East/Gulf Coast Port Strike Update & Market Outlook

East/Gulf Coast Port Strike Update & Market Outlook

Dear Valued Customer,

Strike Update:

· The recent East/Gulf Coast port labor strike concluded last week after three days with a contract extension agreement through January 15, 2025. While wages have been settled, the pivotal issue of automation remains a key point of contention. The industry is closely monitoring negotiations, hoping for a resolution to avert potential future disruptions.

Operational Impact:

· Ports are diligently working through vessel backlogs, with operations running smoothly thus far.

· Ocean carriers have filed various surcharges for October to address congestion and potential disruptions. We are monitoring the situation and will inform you of any cancellation of those charges should the port operations remain stable.

Market Outlook:

· The China market reopens today, October 8th, following the Golden Week holiday.

· Current Ocean Freight demand appears relatively soft, but this could change as we approach the January labor contract deadline and Lunar New Year (beginning January 28th thru February 3rd, 2025).

· Ocean carriers have had numerous October blanked sailings in anticipation of weaker demand, but remember that shipping dynamics have also shifted quickly this year.

Looking Ahead:

· It is crucial to remember that the labor situation remains fluid. The January 15th deadline falls close to the Lunar New Year, a period historically marked by a surge in volume demand followed by manufacturing closures across Asia. If the automation issue isn't resolved, further labor action is possible.

· We strongly recommend proactively managing your inventories to mitigate potential supply chain disruptions.

Other Updates:

· While it's still early to assess the full impact of the recent and anticipated storm activity on product demand, we are closely monitoring the situation.

· We remain committed to supporting the Tunnels to Towers Foundation with donations for every box of nails and every roll of underlayment purchased.

We appreciate your business and will continue to provide updates on these evolving situations.

Sincerely,

Continental Materials, Inc.

Continental Materials, Inc. (CMI) is a leading national supplier of roofing system component materials. As the largest importer of roofing fasteners into the US, our roofing fasteners go on 2.2 million homes every year and our construction fasteners frame another quarter million homes. CMI is the exclusive supplier of top-of-the-line SecureGrip synthetic underlayments in both mechanically attached and self-adhered formats. And of course we're known for our "No Smell" BUR asphalt with its WeatherSeal protective packaging and eco-friendly woodfiber roof insulation. CMI's focus is on bringing Quality, Service, and Value to our customers and we've been doing just that since 1958.

For more information on CMI products, call (215) 884-4930, visit our website or contact your local CMI Sales Representative.

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