Customer Advisories

Discover our latest customer advisories

20 December 2024

BUNKER ADJUSTMENT FACTOR (BAF)

Dear Valued Customer,

 

We would like to inform you about recent changes impacting many trade routes. Due to the avoidance of the Suez Canal, ships are now navigating around the Cape of Good Hope. This longer distance increases both mileage and transit time.

 

As a result, even though the BAF (Bunker Adjustment Factor) index has decreased, the actual amount will rise. Carriers BAF calculations for certain trade routes have been adjusted to reflect increased distances due to Cape of Good Hope sailings.

 

CCL trade factors and BAF will be equally adjusted. 

 

Thank you for your understanding. If you have any question, please contact your local GEODIS representative.

19 December 2024

IMPACT OF ILA LABOR NEGOTIATIONS

Dear Valued Customer,

 

To address the ongoing ILA-USMX labor negotiations and prepare for potential disruptions, we suggest the following steps to ensure minimal impact on your supply chain:

 

1. Shipping Schedule:

Consider scheduling shipments to avoid arrivals at East and Gulf Coast ports between mid-December and early January, as these may coincide with a potential strike.

 

2. Alternative Routes:

Explore routing shipments through Canadian or West Coast ports to avoid delays.

 

3. Air Freight Solutions:

For urgent shipments, GEODIS offers a variety of air freight options to ensure timely delivery.

 

We are closely monitoring the situation and will provide updates as they become available. Thank you for your understanding and trust as we navigate this challenging period together.

03 December 2024

BRAZIL CUSTOMS WORK-TO-RULE ACTION & STRIKE

Brazilian Customs officers intensified their industrial action and announced an indefinite strike that started on November 26, 2024, following months of work-to-rule protocols. This action affects digital processes and online customs applications across air and ocean freight operations, with regional variations creating additional complexity in processing times.

 

Current Status

• Indefinite strike announced, particularly impacting Santos Port operations

• Digital customs processes experiencing nationwide delays

• Processing times vary significantly by region and state authority

• Non-automatic releases (red, yellow, gray channels) facing 2–3-day delays

• Only essential goods being processed: perishables, livestock, dangerous goods, medicines

• Impact spanning all major ports and airports

 

Critical Requirements

• Complete original documentation required (2 HAWB copies)

• No weight discrepancies will be accepted

• Avoid domestic airport connections within Brazil

• Strict adherence to GEODIS Shipping Instructions (S/I)

 

Recommended Actions

• Weekly monitoring of customs status by region

• Add 2-3 additional days to expected clearance timelines

• Account for regional variations in processing times

• Review shipment criticality against exempted categories

• Consider potential court interventions affecting essential goods movement

 

GEODIS continues to monitor this situation closely and has implemented enhanced tracking measures for affected shipments. For specific inquiries about your shipments or documentation requirements, please contact your local GEODIS representative.

02 December 2024

BRAZIL CUSTOMS WORK-TO-RULE ACTION

Due to ongoing labor negotiations, Brazilian Customs officers have implemented work-to-rule protocols nationwide, affecting air and ocean freight operations. While customs officials continue to process shipments, they strictly adhere to regulatory procedures without expedited processing, which may impact clearance times. Currently, green channel shipments continue to be processed, while yellow and red channel shipments face increased scrutiny and potential delays.

 

Current Status:

  • Customs officers are working but following strict procedural guidelines
  • Green channel clearances proceeding with minimal disruption
  • Yellow and red channel shipments subject to extended processing times
  • Impact observed across all major ports and airports

Critical Shipping Requirements:

  • Complete original documentation required (2 copies of HAWB)
  • No weight discrepancies accepted
  • Avoid domestic airport connections within Brazil
  • Strict adherence to GEODIS Shipping Instructions (S/I), including accurate currency and freight details

Recommended Actions:

  • Plan for potential clearance delays in supply chain timelines
  • Ensure complete and accurate documentation prior to shipping
  • Consider priority shipment options for time-sensitive cargo
  • Maintain close communication with your GEODIS representative for shipment status

 

GEODIS continues to monitor this situation closely and has implemented enhanced tracking measures for affected shipments. For specific inquiries about your shipments or documentation requirements, please contact your local GEODIS representative.

 

15 November 2024

BRAZIL: SÃO PAULO GUARULHOS AIRPORT (GRU) OPERATIONS UPDATE

The temporary embargo at São Paulo's Guarulhos International Airport (GRU) officially concluded on 11 November, with notable improvements in cargo storage conditions. However, select airlines are maintaining origin-point restrictions for GRU-bound shipments through the remainder of this week. We anticipate normal operations to resume between 18-19 November, depending on specific origin locations. 

