As disruption from China’s Golden Week subsides, airlines are swiftly reallocating capacity to the lucrative Asia Pacific-North America routes, just as the holiday shopping season ramps up. According to the US National Retail Federation (NRF), consumer spending for the holidays is expected to rise by 2.5%-3.5% compared to last year, with e-commerce seeing a robust growth of 8%-9%, potentially reaching $297.9 billion.

“The economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year,” said Matthew Shay, NRF president and CEO. He highlighted that wage growth and a strong job market are set to bolster consumer spending during the critical winter holidays.

Airlines are responding to these economic conditions, ramping up capacity in key routes. Data from Rotate’s capacity database shows that Asia Pacific to North America saw a 6% rise in available seats last week alone. The increase is even more pronounced in specific regions, with capacity out of Shanghai to North America up 17.5% and from Hong Kong up 11.7%.

Cathay Pacific’s chief customer and commercial officer, Lavinia Lau, confirmed the demand surge: “We expect robust demand during the peak season, driven by e-commerce, high-tech goods, and perishables from Asia and the Americas.” Cathay Pacific reported a strong 11% year-on-year increase in volumes for September, underscoring the buoyant market conditions.

The Growing Importance of Real-time Data and Supply Chain Visibility

While airlines are racing to meet demand, the complex global supply chain is under mounting pressure. From unpredictable weather events, such as hurricanes, to economic factors like tariffs, the ability for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make agile, data-driven decisions is critical.

The need for real-time supply chain and climate impact visibility software is increasingly clear. Such tools enable businesses to access real-time insights, anticipate potential disruptions, and counteract supply chain risks before they escalate. As Cathay Pacific observed an uptick in shipments across its Cathay Fresh and Cathay Priority solutions, it becomes evident that time-sensitive shipments require a heightened level of visibility and coordination to succeed in today’s fast-paced logistics environment.

According to the NRF, however, risks remain on the horizon. The organisation recently warned that any new tariffs imposed by the US could stifle consumer spending. Research from the Peterson Institute for International Economics estimates existing tariffs already cost US households between $1,500 and $3,000 annually, and this could rise to over $4,000 under further trade restrictions.

NRF’s Shay emphasised the downstream impact of tariffs, stating: “Tariffs are paid by the importer, not the producing country, and that cost is passed directly onto consumers.”

Climate and Supply Chain Resilience: The Path Forward

The aviation and logistics sectors must continue innovating to ensure resilience and sustainability. Airlines and LSPs that leverage advanced supply chain software will be better positioned to manage challenges such as economic shifts, tariffs, and climate disruptions. This technology is no longer a luxury—it’s a necessity for those aiming to remain competitive and mitigate risks in an increasingly uncertain world.

In the fast-evolving landscape of global trade, visibility isn’t just about knowing where goods are; it’s about using real-time data to forecast, react, and safeguard business-critical decisions.

Hong Kong is making bold strides to cement its status as a global logistics hub, with significant initiatives aimed at enhancing both its aviation and maritime sectors. As part of a broader strategy to revitalise its role in global trade, the city is positioning itself to leverage new opportunities and streamline logistics for businesses in an increasingly complex supply chain environment.

Boosting Air Connectivity and Opportunities

In the aviation sector, the Hong Kong government has rolled out plans to fortify the city’s status as an international aviation hub. Local firms, particularly Cathay Pacific, have voiced strong support for these initiatives. Cathay Pacific has emphasised the importance of boosting air connectivity with Mainland China and fostering ties with emerging markets in the Middle East and ASEAN. These moves are expected to open up new avenues for tourism and business, driving growth in multiple sectors.

Meanwhile, U-Freight Group’s subsidiary, e+Solutions, has participated in a promotional campaign to showcase Hong Kong’s logistical advantages, with a focus on its capacity to manage e-commerce at a global scale. This dovetails with Hong Kong’s push to not only enhance airfreight capabilities but also streamline integrated logistics processes.

