November Logistics Insights: Global Shipping Updates, Port Expansions, and Cost-Saving Strategies
November Logistics Insights: Global Shipping Updates, Port Expansions, and Cost-Saving Strategies
Captain’s Log
It's November 1st! The next two months will be filled with holiday cheer and time spent with family and friends, but it's also a key time to stay focused on our goals, both professionally and personally, and finish the year strong. My team and I are committed to staying diligent and approaching the end of 2024 with the same tenacity we've shown so far. This newsletter is packed with valuable information we're excited to share with you. Information builds knowledge and knowledge drives success! We take pride in seeing our clients thrive, as your success is also our success. Thank you for trusting Southern Star Navigation - Independent Landstar Agent as your logistics partner. Together, let’s keep moving forward with confidence and purpose! Bethany 🌎 Gabbett Southern Star Navigation - Independent Landstar Agent
New Routes Link Mediterranean to Americas
ZIM Expands Transatlantic Services for 2025
ZIM Integrated Shipping Services is set to enhance its transatlantic operations, introducing new direct services between the Mediterranean, North America, and Latin America in February 2025. The update will divide its routes into two key service strings—one focusing on Mediterranean ports with destinations along the U.S. East Coast and Canada, and the other connecting the Caribbean and South America via Kingston, Jamaica. This restructured network reflects ZIM’s strategy to optimize service coverage. The new routes will feature more direct connections from major Mediterranean hubs like Turkey and Italy, improving transit times. Additionally, this plan strengthens ZIM’s extensive feeder network through Kingston, ensuring better access to Latin American markets. These services aim to provide reliable and efficient solutions as demand for transatlantic shipping grows. ZIM will collaborate with partners such as MSC under a new operational agreement, subject to regulatory approvals. This restructuring complements ZIM’s broader strategy of expanding market presence while meeting evolving customer needs through reliable cross-regional services. The company expects these changes to maintain competitive performance across key trade lanes between Europe, North America, and the Caribbean
Vadhvan Port: India’s New Deep-Water Maritime Hub
India’s New Trade Gateway
Construction of Vadhvan Port, India’s largest deep-water port, officially began on August 30, 2024, with Prime Minister Narendra Modi laying the foundation stone in Palghar, Maharashtra. The ₹76,000 crore ($10 billion) project aims to create a world-class maritime gateway, boosting India’s trade and addressing limitations in current port infrastructure. Developed in two phases, the first phase will be completed by 2029, with the second phase concluding by 2039.
Once operational, the port will handle 23.2 million TEUs annually, placing it among the world’s top 10 ports. With a 20-meter draft, Vadhvan will accommodate mega-vessels up to 24,000 TEUs, enhancing India’s maritime connectivity. The project is a joint venture between Jawaharlal Nehru Port Authority (holding 74%) and the Maharashtra Maritime Board. It involves the reclamation of 1,448 hectares of land and the construction of a 10.14 km offshore breakwater. In addition to improving India’s global trade capabilities, Vadhvan Port is expected to generate significant employment opportunities and stimulate economic growth in the region.
India Reconsiders Coastal Shipping Rules
Local vs. Foreign Carriers
India is considering reversing its 2018 decision to ease cabotage restrictions, which had allowed foreign shipping companies to operate freely along its coast. While the initial policy aimed to boost trade by increasing shipping capacity and reducing transport costs, it has ended up hurting local shipping operators. Over the years, domestic carriers have struggled to compete with foreign-flagged vessels, leading to a decline in Indian-owned fleets and investment. Today, only 30 containerships fly the Indian flag, making up just 56,000 TEU of capacity, according to the Directorate General of Shipping (DG Shipping). High operating costs and competitive pressure from global carriers have made it difficult for Indian companies to grow. With foreign carriers now dominating over 95% of coastal shipping, concerns are rising about the market becoming overly dependent on a few large players. To address these issues, the government may soon restore cabotage rules to support local operators and ensure a more balanced, competitive shipping environment.
Port Houston Boosts Efficiency with New Crane Fleet
Expanded capacity arriving in 2026
Port Houston continues to enhance its operational capacity with the arrival of eight new ship-to-shore (STS) cranes. These cranes, scheduled to be installed at the Bayport and Barbours Cut Container Terminals by early 2026, will increase the total number of STS cranes across both facilities to 35. The upgrade reflects Port Houston's commitment to handling larger cargo volumes and accommodating mega-vessels, supporting the region’s growing trade demands.
This investment aligns with the port’s long-term strategy to maintain efficiency and competitiveness, particularly as shipping traffic continues to grow following the Houston Ship Channel expansion project. The new cranes will also boost operational performance, enabling faster loading and unloading times for container ships, which is essential for managing increasing cargo flows in the Gulf region. These improvements are part of ongoing infrastructure upgrades that will help Port Houston meet future challenges while supporting local economic growth.
