World Maritime News
WMNF 19/09/2024
ILA’s October port strike in the US
Containers loaded today in Asia and bound for key gateways like New York will arrive after the October 1 deadline, when the International Longshoremen’s Association has vowed to strike if a new contract agreement isn’t reached. Data on US imports underscores the enormity of the potential disruption, which could occur just a month before the vote on the US presidency and could spawn massive ship queues reminiscent of the Covid era. East and Gulf coast ports account for half of total US imports measured in teu and more than half measured in cargo tonnes. A West Coast shutdown would have overwhelmingly impacted US imports from Asia but not other source regions. In contrast, a shutdown of East and Gulf Coast ports will affect not only Asian cargoes but also US imports from Europe and Latin America, with shippers having few options to reroute.
Read more: Lloyd’s List
Anxious White House weighing options as ILA contract deadline nears
US labor secretaries have been key to breaking deadlocks in longshore labor negotiations, including on the West Coast in 2015 and 2023. But this latest impasse, threatening a strike at East and Gulf Coast ports, forces the White House to walk a particularly precarious line: Don’t upset union voters ahead of a presidential election while protecting the economy and an image of responsible economic stewardship. The slowing but still expanding US economy — voters’ top election concern — can hardly afford labor disruption impacting $588 billion in annual trade, according to S&P Global Market Intelligence. Yet the White House can’t be seen not respecting the collective bargaining process or intervening before the International Longshoremen’s Association’s (ILA’s) contract expires at midnight on September 30. The ILA, which has yet to endorse a presidential candidate, has pledged to strike October 1. if a new contract isn’t reached.
Read more: JOC
Hutchison to offer shore power at two Rotterdam containership terminals
Hutchison Ports ECT Rotterdam will provide shore power at its Euromax and ECT Delta containership terminals for up to 5,000 vessels annually in 2030, aligning with the EU’s requirements for major ports in the region. The port authority said the move will reduce the port of Rotterdam’s CO2 emissions by 35,000 tonnes per annum. According to a press release, the companies expect the first vessels to connect to shore power by 2028. Rotterdam’s CO2 emissions totaled 22.6m tonnes in 2022.
Read more: Lloyd’s List
MSC sets out solo offer as alliances reconfigure
Mediterranean Shipping Co, the world’s largest container carrier, has announced it will independently operate its east-west network starting in February, as its 2M grouping with Maersk is set to disband. Meanwhile, MSC has also formed a slot exchange cooperation with the new Premier Alliance of smaller rivals — Ocean Network Express, HMM and Yang Ming — to increase exposure to Asia-Europe trade lanes. The three members of The Alliance, which are losing their largest partner, Hapag-Lloyd, early next year, have also responded to earlier concerns over insufficient scale by unveiling their new 2025 products.
Read more:Lloyd’s List
Maersk expects operational challenges to linger following Red Sea return
Shippers can expect at least three months of delays and disruption after carriers are finally given the green light for a Red Sea return, according to the world’s second-largest liner operator, Maersk. Speaking exclusively to Lloyd’s List, Johan Sigsgaard, chief product officer of the Danish carrier’s ocean business, said that while it is not clear what a Red Sea reopening would look like at this stage, it was clear that the process would not be as simple as flicking a switch and everything returning as it once was. The issue confronting Maersk and its fellow carriers will be that the first vessels heading back through the Suez will quickly overtake those still taking the longer route around Africa. The result will effectively see double the amount of ships arriving in Europe simultaneously, with the potential to overwhelm ports and landside infrastructure.
Read more: Lloyd’s List
Supply chains now face regular periodic shocks, says AP Moller Maersk risk chief
NotPetya, coronavirus, the grounding of Ever Given, the Ukraine situation and the Houthi campaign against shipping are some things that can (and do) go wrong. The long period of supply chain stability that was characteristic before the global financial crisis has been replaced by an era of regular periodic shocks, the head of risk at AP Moller Maersk has told a major marine insurance event. He described how the supply chain had evolved throughout his career to become fragmented, transactional and risky, as he now described it.
Read more: Lloyd’s List
Tale of woe for ocean container shippers going from bad to worse
The pandemic has significantly altered supply chains and the industry, with ongoing uncertainty expected. The pandemic disrupted the assumption that supply chains are cost-effective and consistent, revealing their inherent risks. Post-pandemic, the industry remains in a state of perpetual upheaval, with the next disruptive event being unpredictable regarding source, severity, onset, and duration. Carriers have changed their behavior post-pandemic, moving away from over-ordering tonnage and aggressively competing for cargo. Industry consolidation and alliances have led to the top 10 carriers controlling over 84% of global capacity, reducing the relative importance of individual customers. The relationship between shippers and carriers has always been tense, but trust and strategic partnerships became rare post-pandemic. Carriers found that shippers’ loyalty is rare. Shippers, struggling with supply chain shocks and cost control, face additional challenges from carrier behavior.
Read more: JOC