Integrating Air and Maritime Logistics for Cost Efficiency

A key innovation in this strategy involves integrating air and maritime logistics to reduce handling costs and improve efficiency. Hong Kong International Airport (HKIA) has established a logistics park in Dongguan, enabling cargo to be transported via barge to Hong Kong for outbound airfreight. This seamless sea-air intermodal system cuts handling moves by 25%, lowering costs and boosting the speed of cargo transfers. Cathay Group CEO Ronald Lam highlighted the importance of this development in expanding Hong Kong’s transhipment capacity and enhancing global connectivity.

However, as Hong Kong expands its air freight capacity, its maritime sector faces challenges. The city’s port, once a global powerhouse, has seen a sharp decline, falling out of the world’s top 10 container ports with a 14.1% drop in volume last year. Mainland ports such as Shenzhen and Yantian have overshadowed Hong Kong’s maritime presence, shifting the city’s logistics focus towards air freight. Despite this, Hong Kong continues to use its maritime expertise through services like the Pearl River Delta barge system to maintain critical connections with Mainland ports.

Revitalising the Maritime Sector

In response to its maritime sector’s challenges, Hong Kong is establishing a new, industry-led Maritime and Port Development Board to replace the existing Maritime and Port Board. This reformed body will guide the government on policies and strategies to bolster Hong Kong’s role as an international shipping centre. With enhanced funding for research, talent development, and promotional activities, the new board aims to revitalise Hong Kong’s maritime sector, with a particular focus on Mainland China and international markets.

Chief Executive John Lee has underscored the importance of advancing high-value maritime services. Hong Kong is offering tax exemptions for ship leasing, marine insurance, and shipbroking, alongside efforts to promote green shipping and create a green bunkering centre to support environmentally sustainable maritime operations. These steps are part of a broader vision to attract more maritime enterprises and keep Hong Kong competitive in the global shipping industry.

The Need for Real-Time Data Insights

As Hong Kong advances its logistics capabilities, the need for supply chain visibility software becomes increasingly crucial. The city’s complex logistics environment, spanning air and sea transport, demands real-time data insights to assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions. By leveraging this data, businesses can anticipate and mitigate disruptions, navigate the impacts of climate change, and optimise their supply chains. Visibility software provides crucial insights that allow companies to react swiftly to evolving conditions, helping them maintain efficiency, reduce carbon footprints, and strengthen resilience against global supply chain challenges.

By integrating cutting-edge technology into both air and maritime sectors, Hong Kong is not only improving operational capacity but also positioning itself as a future-ready logistics hub. With a commitment to sustainability, innovation, and efficiency, the city is paving the way for the future of global trade.

DP World has unveiled a massive GB£1 billion (US$1.3 billion) expansion at London Gateway, with plans to make it Britain’s largest container port within the next five years. This ambitious project will see the construction of two additional berths, bringing the total to six, and the addition of a second rail terminal to accommodate the projected surge in container trade.

Once completed, the full quayside will stretch over 2.5 kilometres and be equipped to handle six of the world’s largest container vessels simultaneously, each more than 400 metres in length. Notably, the expansion will feature Europe’s tallest quay cranes, boosting the port’s handling capacity. This strategic development underscores DP World’s commitment to increasing Britain’s global connectivity and enhancing supply chain resilience.

London Gateway has already proven itself a key player in the UK’s logistics landscape, handling around 2 million TEUs (Twenty-foot Equivalent Units) annually. The site, originally a former oil refinery, has been transformed into one of the country’s largest logistics hubs, benefitting from significant investment. By 2024, DP World’s total investment at the port will exceed £3 billion (US$4 billion), highlighting its role as a catalyst for economic regeneration in the Thames Estuary, particularly in South Essex.

The addition of 400 new jobs brings the total workforce at London Gateway to 1,600, contributing to the economic revival of the area. The logistics park, Europe’s largest, currently employs 1,500 workers and offers integrated storage, warehousing, and distribution services. Tenants enjoy streamlined access to major motorway networks and rail freight connections, ensuring quick access to key markets in London and the South East.

