“Chance Favors the Prepared…”

In this week’s Roar: Preparations for a port strike, the EU’s Carbon Border Adjustment Mechanism, the maritime AI market, falling diesel prices, and nearshoring to Latin America.

Shippers and LSPs are preparing for a potential East Coast port strike in the U.S., which could significantly disrupt operations, even though dockworkers and terminal operators appear to be mostly posturing at this point. Preparation is still key, with shippers and carriers examining alternative strategies to help mitigate the effects of a strike if it is to happen. Some carrier options may include port swaps, speeding up vessels, and blank sailings. Click here to read our FAQ on what shippers need to know and do about the looming work stoppage.

The European Union’s Carbon Border Adjustment Mechanism (CBAM), expected to be in full effect by 2026, will impose carbon costs on certain imported goods like steel, cement, and aluminum. In preparation, companies need to start identifying suppliers affected by CBAM, amending contracts to ensure they include emissions data requirements, and setting up reporting processes. Compliance will necessitate collaboration between corporate departments and suppliers. Companies exporting into the EU should also prepare by tracking their products’ emissions data.

A new report addressed how the maritime artificial intelligence (AI) market has nearly tripled in size over the past year, now valued at $4.13 billion, with a projected annual growth rate of 23%. Use cases include predictive maintenance, port management, fuel efficiency, and safety enhancements. The report highlights that incremental AI adoption allows companies to streamline routine tasks before tackling more complex processes. However, industry-wide collaboration and proper data architecture are necessary to fully optimize AI’s potential in shipping.

The diesel surcharge benchmark dropped for the ninth consecutive week in the U.S., with the Department of Energy’s average retail diesel price falling to $3.555 per gallon as of last week, the lowest it’s been in nearly three years. The decline was driven by a bearish oil market and a recent sell-off in crude oil futures. But even though oil prices have rebounded slightly, analysts indicate a broader outlook that suggests ongoing pressure on fuel costs thanks to oversupply and weakening demand, particularly in major industrial economies. They’re predicting further price fluctuations as OPEC+ production decisions unfold.

A recent survey reveals that U.S. importers have increasingly begun to focus on sourcing from the Americas, particularly Latin America, with the aim of nearshoring to reduce supply chain disruptions. About 92% of respondents view establishing inter-Americas supply chains as important, with many prioritizing cost considerations and logistical challenges. Companies are also looking to diversify their supply chains so they can minimize risks from global events. Despite challenges like regulatory compliance and technology integration, 70% of respondents are optimistic about future opportunities in the region.

For the rest of the week’s top shipping news, check out the article highlights below.