Weekly Logistics Briefing Key logistics updates for the week (Week 2 of Aug. 2024)

On August 9, 2024, at 1:45 p.m. local time, an explosion occurred at the NBSCT Terminal (BEILUN 3RD CNTR TERMINAL) in Ningbo Port. It is believed that the explosion occurred after arriving at Ningbo Port due to a power outage in a container carrying dangerous goods. The vessel involved in the explosion was YANG MING VESSEL (YM MOBILITY 079W). The Ningbo Beilun 3rd Terminal has been blocked due to this explosion, and logistics operations are likely to be disrupted.

On August 8, 2024, Canadian National (CN) and Canadian Pacific Kansas City (CPKC) will resume negotiations with the Teamsters Canada Rail Conference (TCRC). Canada's Labor Minister and Transport Minister have been actively involved in the discussions, emphasizing the importance of reaching a resolution. The government is aware of the significant impact that a strike could have on Canada's economy and international reputation and is urging all parties to reach an agreement urgently. The Canadian Industrial Relations Board (CIRB) ruled that a work stoppage on Canadian National and CPKC would not cause an immediate threat to public health and safety and announced that a strike could be called as of 00:00 on August 22 after a 13-day cooling-off period. Therefore, if the ongoing labor-management negotiations that began on August 7 are not concluded within this period, a strike is expected to begin.

Due to the ongoing threat of an Iranian attack on Israel, more foreign airlines are canceling flights to and from Israel or extending the duration of previously announced suspensions. Delta Airlines has canceled all flights until the end of August and United Airlines has suspended all flights until further notice. The Lufthansa Group including Swiss, Austrian Airlines, Brussels Airlines, Eurowings and Lufthansa itself has canceled flights until August 12. Air India (until August 10), Aegean Airlines (until August 9), Air Baltic (until August 12), Vueling (until August 14), Iberia Express (until August 11) and LOT Polish Airlines (until August 9) have also suspended operations. Israel's El Al Airlines is maintaining its full schedule and has added flights to Athens and Larnaca to help stranded Israelis return home.

A magnitude 7.1 earthquake struck off the coast of Kyushu, Japan, prompting the Japan Meteorological Agency (JMA) to issue its first-ever mega earthquake caution. Although there were no immediate reports of serious damage or injuries, the government predicts a 70-80% probability of a megaquake occurring in the Nankai Trough within the next 30 years. The tsunami warning issued following the quake raised concerns, but the situation is being monitored closely.

ScotRail and Caledonian Sleeper workers have voted to strike, threatening major disruptions. The walkout is over disputes regarding pay, job security, and working conditions. The decision follows a significant majority in favor of industrial action, reflecting growing dissatisfaction among the staff. The strike could impact key services, including overnight train journeys between Scotland and London. Union leaders have urged for negotiations to prevent the strike from taking place.

American Airlines regional flight attendants have announced plans to hold a strike vote, signaling escalating tensions over ongoing labor disputes. The union filed for mediation in January and is asking for double-digit pay increases. This potential strike could significantly disrupt regional flights if it proceeds, affecting many passengers. The union representing the flight attendants is advocating for improved contracts, and the outcome of the vote will determine the next steps in their negotiations.

A strike launched by Argentine oilseed industry workers has halted grain shipments in local ports with soybean processing plants, the country s Ports and Maritime Activities Chamber said on Wednesday. The strike involves unions representing port workers and truck drivers, who are demanding better pay and working conditions. This disruption has caused a bottleneck in the supply chain, with many ships unable to load soy products, affecting global markets.

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) were supposed to begin in June but were delayed due to a local dispute over automation at the Port of Mobile, Alabama. Automation is a major point of contention for the ILA leadership and is expected to be a central issue in the negotiations. Legally, the ILA is required to give 60 days' notice to the employers and last week the union sent letters to all employer groups indicating that the current agreement would not be extended. The ILA’s Wage Scale Committee will meet on September 4 and 5 to review the demands they will make to the employers during the master contract negotiations. The union leadership said it plans to devote time to “instruct locals on strike strategies and what to expect if the ILA is on strike at the beginning of October.”

The Anti-Discrimination Student Movement has announced indefinite protests and nationwide movements. The Bangladesh government imposed a curfew starting from 6 p.m. on August 4, with the curfew set to continue indefinitely and additionally, August 5 to 7 have been declared national holidays. The Chattogram port is experiencing severe congestion. The current vessel waiting time is between 3 to 4 days, with 11 vessels waiting at anchorage. Approximately 41,000 TEUs of containers are lying inside the port, putting significant pressure on port operations. Port authorities are aware of the situation and are attempting to maintain operations as efficiently as possible.

A powerful storm brought large damaging hail and heavy rain to the Calgary area August 5, inflicting extensive damage on homes, vehicles, and the Calgary International Airport. The storm, characterized by large hailstones, damaged vehicles, shattered windows, and led to significant traffic delays as emergency services responded to multiple incidents. The storm also caused localized flooding and power outages, impacting several neighborhoods. The hailstorm in Calgary also caused significant disruptions at the airport, leading to flight delays and cancellations. Authorities are urging residents to exercise caution and report any hazards.