Weekly Logistics Briefing Key logistics updates for the week (Week 1 of Aug. 2024)

Severe weather is expected to continue in central Chile through August 3. The region is forecasted to experience heavy rainfall, strong winds, and thunderstorms, resulting in reported damages and casualties in various areas. The most affected areas include Biobio, Los Lagos, and O'Higgins Regions, where hundreds of homes have been damaged. School classes have been suspended in the Araucania, Biobio, Coquimbo, Los Rios, and Nuble Regions. The severe weather is expected to cause flooding, landslides, power and telecommunications outages, transportation disruptions and delays in air and rail services. There have been flight disruptions at Arturo Merino Benitez International Airport(SCL) in Santiago on early August 2.

Due to the recent intensifying conflict between Israel and Hamas, a large number of flights to Tel Aviv have been canceled. In particular, tensions have risen since the assassination of senior leaders of Hamas and Hizbollah, with Iran and its allies signaling retaliation. Due to this unstable situation, several airlines have suspended flights for safety reasons. Delta Airlines’ flights between New York JFK and Tel Aviv will be suspended until August 2 and United Airlines’ all flights to Tel Aviv will be suspended until further notice. British Airways suspened until August 1 or 2.

On July 28, 2024, a presidential election was held in Venezuela. The National Electoral Council (CNE) declared incumbent President Nicolas Maduro the winner with 51% of the vote. However, opposition leader Maria Corina Machado claimed that opposition candidate Edmundo Gonzalez received 70% of the vote, and independent pollsters also indicated that the official results did not match the exit polls. As discontent over the election results grew, the Venezuelan government announced several diplomatic and transportation measures. Flights between Venezuela and Panama, as well as the Dominican Republic, are suspended indefinitely from 20:00 on July 30, 2024. Diplomats from Argentina, Chile, Costa Rica, Peru, Panama, the Dominican Republic, and Uruguay are expelled. Election-related protests have escalated nationwide.

As of July 31, tensions in the MENA region remain high due to concerns over the potential escalation of the Israel-Hamas conflict. Several countries have advised their citizens to avoid travel to Lebanon, and some airlines have suspended flights to Beirut-Rafic Hariri International Airport (BEY). Lufthansa (LH) suspended all flights to BEY until August 5 and Air France (AF), Aegean Airlines (A3), Transavia (HV) suspended flights to Beirut until at least August 4. Royal Jordanian (RJ): Initially suspended flights to Beirut but has since resumed operations and Emirates issued a travel advisory stating that no passengers would be permitted to transit through Dubai to Beirut from August 1-2. Additional airlines may announce similar measures in the coming days.

The current 34 daily transit slots will increase to 35 on August 5, and to 36 in September. Ilya Espino (Deputy Administrator) said that "Now the operation is practically back to normal. We have 34 transits per day, and on August 5 we will increase to 35 transits, and in September we'll increase to 36. During the summer, the aim is to reduce only the draft, as we do every year, and maintain normal transit activity from September."

On Wednesday, July 24, a large forest fire in Jasper, Alberta, caused considerable damage to houses, commercial facilities and infrastructure. As a result, services on major CN railway lines passing through Jasper were suspended, which partially affected cargo flow to Vancouver Port. After restoration and inspection work, the railway line will be reopened on Friday, July 26. According to Vancouver Port, a plan is in effect to deal with train congestion, including a CN train detour through the CPKC track between Calgary and Camloops. The port itself was not directly affected by forest fires, but ship delays and increased demand for anchoring are expected in the future due to the suspension of railway services.

The International Longshore and Warehouse Union (ILWU) Canada is balloting its members across ports in British Columbia on strike action over a dispute with DP World (Canada). ILWU Local 514 has notified all parties of its intention to hold an industry-wide strike vote, expected to be completed by August 9. If the strike vote is approved, the ILWU must give 72 hours' notice. This could impact major container gateways at the ports of Vancouver and Prince Rupert. July last year, a 13-day strike by ILWU (Canada) members over a four-year labor deal with BCMEA paralyzed Canadian West Coast ports and was resolved with federal government intervention.

Freight railway workers belonging to the unions are scheduled to go on a nationwide strike from 16:00 to 23:59 on July 30. Workers represented by five labor unions will take part in the strike. The industrial action will likely prompt transport and travel disruptions across the rail network.

Currently, around 40,000 TEU of containers are piled up in the Chittagong port yards, and this situation is due to highway blockades, curfews, and internet restrictions caused by student protests. Importers are facing significant demurrage charges for keeping containers in the port yards for more than four days. The Federation of Bangladesh Chambers of Commerce and Industry has requested the government to waive these charges. Junior Shipping Minister Khalid Mahmud Chowdhury has indicated that the government may consider this request if businesses submit applications.

On August 3 based on local time, Yemen's Houthi rebels attacked a Greek-owned container ship, the Groton, in the Gulf of Aden. Houthi spokesman Yahya Saree claimed that ballistic missiles were fired at the Greek ship due to its previous visit to Israel and that the attack was precise. However, there were no reported injuries among the crew and the vessel did not sustain any significant damage. The ship is currently anchored near the port of Djibouti.