September Industry Updates

Australia

Australian Biosecurity For Brown Marmorated Stink Bug (BMSB) | Treatment Compliance

The Australian Department of Agriculture, Fisheries and Forestry has introduced the AusTreat scheme, which regulates pre-border biosecurity treatment providers. This scheme replaces the Offshore BMSB Treatment Providers Scheme and aims to enhance biosecurity by ensuring offshore treatments are effective, thus reducing the need for interventions at the border. The 2024-25 BMSB season commenced on the 1st of September, and the Australian government has already suspended a significant number of treatment providers within the first few weeks of the start of the season. Access to the BMSB provider status list is available here.

Key points about AusTreat include:

• Registration and Compliance: Treatment providers outside Australia must meet specific registration and compliance requirements. Registration is valid for three years, unlike the previous annual renewal.
• Treatment Methodologies: Approved treatments include methyl bromide fumigation, sulfuryl fluoride fumigation, and heat treatment. Providers must follow the methodologies outlined by the department.
• Data Submission: All treatment certificates and related data must be submitted through the department’s treatment certificate portal, which helps improve clearance times for compliant treatments.

AusTreat does not replace the Australian Fumigation Accreditation Scheme (AFAS), which is managed under bilateral agreements with other governments.

North America

USA | East Coast and Gulf Port Strikes

As negotiations between dockworkers and the United States Maritime Alliance remain stalled, a potential strike looms over 36 ports along the U.S. East Coast, from Maine to Texas. Longshoremen from Maine to Texas are likely to strike starting October 1, as their contract with the United States Maritime Alliance expires. This strike could shut down 36 ports, which handle about half of the nation’s cargo.

The International Longshoremen’s Association is demanding a 77% pay increase over six years and a ban on automation. The Georgia Ports Authority CEO, Griff Lynch, hopes the strike will be brief, but preparations have been made for potential disruptions. Businesses have been stockpiling inventory to mitigate the impact. If the strike lasts more than a month, it could lead to shortages of some consumer products and significantly affect the U.S.?The National Retail Federation noted that a similar disruption in 2002 cost the economy $1 billion per day and took six months to recover.

Economic Impacts:

• Supply Chain Disruptions:?Businesses are already stockpiling inventory to mitigate the impact, but prolonged disruptions could lead to shortages of products.
• Increased Costs:?Delays and rerouting of shipments may increase transportation costs, which could be passed on to recover expenses.
• Economic Slowdown:?A strike lasting more than a month could have a ripple effect, slowing down economic activities and potentially leading to job losses in related sectors.

Global Trade Implications:

• International Trade Delays:?The U.S. is a major player in global trade, and disruptions at these ports could delay shipments worldwide, affecting international supply chains.
• Market Volatility:?Uncertainty around the strike could lead to increased volatility in global markets, impacting stock prices and investor confidence.

CANADA | Montreal Port Strikes Announced in Alignment with USA Port Strike Dates

Dockworkers at the Port of Montreal have issued a 72-hour strike notice, potentially halting work at two terminals from 30th September (Monday) to 3rd October (Thursday). It is noted that Viau and Maisonneuve terminals will be closed for the duration of the three-day strike.

The union, representing over 1,000 longshoremen, rejected the Maritime Employers Association’s latest offer by 99.63%. This is the third labor dispute since 2020. The union’s collective agreement expired on December 31, and negotiations are ongoing.?

The Fédération des Chambres de Commerce du Québec urges the union to suspend the strike threat and return to negotiations to protect Canada’s international reputation.

?"With cargo handled by longshoremen already down by 24 per cent since 2022, we have a joint responsibility to secure a signed collective agreement as quickly as possible,” Federal Labour Minister Steven MacKinnon said in a post on X that he was following the situation closely.

