Here’s some interesting logistics news you might’ve missed this week:

B.C. port lockout to begin as no deal reached in labor dispute with foremen union

(Read more on BNN Bloomberg)

A provincewide lockout of over 700 foremen at British Columbia ports began at 8 a.m. PST today, after the BC Maritime Employers Association (BCMEA) responded to escalating strike threats from the International Longshore and Warehouse Union (ILWU) Local 514. A key issue in the negotiations is automation, and the lockout could threaten billions in trade. The BCMEA describes the lockout as a necessary measure for an "orderly wind-down" of operations amid rising tensions, while union president Frank Morena stated that the BCMEA’s final offer included unacceptable concessions that would undermine the collective agreement, which members have fought to protect for years.

U.S. Drugmakers Are Breaking Up With Their Chinese Supply Chain Partners

(Read more on The Wall Street Journal)

U.S. and European pharmaceutical and biotech companies, including major firms like AstraZeneca and smaller companies like Amicus Therapeutics, are beginning to shift away from Chinese partners due to rising geopolitical tensions and the new Biosecure Act, which restricts companies with U.S. government contracts from working with specific Chinese firms. Reliance on China for affordable, high-quality pharmaceutical ingredients and services has long supported U.S. drug development, but now companies are exploring alternatives in Europe, India, and the U.S. to mitigate risks tied to China's involvement in their supply chains.

Port Labor Talks May Hinge on Presidential Election Results

(Read more on The Wall Street Journal)

As the January 15th deadline approaches for a new labor contract, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) are set to resume negotiations next month. This follows a recent three-day ILA strike, during which President Joe Biden urged the USMX to “negotiate a fair contract” with the union. Regardless of who wins the upcoming presidential election, the USMX may end up with the upper hand, according to shipping industry officials: using the ILA’s recent wage increase as leverage, employers may urge a potential Harris administration to get the union to concede on issues like automation. A potential Trump administration would likely also benefit employers, as former President Trump is unlikely to support the union as forcefully as President Biden.

Find the latest updates on the ILA-USMX negotiations on our ILA strike blog.

Gemini faces 13-week phase-in before 90% reliability promise is tested: Maersk CEO Vincent Clerc

(Read more on Journal of Commerce)

In a recent earnings call, Maersk CEO Vincent Clerc outlined the transition to the upcoming Gemini network, developed in partnership with Hapag-Lloyd. Upon launching, Gemini—which is ultimately targeting 90% schedule reliability—will undergo a 13-week stabilization period, during which Maersk and Hapag-Lloyd will shift away from their current alliances. While players like MSC will focus on direct port calls, Gemini will employ a hub-and-spoke model. Clerc noted that Maersk and Hapag-Lloyd have conducted extensive testing over the last several years, and results have validated the efficiency of the Gemini design.

For detailed insight into the Gemini network design, watch our recent webinar featuring Flexport CEO Ryan Petersen and Hapag-Lloyd CEO Rolf Habben Jansen.

Trucking rates, demand to stay lackluster for rest of year, analysts say

(Read more on Supply Chain Dive)

Analysts project that trucking rates will remain flat for both less-than-truckload (LTL) and truckload services in Q4 2024, as demand struggles to recover from a two-year freight recession. The TD Cowen/AFS Freight Index indicates that while there are some signs of improvement in consumer spending, particularly in retail and food, overall demand in trucking is still sluggish. Factors contributing to this ongoing stagnation include uncertainty surrounding economic conditions, M&A activity declines, and a challenging manufacturing environment. Despite a modest increase in containerized imports, the trucking market is characterized as a shippers' market, with only slight seasonal improvements expected. Experts suggest that a true rebound in freight demand may not occur until next spring, contingent on potential interest rate cuts and improvements in domestic manufacturing.