Flexport’s Post

Last night, Flexport CEO Ryan Petersen returned to NewsNation to break down the latest on the ILA strike. How long the strike will last remains uncertain—as does its broader long-term impact. “Freight coming to the West Coast hasn’t yet spiked,” Ryan said. “People are waiting to see [what happens]. Does this get resolved this week? If so, you don’t need to change any habits.” If the strike continues, however, we could eventually see major ripple effects. “Prices would go to the moon, just as we saw during Covid,” he warned. “Freight that’s building up will [create] cargo back-ups sitting off the shore. All around the world, containers will be waiting to get loaded.” Once affected ports reopen, “whoever’s willing to pay the most will get on those ships,” he continued. “Prices would for sure go up in the ocean freight market.” Watch the full breakdown 👇

📢 Don’t miss out—European Freight Market Update Webinar Alert! Join us next week on Tuesday at 15:00 BST / 16:00 CEST for the webinar, where we’ll provide crucial insights into the air and ocean freight markets, along with an in-depth analysis of the direct and indirect effects of the International Longshoremen’s Association (ILA) strike in North America. 🚢 Our experts Dharshini Shegran and Camille (Chauvin) Carenton will be sharing valuable insights, including: - The latest updates on the ILA strike, and its implications for global shipping - Recommendations for quick adaptation to stay ahead of this rapidly evolving situation - Additional news and updates on air and ocean trade lanes Sign up here 👉 https://lnkd.in/ef55rYBf

🌊 Weekly Global Logistics Market Updates 🌊 Here’s what we’re monitoring: 📝The ILA has officially launched a coast-wide strike, shutting down major ports from Maine to Texas. Carriers have already started declaring force majeure for certain vessels. Tomorrow, Flexport CEO Ryan Petersen will host a webinar on the ILA work stoppage, its impact on global shipping and the U.S. economy, and how businesses can quickly adapt to stay ahead. Sign up here 👉 flx.to/hkk 🚢 Transpacific Eastbound (TPEB) Ocean Route: Carriers have announced port congestion surcharges, detention & demurrage (D&D) fees, and terminal status updates following Golden Week. This may cause further operational disruptions, increased port congestion, and vessel deployment challenges for East and Gulf Coast schedules. 🚢 Far East Westbound (FEWB) Ocean Route: Floating rates have continued to decrease in the first half of October. Spot pricing has remained steady for the past two weeks, influenced by the holiday slowdown. Carriers are now more proactive in adjusting rates to optimize vessel utilization. ✈️ Air: Global air cargo tonnage fell by 3% WoW, mainly due to autumn festivals and national holidays in key markets like China, South Korea, and Chile. Check out the full update for more, and subscribe today to stay on top of the latest news and trends from around the industry. #supplychain #logistics #freightmarket #freightindustry #oceanfreight #oceancargo #oceanshipping #airfreight #aircargo #airshipping #trucking #intermodal #railfreight

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Many businesses made contingency plans well ahead of the ILA strike. “Starting at the beginning of the year, it became very clear that this was going to be a major issue,” Flexport CEO Ryan Petersen told NPR. In recent days, he said, Flexport's focus has been on getting cargo out, so as not to incur hefty fees for containers left at East and Gulf Coast ports, and shoring up operations at West Coast ports in anticipation of a surge of activity. Read the full breakdown: https://flx.to/NPR-LI

Yesterday, The New York Times visited Flexport’s warehouse in Newark, providing a behind-the-scenes glimpse into how it looks after one of busiest ports came to a halt amid the ILA strike. “We’re in uncharted waters,” Sean Murphy, a manager at Flexport’s New Jersey warehouse, told the Times. It stood in stark contrast to last week, when Flexport worked closely with our customers to send in shipments before the union’s contract expired on Monday. The last-minute influx capped off several months of anticipatory action, with many businesses proactively building up supply or even diverting cargo to the West Coast. “Our customers generally have two months’ worth of extra inventory in stock,” Flexport CEO Ryan Petersen explained. Read the full article for more: https://flx.to/nyt-LI

At midnight today, the International Longshoremen’s Association (ILA) officially launched a strike spanning the U.S. East and Gulf Coasts—the union’s first since 1977. A strike lasting only a few days will result in minimal disruptions, while a longer work stoppage may lead to major product shortages and price surges. “Big, bulky items like furniture are hit harder because fewer items fit in a container, driving up the per-item cost,” Flexport CEO Ryan Petersen told Newsweek. A prolonged strike may lead to pandemic-level disruptions. In such cases, the right logistics technology can move the needle. “One lesson we learned from Covid is the importance of better visibility and planning in the supply chain," Ryan added. "Companies need better tools to track shipments and plan for disruptions.” Read the full breakdown here: https://flx.to/newsweek-LI

Flexport.org is thrilled to be named a finalist for the U.S. Chamber of Commerce Foundation’s Citizens Award! Each year, the program honors “the most innovative and impactful initiatives that leverage talent, resources, and expertise to improve communities.” As a finalist in the Best Community Resilience and Disaster Response Program category, Flexport.org was specifically recognized for its work in Ukraine. Since the start of the war, Flexport.org has helped 45 nonprofits ship more than 26 million pounds of emergency kits, hygiene products, and medical supplies to Ukrainians in need. Read more about our efforts in Ukraine, including an inside look at the aid shipment life cycle: https://flx.to/ukr-LI And check out the full list of Citizens Award finalists here: https://lnkd.in/eK-UUKF7 #BusinessSolves

Earlier today, Flexport CEO Ryan Petersen joined Fox News Media to discuss the implications of the International Longshoremen’s Association (ILA) strike, which began at midnight. The impact would be felt not just by businesses large and small, but by American consumers, too. “If this goes on for weeks or even months, you’ll certainly see increases in the prices of all kinds of goods,” Ryan said. Watch the rest—including Ryan’s thoughts on strike length and severity, the role of automation in the negotiations, and more: https://flx.to/fox-LI