Weekly Logistics Briefing Key logistics updates for the week (Week 1 of March 2024)

Panama Canal authorities have increased the number of daily transit slots to 24, even though they announced that they would reduce the number of daily transit slots to 18 in February. However, this is still less than the typical 36 times a day that passes through a waterway. Maersk announces a land bridge plan using railroads to avoid congestion in the Panama Canal. Other shipping companies do not adopt the Land Bridge plan because the cost can increase by more than 30%. The Alliance is converting some of its bypass services back to the Panama Canal as the number of slots currently available increases.

It is known that the Rubymar, which was damaged by the Houthi rebel attack on Feb 18 and eventually sank. The Yemeni government announced on March 1 that the ship was lost due to bad weather and add that "Houthi rebels should be held responsible for environmental disasters and the aftermath of ship attacks.". Rubymar loaded 41,000 tons of fertilizer, oil and fuel. Meanwhile, CMA CGM reevaluated the situation in the southern part of the Red Sea and announced that transportation could be resumed on a case-by-case basis due to the evolving situation on Feb 28. The move comes days after the French Navy joined the European Union, which is launching EUNAVFOR Aspides, a defensive operation in the Red Sea, the Gulf of Aden and surrounding areas.

Mexico City International Airport canceled 22 domestic and international flights to conduct safety checks after discovering volcanic ash from Popocatepetl volcano on February 2. The airport said it was still open and operating, but it is recommended that customers continue to check information through airlines and official airport channels. The Mexican government issued a 'yellow warning' for the activity of nearby volcanoes and warned that volcanic ash could hit the capital

As of February 27, several fuel stations in Port Moresby have been shut down and closed amid continued fuel shortages nationwide. Recently, fuel supply of Puma Energy has been limited due to foreign exchange problems and local banks have withdrawn their services to the company, causing fuel shortage problems. Air Niugini (PX) and PNG Air (CG) airlines are delayed and canceled due to fuel shortage. The chairman of the Port Moresby Chamber of Commerce warned that power, land and air transportation are in danger of collapse as Puma Energy shuts down supplies until further notice.

German union Verdi called for Lufthansa's nationwide ground staff strike (2/28-3/1). This strike began with the company's wage proposal remaining unchanged in labor-management negotiations. It will be held in an area far from passengers and no flight cancellations are expected. Verdi urges employees of subsidiaries including Lufthansa Technik, Lufthansa Aviation Training, etc. to participate in the strike. Lufthansa announced, "We expect Verdi's planned three-day strike to have no significant impact on the 2/28 flight schedule, and we are considering the impact of the 2/29-3/1 strike.".

In Michigan, over 14,000 residences and businesses lost power on February 28 due to overnight storms, including a tornado in Grand Blanc. Consumers Energy reported 12,610 outages, while DTE Energy noted 1,556 in southeast Michigan. A shift to colder weather is forecasted, with rain expected to transition to snow, potentially creating slippery road conditions. The National Weather Service in Detroit/Pontiac anticipates high winds, ranging from 20 to 30 mph (approximately 32 to 48 km/h) with gusts reaching up to 45 mph (approximately 72 km/h), on Wednesday.

Air-related workers belonging to three unions, including the Argentine Air Pilots Association (APLA), are scheduled to go on a 24-hour nationwide strike in Argentina on February 28. Purpose of strike is to request additional salary increase to Argentina Airlines (AR) and Intercargo, which employs numerous airport workers. Labor-management negotiations are in progress, and if an agreement is reached, it may be temporarily suspended or postponed. If the strike proceeds, there is a possibility of significant disruption in flights to and from Argentina.

Over 230 unionized workers at the Autoport in Halifax, one of North America's largest vehicle transshipment facilities, have initiated a strike. Unifor, the representing union, mentioned that negotiations with the employer started on September 28 but halted upon reaching the strike deadline. Unifor criticized the company for employing replacement workers to undermine the strike. CN Rail, Autoport's parent company, confirmed it had activated a contingency plan to maintain supply chain continuity. The facility, situated on Halifax harbour's east side, processes nearly 185,000 vehicles annually, mostly from European manufacturers like BMW and Mercedes-Benz.

Marine workers under the Nigerian Maritime Workers' Union (MWUN) will participate in the two-day national protest hosted by the Nigerian Labor Union (NLC) from February 27 to February 28. NLC is scheduled to hold nationwide protests and strikes from February 27th to February 28th to face economic difficulties.

Rail commuters in the UK faced significant disruptions at the start of the working week due to points and signal failures in Sussex and south-east London, a landslip in Berkshire, and industrial action on the East Coast main line. The London-Brighton line and the Great Western line from London to Reading and beyond experienced severe disruptions. Passengers were advised to check with their train operators before traveling due to the widespread impact on services.