 

Current Status: 

  • Embargo officially lifted at GRU as of 11 November 
  • Processing backlog from pre-weekend arrivals continues
  • Some carriers are maintaining temporary origin restrictions 
  • Full-service restoration is expected by 18-19 November 

 

Recommendations: 

  • Consult with your GEODIS representative regarding specific origin restrictions 
  • Consider routing preferences between GRU and alternative airports (VCP/GIG) based on: 

-Origin point availability 

-Space capacity 

-Cost considerations 

-Transit time requirements 

 

GEODIS actively monitors all shipments and will communicate additional updates as conditions evolve. For specific inquiries, please get in touch with your local GEODIS representative.

14 November 2024

CANADIAN PORT LABOR SITUATION

Following multiple labor actions at major Canadian ports, operations remain disrupted. On November 12th, Canada's Labour Minister announced plans to direct the Canada Industrial Relations Board (CIRB) to order full resumption of operations and move to binding arbitration, though implementation may take several days. This follows a lockout at Montreal container terminals implemented on November 10th and ongoing closures at Vancouver ports. 

 

Key Updates: 

  • All Vancouver container terminals (Vanterm, Centerm, Deltaport, Fraser Surrey) closed following unsuccessful BCMEA-ILWU Local 514 mediation on November 9th 
  • Montreal container terminals have been under lockout since November 10th, 21:00 (bulk cargo/essential activities continue) 
  • CIRB intervention and binding arbitration pending implementation 
  • All affected terminals' drayage operations suspended until further notice 

 

Recommended Actions: 

  • Plan for extended transit delays due to anticipated backlog once operations resume 
  • Contact your GEODIS representative to review shipment status and contingency options 
  • Monitor updates through your GEODIS representative for situation developments 

 

Your dedicated GEODIS team monitors the situation closely and will provide updates as circumstances evolve. If you have specific concerns about your shipments, please contact your GEODIS representative directly.

07 November 2024

SÃO PAULO GUARULHOS AIRPORT (GRU) CARGO OPERATIONS - TEMPORARY RESTRICTIONS

Due to severe congestion and operational constraints at São Paulo's Guarulhos International Airport (GRU), Latin America's largest air cargo gateway has implemented emergency measures including a temporary embargo on international dry cargo shipments from November 7-11, 2024. This situation has resulted from warehouse capacity limitations and processing delays, requiring immediate operational adjustments. To support your supply chain continuity, please note the following key points: 

 

Key Updates: 

  • All non-perishable international cargo to GRU is temporarily suspended through November 11, 2024 (subject to extension) 
  • Exempt cargo: Perishables, pharmaceuticals, human remains, live animals, and aircraft parts (AOG) 
  • Alternative airports available: Viracopos (VCP) and Rio de Janeiro (GIG) 

 

Recommended Actions: 

  • Review and adjust shipping schedules for any GRU-bound cargo 
  • Consider alternative routing through VCP or GIG airports (subject to capacity availability) 
  • Contact your GEODIS representative to discuss contingency options for existing shipments 
  • Anticipate potential rate increases and extended transit times due to rerouting and increased demand at alternative airports 
  • Please avoid international cargo to other Latin American countries via Guarulhos 

 

GEODIS continues to monitor this situation closely and will provide updates as conditions evolve. For specific inquiries about your shipments, please contact your local GEODIS representative.

04 October 2024

ILA strike ends

The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume. 

 

Our operational teams are managing active shipments as best as possible under the circumstances. Contact your GEODIS branch representative for answers to any specific questions relating to current shipments. Please contact your sales representative to look further into alternative arrangements to manage new urgent shipments.

 

Some ports are offering extended hours and weekend gates. We are working to take advantage where possible.

 

Read our blog article to learn more.

01 October 2024

ILA Strike - Update

For the first time in 47 years, the International Longshoreman’s Association (ILA) has in fact gone on strike as of midnight Eastern time in the United States. As we have advised earlier this strike impacts all ports facing the US East and Gulf coasts from Maine to Texas and all types of cargo including containerized, breakbulk and roll on roll off (ro-ro). Ships which have not already loaded or discharged cargo at these ports will be unable to berth without ILA labor and will begin to anchor or divert to uneffected ports.

 

 The ILA president has been quoted in numerous media sources, stating: “Nothing’s going to move without us — nothing”.

 

Our operational teams are managing active shipments as best as possible under the circumstances. Contact your GEODIS branch representative for answers to any specific questions relating to current shipments.

 

Please contact your sales representative to look further into alternative arrangements to manage new urgent shipments. 

