East China Sea container traffic facing delays, port congestion after typhoon

Container shipping services in the East China Sea are facing ongoing disruption amid port congestion and vessel delays from the impact of Typhoon Kong-rey, which hit Taiwan late last week before moving northward to affect eastern China and Japan.

Kaohsiung, Taiwan’s busiest container port, is experiencing berthing delays of up to two days after the port was closed as the storm, Taiwan’s fiercest typhoon in almost 30 years, traversed the southern part of the island on Oct. 31 and Nov. 1.

Ships docking at Taiwan’s container ports, including Taipei and Keelung, are still facing waits of between two and three days, shipping executives said.

The major Chinese ports of Shanghai and Ningbo are currently experiencing delays of a similar length due to the lingering impact of the typhoon. Terminals in both cities suspended operations Friday afternoon ahead of the storm’s arrival, with cargo handling gradually resuming later in the weekend, port officials said.

Kuehne + Nagel said congestion at Shanghai is gradually easing, while bad weather, including dense fog, is also affecting operations at Qingdao, the forwarder said.

Carrier Ocean Network Express (ONE) said Kong-rey is delaying vessels deployed on various trades, including its Japan-Thailand-Vietnam and Taiwan-Philippines shuttle services. ONE’s vessel schedules show the storm added four days to the normal eight-day transit between Yokohama and Laem Chabang in Thailand for the 2,858-TEU ACX Crystal operating its JTV service. There was an additional one-day delay to Cai Map port near Ho Chi Minh City in Vietnam due to port congestion.

The 1,096-TEU Contship Era, operating ONE’s TWP2 shuttle service, was delayed five days in Kaohsiung and only departed the port Tuesday for Cebu in the Philippines.

ONE said Tuesday that ships operating Asia-Europe services are still affected by delays caused by typhoons Bebinca and Pulasan, which hit Asia in September. The two storms are partly responsible for lengthening transit times by about 10 to 13 days.

Source:

Wallis, K. (2024, November 5). East China Sea container traffic facing delays, port congestion after Typhoon. Journal of Commerce. https://www.joc.com/article/east-china-sea-container-traffic-facing-delays-port-congestion-after-typhoon-5786653

BC container ports set for shutdown after foremen begin strike

British Columbia’s container ports are set for an indefinite shut down this week as maritime employers planned to lock out longshore foremen after they began a strike Monday. While the lockout would not technically affect other longshore workers, uncertainty about the job actions taken by the foremen’s union will force marine terminals to shutter.

The British Columbia Maritime Employers Association (BCMEA) said in a statement Monday that the International Longshore and Warehouse Union (ILWU) 514, representing about 730 longshore foremen, began its strike Monday morning at ports across the province. In response, the BCMEA said it would begin a lockout of Local 514 members with Monday’s evening shift and “continuing until further notice.”

Canadian labor law requires that employers see strike activity commence before issuing a formal lockout notice. That strike activity could take the form of an actual picket, a refusal to work an overtime shift, or similar job actions.

Canada’s Labor Minister Steve MacKinnon said in a statement Saturday that while federal mediators are available, “it is the responsibility of the parties to reach an agreement.”

The Vancouver Fraser Port Authority said that it expects disruptions at the Port of Vancouver beginning Monday. Vancouver is Canada’s largest container port.

The vessel impact appears limited so far as only one ship, the 12,726-TEU YM Target, is currently at berth in Vancouver, according to Sea-web a sister product of the Journal of Commerce within S&P Global. The 4,250-TEU Cosco Auckland is currently at berth at the Port of Prince Rupert, which would also be affected by a work stoppage. No container ships are sitting at Vancouver’s anchorages due to inclement weather in the region.

At least seven container ships are scheduled to call Vancouver through mid-November, Sea-web data shows. Three are expected to call Prince Rupert.

Canadian Pacific-Kansas City railroad said in a schedule update Monday that it’s no longer accepting export cargo for Vancouver due to the strike.

Union ‘extremely angry’ about lockout

Local 514 said in a statement last week that its members are “extremely angry” that the BCMEA planned to lock out its members. The union said its members were only planning to refuse overtime work or to implement new technology at the port, rather than a full-blown walkout. The union alleged the lockout is an “attempt to force the federal government to intervene in the dispute.”

