Weekly Logistics Briefing Key logistics updates for the week (Week 3 of June 2024)

Two bulk carriers(Verbena, Tutor) has risk of sinking due to Houthi rebel attack. Houthi rebels issued an unconfirmed claim on June 15 that an attacked bulk carrier sank in the Gulf of Aden and one was in danger of sinking. Western authorities admitted that the two ships were flooded, but did not confirm whether they sank. On June 16, Houthi rebels claimed to have attacked three more ships: Captain Paris, Happy Condor, and an unnamed U.S. destroyer. It is not yet confirmed whether there is an actual attack.

On June 14 two vessels, the Netherlands-flagged dredger Vox Maxima and the Singapore-flagged bunker vessel Marine Honor, collided at Singapore's Pasir Panjang Terminal. The collision resulted in a fuel leak, causing environmental concerns. Authorities quickly initiated cleanup operations to contain the spill and minimize environmental damage. Both vessels are anchored safely with no injury reported.

Longshoremen reject further talks with US Maritime Alliance amid automation concerns. The International Longshoremen’s Association (ILA) announced plans to suspend labor negotiations with the United States Maritime Alliance (USMX) amid union concerns over the use of automation. Both parties had been negotiating local agreements related to a coast-wide master contract set to expire on 30 September 2024. However, ILA said it is opting to cancel talks with USMX after learning that APM Terminals and Maersk Line are reportedly using an auto gate system at the Port of Mobile in Alabama and at other U.S. ports. The system autonomously processes trucks without ILA labor, the union said

As of late June 12, the National Weather Service(NWS) has issued flood and flash flood watches and warnings across southern Florida. The NWS's Weather Prediction Center has warned of a slight risk of excessive rainfall (the second lowest level on a four-tier scale) across southern Florida through early June 15. Authorities canceled more than 320 flights at Miami International Airport (MIA) and more than 280 flights at Fort Lauderdale-Hollywood International Airport (FLL).

Railway workers from labor unions employed in Trenord, Trenitalia, and Trenitalia Tper are scheduled to strike across Italy from June 16 at 03:00 to June 17 at 02:00, demanding a contract change. Due to this strike, railway transportation service interruption may occur in the network of 3 carriers in Italy.

Blank sailings are rising at Canadian ports as carriers fret over rail strikes. “Anticipation of a strike keeps carriers on their toes, with some already taking significant action to omit, blank, or swap calls into Vancouver in June and beyond,” an eeSea trade update said. “There are 14 port swaps and diversions away from Canada into US gateway ports confirmed from week 24 onward, as well as three completed since mid-May,” it added. Of the forthcoming blank sailings announced through to the end of week 31 and the beginning of August, six are on Zim’s ZPX service, which is now not scheduled to call at Vancouver until at least week 31. During the same period, MSC’s Chinook, SM Lines’ PNS and THE Alliance’s PN4 service will all blank Vancouver once, as will the Ocean Alliance’s PNW1 and PNW4 strings, and its PNW3 service twice

Panama Canal is continuously recovering capacity. The Panama Canal will add slots from July, and the total number of daily passes will increase to 34 as of the end of July. It will increase 36 to 39 times per day by 2025. Especially significant for the larger vessels, starting this weekend they are increasing the maximum draft by one foot to 46 feet as of June 15. The canal which has at peak times been as high as a 50-foot draft.

On June 11 Palma de Mallorca Airport experienced significant disruptions due to severe flooding caused by torrential rains. The storm led to waterlogged runways and entrances, halting airport operations and grounding numerous flights. Approximately 9 cm of rain fell within an hour, overwhelming the airport's drainage system and causing chaos among passengers. Flights were suspended for two hours Wednesday, affecting 100 out of 900 flights scheduled for the day. Mallorca is part of Spain's Balearic Islands in the Mediterranean.

Germany's ver.di union is scheduled to strike in Bremerhaven port on June 12 to protest ongoing wage negotiations. The strike is scheduled in early shift on June 12. Work stoppages are expected in all container terminals and port operations.

The federal navigation channel for Baltimore harbor was fully restored as of late on Monday, June 10, just 76 days after the Dali knocked down the Francis Scott Key Bridge. The process involved the removal of about 50,000 tons of bridge wreckage from the Patapsco River, and the new bridge will be completed by the fall of 2028 at a cost of $1.7 billion.