26 September 2024

Potential Impact of ILA Labor Negotiations - Update

We want to inform our customers about recent announcements from shipping lines regarding an extraordinary port charge for all EC and Gulf Ports in case of an ILA strike. The current surcharge structure is as follows:

ILA

Please note that this is the only announcement we have received so far. If the strike is declared, we anticipate further updates from the shipping lines.

 

Read our detailed guide to learn more about how to prepare and mitigate the impacts of the ILA strike.

If you have any questions, please contact your GEODIS representative.

12 September 2024

Potential Impact of ILA Labor Negotiations

As a result of the ongoing impasse in the contract negotiations between the International Longshoremen's Association (ILA) representing dock workers on the US East and Gulf Coasts and the United States Maritime Alliance, Ltd. (USMX), a potential strike draws a higher probability impacting port operations.

 

There is less than a month remaining on their labor contract and there are currently no negotiations scheduled before the contract ends on September 30th.

 

At GEODIS, we are committed to minimizing any potential disruptions to your supply chain. In the event of an ILA strike, we are prepared to offer you alternative shipping options through Canada, the US West Coast, Mexico as well as airfreight services to ensure your cargo continues to move efficiently. We understand the importance of timely deliveries and will proactively communicate any developments or changes that may affect your shipments.

 

If you have any questions, please contact your GEODIS representative.

9 September 2024

Nationwide Strike in Colombia - Update

Colombian Transport Strike Resolved: Normal Operations Resume

An agreement has been reached on Friday 06 September between the transporters’ union and the National Government bringing an end to the truckers' strike in Colombia. Thanks to this understanding regarding the increase in fuel prices, cargo vehicles have resumed their activities, and a prompt normalization of operations across the national territory is expected.

 

Vehicle traffic has been restored in most regions, including Bogotá, Northern Colombia, Bucaramanga, Santander, and Cali, where the roads have largely returned to normal following the end of the truckers' strike. While Barranquilla still faces some blockades, authorities are working to clear the roads. In Nariño, the situation is also improving, with roads gradually being cleared thanks to the intervention of authorities.

 

Main Agreements in the Commitment Act: It was agreed to suspend sanctions related to the protests, implement a phased increase in diesel prices by COP 800 in two phases: and halt future diesel price hikes until structural transformations in the sector are implemented. Additionally, technical working groups will be convened within a maximum of 8 days to address specific transport issues such as dump trucks, light vehicles, liquids, and refrigerated cargo.

 

Recommendations for our Clients: Review your transportation and logistics operations and contact our team for updates on your shipments. We appreciate your patience and will continue to provide timely information as we return to normal operations.

 

At GEODIS, we are normalizing our activities to fulfill commitments and minimize any delays caused by the strike. If you have any questions, please contact your GEODIS representative.

5 September 2024

Nationwide Strike in Colombia

Transporters in Colombia Begin Nationwide Strike in Protest Against Diesel Price Increase

 

Since August 30, thousands of truckers across Colombia have initiated a strike and mobilizations in protest of the recent announcement of diesel price increases.

 

The regions most affected by the blockades are key areas for the country’s foreign trade, including Norte de Santander, Santander, Antioquia, Cesar, Cundinamarca, Nariño, and Boyacá.

 

Following the increase in diesel prices, major routes could see a cost increase of up to 8%, according to Sicetac (Efficient Cost System of the Colombian Ministry of Transport). 

 

Impacts: Higher transport rates, vehicle shortages, traffic congestion, and delays in port arrivals.

 

At GEODIS, we are taking several steps to mitigate the impact of the strike, including maintaining continuous coordination with authorities to identify alternative routes, closely monitoring affected areas to adjust transportation plans in real time, and ensuring clear communication with all stakeholders. Additionally, we are developing domestic air transport solutions and alternative ground routes to minimize delays, while also evaluating and negotiating any potential extra costs with carriers to prevent significant cost increases for our customers.

 

Additional context: It is worth noting that in September 2023, the country’s foreign trade amounted to nearly USD 9 billion in exports and imports. It is estimated that the current transport strike could result in daily losses of around USD 300 million.

 

If you have any questions, please contact your GEODIS representative.

4 September 2024

Another warning strike at the Port of Hamburg today

On September 4, ver.di has once again called for a warning strike at the HHLA terminals in Hamburg, Germany.

 

The strike started today at 7 a.m. and is expected to last for 24 hours.  Considerable disruptions to operations are to be expected. The accessibility of the Eurogate terminal may also be restricted again due to isolated demonstrations on site.