But the BCMEA said in a Saturday statement that the lockout was a necessary precaution. Canadian labor law allows unions to change from one type of job action to another, creating a risk for a full-blown walkout, BCMEA said. Due to the heavy reliance on overtime shifts for cargo handling, a refusal to work overtime would severely disrupt port operations anyway, and terminals won’t request longshore labor without union supervision.

“Once a union commences strike action, the Canada Labor Code has no restrictions on the union subsequently changing the nature of its strike,” the BCMEA said in Saturday’s statement. “For example, a strike may start as an overtime ban and escalate — in minutes, hours or days — to a full-scale strike action without notice, where all workers walk off the job. This potential creates tremendous uncertainty and significant operational and safety challenges for operators.”

Local 514 has been working without a collective bargaining agreement since March 2023. The BCMEA is offering longshore foremen a 19.2% raise over four years, similar to the pay raise accepted by other ILWU longshore workers in Canada.

Source:

Angell, M. (2024f, November 4). BC container ports set for shutdown after foremen begin strike. Journal of Commerce. https://www.joc.com/article/bc-container-ports-set-for-shutdown-after-foremen-begin-strike-5785499

Montreal warns of vessel diversions as strike against MSC terminals begins

The Port of Montreal is warning that shippers may face diverted cargoes as an indefinite strike began Thursday at two marine terminals handling Mediterranean Shipping Co. container services, with over two dozen vessels facing an impact depending on the length of the current work stoppage.

The Viau and Maisonneuve marine terminals operated by Termont International closed to ship, rail and truck traffic Thursday morning as members of the Canadian Union of Public Employees (CUPE) Local 375, which represents 1,200 dockworkers at Montreal, walked off the job.

Montreal Port Authority (MPA) Chief Executive Julie Gascon said in a statement Thursday that the shutdown “undermines the reliability and image of our logistics sector.” The open-ended strike follows a three-day, port-wide work stoppage at the start of October, a boycott of overtime work and another port-wide strike this past Sunday.

“This new work stoppage at the Viau and Maisonneuve terminals, at the very hub of our supply chain, can only have a deeply negative impact on thousands of local businesses, as well as on the economy of Quebec and Canada as a whole,” Gascon said. Montreal’s two other international container terminals remain open.

The strike at the two terminals will idle more than 1 million TEUs of Montreal’s total 2.3 million TEUs in terminal capacity.

The MPA said five ships with combined capacity of 18,000 TEUs are currently headed for the two terminals, with those ships carrying time-sensitive pharmaceutical and medical goods. Refrigerated containers holding such goods are already backlogged at the port due to the earlier labor actions, the MPA said, adding that some scheduled outbound rail service has been canceled due to the backlog.

Over the next three weeks, 26 ships are scheduled to call the two terminals, with the MPA saying that vessels “could change their port of destination” due to the strike.

“It is imperative that the parties reach an agreement,” Gascon said. “The need to reach an agreement quickly is acute and cannot be ignored.”

MSC, whose terminal arm jointly owns and operates Termont International, said in a customer advisory Wednesday that it is “working to minimize disruptions to our customers’ supply chains” and that “vessel impacts will be communicated as available and relevant.”

The Maritime Employers Association (MEA), which represents Montreal’s terminals and stevedores, said Thursday it “deplores” the strike. The MEA and Local 375 have been in protracted negotiations for a new collective bargaining agreement since the last one expired at the end of 2023.

The MEA said in its statement that Local 375 has made a demand to change work hours without formal negotiations. It said that “schedules used on the different docks … called into question by the union in recent days, are enshrined in the collective agreement in force and cannot be used as a bargaining chip for a strike targeting a single operator, as is the case today.”

The CUPE did not respond to a request for comment.

Source:

Angell, M. (2024, October 31). Montreal warns of vessel diversions as strike against MSC Terminals Begins. Journal of Commerce. https://www.joc.com/article/montreal-warns-of-vessel-diversions-as-strike-against-msc-terminals-begins-5783311

Montreal dockworkers target MSC’s terminals for strike this week

Two marine terminals handling Mediterranean Shipping Co.’s Montreal container services face a work stoppage starting this week after longshore workers there voted to authorize an indefinite strike targeting nearly half of the port’s container capacity.

Termont International said Monday that Local 375 of the Canadian Union of Public Employees (CUPE) notified it that an “unlimited strike” will occur at Montreal’s Maisonneuve and Viau terminals starting Thursday at 11 AM local time.