Asia

CHINA

• Chinese Ports Surge Towards 200 Million TEU Milestone

Ports in China handled 190.9 million TEU from January to July 2024, an 8.3% year-on-year increase. Shanghai Port led with 30.35 million TEU, up 8.6% year-on-year. Ningbo Zhoushan Port also grew, reaching 3.35 million TEU, a 5.3% increase. However, Xiamen Port saw a 3.3% decline, handling 6.86 million TEU.

• Typhoon Bebinca

Typhoon Bebinca, the strongest storm to directly hit?Shanghai?since 1949and its arrival coincided with China’s three-day mid-autumn festival, disrupting travel and holiday plans for millions of people. As many as 1,600 flights were cancelled in Shanghai and neighbouring regions, nearly 1,400 of them at Shanghai’s two international airports alone.

The typhoon caused significant damage to infrastructure, knocking out power to at least 380 households in Shanghai. Nearly 56,000 rescue workers and 12,000 firefighters were deployed to deal with the aftermath as the storm subsided.

The storm hit Shanghai’s Pudong district, an industrial area southeast of the city’s core, with wind speeds of up to 151 kmph, according to the?China?Meteorological Administration.

Bebinca was the?second major storm to strike China?this month after?Super Typhoon Yagi,?which made landfall in the southern province of Hainan on 6 September, killing four people on the island.

MYANMAR, VIETNAM, LAOS, and THAILAND | Typhoon Yagi

Typhoon Yagi, one of the most devastating storms to hit Southeast Asia in recent years, caused widespread destruction across Myanmar, Vietnam, Laos, and Thailand. The storm resulted in over 400 fatalities and displaced millions of people. It brought severe winds, heavy rainfall, flooding, and landslides, severely impacting communities and infrastructure; This event underscores the region’s vulnerability to extreme weather, especially amid ongoing political and economic challenges.

• VIETNAM | Estimated Damage Bill of USD $3.31 Billion: Typhoon Yagi, the most powerful storm to hit Asia this year, has caused significant damage in northern Vietnam, with losses estimated at 81.5 trillion dong (approximately $3.31 billion). This figure is double the initial estimates. The typhoon resulted in 299 fatalities and 34 people missing. It also devastated industrial hubs, destroyed factories, flooded farmland, damaged homes, and tore up infrastructure like bridges. The economic impact is expected to slightly reduce Vietnam’s projected economic growth for the year.

Europe

ITALY | Electronic Consignment Note (E-CMR) For Road Freight Transport Introduced

Italy has implemented the electronic consignment note (e-CMR) for road freight transport, marking a significant step towards digitalization. The e-CMR replaces traditional paper waybills, simplifying the transport process and reducing paper usage. This change, supported by Unioncamere and Uniontrasporti, enhances document tracking, dispute resolution, and security through blockchain technology. The project “Paving the way for the digitalization of road transport in Italy” aids companies in this transition with training, networking, and a free webinar on October 23.?The digital format is expected to reduce the risk of document loss or damage and improve communication with Customs.

Middle East

YEMEN | Key Seaport Damaged

Israel recently conducted airstrikes on a Yemeni port in Hodeidah and power stations in response to attacks by Houthi rebels. These strikes targeted critical infrastructure, aiming to weaken the Houthis’ capabilities. The escalation follows a series of aggressive actions by the Houthis, including attacks on Israeli interests.?

World Maritime Day Celebrations | 26 September 2024

Several initiatives were held to commemorate the Day, including:

• WMO-IMO Symposium on Extreme Maritime Weather: The event will focus on `Bridging the Knowledge Gap Towards Safer Shipping' and took place on 23-26 September 2024 at IMO Headquarters, London.
• Lighting up landmarks: IMO Headquarters were bathed in blue light in the evening of the day to promote this year's theme. IMO invited Member States, intergovernmental organizations in cooperation with IMO, and non-governmental organizations in consultative status with IMO to light up landmarks.
• Social media participation: IMO invited members and everyone within the maritime industry to celebrate the day by using the hashtag #WorldMaritimeDay and tagging IMO on social media (X, formerly Twitter, Instagram, Facebook and LinkedIn).

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