 

We expect increased waiting times and in some instances additional costs, which will be borne by the goods.  We are working to minimize the overall impact to our customers through this event.

 

If you have any specific questions, please contact your GEODIS representative.

30 August 2024

Warning strike in the port of Hamburg

The trade union ver.di has called a warning strike at the HHLA terminals in Hamburg for today, August 30.

 

The strike affects the first shift and will run from around 7 am to 3 pm. Considerable disruption to operations is to be expected. Access to the Eurogate terminal may also be restricted due to isolated demonstrations on site.

We expect corresponding waiting times and possible additional costs, which will be borne by the goods. However, we will endeavor to keep the impact on our customers as low as possible.

 

If you have any questions, please contact your GEODIS representative.

28 August 2024

Potential Port Strike in India - Update

On 27 August, unions, representing workers of ports operated by the Government of India, called off a planned nationwide strike on 28 August,  after an agreement was reached with the government. All the ports and terminals will be working as usual effective August 28th.

 

If you have any questions, please contact your GEODIS representative.

27 August 2024

Potential Port Strike in India

Workers of ports operated by the Government of India will potentially go on strike with effect from 28 August if they are not able to reach an amicable solution to settle the wage dispute between them and the Government of India. The Indian Ports Association (IPA) has invited labor representatives to meet government officials on 27 August, on the eve of the threatened industrial action. The outcome of the upcoming negotiations will be crucial in determining whether the strikes will be called off or proceed as planned. 

 

If the strike goes ahead, it will severely impact operations at each of the 12 major ports operated by the government such as Kolkata Port, Old Cochin, Chennai Port, Visakhapatnam and Tuticorin, resulting in delay and congestion, as well as extended turnaround time for vessels. 

 

Operations at private ports such as Mundra, Pipavav, Nhava Sheva, Vallarpadam Port (Cochin), Kattupalli and Ennore Ports of Chennai, and terminals are expected to continue as normal. However, the impact of the labor unrest may spill over into the private ports causing additional congestion and delay. 

 

We will endeavour to keep you updated of the evolving situation but if you have any concerns, please contact your GEODIS representative.

26 August 2024

Canada Rail Strike Update #4

Canada Industrial Relations Board (CIRB) has imposed binding arbitration, ruling the workers must return to work this ending the strike.  The Teamster’s union has confirmed they will lawfully abide but will also appeal the ruling in the court of law.

 

CPKC moves to restart rail operations following CIRB order.

 

CPKC today said it will restart railway operations in Canada by 00:01 ET on Monday, Aug. 26, following the Canada Industrial Relations Board (CIRB) order requiring CPKC to resume operations and Teamsters Canada Rail Conference (TCRC) employees to resume their duties.

 

CPKC will fully comply with the CIRB order. As such, CPKC is ending the lockout initiated on Thursday, Aug. 22. CPKC has asked the TCRC for employees to return to work for the day shift on Sunday so that we can get the Canadian economy moving again as quickly as possible and avoid further disruption to supply chains. 

 

Our team is executing its restart plan for the safe and orderly resumption of rail service across Canada. We are working with customers on a balanced return to normal operations.

 

For more please check TCRC Bargaining Updates (cpkcr.com)

 

CN Receives Order of Binding Arbitration

 

MONTREAL, Aug. 24, 2024 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) has received an order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between the Company and the Teamsters Canada Rail Conference (TCRC).

 

The CIRB has also ordered that no further labour stoppage, including a lockout or strike, can occur during the arbitration process. This means that the strike notice recently issued to CN by the Teamsters is now voided.

 

CN will comply with the order which also extends the current collective agreement until a new agreement is signed between the parties.

 

For more please check Bargaining Updates | Media | cn.ca

26 August 2024

Severe Floods in Bangladesh and Northeast India Update #2

The highway connecting Dhaka to Chittagong Port remains heavily congested due to severe floods, leading to ongoing delays in cargo deliveries to the container freight stations since last Thursday, 22 August. Due to damage caused by the floods, the authorities are taking additional precautions limiting access to the highways to best ensure safe utilization. As a result of these disruptions, sailings planned for this week are expected to be delayed by approximately 5-7 days.

 

Your GEODIS representative will reach out when we receive the revised sailing schedules from the carriers. We are maintaining close communication with carriers and port authorities to minimize impact on our customers’ shipments. If you have any questions, please do not hesitate to contact your GEODIS representative.

23 August 2024

Canada Rail Strike Update #3

Railways Prepare to Restart After Federal Government Forces Binding Arbitration in Labour Dispute

 

Canada's Labour Minister Steven MacKinnon is intervening to end a work stoppage that saw this country's two largest railways grind to a standstill Thursday, by forcing the parties into binding arbitration.