Building Supply Chain Resilience and Sustainability

As the global supply chain landscape continues to evolve, businesses must navigate increasing complexity. DP World’s expansion is not just about growing capacity; it’s about preparing for the future of global trade. This growth reinforces the UK’s position as a critical hub for global trade, providing greater flexibility for businesses and ensuring that supply chains are resilient in the face of potential disruptions.

Sultan Ahmed bin Sulayem, Group Chairman & CEO at DP World, commented: “DP World London Gateway will help make Britain’s trade flow in the future by connecting domestic exporters with global markets and delivering vital supply chain resilience for the whole economy.”

The expansion of London Gateway, combined with its role as a logistics park, positions it as a central hub for forward-thinking companies looking to enhance their supply chain operations and sustainability efforts. As the world moves towards greener, more efficient logistics, DP World’s latest developments provide the infrastructure necessary for long-term growth and environmental responsibility.

The investment in London Gateway, including the fully electric £350 million fourth berth, reflects DP World’s larger goal of driving sustainability across the logistics sector. The latest expansion not only promises to bolster the UK’s position in global trade but also enables a greater focus on reducing emissions and creating a greener future for international logistics.

The International Longshoremen’s Association (ILA) has vowed to escalate its fight against automation, as the fallout from last week’s three-day strike continues to ripple through supply chains. The strike, which saw major ports along the US East and Gulf coasts grind to a halt, has left behind significant congestion and disruptions that may persist until the end of the month. Around 50 vessels remain stranded at anchor, awaiting clearance to load or unload cargo.

While the ILA negotiated an “unprecedented” 61.5% wage increase across six years, the union has opted to defer acceptance. The reason? A no-strike clause tied to the wage deal, which would limit the union’s ability to address deeper issues like job security and port automation. By extending their labour contract until 15 January, the union maintains leverage to battle automation’s encroachment on longshoremen jobs, a key sticking point in negotiations.

The ILA’s resistance to port automation presents a significant obstacle, especially as automation continues to play an increasing role in improving port efficiency and modernisation. Many global ports are already too far advanced in adopting automated machinery. The union, however, is determined to ensure that ILA members continue to handle critical tasks such as manning cranes and servicing port equipment—tasks they fear could be outsourced to non-union workers or fully automated systems.

Meanwhile, the impacts of the strike are being felt far and wide. Major carriers, including CMA CGM, MSC, Hapag-Lloyd, and Maersk, have taken steps to mitigate the disruption. CMA CGM has adopted a first-in, first-out policy for vessels and suspended its local port charge. MSC has suspended its Emergency Operations Surcharge on east and Gulf coast exports, while Hapag-Lloyd has extended detention-free time and rerouted cargo to alternate ports to minimise delays. Maersk, on the other hand, has temporarily halted bookings for export refrigerated containers via ILA-affected ports.

Real-Time Data: A Critical Tool for Navigating Supply Chain Disruptions

With severe vessel bunching and potential long-term delays looming, the strike highlights the urgent need for Beneficial Cargo Owners (BCOs) and logistics service providers (LSPs) to gain real-time visibility into their supply chains. Real-time data insights allow businesses to make crucial, data-driven decisions that can mitigate the impact of such disruptions. Whether it’s identifying alternative routes, managing inventory, or adapting to climate-related challenges, access to real-time data can help companies react quickly and maintain business continuity.

Supply chain visibility software, powered by real-time data, is no longer a luxury—it’s a necessity. Especially in the current climate of port disruptions, automation debates, and global trade volatility, BCOs and LSPs require actionable insights to ensure resilience. As the January negotiation deadline approaches—a period coinciding with heightened pre-Chinese New Year demand—the ability to predict and plan for potential backlogs will be paramount in navigating the challenges ahead.

