Weekly Logistics Briefing Key logistics updates for the week (Week 4 of June 2024)

99% of British Columbia port foremen vote in favor of the strike. British Columbia's longshore foremen rejected the final offer presented by the British Columbia Maritime Employers Association (BCMEA) on Saturday. According to a statement by the International Longshore and Warehouse Union (ILWU), Local 514, 99% of its foremen voted in favour of a strike. The Canada Industrial Relations Board has scheduled hearings on July 2, 3, and 5 to review each party's complaints. If the strike proceeds, the supervision of ships and docks at Vancouver Port and Prince Rupert Port will be suspended.

On the morning of June 19, railroad traffic to and from Felixstowe Port was stopped due to a derailment accident. According to reports from the UK's National Rail, the incident impacts all trains serving the UK's largest port. The earliest date for reopening the railway for traffic is estimated to be Wednesday, June 26 and container movement through the railroad is expected to be delayed until the railroad is cleared and repaired.

Teamsters Canada is holding second vote on CN, CPKC strike authorization. TCRC’s second strike vote began Friday, June 14, and will end June 29, as the current strike mandate is set to expire on June 30. Canadian labor laws prohibit unions from declaring a strike unless its members have approved walking off the job in the previous 60 days. If the CIRB rules that a strike would not cause a serious threat to public safety, the earliest a strike could occur would be mid-July, according to CPKC. TCRC said it has sent the CIRB written submissions and attended a pair of in-person meetings with railroad officials but has received “no indication” as to how long the negotiation process could last.

A major power cut at Manchester Airport on June 24, led to the cancellation of all flights from Terminals 1 and 2. The outage caused long queues and disrupted baggage processing. Passengers were advised not to travel to the airport and to contact their airlines for updates. Some arriving flights were diverted to other airports, and airlines like easyJet and Virgin Atlantic reported significant delays and baggage issues.

Heavy fog at Auckland Airport on June 23 led to the cancellation of about 30 flights and delayed 27 others. While flights to Christchurch and Wellington were affected, those to Dunedin, Queenstown, and all international flights remained unaffected. Ferry services also experienced delays and some cancellations. The fog was expected to lift by the afternoon.

A recent incident at Hong Kong International Airport resulted in significant disruptions after a cargo plane's emergency landing caused extensive damage to the runway. On June 17, an Atlas Air cargo plane experienced a tyre burst and hydraulic failure during an emergency return to the airport, leading to the closure of the North Runway for over eight hours. This incident affected approximately 450 flights, causing substantial delays and operational challenges. The runway was reopened later in the afternoon, allowing the airport to resume dual-runway operations.

bulk carrier Tutor sunk attacked by Houthi rebels. Bulk ship Tutor is estimated to have sunk in the Red Sea off Eritrea(6/18). It is the first ship to be attacked by an unmanned remote controlled boats, and one of the crew members is currently missing. The Tutor becomes the second vessel known to have sunk due to the attacks by the Houthis. Another bulker, Rubymar, drifted in the Red Sea for nearly two weeks after being hit by a missile before it sank in March. The Tutor contained 80,000 tons of coal, and Houthi rebels claim Tutor's shipping company is calling at an Israeli ports

Germany's Verdi union staged an unannounced strike, starting with its first shift on June 17, to put pressure on the management before the third round of wage negotiations. The strikes began during the early shift, around 06:00 local time, and will continue until the end of the night shift tomorrow, at 06:00 on June 18, in Hamburg, Bremerhaven and Bremen. Container pick-up and drop-off are not possible during this period, and rail departure is also canceled or postponed. Considering the limited slot availability and the impact of previous strikes, container transportation and delivery may be further affected this week.

Workers from the Confederation of National and International Heavy Transport of Bolivia will go on strike indefinitely from June 17 and block roads across the country. Purpose of strike is to protest against shortage of diesel fuel and foreign currency. Border crossing points will also be blocked, and ground transportation on national roads is expected to be suspended.

Data released this week for last month shows that revenues of the Suez Canal dropped by 64.3 percent to approximately $337.8 million, compared to $648 million recorded in May 2023. The cargo volume passing through the Suez Canal dropped by 68.5 percent last month to about 44.9 million tons. In May 2023, the total cargo tonnage was 142.9 million tons. Last week, the Suez Canal authorities announced an extension of fare discounts until the end of the year for 12 ships, including bulk carriers, container ships, and LNG carriers, in some long-distance trade.