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

The European Union recommends that EU airlines not operate in the airspace of Iran, Israel, and Lebanon. This recommendation is valid until October 31, but can be revised earlier if the situation changes. Air flights are suspended or restricted in several countries, including Israel, Iran, and Lebanon. In particular, all foreign airlines have been suspended at Beirut International Airport (BEY), and only Middle East Airlines, Lebanon's state-run airline, continues to operate limited flights. In the case of Israel, most airlines have been suspended until the end of this month, and if further clashes occur, the resumption of aircraft operations is likely to be delayed further.

On October 3, two cargo ships, AYED 1 and BUNUN ACE, collided in Turkey's Bosphorus Strait near the Üsküdar coast. The ships made contact in a "scraping manner," causing significant damage but no casualties or environmental harm. Both vessels were towed to the Ahirkapi Anchorage Area for inspection, and quick actions by the pilot and Coast Guard prevented further escalation. The collision briefly threatened a nearby passenger boat, but no further incidents occurred. The investigation into the event is ongoing.

On October 4, independent truck drivers protested outside the Port of New Orleans. The protest, involving about 120 drivers, highlighted frustrations over working conditions, payment structures, and new regulations impacting independent contractors. Drivers demanded better treatment, including fairer wages and improved working conditions. The protest coincided with ongoing disruptions caused by a separate strike from longshoremen, intensifying the already challenging situation at the port. More drivers are expected to join if their demands aren't addressed.

On October 5, several IndiGo flights at Vijayawada International Airport experienced delays due to a system outage. The delays, averaging about an hour, impacted flights to major destinations like Hyderabad, Bengaluru, Chennai, and Shirdi. The airport continues to manage flight arrivals and departures while addressing the technical issues causing the disruption.

A fire broke out on the BSC oil tanker Banglar Shourabh in a highly suspicious manner. The fire ignited in a Z-shape at multiple points on the ship's deck shortly after the ship had completed lightering operations near Chittagong port. Crew members reported seeing a speedboat near the ship moments before the fire. While the crew successfully evacuated, the incident raised concerns about potential sabotage. The fire did not reach the ship's oil tanks, preventing a larger catastrophe.

Typhoon Krathon, which hit Taiwan in early October, caused significant disruptions, particularly affecting the port city of Kaohsiung. The storm, equivalent to a Category 4 hurricane, led to the closure of key ports, halting manufacturing activities and impacting Taiwan’s export-driven economy. Industries such as petrochemicals and electronics, including TSMC, experienced temporary disruptions. The aftermath poses challenges to Taiwan's trade flow, global supply chains, and agricultural sector, with recovery efforts now focused on restoring normal operations.

As of October 3, serious flight disruptions continue at Ben-Gurion Airport (TLV) in Tel Aviv amid military clashes between Israel and Lebanon's Hezbollah (LH)/Iran. Most arrival and departure flights have been delayed, rerouted, or canceled, but the reason for the suspension of flights has not yet been disclosed.

Dubai-based carriers Emirates (EK) and Flydubai (FZ) announced on October 3 that all flights to and from Iran, Iraq, and Jordan would be suspended until at least October 5. The move comes amid increased tensions between Israel, Iran, and the Lebanese Hizballah (LH) and major exchanges of cross-border fire between the sides.

On October 1, an indefinite strike by the International Association of Port Workers (ILA) began at 14 ports across the eastern United States and the Gulf of Mexico, but the strike is currently terminated by extension until January 15 of the main contract. Significant terminal and gate congestion are expected once operations resume, with estimating a recovery period of 5-7 days to clear the backlog caused by each day of strike action.

The container ship ONE HAMMERSMITH experienced an engine failure on the afternoon of September 27 while traveling from Singapore to Rotterdam. The engine failure occurred as the vessel was traveling through the Ushant Traffic Separation Scheme. After discussions with the Atlantic Maritime Prefect, On the evening of September 27, the tug Abeille Bourbon had the vessel in tow and arrived at Douarnenez Bay on the morning of September 28. The ONE HAMMERSMITH remains anchored and is to resume its journey to Rotterdam as soon as possible following repairs.