Transportation Roundup: Rail strike threat continues

The SSGA Competitive Shipping team continues to stay abreast of agriculture transportation issues in the container shipping industry, and railroad labor remains at top of mind.

The final two railroad unions voted upon labor agreements proposed in September, with members of the Brotherhood of Locomotive Engineers and Trainmen (BLET) and yardmasters with the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) voting in favor of the agreement. However, the SMART-TD train and engine service members rejected the agreement.

The SMART-TD train and engine service members joined three other unions in rejecting of the tentative agreements, creating fear of a freight rail strike in the next few weeks.

Management of major railroads and leaders of four railroad unions are set to meet today for the first joint negotiations. Read more from CNN. CNBC’s Lori Ann LaRocco also has good coverage and analysis of the situation here and here.

In other shipping news:

• Containerized shipments between the U.S. and China in recent months have been falling, while purchases between the U.S. and other southeast Asian countries are making up the difference. Data from Descartes show that Chinese imports accounted for 40% of all U.S. August imports but was down to 35% of total imports last month. Learn more about the trends from Freightwaves.
• The Port of New York and New Jersey handled the most cargo in the U.S. for the third straight month, while the Port of Los Angeles posted its lowest level since 2009. Labor issues at several points in the transportation chain are to blame for this redirection and the looming rail strike adds to the uncertainty. Read more here from CNBC.
• Low water levels of the Mississippi River continue to negatively impact the movement of goods and the pinch point has started to move upstream, near St. Louis. New Orleans grain terminals reported a 35% increase in barges last week, but farmers near the lower Mississippi River have received about $2 less per bushel for corn and soybeans. Learn more from Progressive Farmer.