 

MacKinnon said he is invoking powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration."

 

MacKinnon has also ordered the board to extend the term on the parties' current collective agreements until new deals are signed, and is calling for operations on both railways to resume "forthwith." 

 

Read more in an article from CTV News.

 

Following Order by Minister of Labour, CN Resumes Train Movements

 

CN announced yesterday that, effective 18:00 ET, it ended its lockout and immediately initiated its recovery plan.

 

As CN awaits the formal order from the Canada Industrial Relations Board (CIRB), the company made this decision in order to expedite recovery of the economy.

 

Read more in an update from CN.

 

CPKC Prepares to Restart Railway Operations, Awaits CIRB Order

 

Canadian Pacific Kansas City (CPKC) yesterday said it is preparing to restart railway operations in Canada following the Canadian Minister of Labour’s announcement that he will exercise his authority under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board (CIRB) to impose final binding arbitration and for railway operations to resume forthwith.

 

CPKC will follow the order of the CIRB once it executes the Minister’s direction. Its teams are already preparing for the safe and orderly resumption of its rail network and further details about timing will be provided once it receives the CIRB’s order.

 

Read more in a press release from CPKC

 

CPKC said in a note to customers yesterday at 7:30 pm ET that the CIRB had already convened the parties for a case management conference that evening, consistent with the Minister’s stated expectation that the CIRB execute his direction expeditiously.

 

CPKC Disappointed by TCRC’s Decision to Dispute Minister’s Direction to Resume Railway Operations

 

In a case management conference convened by the Canada Industrial Relations Board (CIRB) at 9:00 pm ET last night, the Teamsters Canada Rail Conference (TCRC) representing the Train and Engine division and Rail Canada Traffic Controller division refused to discuss resumption of service, said CPKC in a statement. The union said it will make submissions to challenge the constitutionality of the Minister’s direction, as well as the CIRB’s discretion to proceed with any order.

 

Another case management conference is scheduled for 10:00 am ET today to further hear submissions by the parties.

 

While the Minister directed that the CIRB proceed expeditiously, any decision by the CIRB on the resumption of service will be delayed. CPKC remains prepared to resume service as soon as it is ordered to do so by the CIRB.

 

Read more in a press release from CPKC.

23 August 2024

Severe Floods in Bangladesh and Northeast India

Heavy rains inundated parts of Bangladesh and northeast India, flooding large areas, and impacting transport infrastructure. Around 4 million people have been affected by flooding in Bangladesh.

The highway connecting the country to Chittagong Port has been impacted with severe high water impeding deliveries to the container freight stations. 

With the port still recovering from the disruptions due to the political unrest, continued disruption and missed connections are expected in the coming days. We are keeping in close contact with carriers and port authorities to ensure minimal impact to our customers’ shipments.

Please contact your GEODIS representative for more information.

22 August 2024

Canada Rail Strike Update #2

CN Moves Forward with Lockout

 

CN has formally locked out employees represented by the Teamsters Canada Rail Conference (TCRC) as of today at 00:01 ET, after the union did not respond to another offer by CN in a final attempt to avoid a labour disruption.

 

Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.

 

Read more in a press release from CN.

 

CPKC Locks Out TCRC Employees, Moves to Full Shutdown of Canadian Rail Network

 

Canadian Pacific Kansas City has locked out employees who are members of the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division effective 00:01 Eastern Time today.

 

That was followed by the lockout of employees who are members of the TCRC – Rail Traffic Controller (RCTC) division effective 00:01 Mountain Time today.

 

Working closely with customers, CPKC has executed a safe and structured shutdown of its train operations across Canada. This will enable CPKC to safely and efficiently resume full rail operations across the entire network once the work stoppage ends.

 

Read more in a press release from CPKC.

 

Port of Vancouver Operations Update – August 21

 

In case of rail service disruption, the Port of Vancouver has taken steps to maintain port fluidity and ensure that terminals partially affected or not affected by the disruption can continue to operate. 

Coordinating with Transport Canada, the Canadian Coast Guard and the Pacific Pilotage Authority to increase situational awareness and enhance safety for ships destined for the Port of Vancouver and southern B.C. This includes monitoring pending vessel arrivals, berth and anchorage capacity; weather forecasts; vessels holding off the B.C. coast; and developing vessel traffic management contingency plans.
Requesting that port terminal operators assist in confirming anticipated and estimated berthing dates for arriving vessel to ensure available anchorage capacity supports port capacity optimization.
More details are available here

 

Port of Montreal Operations Update – August 20


With the halt in rail operations, all activities at the Port of Montreal related to the ships, as well as truck access to the terminals, will be fully operational.


