Weekly Logistics Briefing Key logistics updates for the week (Week 5 of November 2023)

Spanish railway unions have declared a five-day strike affecting services in November and December as a protest against the transfer of Rodalies railway administration in the Catalan region from the national operator (REFE) to the regional government. The strikes are scheduled for November 24, 30, and December 1, 4, and 5. Due to the strike, REFE has canceled 1,548 passenger and 990 freight train services

As Panama Canal restrictions are tightened, shippers will be charged more. CMA CGM will be the first major shipping company to apply new additional charges to shipments passing through the Panama Canal in response to continuous capacity reduction. Reservation windows for Neopanamax floodgate passage are expected to decrease by 30% by January 1st of next year. MAERSK will respond to Panama Canal risks by adjusting the transfer schedule in advance.

According to the South African Cargo Transport Association (SAAFF), 96 ships are currently anchored outside the port and the daily economic cost reaches 98 million ringgit ($5.32 million). This congestion is due to bad weather and port operator Transnet experiencing equipment problems. Durban's terminal was most affected and delayed by about 9 days. CMA CGM has announced a new port congestion surcharge (PCS) in South African ports due to the ongoing congestion. CMA CGM will implement a PCS of US$200 per TEU to Port Elizabeth, Durban and Cape Town, effective from 3 December.

The Southwest Airlines Pilots Association (SWAPA) sought to exit federal mediation in August but was denied, binding them to continue negotiations with Southwest Airlines. They cannot strike due to federal law until released from mediation, followed by a 30-day cooling-off period. Despite these hurdles, SWAPA is preparing for a possible strike. Both Southwest pilots and American Airlines flight attendants are moving toward striking, although a holiday season strike is unlikely. The National Mediation Board could give the union the green light to strike but only after 30 days.

A cargo ship sank off the Greek island of Lesbos in stormy seas early Sunday, leaving 13 crew members missing and one rescued, authorities said. The Raptor, registered in the Comoros, was on its way to Istanbul from Alexandria, Egypt, carrying 6,000 tons of salt. It had a crew of 14, including eight Egyptians, four Indians and two Syrians. The ship reported a mechanical problem at 7am Sunday, sent a distress signal and shortly after disappeared about eight kilometres southwest of Lesbos.

An Israeli-owned cargo ship, CMA CGM SYMI (recently renamed Mayet), was reportedly attacked by an Iranian drone in the northeast portion of the Indian Ocean, early on a Friday morning. The attack, which occurred hours before a ceasefire in the Gaza Strip, resulted in damage to the ship but no crew casualties. The drone used in the attack was identified as a Shahed-136, a type supplied by Iran to Russia for use in Ukraine. Eastern Pacific Shipping, which had rented the Mayet, confirmed the incident but reported that the vessel continued its journey with all crew members safe.

Amazon workers launched international strikes on Black Friday for the fourth year, protesting in over 30 countries for better wages, union rights, and environmental sustainability. The strikes, particularly significant in Europe, involved hundreds of workers in countries like the U.S., Britain, Spain, Italy, and Germany. In the U.S., strikes occurred in California and Illinois, following issues like unionization and poor working conditions. Amazon responded by dismissing these concerns as "false or misinformed," while emphasizing its employment creation.

A.P. Moller–Maersk has decided to formally wind down its operations in Syria effective from 1 December 2023. "This means we will no longer offer shipments to or from any destinations in Syria," confirmed the company in a statement. "Honouring our existing commitments, we will ensure that all bookings to/from Syria with containers already assigned will be facilitated. All customers impacted by this announcement will be contacted individually to discuss delivery details," said the Danish shipping company in its announcement.

Severe storms and flooding in Turkey resulted in nine deaths, including a seaman from a cargo ship that sank off the Black Sea coast. The Turkish-flagged ship Kafkametler hit a breakwater and sank near Eregli, leading to 11 crew members being reported missing. The storms also caused deaths in Eregli and the southeastern provinces of Diyarbakir and Batman, with at least 50 people injured. Another ship, the Pallada, broke in two but all crew were rescued. In Bulgaria, storms caused two deaths and power disruptions, prompting a state of emergency in Varna.

Swedish postal workers have joined a strike against Tesla, instigated by the company's refusal to sign a collective bargaining agreement regarding wages. The strike, which began in late October with 130 mechanics from Tesla workshops in seven Swedish cities, has escalated to include various other workshops and now affects the unloading of Tesla vehicles at ports. The Service and Communications Employees' Union (Seko) has decided to stop delivering and collecting mail and parcels to all Tesla sites in Sweden. Although the impact on Tesla's operations in Sweden has been limited, the company is exploring alternative delivery methods, such as road transport, in response to the strike.