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

In May 2024, global maritime container traffic reached an all-time high, exceeding the record of May 2021, the peak of the infectious disease. The 15.94 million TEUs transported by sea in May exceeded the existing record of 15.72 million TEUs recorded in May 2021 when the pandemic was in full swing. In particular, the increase in shipments in Far East Asia is the main reason, and China's exports are 6.2 million TEUs, accounting for 39% of the world's container shipments. However, record shipments have already occurred, and the transportation industry is raising concerns about a decrease in shipments during the traditional peak season. The current increase in volume is attributed not only to basic consumer demand, but also to unstable shipping companies' prior loading of imports and the possibility of additional tariffs on Chinese imports.

On Tuesday, July 9, 2024, while proceeding on her westbound voyage from Asia to Europe, the CMA CGM Benjamin Franklin faced unexpectedly strong adverse weather conditions off South African coasts and suffered loss at sea of 44 containers. Furthermore, 30 containers are reported damaged on the vessel. The latest AIS signals from the vessel show that she was sailing along the East Cape south of Durban and north of East London. Weather forecasters had warned that the strong seas that had been experienced along the West Cape region near Cape Town were expected to build and travel east. Warnings of strong waves were issued for the region around Durban. The company reports the containership is now proceeding to Cape Town for a thorough inspection. They are saying that the ship remains seaworthy with no strong damage, no injuries to the crew, and no pollution (other than the 44 boxes that went overboard).

Due to the increase in rainfall in recent months, the water level of the Panama Canal is normalized faster than expected. The water level of Lake Gatun has increased to 25.5 meters, slightly above the five-year July average. Panama Canal Authority (ACP) announced that ships with draft lines of up to 14.63 meters can pass through the canal from July 11. The usual draft limit is 15.24 meters. To cope with climate change, ACP will start construction of a new reservoir located in Rio Indio, west of Lake Gatun. The reservoir costs about $1.6 billion and is expected to have a four-year construction perio.

Poor weather conditions caused significant disruptions at Ahmedabad airport on Saturday, delaying 27 flights, including eight international ones, by one to four hours. Notably, two Alliance Air flights from Udaipur were delayed by four hours, and a SpiceJet flight to Mumbai was delayed by three-and-a-half hours. Other affected routes included flights to Mumbai, Delhi, Udaipur, Chennai, Aurangabad, Jaipur, Bengaluru, and Goa.

Salvage operations are underway for the MV Ultra Galaxy, a Panama-flagged cargo ship that ran aground off the Western Cape, South Africa. The crew of 18 was safely rescued after the vessel, carrying fertilizer, developed a severe list and there were no reports of injuries. The South African Maritime Safety Authority (SAMSA) is leading efforts to extract cargo and fuel, complicated by adverse weather conditions. An investigation into the incident is ongoing.

The Michipicoten, a freighter operated by Rand Logistics, experienced a 13-foot hull crack and took on water near Isle Royale on Lake Superior, prompting a mayday call and a U.S. Coast Guard response. It was the latest of several mishaps in recent years on ships that Rand Logistics operates. Despite these incidents, the Coast Guard has not identified broader safety concerns with Rand's operations. The Michipicoten is currently undergoing repairs at Fraser Shipyards.

Ship traffic in Istanbul's Bosphorus Strait has partially resumed after being temporarily halted due to an engine failure on the ship Lionfish. The south-north route is now open, while the north-south route will stay closed until midnight. A tugboat aiding the ship also malfunctioned, further complicating the situation. The Bosphorus Strait is a crucial waterway connecting the Black Sea to the Marmara Sea.

Unions at state controlled ADP group, which runs the main Charles de Gaulle Airport, announced a one day stoppage on July 17. If it continues, the standoff with management could impact the Games. Athletes set to start arriving en masse from July 18 and hundreds of thousands of ticket holders flying in ahead of the July 26 opening ceremony. Unions are demanding bigger bonuses and increased staff recruitment.

Union workers at Hamburg port go on strike from July 9 to July 10. The strike has started as planned with the early shift at 6.30 a.m. Verdi union announced that the strike was aimed at increasing pressure on employers in wage negotiations. Hundreds of workers are likely to participate, which could cause confusion in port operations. The union demands that striking workers hold a protest at the port office on July 9 and a protest march in downtown Hamburg on July 10.

Canada's CIRB rejected a request from the Maritime Employers Association (MEA) to grant intervenor status in the current railway labor-management dispute. MEA explained that the suspension of work by the two railway companies will cause "congestion at a level that makes it impossible to move cargo in the port.". However, the CIRB decided yesterday that intervention by the MEA would not assist its determination, as it did not have an interest that was “different or distinct from that of several other groups and organisations that made submissions”. CIRB's final decision on whether Canadian rail service can be considered essential is still pending. If CIRB determines that it is not an essential service, there is a high possibility of a railway strike throughout the Canadian railway network within 72 hours.