deal following disruptive weekend

U.S. East, Gulf Coast dockworkers inch closer to October strike

Union representatives with the International Longshoremen's Association (ILA) unanimously supported calls for a strike if a new collective bargaining agreement isn't reached with the U.S. Maritime Alliance (USMX) by September 30.

The ILA's wage scale committee finished two days of meetings in New Jersey on September 5, where it finalized its contract demands and voiced its support for a strike if those demands aren't met by the time the union's current deal expires. According to The Wall Street Journal, the ILA is pushing for a 77% wage increase over the next six years, which would outpace the 32% wage bump that West Coast longshoremen agreed to in 2023. In a release sent out on September 5, the USMX asserted that its current offer includes "industry-leading wage increases," as well as formal language that bans the use of automation at ports without both sides agreeing to terms on workforce protections.

Air Canada prepares to shut down as talks with pilots union near deadlock

Air Canada is finalising plans to suspend most of its operations, likely beginning Sunday, as talks with the pilot union are nearing an impasse over "inflexible" wage demands, the country's largest airline said on Monday.

Air Canada and its low-cost subsidiary, Air Canada Rouge, together operate nearly 670 flights per day. Unless they reach a settlement with the Air Line Pilots Association, the shutdown could affect 110,000 passengers daily.

Union urges Hamburg port workers to agree deal following disruptive weekend

Signs of a breakthrough have emerged in the standoff between German dockers and their port employers after an escalation at the weekend saw trains locked out of the Port of Hamburg.

Following five rounds of negotiations, the Central Association of German Seaport Enterprises (ZDS) tabled an offer that the union representing the port workers, Ver.di, has recommended be accepted. It is now surveying members on their response.

New strings attached - shipping shapes up for 2025 with Premier Alliance launch

The structure of the global container shipping alliance next year is set for a further shake-up after MSC unveiled its new standalone east-west service network and revealed it has concluded a vessel-sharing agreement (VSA) with THE Alliance, covering nine Asia-Europe services.

The pivot point is February 2025, when the 2M partnership of MSC and Maersk is set to disband, while at the same time Hapag-Lloyd will depart THE Alliance to form the Gemini Cooperation with Maersk – at which point, the remaining three THE Alliance carriers – ONE, Yang Ming and HMM – will rebrand as the Premier Alliance and enter into a slot-share agreement with MSC covering the Asia-Europe trades.

Gemini Cooperation agreement takes effect amid FMC scrutiny

The Gemini Cooperation Agreement between shipping giants Maersk and Hapag-Lloyd took effect on Monday, signaling a major shift in the global maritime industry.

The Gemini Cooperation, set to officially launch in February 2025, will create a vast network of nearly 300 vessels with a capacity exceeding 3 million TEU, aiming for over 90% schedule reliability.

Filed with the Federal Maritime Commission (FMC) on May 31, 2024, the agreement allows the companies to share vessels on routes connecting the United States with Asia, the Middle East, and Europe. It will encompass seven major trade routes and 26 mainline services, utilizing a “hub and spoke” model.

China’s exports top forecasts, but imports disappoint amid depressed domestic demand

China's exports grew at their fastest pace since March 2023 in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a growing number of trade partners while imports missed forecasts amid weak domestic demand.

Outbound shipments from the world's second-largest economy grew 8.7% year-on-year in value last month, customs data showed on Tuesday, beating a forecast of a 6.5% rise in a Reuters poll of economists and a gain of 7% in July.

But imports increased by just 0.5%, missing expectations for a 2% boost and down from the 7.2% growth a month prior.