The terminal operator urged shippers with cargo at both terminals to schedule pickups by Wednesday evening.

The strike at the two terminals will idle more than 1 million TEUs of Montreal’s total 2.3 million TEUs in terminal capacity. The port’s two other international container terminals, Racine and Cast, won’t be affected by the work stoppage.

Termont, a joint venture between MSC’s Terminal Investment Limited, SSA Marine and Canadian stevedore Logistec, primarily handles MSC’s trans-Atlantic and north-south services into Montreal. The services include the Montreal Express 1 from Italy, the Med Canadian service and the Canada Gulf Bridge service that spans Mexico and US Gulf ports.

MSC’s current schedule shows at least four of its ships — Anya, Celine, Nahara and England — scheduled to arrive at the Termont terminals by the end of the week. Another two ships in MSC services — Levina III and OOCL St. Lawrence — are scheduled to arrive at Montreal’s other terminals.

Local 375’s latest labor action represents a further escalation of pressure tactics against the Maritime Employers Association (MEA), which has yet to agree on a new contract covering the port’s 1,200 longshore workers. Local 375 also started an ongoing boycott of overtime work at the port and held a three-day work stoppage at the Viau and Maisonneuve terminals at the start of October. This past Sunday, Local 375 conducted a one-day, port-wide strike at Montreal.

Source:

Angell, M. (2024d, October 29). Montreal dockworkers target MSC’s terminals for strike this week. Journal of Commerce. https://www.joc.com/article/montreal-dockworkers-target-mscs-terminals-for-strike-this-week-5781453

ILA, USMX said to resume talks on new master contract in November

The International Longshoremen’s Association (ILA) and maritime employers along the US East and Gulf coasts said Friday they will resume negotiations in November on the remaining terms of a new master contract following a tentative wage deal that ended a three-day dockworkers strike earlier this month.

The ILA and the United States Maritime Alliance (USMX) said in a joint statement talks will take place in New Jersey next month on a six-year master contract. After settling on a wage offer on Oct. 3 that would increase longshore pay 62%, the two sides agreed to a contract extension until Jan. 15 to negotiate other outstanding issues.

“The ILA and USMX welcome the opportunity to return to the bargaining table and get a new agreement in place as soon as possible,” the two sides said in the statement, adding that no further details about the negotiations will be available prior to those meetings.

The biggest remaining issue has to do with contractual language around the use of marine terminal automation and new technology. Under the previous master contract that expired at the end of September, the ILA and USMX allowed marine terminals to implement semi-automated equipment provided that both the union and terminal agreed on staffing. But it completely barred the development of fully automated terminals.

The ILA has struck a more hardline tone during this bargaining cycle, calling for a ban on the use of any type of automation.

“The ILA is steadfastly against any form of automation — full or semi — that replaces jobs or historical work functions,” the union said in an Oct. 1 statement, the day its members walked off the job. “We will not accept the loss of work and livelihood for our members due to automation.”

Source:

Angell, M. (2024c, October 25). Ila, USMX said to resume talks on new master contract in November. Journal of Commerce. https://www.joc.com/article/ila-usmx-said-to-resume-talks-on-new-master-contract-in-november-5778794

Montreal says congestion risk grows as dockworkers refuse overtime

The Port of Montreal is warning shippers about the risk of delays and a growing container backlog due to dockworkers refusing overtime work. The port’s warning comes as Canada’s labor minister suggested a further cooling off period in hopes that a new mediator will help resolve the long standoff between Montreal’s longshore union and maritime employers.

The Montreal Port Authority (MPA) said the refusal by Local 375 of the Canadian Union of Public Employees (CUPE) to work overtime “could result in processing delays and a backlog of containers waiting to be handled” at the port. The port said in a statement Wednesday the delays would hit Montreal’s four main terminals for international container services, along with other related facilities.

The port said that up to 10 vessels expected to arrive at the port could face delays due to the overtime strike. Liquid bulk, grain handling and short-sea container service remain unaffected.

“The Montreal Port Authority remains concerned about the impact of pressure tactics on the logistics chain and on the supply of goods and commodities for businesses and the public,” the MPA said. “Our teams are actively working to minimize the impact of disruptions and ensure the smooth running of port activities.”

