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

The Canada Industrial Relations Board ordered the cessation of work stoppages at Canadian National Railway and Canadian Pacific Kansas City, following government intervention. The decision halts strikes and lockouts that could have severely impacted Canada's economy. The Teamsters union, representing over 9,000 workers, criticized the ruling as undermining workers' rights and plans to appeal. Railway operations are expected to resume, though full recovery may take weeks.

Due to major cross-border conflicts between Israel and Hezbollah, several airlines canceled flights and temporarily suspended operations on August 25. Flights are expected to be suspended for the next few days at Beirut-Rafik Hariri International Airport (BEY). Air France (AF) canceled flights on August 25 and 26 and Royal Jordanian Airlines (RJ) and Etihad Airways (EY) also canceled some flights to Beirut on August 25. Lufthansa (LH) issued a statement on August 23 that it would extend the suspension of flights to Beirut until September. The Lebanese Civil Aviation Authority denied media reports that all flights were canceled at BEY on August 25.

Ben Gurion International Airport (TLV) is likely to continue to suspend flights by airlines at least until the end of September amid continued tensions. Airlines that have suspended flights as of August 25 are Air India (AI), American Airlines (AA), Brussels Airlines (SN), Delta (DL), Lufthansa (LH), Ryanair (France), and United Airlines (UA). The suspension period varies from days to months and airlines can temporarily suspend flights to Tel Aviv depending on the situation.

The Maritime Workers Union of Nigeria (MWUN) has announced its intent to fully support and comply with the Nigeria Labour Congress (NLC) directive to mobilize for an indefinite nationwide strike. This move follows an Emergency National Executive Council (NEC) meeting of the NLC, which responded to what it describes as orchestrated attacks on the labor movement by the Nigeria Police Force (NPF). The strike is a protest against the police's investigation into NLC President Joe Ajaero, who faces serious allegations including terrorism financing and treason. The maritime workers have been instructed to prepare for immediate action, with the strike set to begin at midnight. This industrial action is expected to significantly disrupt the maritime sector and other related industries across Nigeria.

Six labor unions representing employees at 12 large ports in India have warned of an indefinite strike since August 28, after demands for wages, benefits and pensions were not met. The existing contract between the union and the employer expired on December 2021, despite seven rounds of negotiations, no agreement has been reached so far. On August 21, the Indian Port Association proposed a revised contract to avoid a strike and urged the withdrawal of the strike.

Heathrow Airport is experiencing significant flight delays and cancellations due to an air traffic control issue. Storm Lilian brought up to 80mph winds to the UK this weekend. Flights to Barcelona, Rome and Paris cancelled, and others to Nice and Crete. The situation is being closely monitored, and updates will be provided as the situation develops.

The volcano near the town of Grindavik in southwest Iceland has erupted. There had been several weeks of increased seismic activity in the region and the volcano has now erupted again, marking the sixth eruption since December. Despite the volcanic activity, flights in and out of Iceland have not been significantly impacted. Authorities are monitoring the situation closely. The region has experienced increased seismic activity, leading to the eruption, but the nearby town of Grindavik has so far been spared from major damage.

According to Fremantle Ports, the previous strike’s impact was largely mitigated, thanks to planning and collaboration between Fremantle Ports and its stakeholders but Fremantle Ports is facing potential further disruptions due to a 48-hour strike starting on August 25, involving Vessel Traffic Services and Small Craft personnel. Fremantle Ports is currently engaged in negotiations to avoid additional industrial action.

The Panama Canal Authority has increased the maximum authorized draught for neopanamax vessels to 15.24m (50ft) due to rising water levels in Gatun Lake. Additionally, starting from September 1, 2024, the daily booking slots will increase to 36, with 10 slots reserved for neopanamax vessels, 20 slots for super vessels, and 6 slots for regular vessels.

Severe weather led to over 730 flight cancellations and ground stops at major airports, including Newark, LaGuardia, and JFK. The disruptions affected thousands of passengers as thunderstorms and heavy rain caused delays across the northeastern United States. Travelers were advised to check with airlines for updates as the weather conditions continued to impact flight schedules.