This ongoing conflict between automation and labour protections, coupled with escalating port disruptions, serves as a stark reminder of the importance of supply chain agility and visibility. As we move toward the future of modern logistics, the implementation of real-time data solutions will become even more critical for maintaining an efficient and sustainable global supply chain.

The recent confirmation of a potential strike by the US dockworker union ILA across east and Gulf coast ports is already causing significant disruption, with shippers bracing for increased airfreight costs. Even before the official strike, many businesses have had to pivot their strategies to mitigate the potential impact on their supply chains.

“Containers will be in the wrong spot, and shippers will have to deal with that,” said Niall van de Wouw, chief airfreight officer for Xeneta. “Some have already pulled back freight they had dispatched. So they will need to supplement their stock in a different way or stick it out. Either way, things are going to be a mess; and when there is a mess, airfreight comes in.”

This disruption is already evident. Shipco Transport has reported increased demand for airfreight as businesses look for alternative ways to keep their goods moving. According to Kim Ekstroem, global COO for airfreight at Shipco, “A couple of weeks ago, we started to see quote requests for large shipments that normally would be LCL or even FCL. Forwarders and their customers began bracing themselves for a potential strike. Now, many of these early requests have turned into bookings.”

But the strike isn’t the only factor. The confluence of seasonal trends, such as the typical Q4 ecommerce spike and the airline winter schedule reducing bellyhold cargo capacity by 20%, is adding to the pressure. “It’s a perfect storm,” warns van de Wouw. “Add a strike to an already tense supply chain, and the consequences could be severe.”

This heightened demand for airfreight has already started pushing up prices. “We’ve seen a slight increase in transatlantic air rates,” said Ekstroem, “but the question is, for how much longer?” He cautioned that airfreight rates could jump from $2 per kg to $6 or more within days if capacity continues to tighten.

While some shippers have opted to avoid east and Gulf coast ports altogether, many are turning to airfreight to bypass potential blockages. However, the airfreight market is quickly becoming a battleground where only the best-paying cargo will fly. “When demand and capacity are imbalanced, the market will go into a frenzy,” said Ekstroem. “Airlines will prioritise express or guaranteed products at premium rates, leaving many businesses scrambling for space.”

As capacity diminishes and rates skyrocket, the need for visibility and agility in supply chains has never been more critical. Implementing supply chain visibility software that provides real-time data is key. For BCOs (Beneficial Cargo Owners) and LSPs (Logistics Service Providers), such tools are vital for making fast, data-driven decisions in this volatile environment. By providing insights into port conditions, shipment statuses, and capacity constraints, visibility solutions can help businesses navigate disruptions and ensure critical goods are not delayed or lost in transit.

These disruptions and the looming climate impact make supply chain visibility software indispensable. Real-time data gives businesses the insights they need to not only manage immediate concerns but also optimise long-term resilience, counteract climate impacts, and improve overall sustainability.

As van de Wouw pointed out, with limited options on the ocean and airfreight costs set to soar, only those equipped with the right tools will be able to navigate the complexities of the coming months. The storm is brewing—businesses need to be ready.

The Port of Montreal’s longshore workers have entered mediation talks with the Maritime Employers’ Association (MEA) after voting overwhelmingly to strike earlier this week. With 99.63% of members rejecting the MEA’s latest offer and 97.88% voting for pressure tactics “up to and including strike action,” tensions at one of Canada’s key ports are running high.

The longshore workers, represented by the Local 375 branch of the Canadian Union of Public Employees (CUPE), have been without a collective agreement since the start of the year. Despite months of negotiation, core issues like wages and work-life balance remain unresolved. The dockworkers are demanding a 20% wage increase over four years and improvements to their work-life balance.

Under Canadian labour law, dockworkers must provide 72-hours’ notice before commencing any strike action. The union has up to 60 days to exercise this mandate, raising the possibility of a strike coinciding with similar labour actions at ports along the US east and Gulf coasts.

