Weekly Logistics Briefing Key logistics updates for the week (Week 2 of June 2024)

On June 7, the Argentine Maritime Union urged a 48-hour strike at all ports from June 6. It is expected that tugboat activities will be suspended nationwide due to labor disputes. The union decided to exclude tugboat services for ships supplying thermal power plants and LNG gas tankers from the strike. Tugboat crews for other types of vessels, including container ships, join the strike.

According to Linerlytica, only 6 out of 11 Asian-North European voyages departed as scheduled last week, and congestion at Southeast Asian/Chinese ports intensified. The bottleneck in Singapore has been eased, but the burden has shifted to Port Klang and Tanjung Pelepas in Malaysia. Singapore temporarily reopened the Keppel Terminal, and some operators, including CMA CGM, are omitting Singapore calls due to bottlenecks. As a result, the number of ships currently delayed in Singapore is about 380,000 TEUs, down from 450,000 TEUs last week. S&P announced that 51 container ships are anchored in Port Klang. Ports in Southeast Asia and Northeast Asia still account for 29 percent and 23 percent of the world’s ship queues. Waiting times have also increased in all major port areas in China, with Shanghai and Qingdao recording the longest delays. Ships have had to wait as long as five days to berth in the world’s busiest port of Shanghai, where logjams are at their highest since Covid

June 3, cargo ships cannot operate in some parts of the Rhine River in southern Germany due to heavy rain. Rhine River shipping has ceased near Maxau and Mannheim in south Germany. Due to the high water level, it is impossible for the ship to move under the bridge. Transportation is possible in the northern part of the country, including the main areas of Duisburg and Cologne. There is also serious damage to railroads and roads in the area, which is expected to delay transportation for a long time. Railway terminals in Augsburg, Munich, and Ulm are currently inaccessible. Railway lines via Günzburg and Geislingen are also closed due to track damage

InYemen Houthi rebels attack Red Sea merchant ships with missiles and drones. On June 5, Houthi rebels attacked three merchant ships in the Red Sea and the Arabian Sea. Two bulk carriers (Greek ships ROZA, VANTAGE DREAM) and one container ship (American MAERSK SELETAR) were attected and MSC SELETAR ships have several drones attacked in the Arabian Sea. The vessel departed from SALALALAH port in Oman on 6/05 and is currently sailing off the coast of DUQM in Oman.

Large shippers are keeping inventory high, fearing a Canadian rail strike could come sooner than expected and would likely be an ‘all or nothing scenario’. CIRB instructed stakeholders to submit a final answer by June 14, which could mean CIRB's decision and possible strike by the end of this month. CIRB said it was asked to extend the necessary notification period (currently 72 hours) before the strike. The Canadian International Forwarders Association argued 72 hours was “insufficient”, as supply chains need 30 days or more to prepare for work stoppages. CN and CPKC also requested a 30-day ‘cooling-off’ period. The rail operators also argued against a partial continuation of only deemed ‘essential services’, namely propane, and called for an ‘all-or-nothing’ approach

Air traffic controllers (ATCs) affiliated with the Directorate General for Civil Aviation (DGAC) and other union aviation workers are scheduled to strike from June 4 to 7, which is highly likely to cause sporadic air transportation disruptions. As of June 4, organizers have not announced specific plans for the date and location of the strike. The union is expected to stage a second strike from June 8 to 15 and requests for recruitment of manpower and improvement of compensation. On June 4, at least 23% of flights at Toulouse-Blagnac Airport (TLS) were suspended and Air France is known to have been most affected.

Port workers engaged in several strikes this year to denounce unresolved pension reform and labour conditions issues. The union called for new strikes as the latest negotiations with the government were not put into action. In addition to the previously announced strike schedule, work will be suspended 24 hours a day for 4 days on June 7, 13, 21, and 25 at all ports in France.

Due to a defect in runway lighting, the operation was suspended at Jorge Chavez International Airport (LIM) in Lima as of the end of June 2. Authorities bypass all arriving flights to other airports, and many flights are changed to Pisco Airport (ICA). Departure flights are reported to be delayed by several hours. Flight suspension is expected to continue until June 3.

Railway workers employed by the Italian Railway Network (RFI) are scheduled to strike for eight hours nationwide between 09:00 and 17:00 on June 3. Union leaders have not stated the purpose of the suspension, but similar measures have been taken several times recently due to labor-related disputes. However, under Italian law, workers in strategically important sectors, including public transportation, must maintain a minimum guaranteed level of service during the strike.

Panama Canal raises draft levels ahead of schedule. The Panama Canal Authority (ACP) decided 30 May, to increase the maximum authorised draft for vessels transiting the Neopanamax locks ahead of schedule. Effective immediately, the new draft level is 13.71 m (45.0 feet). In its statement, the authority said that the arrival of the rainy season in the Canal watershed allowed moving the implementation date forward.