Here are the latest update for logistic issues around the world:
- Indian Port Workers May Strike Indefinitely
Indian port workers may strike indefinitely from 17th December 2024 over unmet government assurances, including wage adjustments and retirement benefits. The Indian Ports Association has delayed implementing agreed settlements, leading to unrest among unions. Protests are planned for 5th December 2024, and retired workers may demonstrate on 10th December 2024 over unresolved issues related to a retroactive productivity-linked reward scheme. The unions demand action by 15th December 15 to avoid disruption. - Kattupalli Port Authority Has Called Potentially Delay and Congestion Due To Weather
Kattupalli Port is experiencing delays due to adverse weather, including heavy rains and flooding caused by cyclonic activity in the Bay of Bengal. The disruptions have impacted vessel berthing and cargo operations, with significant challenges in moving containers by road and rail due to waterlogging and infrastructure strain. No berthing operation will be conducted for incoming vessels from 28th November 2024. The port operation will be resume once normal weather conditions are restored. The Indian Meteorological Department has issued alerts, highlighting the potential for ongoing delays in the region
GCL Building, Jl. Otista III No. 18, Jakarta 13340 – Indonesia
Phone : (62-21) 8591 8669 (hunting), Fax. : (62-21) 8591 8664, E-mail : info@gateway-id.com - Potentially East & Gulf Port Strike on January 2025
Negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), representing East and Gulf Coast ports, have stalled over issues related to automation. The union opposes the adoption of new technologies, fearing job losses, despite employers asserting that automation aims to improve safety and efficiency without reducing jobs. The deadlock must be resolved by 15 January 2025, to prevent a potential strike that could disrupt supply chains across the U.S.
While both sides achieved some agreement on wage increases—a 62% raise over six years—the unresolved issues of automation and technology adoption remain contentious. The ILA had previously staged a brief strike in October 2024, emphasizing its strong opposition to automation - US and European Port Challenges
Congestion is prevalent in South American ports (Panama, Mexico, Brazil) and along the US East Coast. European ports, including those in the UK, Germany, and Mediterranean hubs such as Valencia and Tangier, are also dealing with sporadic delays caused by high demand and labor shortages. - Air Shipment Situation Facing Christmas Peak Period
As we approach the Christmas peak period in air cargo, capacity will likely become increasingly constrained, driven by several factors.
- Demand from E-commerce: The surge in e-commerce, particularly driven by fast fashion and online retailers, is placing heavy pressure on air freight. This demand is expected to continue growing, particularly for time-sensitive shipments as retailers seek fast deliveries
Companies are willing to pay a premium for airfreight, adding further strain to available capacity. - Global Shipping Disruptions: The ongoing disruptions in maritime shipping, especially due to security risks in the Red Sea, have led many shippers to turn to air cargo as a more reliable alternative
. This shift is further exacerbating the pressure on air freight capacity during the peak season. - Limited Capacity: Air cargo capacity has been tight throughout 2024, with most markets experiencing a balance or shortage in supply. This is particularly noticeable in the Asia-Pacific (APAC) and transatlantic lanes, where demand often outstrips capacity
. Additionally, many carriers have been prioritizing capacity for high-demand trade routes, reducing available space for other regions during the holidays.
GCL Building, Jl. Otista III No. 18, Jakarta 13340 – Indonesia
Phone : (62-21) 8591 8669 (hunting), Fax. : (62-21) 8591 8664, E-mail : info@gateway-id.com - Surge in Airfreight Rates: With the anticipated tight capacity, airfreight rates are expected to rise, especially as the Christmas period approaches. Many carriers are already planning for a peak season surcharge
This will make securing space more difficult and costly for less time-sensitive shipments.
- Environmental Issue
For ocean shipment, The European Union’s environmental policies in 2025, particularly the FuelEU Maritime and EU Emissions Trading System (EU ETS), will significantly impact shipping lines operating in Europe.
Impact on Shipping Lines: The combination of the FuelEU Maritime and EU ETS will compel shipping lines to invest in cleaner technologies, such as fuel-efficient ships and alternative fuels. Those that fail to comply with these regulations could face penalties or be required to pay higher surcharges for their emissions
These policies are part of the EU’s broader “Fit for 55” package, aimed at reducing overall emissions by 55% by 2030 These environmental initiatives will drive the maritime industry toward significant technological advancements, but they may also lead to higher operational costs in the short term. Companies that invest early in green technologies may gain a competitive edge as the market shifts towards sustainability.
For air shipment, the industry is focusing on reducing carbon emissions, which remain a significant challenge. Aviation is responsible for a substantial share of transport-related emissions. However, fuel efficiency improvements are already underway, with new aircraft designs offering up to 20% better fuel efficiency than previous models. A critical advancement is the adoption of sustainable aviation fuel (SAF), which has the potential to reduce emissions by 53% when integrated with existing infrastructure. Unfortunately, SAF still faces hurdles, such as higher costs and limited availability, but efforts are underway to scale its use through regulatory support and technological innovation
FuelEU Maritime Regulation: This regulation, which takes effect from January 2025, sets ambitious targets to reduce the greenhouse gas (GHG) intensity of fuels used by ships. It mandates a 2% reduction in fuel GHG intensity by 2025, progressing towards an 80% reduction by 2050. This will require ships operating in European ports to use renewable and low-carbon fuels, such as e-fuels, to meet these targets
EU ETS Expansion: The EU’s Emissions Trading System (ETS) will extend to the maritime sector from January 2024, and by 2025, shipping lines will be required to buy carbon allowances to cover their CO2 emissions. This could increase operational costs for shipping companies, with surcharges already being planned to pass on these costs to customers