Economic and Supply Chain Impact

The uncertainty surrounding this labour dispute is already having ripple effects across the Canadian supply chain. According to the MEA, a significant drop in cargo at the Port of Montreal, driven by ongoing labour disputes, is posing severe financial challenges. “The Canadian supply chain is already fragile,” the MEA stated, pointing out that delays and recurring labour disputes are affecting both the Québec and Canadian economies. It also noted that Canada’s reputation as a resilient and reliable trading partner is at risk.

In this context, the ability of businesses to maintain visibility and control over their supply chains has never been more critical. The potential for simultaneous strikes at key North American ports could create widespread disruptions, making it imperative for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to prepare for every eventuality.

The Need for Real-Time Data Visibility in Supply Chains

In these unpredictable times, real-time data visibility software can provide BCOs and LSPs with the critical insights they need to make informed business decisions. By leveraging advanced supply chain visibility platforms, companies can track cargo movements, predict delays, and quickly respond to disruptions caused by labour strikes or other unforeseen events.

Additionally, with climate change increasingly affecting shipping routes and port operations, the integration of climate impact visibility into supply chain management becomes even more crucial. Real-time data not only helps businesses adapt to immediate disruptions but also provides insights to plan for long-term resilience. Implementing such systems is no longer optional; it’s essential for safeguarding supply chains in an increasingly volatile global market.

Labour Disputes and Government Intervention

The CUPE has urged the government to refrain from intervening in this round of negotiations. National president Mark Hancock stated that government interference during the 2021 negotiations—when the Trudeau government imposed forced arbitration and legislated workers back to work—had only prolonged the issues, which have now resurfaced.

“Our message to the Trudeau government is simple – back off; let the parties negotiate a fair deal,” said Hancock. He warned that government involvement would only stifle genuine negotiations and delay a fair resolution for both parties.

Meanwhile, the MEA has emphasised the need to reach a negotiated agreement swiftly, stating, “Our priority remains the signing of a negotiated collective agreement as soon as possible, in order to work on bringing the cargo back to the port.”

A Call for Preparedness

As labour disputes continue to destabilise key North American ports, businesses reliant on maritime trade must stay ahead of disruptions. Implementing real-time data visibility and climate impact tracking software is essential for BCOs and LSPs to navigate these challenges, ensuring they can make timely, informed decisions that safeguard their supply chains.

A looming strike along the US east and Gulf coasts threatens to unravel global container supply chains, with significant ramifications for businesses far beyond American shores. Experts are warning that even a short-lived strike could ripple through logistics networks well into 2025, leaving major importers and exporters scrambling to adjust.

Peter Sand, chief analyst at Xeneta, highlighted the critical nature of the issue. “There are ships on the ocean right now carrying billions of dollars of cargo, heading to ports on the US east and Gulf coasts,” he said, warning of congestion at anchorages that could send shockwaves across international trade routes.

For logistics service providers (LSPs) and beneficial cargo owners (BCOs), the risk is not just in delays but in lost opportunities, missed connections, and unanticipated costs. Many vessels, such as the Monte Tamaro, OOCL Guangzhou, and Seaboard Pioneer, are scheduled to arrive at key ports, including Port Elizabeth in New Jersey, on or just after the 1 October strike deadline. A delay for these ships could mean extensive rerouting or a painful wait offshore.

According to the latest analysis from eeSea’s liner schedules, a total of 39 container ships are expected to arrive at the Port of New York and New Jersey in Week 40. While 28 remain on schedule, 11 are already delayed—underscoring the fragile state of the current logistics environment.

“This is not just a local problem,” Sand continued, “The knock-on effect will be felt across global schedules, particularly with vessels heading back to the Far East. A strike lasting even a single week could push disruptions into January, delaying ships bound for the US from Asia.”

Given the complexity of global supply chains, real-time data insights are no longer a luxury but a necessity. For BCOs and LSPs navigating these challenging waters, tools providing real-time visibility into port conditions, rerouting options, and alternative supplier networks could be the difference between absorbing the shock and sustaining severe operational impacts.

