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

The German Train Drivers' Union (GDL) has announced a strike from January 10 to January 12, escalating a wage dispute with Deutsche Bahn. Cargo drivers will start their strike on January 9. This follows a 24-hour strike and broken negotiations in November. GDL demands include a working hours reduction for shift workers from 38 to 35 hours weekly and a monthly wage increase of 555 euros.

Alaska Airlines canceled 170 flights on Sunday, affecting about 25,000 people due to a midair blowout on a Boeing 737 Max 9 the previous Friday. The incident led to further cancellations of 160 flights on Saturday, impacting 23,000 customers. The airline, awaiting further instructions from the Federal Aviation Administration and Boeing for inspections, anticipates additional significant cancellations in the coming days.

Shippers are confronting a substantial increase in ocean freight rates and an onslaught of new surcharges, significantly inflating their operational costs. CMA CGM has already announced a “rate restoration initiative” for the trade of $1,000 per 40ft from European ports to the US, Canada and Mexico from 21 January. Maersk told customers the PSS was necessary “due to the dynamic market situation causing disruptions on global networks”.

A severe winter storm in New Jersey has resulted in widespread power outages, impacting thousands of residents. As of 9 30 p.m. of January 7, more than 6,300 customers were without power statewide. The quick hitting winter storm is expected to bring up 6 to 12 inches of snow several northern New Jersey counties. The state is providing live updates through a power outage tracker to help residents stay informed about the restoration efforts and current situation.

Labor unions representing airport workers are scheduled to go on strike 24 hours a day on January 8. The labor union is demanding better wages and working conditions, and it is expected to affect airport ground services and security operations. Airports where strikes are held : Florence (FLR), Milan Linate (LIN), Milan Malpensa (MXP), Rome Fiumicino (FCO), Treviso (TSF), Venice (VCE)

A snowstorm is impacting 'the interior mid Atlantic and much of New England' Sunday, causing travel disruptions. About 715 U.S. flights have been canceled and 1,519 delayed passengers may be entitled to compensation or a refund for canceled or delayed flights. Airlines are legally bound to provide refunds for cancellations or rebooking options for controllable delays get ready for snow.

The Indira Gandhi International Airport in Delhi faced disruptions in flight operations due to low visibility caused by dense fog. Delhi has been experiencing cold day' conditions for the past few days with the minimum temperature settling at 9.4 degrees Celsius on Friday. There are anticipated disruptions to multiple flights in Chandigarh, Amritsar, Jaipur, Lucknow, Varanasi, and Jammu.

During the second day of Iberia's strike, 16.5% of flights were monitored, and despite the labor unrest, 80% of the planes managed to depart on time. The situation reflects the airline's efforts to maintain operations amidst ongoing disputes. It details that the suitcases that could not be loaded last Friday morning on the flights Bilbao, they traveled by road in the afternoon. And for the luggage of Barcelona, they did same so on subsequent flights and the majority are also regularized and heading to their final destinations.

Liberia flagged bulk carrier was boarded yesterday by armed individuals while underway in waters 460 nautical miles off Somalia. Details of the name of the ship have yet to be revealed. The ship was carrying a cargo of around $300,000. It was the first time a Liberian flagged bulk vessel had been boarded by an armed individual in over a month. A number of ships have been hijacked in recent months.

Thousands of flights in France are expected to be canceled over the coming weeks due to ongoing strikes by air traffic controllers and staff shortages. Airports Roissy Charles de Gaulle, Orly, Le Bourget, and Paris Beauvais will all be affected. In total, approximately 16,500 flights are expected to be cancelled, with 4,379 of them pertaining to Air France. Some airlines indicated passengers would be automatically transferred onto a different, similar flight.