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

The suspension of Microsoft service on July 19 is affecting various sectors worldwide, including air and rail travel, banking services, and telecommunications. US, major airlines (AA, UA, DL, G4) announced global ground stop. Spanish authorities reported interruptions at all Spanish airports, while Berlin Airport (BER) in Germany suspended all flights. Major airlines, including Ryanair (FR) and SAS (SK), are experiencing check-in problems. Extensive IT problems occur across the entire railway network in the UK. Delays and cancellations are occurring in several railway companies. The outage is also impacting telecommunications services, including Sky News and the London Stock Exchange's news feed. Delays and disruptions of online processing systems are occurring at various airports in the region, including China, India, Japan, New Zealand, Singapore, and Thailand, including Australia and Hong Kong Special Administrative Regions. This failure is presumed to be due to the update of Crowdstrike Falcon, a security infringement blocking service using cloud technology, on July 19.

Twelve wagons of a Delhi-bound freight train derailed near the Amroha railway station in Uttar Pradesh on Saturday evening, officials said. No one was injured in the accident and work to restore movement of trains on the section is underway and is expected to be completed by Sunday morning, officials said. The official further said the freight train was coming from Uttarakhand and was headed for Delhi, and the contents of the wagons which got derailed are not known. In the meantime, trains on this route are being diverted via Ghaziabad, Hapur and Gajraula.

Truck traffic to and from Chittagong Port has been suspended since the night of July 17 as students in Bangladesh have imposed a nationwide blockade demanding the abolition of the public sector job quota system. On July 16, six people were killed when police opened fire on protest students. For security reasons, trucks cannot enter Chittagong port from July 18, and imported containers cannot come out of the port because drivers do not want to take risks. However, container loading and unloading work at the port yard is in normal progress.

On July 19, 2024, a fire broke out on the MV Maersk Frankfurt approximately 102 nautical miles off the coast of Goa, India. The vessel was carrying 1,154 containers, including hazardous materials such as benzene and sodium cyanate. The Indian Coast Guard (ICG) promptly responded to the incident. The fire has been largely contained, and the hazardous materials have not been affected. Unfortunately, one of the 22 crew members has died due to the incident. The ICG is keeping the vessel at a distance from the coast to prevent potential environmental pollution and has ed state agencies to prepare for any emergencies. Firefighting operations are ongoing, and it is expected to take a few more days to fully extinguish the fire.

According to Incheon International Airport Corporation, 25 out of 1,257 international flights to and from Incheon International Airport will be canceled as of 8 a.m. on July 18 due to heavy rain. On July 17, one arrival flight was canceled, and four returned. There is a possibility that the number of canceled flights will increase in the future as 24 flights have been canceled in advance due to torrential rains in the metropolitan area. As of 4:45 p.m. on July 17, the Korea Meteorological Administration raised the heavy rain warning issued in Incheon, excluding Ongjin and Ganghwa, to 'warning'.

Air union workers at the National Union of Metal Workers (NUMSA) in South Africa have been on an indefinite national strike since July 16, demanding a change in wage structure. It affects subcontractors of baggage handling and ground services operated at major airports. Affected airports are Cape Town Airport (CPT), King Shaka Airport in Durban (DUR), King Phalo Airport in East London (ELS), and OR Tambo Airport in Johannesburg (JNB). Also, the union warned that the airlines such as Cathay Pacific (CX), Qantas (QA), Qatar Airways (QR), and Safe Air (FA) could be disrupted. As of July 16, no serious suspension of operation has occurred, but if the strike continues, there is a possibility of delay in air operations.

The International Longshoremen’s Association (ILA) warns that the possibility of strikes in eastern U.S. and Gulf coastal ports is increasing. The current contract is 80 days away, and negotiations are suspended due to the issue of introducing an automated system. The ILA claims that the automatic gate system violates workers' jurisdiction. If the negotiations break down, a nationwide strike is expected from October 1.

Germany's Ver.di union will present two contract proposals to its members after several rounds of negotiations. The contract expired at the end of May, and the union staged a warning strike in June and July to suspend cargo transportation at major ports. There are two proposed contracts, one is a 12-month contract and the other is a 16-month contract. Ver.di members will decide how to respond based on feedback on the proposal at the meeting on August 22 and 23.

Genoa's railway connection is affected by civil engineering work from July to September. In PSA Genoa Pra Terminal, 40'HC capacity is limited from July 6 to August 4 and from August 10 to August 18, rail connections were completely cut off. In PSA Sec Terminal, railway intersection is closed from August 5 to September 8, and railway connection to terminal is suspended. In GPT Terminal, railway operation of terminal is suspended as railway intersection is closed from August 5 to September 8 and pickup and delivery service through railway is not possible from July 26. Also, railway service connecting Trieste port will be suspended from August 15 to 19.

The Canada Industrial Relations Board reported on July 12 that it will rule on essential services by August 9. The board will provide another update in the event another decision is not made by that time. Canada’s Minister of Labour, Seamus O’Regan Jr, asked the board on May 9 to determine if some critical shipments might be required to continue even in the event of a work stoppage. That move prevents the start of any strike or lockout until after the board makes a ruling.