Local 375’s overtime strike stems from the latest hurdle in contract negotiations between the union and the Maritime Employers Association (MEA) over work scheduling. Along with the overtime strike, Montreal dockworkers hit two of Montreal’s busiest container terminals with a three-day work stoppage two weeks ago.

The union’s 1,200 members at Montreal have been without a contract since the end of 2023 despite federal mediators overseeing those talks since December.

The MEA said Wednesday that in a recent meeting with employers and the union, Canada’s Labor Minister Steve MacKinnon proposed that a “special mediator” be appointed, “so the parties can resume negotiations, without any pressure tactic from either party, for a period of 90 days.”

The MEA said it was considering MacKinnon’s proposal, with a response from employers and the union expected by Friday.

Source:

Angell, M. (2024b, October 17). Montreal says congestion risk grows as dockworkers refuse overtime. Journal of Commerce. https://www.joc.com/article/montreal-says-congestion-risk-grows-as-dockworkers-refuse-overtime-5751118

Premier Alliance enhances network ahead of February launch

The Premier Alliance is upgrading a raft of its proposed services just weeks after announcing its trade network ahead of its February 2025 launch.

The group, comprising Ocean Network Express (ONE), HMM and Yang Ming Marine Transport, said the changes apply to two trans-Pacific services and an Asia-Mediterranean service.

The Premier partnership will replace THE Alliance when Hapag-Lloyd leaves to join Maersk in the Gemini Cooperation.

The biggest change to the original Premier network is its decision to split the Pacific North 3 loop linking Asia with the Pacific Northwest into two distinct services, PN3 and PN4. “This enhancement aims to provide faster transit times and improve schedule integrity and reliability,” ONE said in a customer advisory on Wednesday.

The alterations reduce the number of eastbound port calls to four for each service compared with six calls in the original PN3 schedule.

“Separation into two services will improve the transit times from the Chinese ports, especially from Qingdao,” Lars Jensen, CEO of Vespucci Maritime and a Journal of Commerce analyst, said in a LinkedIn post Thursday.

The revised PN3 rotation is Qingdao, Busan, Vancouver, Tacoma, Busan and Qingdao with a 15-day transit between Qingdao and Vancouver and 11 days from Busan to Vancouver. The rotation of the new PN4 service is Ningbo, Shanghai, Vancouver, Tacoma and Ningbo with 16 days from Ningbo to Vancouver and a 12-day journey between Shanghai and Vancouver.

The final upgrade is Premier’s move to add Jacksonville to its trans-Pacific East Coast North America 2 (EC2) service. The revised rotation is Xiamen, Yantian, Ningbo, Shanghai, Busan, Manzanillo (Panama), Savannah, Charleston, Jacksonville, Manzanillo, Busan and Xiamen.

Details please refer to the JOC news.

Source:

Wallis, K. (2024, October 17). Premier alliance enhances network ahead of February launch. Journal of Commerce. https://www.joc.com/article/premier-alliance-enhances-network-ahead-of-february-launch-5751123

Maersk rules out Suez Canal routings for Gemini launch

Cargo owners’ need to plan Asia-Europe shipments for next year was behind Maersk and Hapag-Lloyd discarding the Suez Canal as an option when their new Gemini Cooperation network launches on Feb. 1 next year.

In the clearest signal yet that the carriers do not anticipate a return to Red Sea transits next year, and with shippers already preparing their 2025 contracts, Gemini decided to jettison the shorter route from its network and commit to the longer transit around southern Africa.

When the Suez routings are deemed safe from Houthi rebel attacks, the shift by ocean carriers will bring ‘havoc’ to container shipping schedules, said Maersk CCO Karsten Kildahl. Until then, Maersk customers needed lead time certainty so they can plan operations.

“The nightmare operation when the canal closed is nothing compared to what it is going to look like when it opens again,” Kildahl told reporters Wednesday at the naming ceremony of the dual-fuel Alexandra Maersk in Felixstowe.

“We will have several weeks of something that will look like an operational meltdown. It is not going to be smooth.”

When Gemini unveiled its updated network in September, the alliance offered Asia-Europe shippers alternative routings via the Cape of Good Hope and the Suez Canal. However, Maersk told customers in an advisory this week that the Red Sea situation remained “highly dynamic” and that Maersk and Hapag-Lloyd would only return to the route “when it is safe to do so.”

