Weekly Logistics Briefing Key logistics updates for the week (Week 2 of December 2023)

In response to the decrease in capacity, MSC will impose a Panama Canal Surcharge (PCS) of $297 per container for passing through the Panama Canal from January 1st. CMA-CGM will apply $150 per TEU as 'Panama Adjustment Factor' from January 1, and COSCO will introduce $255 per TEU called Panama Canal Low Water Surcharge (PLW) from January 1st. Hapag-Lloyd is scheduled to introduce PCC (Panama Canal Surcharge) of $130 per TEU from January 1st. Yang Ming will bypass the ships from the Panama Canal to the Cape of Good Hope route. The sailing time of the Asia-U.S. East Coast Service will be extended from 84 days to 91 days.

Strikes by maritime pilots and public service workers spread throughout Flanders, Belgium, causing waterway closures and congestion at Antwerp ports. The reason for the strike is opposition to the revision of the Flemish Civil Service Act, and the strike began on December 4 and the end date is not announced. If the pilot is not on board, the ship cannot enter or depart from the port. Hapag-Lloyd warns that the delivery schedule may be delayed or suspended due to congestion, and MAERSK announces that at least 48 hours of waiting time and additional changes in the ship schedule are expected.

An accident occurred in which the rudder of ONE Orpheus was defective on the eastern route of the Suez Canal and collided with the floating bridge (El-Mansy). ONE Orpheus is departing from Singapore to Rotterdam, Netherlands. After the accident, four tugboats were deployed to complete the towing work, and the passage of ships passing through the Suez Canal was not stopped. ONE Orpheus resumes operation after repairing the broken rudder.

A 24-hour strike by German train drivers significantly disrupted rail services in Germany on a Friday. Initiated at 10 p.m. on Thursday, the strike led by the German Train Drivers’ Union (GDL) affected most long-distance and regional trains. Deutsche Bahn (DB), the national railway operator, canceled about 80% of long-distance services and advised passengers to postpone travel. The strike followed failed wage negotiations with DB, with GDL demanding higher salaries and reduced working hours for shift workers without pay reduction

Gatwick Airport experienced significant travel disruptions on Saturday due to an air traffic control system outage. Flights were grounded, leading to lengthy delays for passengers. The issue, which began around 8am, was later resolved, but not before impacting numerous departures and arrivals, including flights with football fans heading to Premier League matches. A spokesperson from Gatwick apologized for the inconvenience, while National Air Traffic Services also issued an apology. The outage led to at least one flight cancellation and two diversions.

Over 1,100 unionized DHL workers at Cincinnati/Northern Kentucky International Airport went on strike, led by the International Brotherhood of Teamsters. The strike, amid peak season, demands fair contracts and protests unfair labor practices. Gina Kemp, a worker, cited DHL's disrespect both in work conditions and during negotiations. Negotiations began in July after workers voted to organize in April. The Teamsters have filed multiple complaints against DHL with the National Labor Relations Board.

The Minerva Rita, a 50,000 dwt product tanker, ran aground on the Amazon River near Manaus due to low water levels. The vessel, carrying gasoline and naphtha, sustained outer hull damage but no leaks or environmental issues occurred. The grounding was attributed to a navigation error during a drought period. Brazilian authorities are deciding on actions while an investigation is underway. The Amazon has for months been experiencing low water levels.

A major fire erupted on a ship at Tilbury Docks in Essex, with 5,000 tonnes of scrap metal burning. Essex County Fire and Rescue Service responded at 17:43 GMT on Wednesday, containing the fire within the ship's hold. They, alongside the ship's crew, methodically extinguished the fire and removed metal from the hold. Post-extinguishment, two crews stayed to cool the area and monitor for hotspots. Group manager Mark Eaglestone expressed gratitude to the crew and site staff for their assistance in quickly addressing the fire.

Due to adverse weather conditions from Tropical Cyclone Jasper, shipping operators in the Solomon Islands have canceled trips to various provinces. The cyclone, with central pressure at 991 hectopascals, has caused gale force winds and rough seas, leading to the suspension of both sea and air travel. Ships have taken shelter in harbors and bays, and Solomon Airlines has halted domestic flights. The cyclone is significantly impacting travel plans during the festive season.

Members of the Aslef union, including South Western Railway, Southern, Southeastern, Gatwick Express, and Island Line workers, held a 24-hour strike on Wednesday. The strike is part of an ongoing dispute over pay, with Aslef demanding an improved offer over the current 8% increase over two years. The strikes are causing significant disruptions to some of the busiest commuter routes in the country. Train operators and the government are urging Aslef to put the offer to a ballot. Strikes are planned at CrossCountry, Great Western Railway, TransPennine, and Northern Trains