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

A CMA CGM vessel "CMA CGM Belem" lost 99 containers overboard during a storm off the coast of South Africa in August 15. The severe storm caused the containers to fall off the ship, but the vessel itself sustained no significant damage and continued its voyage. The lost container is located in Richards Bay, South Africa. The CMA CGM Belem is currently slow steaming towards Port of Ngqura, Qheberha, with an expected time of arrival on August 18.

Kenya Airports Corporation (KAA) and Kenya Airways (KQ) employees of the Kenya Aviation Workers' Union (KAWU) are scheduled to strike indefinitely nationwide from August 19. Purpose of this strike is to opposite to the government's contract with Indian company Adani Airport Holdings to expand Jomo Kenyatta International Airport (NBO). The strike is expected to disrupt airports across Kenya such as NBO, MBA, KIS, EDL, WIL, and MYD. In addition, Kenya Airways flights are likely to be affected.

Wildfires north of Athens have forced thousands of residents to evacuate, with the blazes spreading into the city itself. Due to the recent large-scale forest fire, logistics delays are expected as major roads and transportation networks are blocked. In addition, the European Union (EU) supports firefighting personnel and equipment, but it will take time for the local situation to stabilize.

The company announced that if negotiations with the union are not concluded by August 22, they will lock out. Canadian National (CN) has officially requested government intervention as negotiations are not progressing, and Canadian Pacific Kansas City (CPKC) is renegotiating within the existing contract framework, eliminating the hourly wage system, which the union is most opposed to. Section 107 of the Canada Labour Code, Additional Powers, states that the minister can take measures to resolve disputes and differences of opinion in order to ensure the safety of the industry. CN has used this to request government intervention, and if the government intervenes, it can actively intervene, including ordering a return to work. If a return to work order is issued, the union must return to work immediately, and if they do not return, they can take strong measures, including freezing bank accounts.

The largest container port in Western Australia, Fremantle Port, is expected to face significant disruption due to a 48-hour strike from August 18 by members of the Australian Maritime Officers Union (WA branch). The strike, involving pilot boat operators and vessel traffic service officers, is in response to a prolonged pay dispute. It's understood that while stevedoring will be able to take place for vessels that are already in the harbor, no vessel will be able to come or go from the port while the key workers are not at their posts.

The International Longshore and Warehouse Union (ILWU) Canada balloted its members across ports in British Columbia on strike action over a dispute with DP World (Canada). The vote is believed to have been completed on August 9, but as of August 13, the results have not been reported. If the vote is in favor of a strike by union members, and the union announces a strike, it will take effect 72 hours after the strike. The CIRB and labor are continuing talks this week, and neither party has issued a 72-hour notice. This could impact major container gateways at the ports of Vancouver and Prince Rupert.

Freight railway workers belonging to the COBAS union will go on a nationwide three-day strike from August 19 00:00 to August 21 24:00. There is a high possibility that this strike will cause confusion in railway logistics throughout Italy.

Additional rallies and related confusion across Bangladesh are expected to continue until at least the end of August until the new interim government stabilizes. Student groups continue rallies calling for punishment of those responsible and release of detainees. Bangladesh Railway (BR) will resume its entire service from August 15, and domestic and international flights will be available at DAC in Dhaka and ZYL in Sylhet. Airlines such as Air India (AI), Vistara (VTI), and Indigo (6E) resume flights to Dhaka. However, other airlines may have minor flight interruptions such as delays and cancellations due to falling demand. Trade has resumed mostly on the border with India, but enhanced security measures may delay the movement of goods and people over land.

At around 12:30 am on August 11, a fire broke out at MSC CAPETOWN III, which was anchored at JCT Pier 4. The fire started in hatch area 41/43 and affected 100 containers below deck and 60 containers above deck, leading to explosion. The fire brigade successfully extinguished the fire, withdrew the damaged containers, and an investigation is underway to determine the cause of the fire and the status of the cargo.

As regional tensions rise, flights are expected to be suspended at Ben-Gurion International Airport (TLV) at least until the end of August. U.S. airlines, including Delta Airlines (DL), will suspend all flights to Israel at least until August 31, and United Airlines (UA) will announce an indefinite suspension. Lufthansa Group, including Lufthansa (LH), Swiss Airlines (LX), Brussels Airlines (SN), Austrian Airlines (OS), and Eurowings (EW), will suspend flights to TLV until August 21. Italy's ITA Airlines (AZ) will suspend flights to TLV until August 15, while Air India (AI) will cancel all flights to Israel until October 27. Some airlines, including Singapore Airlines (SQ), Taiwan's Eva Airlines (BR), and China Airlines (CI), have changed their flight routes to avoid Iranian, Israeli, and Lebanese airspace for security reasons.