”The reality is that there are still attacks in the Red Sea and it is unsafe to be there. We have seen in the past that it looked safe, and carriers tried to go through, but it wasn’t safe and had to be undone again. You can’t just flip flop,” he said.

Details please refer to JOC news.

Source:

Knowler, G. (2024, October 10). Maersk rules out Suez Canal routings for Gemini Launch. Journal of Commerce. https://www.joc.com/article/maersk-rules-out-suez-canal-routings-for-gemini-launch-5746470

Montreal dockworkers to refuse overtime in latest salvo against port employers

Dockworkers at the Port of Montreal will reject requests to work overtime beginning Thursday, part of the longshore union’s latest pressure campaign against management during the protracted negotiations for a new contract. The overtime strike will likely add to the ongoing productivity slump at Montreal following last week’s partial strike.

Local 375 of the Canadian Union of Public Employees (CUPE) said in a statement Monday that its members will refuse to work overtime starting Thursday for an indefinite period. Union representative Michel Murray said in the statement the overtime strike stems from a current roadblock in contract talks with Montreal’s Maritime Employers Association (MEA) over worker scheduling, among other issues.

“We’re willing to get down to intensive negotiations, but since the employer is dragging their feet, we’re turning up the pressure so that they can put forth the energy needed to find a solution,” Murray said.

Local 375 has been working without a new collective bargaining agreement since the end of 2023. The union and the MEA have been holding talks for a new contract under the auspices of Canada’s Federal Mediation and Conciliation Service.

The MEA said in a statement that Local 375’s decision to refuse overtime work “has a significant impact on deployed crews and the tasks required for operations.” It formally asked the union to withdraw the move, calling it a “pressure tactic” during negotiations.

Due to absenteeism, sick leave or cargo volumes, longshore work crews frequently need to be filled out with employees who will work an extra shift. It is particularly critical for specialized trades such as crane or equipment operators, who are necessary for an entire crew to work.

Now that overtime will be refused, the MEA said that “employees assigned to shifts with incomplete crews will not be paid.” The organization said that incomplete crews would adversely affect vessel productivity.

“This measure is necessary considering that incomplete shifts will cause imminent slowdowns or even halt operations at the port,” the MEA said. “The MEA reiterates its willingness to continue negotiations.”

‘Climate of uncertainty’

Local 375’s latest move follows a three-day strike its members staged last week against two of Montreal’s largest marine terminals, Viau and Maisonneuve, knocking out about 40% of the port’s container capacity.

One day into that strike, the Montreal Port Authority (MPA) said time-sensitive cargoes such as food, pharmaceuticals and medical products started backing up at the closed terminals. The MPA said the three-day strike caused five ships to back up outside of the port and delayed the handling of some 11,549 TEUs, approximately equivalent to 6,240 full-size containers.

MPA Chief Executive Julie Gascon said the stalled negotiations and resulting labor actions have created a “climate of uncertainty” for shippers using Montreal and that it will have “long-term impacts” on the port’s activity.

“Supply chain reliability is at the heart of port users’ business decisions, and that’s why I’m calling on both parties to return to the table and reassure the thousands of companies that rely on our services to export and import goods crucial to their operations,” Gascon said.

Source:

Angell, M. (2024, October 8). Montreal dockworkers to refuse overtime in latest salvo against Port Employers. Journal of Commerce. https://www.joc.com/article/montreal-dockworkers-to-refuse-overtime-in-latest-salvo-against-port-employers-5745362

ILA, USMX agree on new wage offer and contract extension that reopens ports

Maritime employers and the International Longshoremen’s Association (ILA) have reached a tentative deal to reopen container terminals at East and Gulf Coast ports after trading new wage offers that would bring dockworker pay up over 60%. Longshore workers will work under a three-month contract extension until a formal deal is reached.

Official announcement of the breakthrough is expected Thursday evening, sources told the Journal of Commerce. The White House is scheduled to host a briefing Friday morning on the port strike. The ILA and United States Maritime Alliance (USMX), the employer group that represents ocean carrier and terminal operators in longshore contract negotiations, have yet to respond for a request for comment.

Ports are expected to reopen Friday.

Source:

Szakonyi, M., & Michael Angell, S. E. }. (2024, October 3). Ila, USMX agree on new wage offer and contract extension that reopens ports. Journal of Commerce. https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882