- Darwin, Brisbane, and Port Kembla Industrial Action Announced: Qube Ports has been notified of upcoming protected industrial action at three locations: Darwin, Brisbane, and Port Kembla. This action is set to last for seven days, beginning at 12:01 AM on November 1st. This could potentially impact operations and services at these ports during this period. Examples of the expected adjustments include 8-hour stoppages when vessels tie up, limited 8-hour shifts starting at 0700, 1500, and 2300, with no shift extensions or pre-starts. Workers will not work during breaks, accept variations to start times, or call-ins outside shifts. There are bans on Grade 5-7 upgrade work, driving over 15km/h, transferring between sites, and using personal phones. Additional stoppages are from 2300 to 0700 each night from November 1-3 and 1-hour stoppages at 0530, 1330, and 2130 daily.
- TRADE EMBARGO LIFTED- Australia and China Lift Final Trade Embargo, Reopening of Lobster Exports: The final barrier in a $20 billion trade embargo on Australian exports to China has been lifted. Prime Minister Anthony Albanese announced an agreement with Chinese Premier Li Qiang to reopen live lobster exports. This agreement was finalized during a one-on-one meeting at the ASEAN summit in Laos. The trade sanctions, imposed by China in 2020 as political retribution against the Morrison government, affected barley, wine, lobster, timber, beef, and cotton. The bans were a response to Scott Morrison's push for an independent coronavirus inquiry. The gradual lifting of sanctions began in January 2023, starting with coal, followed by timber, barley, wine, and most beef exporters. The lobster export ban was the last to be lifted. Albanese praised the government's "patient, calibrated and deliberate approach" in restoring trade ties with China, urging Australian businesses to diversify their trade markets beyond China.
- ITALY - It has been advised that the Ports of Genoa and La Spezia are currently facing significant operational issues which are disrupting the regular transport cycles. The situation has placed the responsibility on road transport companies for the resulting disruptions. To address this, congestion fees have been announced from the Port of Genoa as well as the Port of La Spezia in an effort to distribute the additional costs caused by the congestion affecting terminal operations. Below is a visual depiction of La Spezia's port congestion denoting the number of vessels over the 12 months.
- Increases in 'Sea-Rail' Intermodal Transports Contributed to China State Railway Group's New Record of 1 Billion Tonnes of Rail Freight in Q3. The growth includes a notable rise in containerized cargo, with around 9.6 million TEUs, marking a 17.3% increase from the previous year. This success is attributed to efforts in optimising sea-rail intermodal transportation and improving customs processes, reducing inspection times. Additionally, the demand for rail capacity has surged due to geopolitical factors, such as the conflict in Ukraine, leading to increased volumes on China-Europe routes.
- China’s Maritime Safety Administration has implemented stricter regulations for hazardous cargo at Ningbo port. Effective immediately, all shipments must include a dangerous goods declaration and MSDS (material safety data sheet), submitted 72 hours before vessel cut-off times. This move follows recent incidents, including a major explosion on the YM Mobility, highlighting the need for better hazardous cargo management.
- Singapore Experienced Oil-Water Mix Leakage into the Sea. A pipeline leak has spilled 30-40 metric tons of oil and water mixture into the sea off Singapore, Shell Plc reported. Shell is collaborating with authorities on the clean-up and safety measures. Containment booms and anti-pollution crafts are in use. The leak occurred near Bukom Island. The Maritime and Port Authority of Singapore have deployed systems to manage the spill, and public water activities are restricted at some beaches. No port operational changes have been reported.
SEVERE WEATHER INCIDENTS AFFECTED OPERATIONS IN OCTOBER
- Asia's Typhoon Season is currently underway for 2024 across the region and this season is already proving to have devastating effects caused by heavy and frequent storm activity. Multiple typhoons have significantly impacted relevant locals and also severely limited economic capabilities for those cities most impacted by high winds, damaging rains, flooding or storm surges. Taiwan and China braced for the effects of Typhoon Kong-Rey which is said to have the largest 'eye of the storm' ever recorded. As a result, many provinces in China had their emergency response systems initiated to cope with the expected severe weather. Also, earlier this month Typhoon Krathon severely impacted the Philippines and its residents.
- US Elections on 05th November Could Significantly Impact the Global Economy due to Proposed New US Trade Policies including a potential increased focus on USA domestic protectionism under the 'America First' approach with further tariff increases expected on various imports.? ABC News reports this election could be one of the closest in recent US history with the presidential election just weeks away, Donald Trump and Kamala Harris are neck and neck in the polls. Furthermore, both The Weekend Australian and Financial Review publications have been discussing potential financial impacts for stock markets globally.?
- $50 Billion Cleanup Costs Estimated for Florida's Hurricane Milton, a Category 3 storm initially, was expected to be one of the most devastating hurricanes ever for west-central Florida. The state experienced severe storm surges, destructive winds, tornados, and heavy rainfall. The damaging storm, with winds reaching 314 kilometers per hour, required widespread port closures and significant flight cancellations across the region.
- USA Port Strikes have Reached a Tentative Agreement: On Thursday, October 3rd, 2024, the International Longshoreman’s Association (ILA) and the United States Maritime Alliance, Ltd (USMX) reached a tentative contract agreement for 90 days. A 62% pay increase over 6 years was agreed however, the issue regarding automation machines is still in negotiations. Consequently, operations have resumed at all impacted terminals along the U.S. East and Gulf Coasts ports for the time being.
- Montreal Port Strikes The ILA union members at the Port of Montreal have announced another strike starting on 31st October, which is expected to significantly impact port operations, according to the Maritime Employers’ Association (MEA). This new strike follows multiple ongoing strikes during the early half of October. As a result of these disruptions, several shipping lines have introduced additional surcharges to account for the delays and operational challenges caused by the ongoing industrial actions.
- Expanded Conflicts Effects The global economy is currently struggling due to strict monetary policies, reduced international trade, a slowing Chinese economy, and uncertainty surrounding the US election. Escalations in the Middle East conflict or for the Russian Ukrainian War could further heighten uncertainties, complicating efforts to reduce inflation and stifling economic growth. Widespread destruction and significant loss of life has been ongoing for both of these conflicts. Beyond the severe humanitarian toll, war and respective potential expansions pose significant geopolitical risks to the global economy. Below is a graphical expression of the correlation between recorded attacks and the relevant risk index.
This newsletter is brought to you by International Cargo Express (ICE)