Considering the embargoes put in place by the rail networks, the Montreal Port Authority and its operators are working diligently to enable those using its terminals to consider alternatives, particularly trucking, to maintain fluidity in its operations.

20 August 2024

Canada Rail Strike

A rail strike in Canada appears to be possibility as the TCRC union and railways Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have not been able to reach an agreement.

 

CIRB submitted their report on August 9 which rules that none of the services provided by the rails is defined as “essential”.  The CIRB rendered a 13 day cooling period to allow for both sides to negotiate an agreement.  If no agreement is reached, strike action could commence from 00.01 hours on August 22.

 

In anticipation of the strike CN announced the following embargoes last week.

  • From August 15: All temperature-controlled intermodal and hazardous materials traffic embargoed across CN’s network.
  • From August 16: All intermodal shipments from U.S. origins or interchanges to Canadian destinations embargoed.
     

As negotiations over the weekend failed to reach an agreement,  CN issued notice on August 19, to the Teamsters Canada Rail Conference (TCRC) formally advising them of its intention to lockout Canadian TCRC-represented employees on August 22 at 00:01 ET unless an agreement or binding arbitration is achieved before that time.

 

Unless there is an immediate and definite resolution to the labour conflict, CN would continue the phased and progressive shutdown of its network, which would culminate in a lockout.

 

CN must continue with the progressive and planned shutdown of its network, as it remains under the threat of an unpredictable strike notice. This planned shutdown helps to ensure the safety of the communities in which it operates and the safety of its customers’ goods, and to optimize the network’s recovery following a labour disruption.

 

Additional embargoes will be issued on August 19.

 

Read more in a press release from CN

 

Similarly, CPKC announced embargoes in anticipation of impeding strike action from August 22, 2024.

  • Effective today, August 19, the embargo will be expanded for all dangerous goods shipments.  
  • Effective Tuesday, August 20, embargos for all shipments originating in Canada, all shipments originating in the United States destined to Canada, and all carload traffic destined to Canadian interchange.
     

For more info, please visit TCRC Bargaining Updates (cpkcr.com)

Read more in a press release from the TCRC

13 August 2024

Fire Incident on YM Mobility Update

Fire Incident on YM Mobility at Zhoushan port, Ningbo, China, 13 August 2024

 

Following the incident on YM Mobility, Beilun Terminal Phase 3 at Ningbo Port is back in operation as of 0000h,12 August. No significant delay is expected due to the backlog from the closure of the terminal over the weekend. The incident had limited impact to capacity and container operations at the port.

 

As investigations are still ongoing, all containers onboard the YM Mobility vessel will be held till further notice.

 

We are in active contact with the terminal operator, carriers and respective agencies, and will continue to keep customers informed of further developments. 

 

If you have any questions, please contact your GEODIS representative.

13 August 2024

Bangladesh Situation Update #6

The overall situation in Bangladesh is improving. The interim government has resumed responsibilities. Internet connectivity is stabilizing, and most communications are back in place.

 

Chittagong Port remains heavily congested with inbound cargo. The congestion results in delays in the discharge of incoming vessels. An average delay of 5-8 days in berthing is currently witnessed. The issues on import side lead to shortage of empty containers disrupting export cargo as well. Most manufacturers have resumed operations and are sending cargo for export. Due to the congestion, port warehouses are congested and waiting time for vehicles to unload range from 2-4 days. The current capacity and equipment shortage lead to delays in stuffing and forwarding of export cargo.

 

Dhaka Airport continues to face severe congestion linked to numerous flight cancelations. The current priority is to clear the backlog.

 

To fast forward delayed ocean shipments and possibly accelerate air freight shipments, sea-air is becoming again an attractive option. For more information or enquiries about our sea-air solution, please contact your GEODIS representative. 

9 August 2024

Fire Incident on YM Mobility

Fire Incident on YM Mobility at Zhoushan port, Ningbo, China, 9 August 2024

 

It was reported on 9 August, at about 13:50 local time, that an explosion occurred on the container vessel, YM Mobility, berthing at the Ningbo Zhoushan Port for transit.

 

According to a statement by Yang Ming Marine Transport Corporation (Yang Ming), which operates YM Mobility, the cause of the accident is still under investigation. Yang Ming’s preliminary findings suggest that an explosion occurred in a container loaded with dangerous goods on board, which was declared by the cargo owner as a reefer used as substitute for a dry container, without requiring power supplies. Immediate fire control measures were taken, and the situation is now under control. All crew members on the ship have been safely evacuated.

