Ports in multiple countries face operational disruptions

Logistics are hindered, and there is severe cargo backlog at ports!

The International Longshoremen’s Association (ILA) on the U.S. East and Gulf Coasts and their employer, the United States Maritime Alliance (USMX), have yet to return to the main contract negotiation table. The ILA recently held a two-day Wage Scale Delegates Convention, during which they reviewed the union’s main contract demands submitted to USMX. They also discussed potential strike actions if a new agreement is not reached before the expiration of the current six-year contract on September 30.

Harold Daggett, the president of the ILA (International Longshoremen’s Association) on the U.S. East Coast, made a public statement warning that if an agreement is not reached by 12:01 AM on October 1, they will organize a strike. He recalled a significant event in 1977 when ILA members went on a three-month strike demanding an 80-cent per hour wage increase. At the time, Daggett was a young longshoreman and was sent to Los Angeles to organize picket lines at West Coast ports, preventing ships from being rerouted from the East Coast to the West Coast.

This historical moment reflects the solidarity between the East Coast’s ILA and the West Coast’s ILWU (International Longshore and Warehouse Union), as well as their past coordinated actions. It also serves as a warning to shipping companies not to underestimate the unions’ ability to launch a coast-wide strike. Daggett hinted that, even in 2024, the union could take similar actions to prevent East Coast ships from unloading at West Coast ports.

Colombia is currently facing the impacts of a nationwide strike led by truck drivers, who are protesting the government’s decision to gradually phase out fuel subsidies and raise diesel prices.

Over the past two days, the protests have escalated, severely disrupting transportation and logistics as major highways have been blocked. According to local reports, there are now 136 road closures across the country. Due to the shortage of truck drivers and road blockages, global freight giant Kuehne+Nagel’s local sources expect severe cargo backlogs at ports and airports, which could pose significant challenges for these facilities.

In addition, major cities like Bogotá, Medellín, and Cali are also facing the threat of food and fuel shortages. The protests have impacted the daily lives of Colombians, with schools and universities in Bogotá closing and public transportation heavily disrupted.

Although negotiations between the government and transport unions are ongoing, the strike is expected to continue until an agreement is reached. Analysts predict that if the protests persist, Colombia’s logistics costs could rise further.

Kuehne+Nagel recently issued a notice on its website, warning that the Port of Hamburg in Germany is once again facing a severe strike crisis. The German labor union ver.di announced a new round of warning strikes starting at 7 AM on September 4, lasting until 7 AM on September 5.

According to a statement from EUROGATE, all HHLA terminals will suspend operations during the strike, including the handling of goods via rail and truck. Additionally, dispatch operations are not expected to resume immediately after the strike ends.

As a result, significant delays in cargo handling and transportation are expected both during and after the strike. Protests during the strike will also limit access to the port.

It’s important to note that this is not the first strike at the Port of Hamburg in recent times. A similar strike occurred last Friday, primarily involving efforts by HHLA to improve terminal efficiency. In a statement, ver.di indicated that they are seeking a social collective agreement to protect workers from the social and health impacts of the group’s planned restructuring.

In recent months, several major ports in Germany have experienced multiple strikes, and with negotiations still unresolved, further strike threats may continue.

India’s coastal regions have been hit by heavy rains and flooding, severely impacting Mundra Port, a key node for the country’s container trade. Shipping companies report significant delays at the port, with the entire shipping system paralyzed for at least three days due to flooding, resulting in a massive cargo backlog.

Adani Ports and SEZ (APSEZ), which operates five container terminals at Mundra, including the Mundra International Container Terminal (MICT) under a DP World concession, is working intensively to clear the backlog and restore normal vessel berthing. However, given the continued adverse weather conditions, it is expected that normal cargo flows might take a week or longer to resume.

According to sources, the port is prioritizing export-oriented vessels to alleviate the cargo pile-up, as the port’s yard inventory remains in disarray. Additionally, more than half of Mundra’s cargo relies on rail transport or Inland Container Depots (ICDs) for transshipment, and rail services have also been disrupted, with inbound trains facing delays. The port authorities have confirmed efforts to clear the backlog of stranded trains.

Due to their partnership with Adani at Mundra, Mediterranean Shipping Company (MSC) and CMA CGM vessels seem to have priority berthing, while other shipping lines face longer wait times, with some vessels even choosing to skip the port or divert to other coastal ports. For example, the COSCO Philippines recently bypassed Mundra.

The ripple effects of these disruptions have also impacted one of India’s busiest ports, Nhava Sheva (JNPA). Truck drivers and freight station owners at JNPA have expressed frustration over increasing delays in recent days, urging authorities to intervene and resolve the situation as quickly as possible. Road traffic restrictions, recently imposed to streamline vehicle movement in and out of the port, have exacerbated congestion around JNPA. Truck drivers claim it now takes up to 20 hours to turn their vehicles around.

Other stakeholders have also voiced opposition to the road restrictions and worsening traffic. Umesh Grover, Secretary General of the Container Freight Stations Association of India, stated, “Exports are being ‘shut out,’ and imports are delayed by 12 to 24 hours.” Andy Lane, Managing Director of PSA Mumbai, noted last week, “Backlogged ships are clogging the entire facility, creating challenges for those working here to clear the ships held up by Mundra’s extended closure and congestion at other ports.”