Port Strike Resolved, but Challenges Ahead
Wages, automation, and future talks
The East and Gulf Coast port strike, which began on October 1, 2024, ended after three days with a tentative agreement between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX). The strike impacted 14 major ports across the Eastern Seaboard and Gulf Coast, including critical hubs such as New York/New Jersey, Savannah, and Houston. Operations resumed on October 4 following a deal that included a 61.5% wage increase over six years and an extension of the master contract through January 15, 2025.
While the immediate disruption has been resolved, key negotiations are ongoing, especially concerning the automation of port operations—a contentious issue between labor unions and port operators. The ILA is pushing for limits on automation to protect jobs, while operators seek more flexibility to modernize. Both sides plan to meet again in December 2024 to address these remaining challenges before the January deadline.
Although port operations have resumed, some residual supply chain disruptions are still being felt, especially in sectors such as automotive, food, and consumer goods. Industry players are monitoring the situation closely and developing contingency plans to avoid future disruptions, particularly given the high-volume Lunar New Year shipping period in early 2025.
Rail Intermodal Growth Drives New Momentum
Efficiency, capacity, and trends
BNSF (Burlington Northern Santa Fe) is seeing notable growth in its intermodal operations. Weekly volumes hover around 200,000 units, reflecting a 16% increase compared to last year. This surge aligns with broader trends across the industry, where several U.S. railroads have reported volume gains as shippers increasingly rely on rail services amid shifting logistics patterns. BNSF has also made significant infrastructure investments, completing 12.5 miles of double track in Kansas as part of a larger effort to add 50 miles of new track along its Southern Transcon route, boosting network fluidity and efficiency.
On a national scale, the intermodal volume across U.S. railroads reached 287,452 containers and trailers for the week ending October 19, 2024, marking a 6% increase compared to the same week last year. Year-to-date figures show a 9% increase, with over 11 million intermodal units handled so far this year, reflecting strong demand and improving service metrics across the rail network.
Pricing in the intermodal sector is expected to experience a modest increase, partly driven by new labor agreements and inflationary pressures. While train speeds are tracking just below the five-year average, other service indicators like terminal dwell times remain favorable, ensuring smoother operations despite higher traffic volumes.
Lastly, key ports are expanding their rail capacities to handle growing demand. For example, the Port of Los Angeles is investing $52 million to enhance its on-dock rail infrastructure, while Indiana’s Burns Harbor has increased its capacity by 250 railcars, ensuring seamless connections between maritime and rail transport for shippers across the Midwest and beyond. These developments highlight the continued importance of rail intermodal services in supporting supply chain resilience and meeting the evolving demands of global trade routes.
JaxPort Expands with New Asia Route
ONE service strengthens links
Starting in February 2025, Jacksonville Port Authority (JaxPort) will become a key stop on Ocean Network Express’s (ONE) East Coast 2 service. This expanded route will connect JaxPort to five major Asian ports—Xiamen, Yantian, Ningbo, and Shanghai in China, along with Busan in South Korea. The rotation also includes Manzanillo, Panama, and other U.S. East Coast ports, such as Savannah and Charleston. This new service marks the first time Ningbo will be directly linked to Jacksonville, further enhancing trade opportunities.
The weekly service will be handled at JaxPort’s Blount Island Marine Terminal using 13,500-TEU vessels. The addition of this route is expected to increase the port’s annual container volume significantly, potentially bringing in 40,000 additional TEUs. SSA Atlantic will provide stevedoring services, ensuring efficient cargo handling at the terminal.
This new connection is part of ONE’s strategy to strengthen East Asia-North America shipping links. JaxPort’s recent $420 million channel-deepening project, which increased the St. Johns River depth to 47 feet, has made the port more attractive for larger carriers. The ongoing $72 million modernization of the SSA terminal will further boost the port’s capacity, allowing it to handle more than 600,000 containers annually by 2025.
With the growing demand for shipping services between Asia and the U.S., the expanded route will streamline the movement of diverse commodities, including electronics, retail products, and construction materials. This development also promises increased work hours for longshoremen, truckers, and other workers, supporting the region’s economic growth.
Montreal Dockworkers Launch New Strike Amid Ongoing Disputes
Partial strike begins at Termont
The Port of Montreal began a new partial, unlimited strike on Thursday, October 31, 2024, targeting the Viau and Maisonneuve terminals operated by Termont. This action follows weeks of escalating pressure from the union representing 1,200 dockworkers (CUPE Local 375), who have been refusing overtime since October 10 as part of ongoing contract negotiations.
The dockworkers' demands include better scheduling practices and improved work-life balance, as the previous collective agreement expired on December 31, 2023. Negotiations with the Maritime Employers Association remain deadlocked, with federal mediation efforts proving unsuccessful so far. These disruptions raise concerns about further delays and operational bottlenecks, as the affected terminals handle a significant share of the port's container traffic.
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