 

The YM Mobility vessel operates on the route between Far East and Middle East, CGX. Situation updates of the vessel, transshipment, and schedule adjustments will be shared once available.

 

The following impacts are expected :

•    Shipping schedule of the vessels berthing at the terminal would be delayed.
•    The delivery schedule for the remaining cargo on YM Mobility will be adjusted and communicated by Yang Ming once the situation is fully resolved. 
•    Goods booked on YM Mobility's route, such as Xiamen and Shekou ports, will be impacted.
•    A stricter control of DG goods operation compliance has been announced by Marine Safety Administration, PRC. All ports, terminal operators and carriers will have to implement extra measures to ensure safety. 


We are monitoring the situation and will update accordingly. Should you need additional information or support, please contact your GEODIS representative.
 

07 August 2024

Bangladesh Situation Update #5

The situation in Bangladesh has again evolved. 

 

This time slightly for the better, the nationwide curfew has been lifted as of 0600h on August 6th. All offices (government and private), financial institutions and factories have resumed operations from that date. Commuting throughout the city remains a challenge as public transport is not fully functional. Violence continues in some parts of the city as well as the country. Internet connectivity remains limited.

 

Dhaka International Airport was shut down at 1730h for nearly 7 hours on August 5th. Most of the airlines have cancelled their flight to and from Bangladesh on August 6th. Chittagong Port has resumed operations and is expected to be fully functional within 48 hours. Sending goods to and from the port remains a challenge to the heavy congestion resulting from the disruptions over the last few weeks.

 

If you have any questions, please contact your GEODIS representative.

06 August 2024

Bangladesh Situation Update #4

The situation in Bangladesh has again worsened after a few days of improvements. 

 

Protestors have declared a nationwide non-cooperation movement which has disrupted all activities. All major highways leading to Chittagong Port are blocked, preventing movement of cargo to and from ports.

 

The government declared an indefinite nationwide curfew starting at 6 p.m. (1200 GMT) on 4 August. It also announced a three-day general holiday starting from Monday, 5 August. Until further notice, all offices in Bangladesh will remain closed.

 

Please expect delays for your shipments. If you have any questions, please contact your GEODIS representatives.

02 August 2024

Bangladesh Situation Update #3

Student protests continued over the past few days despite the ongoing nationwide curfew. Curfew hours have been adjusted to 2000h to 0700h in Dhaka. As of 01 August, all public and private offices may operate from 0900h to 1700h. Although internet connectivity has been restored, the bandwidth and therefore performance remain very low.

 

DHAKA Airport (DAC)

Many airlines have reduced the number of flights in and out of Dhaka creating significant pressure on capacity, especially for export cargoes. Limited internet connectivity and curfew restrictions have also resulted in backlogs and delays in customs clearance processes.

 

CHITTAGONG Port (CGP)

Chittagong Port continues to be heavily congested due to the backlog accumulated over the past few weeks. Delays are expected to last another few weeks even if the situation was to revert to normal.  Carriers have resumed operations, but connectivity issues continue to hamper efficiency. Manufacturers have resumed operations and resuming export movements via Chittagong Port.

 

Further protests and tensions are expected. Please expect delays for your shipments. If you have any questions, please contact your GEODIS representatives.

31 July 2024

Bangladesh Situation Update #2

Here is the latest news on the ongoing difficulties experienced in Bangladesh.

 

Protesters staged demonstrations across Bangladesh, including in Dhaka and Chattogram cities on 29 July. The nationwide curfew will remain active. The curfew is lifted for a few hours each day for people to leave their residences to purchase essential supplies and for businesses to operate. The government will extend office hours from the current 0900h-1500h to 0900h-1700h with effect from 31July. Nationwide, internet and mobile connectivity continue to face disruptions.

 

Airports and ports continue to be severely disrupted.

 

DHAKA Airport (DAC)

 

Many airlines have reduced the number of flights in and out of Dhaka which has created significant pressure on capacity in and out of Bangladesh. Limited internet connectivity and curfew restrictions have also resulted in backlogs and delays in customs clearance processes.

 

CHITTAGONG Port (CGP)

 

Chittagong Port continues to be heavily congested due to import cargo which has not been cleared for 8 to 10 days, following nearly a week of student protests that have led to highway blockade, curfew and internet restrictions. Many carriers have stopped accepting fresh bookings for inbound cargo to Bangladesh, which in turn will result in the shortage of empty equipment for export cargoes in the coming weeks. Due to the curfew, there is currently a labor shortage. Priority clearance is given to the import of essentials.

