WEEK 45 TOP 5: DISRUPTION TO SUPPLY CHAIN WATCHLIST No.211

- (Following No.209) Israel continues military operations in Lebanon, Gaza, and Syria. IRGC Commander Hossein Salami stated on November 8 that disrupting Israel’s maritime ports, which reportedly accounts for 98% of its economy, could destabilize the country.

The Palestine Action Committee (PAC) protested on November 7 at the Istanbul Regional Port Authority, urging Turkey to cease trade with Israel and spotlighting Israeli shipping company ZIM’s ongoing activities at Turkish ports. Turkey has officially halted imports and exports with Israel since May. In Spain, authorities turned away two vessels scheduled for the Port of Algeciras on November 9 and 14 due to suspected military cargo for Israel.

President-elect Donald Trump reiterated his stance on the Israel-Hamas conflict on November 7, emphasizing the need for a swift resolution. He had previously emphasized during his campaign in July that he would seek to resolve the conflict before assuming office January 20, 2025.

Separately, no Houthi vessel attacks were reported this week, per the latest JMIC update.

The Shanghai Containerized Freight Index (SCFI) showed a moderated increase of 1.2% this week, marking the third consecutive week of growth, though at a reduced pace.

Drewry’s World Container Index rose 7% to $3,444 per 40-foot container, with Asia-Europe lanes showing the largest hikes.

Disruption: possible acceleration for Israel's action in Gaza and against Hezbollah/Lebanon, potential major change in the region with President-elect Trump's upcoming inauguration

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- (Following No. 210) The indefinite strike at Montreal's Termont Corporation terminals continues, with limited progress in talks between the Maritime Employers Association and the Canadian Union of Public Employees (CUPE) Local 375. As of November 7, several shipping lines have suspended or adjusted services to the Port of Montreal in response to ongoing disruptions.

Terminal operators at the port issued a "final, comprehensive offer" to the longshore union on November 7, warning that they may suspend most operations if the CUPE Local 375 does not accept the proposal by Sunday, November 10, at 8:00 p.m.

Disruption: potential operational shutdowns at Montreal port

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- (Following No. 210) As of November 9, negotiations remain unresolved between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Local 514, representing forepersons at the Ports of Vancouver and Prince Rupert.

On November 4, the BCMEA initiated a lockout, resulting in a shutdown of most cargo operations at both ports, though bulk grain handling remains unaffected. The actions have also resulted in Canadian National (CN) and Canadian Pacific Kansas City (CPKC) halting rail services to these ports.

The Greater Vancouver Board of Trade has urged federal intervention, while Canada’s Labour Minister emphasized that resolution efforts rest with the BCMEA and ILWU, with mediators present to support negotiations.

Disruption: cargo delays and mounting pressure on the government to address ongoing disruptions

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- (Following No. 210) The Port of Valencia experienced major disruptions due to severe flooding in late October. While maritime traffic resumed on October 30, enabling vessel movements, container terminal operations faced delays. Terminals operated by CSP Iberian Valencia Terminal (CSP), MSC Terminal Valencia (MSCT), and APM Terminals fully reopened for cargo handling on November 6.

Additionally, the railway line between Valencia and Madrid remains closed and is not expected to reopen until December, impacting inland transportation. Many areas in Valencia still lack electricity and clean water, with extensive damage to roads, bridges, and buildings further complicating domestic logistics.

Disruption: severe delays for goods moving to and from Valencia

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- Typhoon Yinxing (known as Marce in the Philippines) is tracking west-northwestward over the South China Sea as of early November 9. The storm is expected to make a close approach to China’s Hainan Province late on November 10 before weakening into a tropical depression and making landfall in Quang Ngai Province, Vietnam, early on November 12.

The China Meteorological Administration has issued a yellow typhoon warning (second-lowest on the four-tier scale), with strong winds expected along the coasts of Fujian and Guangdong provinces, affecting vessel berthing schedules. Regional airports have also experienced flight disruptions.

Disruption:? slight vessel berth delays at ports in Fujian and Guangdong provinces; Typhoon Yinxing anticipated to impact Da Nang Port in Vietnam from late November 11

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