Weekly Logistics Briefing Key logistics updates for the week (Week 1 of April 2024)

MSC noticed that service will not resume for weeks, if not months. Similar measures are being taken with CMA CGM, which announced that cargo from Europe will be diverted to New York. Most ships departing from Asia are also bypassing cargo to New York and Norfolk. Maersk is trying to find a solution and announces that it will quickly inform you of changes to cargo bound for Baltimore now and in the future. CMA-CGM reported that the route can be changed at the customer's expense, and Norfolk or New York is recommended. Bloomberg reported that the Baltimore route is expected to reopen in about six weeks, sometime in May.

The Red Sea crisis and the higher freight and charter rates are discouraging owners from scrapping older boxships. January saw 13 container ships of nearly 22,000 TEUs being torched, scrapping has slowed. Just three boxships were recycled in February and so far in March, just two container vessels have been broken down. A Drewry official said, “As long as the Red Sea crisis persists, the incentive to scrap older ships will be considerably lower than it would have been. The situation has boosted freight rates, time-charter and second-hand valuations so the motivation to demolish simply isn’t there". Drewry thinks that will change shortly after the resumption of Suez crossings, because the market will be even more exposed to the structural overcapacity, but the timing is very hard to predict.

Finland's major labor unions found talks with the government to be useless, it announced the extension of the strike, which is crippling the nation's cargo operations. The AKT transportation union announced that the strike will be extended until April 8 and will continue until the requirements are met. The union opposes the government's move to allow localized and individual labor contracts. Finnish Industrial Association, Automobile and Transportation Labor Union AKT, Service Labor Union PAM, Construction Labor Union, Public and Welfare Labor Union JHL, and Electric Labor Union are participating in the strike. Finland is currently suspending loading and unloading services for more than a month. Maersk announced, "All port operations have been suspended, and we are closely monitoring the situation".

Italian port labor unions are scheduled to go on strike across Italy from April 3 to April 5. Purpose of strike is to demand for salary increase and improvement of working conditions. The exact time of the strike is not known, but workers plan to go on strike for two hours per shift or strike 24 hours a day during that period. Ports will experience sporadic interruptions from April 3 to April 4, and there is a high possibility of a bigger strike on April 5. Genoa port is scheduled to strike 24 hours a day on April 5.

Ferries cancelled as the UK endured 80mph gusts, snow, hail and thunder. Met Office extended a 17 hour wind warning to cover the whole of the south coast from Cornwall to Kent and up to Suffolk with strong gusts until midnight. Two million British holidaymakers are set to jet off abroad over the Easter weekend. Manchester Airport bracing for a record breaking passenger total. Port of Dover warned those catching a ferry that sea conditions in the English Channel were rough with a strong south easterly breeze.

Customs officers belonging to the labor union are scheduled to strike throughout Greece from April 2 00:01 to April 3 23:59. Purpose of the strike is to remove of labor regulations including regulations related to shift work. The union also plans a second strike from April 8 to April 12. There is a possibility of suspension of customs clearance service during the strike period.

Karachi Airport has been experiencing a significant number of flight cancellations, with over a dozen flights from various airlines being canceled due to decreased passenger loads during Ramazan. The cancellations include both domestic and international routes, impacting flights bound for cities like Multan, Lahore, Islamabad, and Peshawar, as well as an international flight to Dubai. The industry sources attribute this trend to the observance of Ramazan, which has led to a decrease in the number of passengers traveling

Platform management service (SDP) employees at Madrid's Baharas Airport (MAD) will go on strike for two days on March 27 and March 29, demanding better working conditions and higher salaries. The union claims the strike could disrupt up to 2,000 flights. The strike period is 3/27, 3/29, but 3/28 is added considering the aftermath of the strike.

An IndiGo aircraft collided with a stationary Air India Express plane at Kolkata airport, leading to a probe by the Directorate General of Civil Aviation (DGCA). The incident occurred early in the morning, and the pilots involved have been temporarily suspended. Air India Express apologized for the inconvenience caused to passengers. In the past few months, several airlines have been fined or probed for complacency in safety and security measures.

A flight from Invercargill to Wellington experienced a delay of over five hours due to a bird strike that occurred the previous night. The incident led to the aircraft undergoing an engineering check the following morning before it was cleared for departure at 11:31 am. Air New Zealand has issued an apology to its customers for the inconvenience caused by this delay.