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

Forecast models of Typhoon Yagi indicate that the storm will make landfall over northern Hainan Province late September 6. The system is expected to weaken into a typhoon as it tracks west-northwestward over the Gulf of Tonkin late September 6 to early September 7 before making another landfall as a typhoon over Quang Ninh Province in northeastern Vietnam late September 7. Van Don (VDO), Cat Bi International (HPH), Noi Bai International (HAN), and Tho Xuan (THD) airports plan to suspend operations September 7. Authorities in Hai Phong have ordered all vessels to safely move to their anchorage locations by the afternoon of September 6.

Colombian truck drivers have launched a nationwide strike in protest of the government's decision to phase out fuel subsidies and increase diesel fuel prices. So far, 136 road closures have been reported, and cargo accumulation is beginning at key ports and airports. Major cities like Bogotá, Medellín, and Cali are facing concerns over potential shortages of food and fuel. The strike is expected to continue until negotiations between the government and transport unions reach an agreement.

The International Longshoremen’s Association (ILA), representing dockworkers on the East and Gulf coasts, is currently involved in intense negotiations with the U.S. Maritime Alliance (USMX), which represents port terminal operators. A major sticking point is the ILA’s demand for a 77% wage increase over the next six years, while USMX is offering a wage rise closer to the 32% secured by West Coast dockworkers earlier in 2023. Negotiations have stalled, and both sides have filed notices with the Federal Mediation and Conciliation Service (FMCS), but mediation has not yet been agreed upon. The ILA has started a two-day strike strategy session, beginning September 4, aimed at planning for potential action before the current contract expires on September 30. One critical issue causing tension is related to automation at the Port of Mobile, with the union insisting that local contracts be resolved before a nationwide master contract is signed. On August 30, the USMX posted an update, stating "While negotiations with many ILA Locals have continued to progress, despite repeated efforts and continued outreach, USMX has been unable to secure a meeting with the ILA to resume negotiations on a new Master Contract.

According to the latest British Columbia Maritime Employers Association (BCMEA) update, Local 514 of the International Longshore Warehouse Union (ILWU) has confirmed its intention to strike. International Longshore and Warehouse Union’s Ship and Dock Foremen Local 514 says in a statement that members voted 96 per cent “industry-wide” in favour of authorizing a strike. "At time of writing, neither Party has issued 72-hour notice of strike or lockout, nor have there been any labour disruptions. Regular cargo and passenger operations at British Columbia's ports continue uninterrupted ", said the BCMEA.

Railway workers belonging to the unions are scheduled to strike nationwide from 3 am on September 8 to 2 am on September 9. Train drivers and conductors affiliated with the USB Lavoro Privato and the PDM/PDB unions will participate in the action and major railway companies such as FS Group and Trenor Group (Trenitalia, Trenitalia Tipper, Trenord) are expected to be affected. The strike will likely impact local, regional, and national rail services, and residual traffic disruptions may occur in the hours after the strike is over.

Port workers affiliated with the Federation of Dutch Trade Unions plan to strike at the Port of Rotterdam from 22:00 September 7 to 02:00 September 8. Purpose of strike is to request for implementation of early retirement plan. Organizers of the strike urged to hold related protests next to the ECT Delta in Maasvlakte. It is expected to affect port operation including cargo operation and logistics management, and service interruption will continue for several hours even after work resumes.

Labour union ver.di has called for another round of warning strikes, starting with the first shift on Wednesday, September 4, at 7:00 and ending with the night shift on September 5, at 7:00 local time. No handling, including rail and truck movements, will occur at all HHLA terminals during the strike. It also expects dispatching to not start immediately after the end of the strike. Significant cargo and cargo operations delays are expected during and after the strike. Furthermore, demonstrations taking place outside could limit access to the port

The MSC Antonia reported 46 containers lost overboard and damage to 305 containers onboard. The MSC Antonia is the third ship since July to lose containers in rough waters due to stormy weather off while sailing around the southern Africa. According to a news released by the South African Maritime Safety Authority (SAMSA), the incident occurred near Port St. Johns in the Eastern Cape, on 28 August. After the incident, the ship sailed to Cape Town where it is currently docked for inspection and cargo load adjustments.

As of September 3, Cathay Pacific (CX) flight via Hong Kong International Airport (HKG) has been canceled. Cathay Pacific has grounded its fleet of Airbus A350 following the discovery of an engine component failure requiring repairs. Cathay Pacific expects all aircraft to resume normal operations by September 7, but there is a possibility that operations will be suspended by September 7.

From September 2 to 3, a severe storm is forecasted to impact the southeastern regions of Australia, particularly in Victoria and New South Wales. The storm is expected to bring strong winds, heavy rainfall, and lightning, with some areas at risk of flooding. More than 45 flights were canceled at Sydney Airport (SYD) September 2 due to strong winds.