Visibility software can empower decision-makers to pre-emptively divert shipments or optimise their logistics strategies, mitigating the economic fallout. As John McCown, a noted maritime economist, pointed out, the US port system handles nearly $194 billion in goods each month, with the east and Gulf coasts responsible for more than half of that. Given that 16% of the global container fleet operates in this region, the scale of disruption is almost unimaginable.

While a Maine-to-Texas strike could have devastating consequences, some believe it’s unlikely to reach that point. McCown speculates that the economic risks are so severe that President Biden may be forced to invoke the Taft-Hartley Act, requiring an end to the strike. Others anticipate selective action targeting specific ports, which could still be highly disruptive but more contained.

Government intervention, says Sand, could be critical to prevent a widespread shutdown. “Closing the east and Gulf coasts would be toxic for supply chains,” he said, arguing that it’s imperative to find a resolution before severe damage is done to the economy.

But for LSPs and BCOs, waiting for government action may not be an option. With advanced visibility tools, they can make swift, business-critical decisions to counteract the looming strike’s impact. As the world of logistics becomes increasingly complex, embracing real-time data insights is the only way forward.

With just one week until a potential strike threatens to halt operations at US East and Gulf Coast ports, carriers are rolling out contingency plans in anticipation of significant disruptions. Shipping giants, including Maersk, Hapag-Lloyd, CMA CGM, and ONE, have announced a range of surcharges, halts on inland cargo movement, and reefer container monitoring limitations, all aimed at mitigating the impact on the global supply chain.

As the strike looms, the need for advanced supply chain visibility has never been more apparent. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must leverage real-time data to make critical business decisions, ensuring minimal disruption to their operations.

Maersk will introduce a ‘local port disruption surcharge’ of $1,500 per TEU and $3,000 per FEU for cargo moving to and from US East and Gulf Coast terminals starting 21 October. This surcharge is designed to cover the additional operational costs due to service interruptions. Meanwhile, Hapag-Lloyd will implement a Work Interruption Destination Surcharge (WID) of $1,000 per TEU for imports from East Asia on 19 October, and a Work Disruption Surcharge (WDS) for the rest of the world on 18 October.

CMA CGM, which introduced an $800 surcharge per TEU and $1,000 per FEU on exports from East and Gulf Coast ports starting 11 October, will also add a peak season surcharge of $1,000 per unit for imports from the Indian Subcontinent and the Middle East on 1 November. Similarly, Japanese carrier ONE has warned of potential booking cancellations and vessel rollovers, while North American intermodal operator CSX is halting Canadian exports and will only accept imports until the strike commences.

The threat to refrigerated (reefer) cargo is particularly critical. Maersk and ONE have both urged customers to pick up their imports before 30 September, as the ability to monitor temperature-sensitive containers will be severely hampered if ports go on strike. Hapag-Lloyd has taken precautionary measures, pausing reefer bookings for US exports after 1 October and stopping East Coast export traffic from 29 September.

While these surcharges and operational halts aim to protect carriers and the supply chain from the most severe impacts, they underscore a larger issue: the pressing need for real-time supply chain visibility and climate impact monitoring. For BCOs and LSPs, the ability to access accurate, real-time data will be essential to counteract potential delays, reroute shipments, and make strategic decisions that mitigate risks across their logistics networks.

As Sara Dandan, founder of FourOneOne, a company specialising in detention, demurrage, and maritime dispute resolution, stated: “Any LSP worth their salt has contingencies in place to mitigate issues caused by a strike at these ports. We’ve been given plenty of warning, and most shippers and LSPs should already have alternative plans and routes in place.”

This evolving scenario serves as a reminder that in today’s complex and climate-sensitive global trade environment, having the right technology to provide real-time data insights is no longer a luxury—it’s a necessity. The integration of supply chain visibility software allows companies to monitor their shipments in real-time, providing critical information that can prevent costly disruptions, reduce emissions, and ensure smoother, more sustainable logistics operations. As the US port strike nears, these tools are more vital than ever.