 

Please expect delays for your shipments.

If you have any questions, please contact your GEODIS representative.

29 Juillet 2024

Résolu - Incident sur réseaux de fibres optiques

Chers clients, chers partenaires,

 

Les dysfonctionnements résultant des « sabotages nocturnes » des réseaux de fibres optiques de plusieurs opérateurs français dans six départements (Bouches-du-Rhône, l’Aude, l’Oise, l’Hérault, la Meuse et la Drôme) ayant été résolus, nos applications fonctionnent comme d'habitude. Il se peut qu’il y ait encore quelques retards opérationnels, mais nous les résoudrons rapidement.

 

Votre interlocuteur GEODIS habituel reste à votre disposition pour toute question.

 

Nous vous remercions de votre patience et de votre compréhension pendant la période de coupure !

 

Votre équipe GEODIS

29 July 2024

Bangladesh Situation Update

Here are the latest news on the ongoing difficulties experienced in Bangladesh.

Violence due to the student protests in Bangladesh has ceased but could resume anytime. The government has extended the nationwide curfew which will remain active from 1800h to 0700h until 30 July. The curfew is lifted for a few hours each day for people to leave their residences to purchase essential supplies and for businesses to operate. Businesses will be able to operate from 0900h to 1500h. Banks will operate from 1000h to 1530h. Nationwide, internet and mobile connectivity continue to face disruptions. 

Airports and ports continue to be severely disrupted. 

DHAKA Airport (DAC) 

 

Many airlines have reduced the number of flights in and out of Dhaka which has created significant pressure on capacity in and out of Bangladesh. Limited internet connectivity and curfew restrictions have also resulted in backlogs and delays in customs clearance processes.

 

CHITTAGONG Port (CGP)

There is a huge congestion at the Chittagong Port due to import cargo which has not been cleared for 8 to 10 days, following nearly a week of student protests that have led to highway blockade, curfew and internet restrictions. Due to the curfew, there is currently a labor shortage. Priority clearance is given to the import of essentials. 

 

Please expect delays for your shipments. If you have any questions, please contact your GEODIS representative.

29 Juillet 2024

INCIDENT SUR RÉSEAUX DE FIBRES OPTIQUES

Chers Clients, Chers Partenaires,

 

Comme vous le savez probablement, les réseaux de fibres optiques de plusieurs opérateurs français ont été victimes de « sabotages nocturnes » dans six départements (Bouches-du-Rhône, l’Aude, l’Oise, l’Hérault, la Meuse et la Drôme), affectant actuellement certains de nos systèmes. Veuillez nous excuser pour tout désagrément causé. 


Nos experts et partenaires externes travaillent activement pour rétablir toutes les activités le plus rapidement possible. 


Nous fournirons des mises à jour au fur et à mesure que nous les aurons et apprécions votre patience pendant que nous travaillons à résoudre le problème. 


Vous pouvez toujours joindre vos chargés de comptes et interlocuteurs GEODIS habituels par téléphone ou utiliser notre standard local. Veuillez utiliser l'annuaire des bureaux GEODIS sur notre site Internet www.geodis.com si nécessaire. 


Votre équipe GEODIS

22 July 2024

UPDATE: RESOLVED - GLOBAL IT OUTAGE BY CROWDSTRIKE

Dear customers, dear partners,

 

After the global IT outage caused by CrowdStrike has been solved, our applications are running as usual. There might still be some operational backlog delays but we will resolve them rapidly.

Your usual GEODIS contact remains at your disposal for any question you might have. 

We thank you for your patience and understanding during the outage period!

 

Your GEODIS team

19 July 2024

GLOBAL IT OUTAGE CAUSED BY CROWDSTRIKE 

Dear customers, dear partners,

 

Please be informed that a global IT outage caused by  CrowdStrike is currently affecting some of our systems, which are temporarily unavailable.  
Our experts and external partners are currently working to restore all activities. You can still reach your GEODIS account managers and contact persons via phone as usual or use our local switchboard. Please use the GEODIS office directory on our website www.geodis.com if needed.
You can also still place your orders in our systems that will then be processed as swiftly as possible.

We will of course keep you aware of the situation. 
 

Your GEODIS team

4 July 2024

ITALY PORT CONGESTION AND STRIKE THREAT

Port congestions at major Italian container ports are increasing, with record levels of congestion at Genoa port. This has led to delays in cargo handling and increased costs. The Road Transport Authorities have announced the introduction of a ''congestion fee'' in Genoa to cover the additional costs generated by the congestion to and from port terminals.

 

Furthermore, Italian port workers’ unions have announced a series of strikes in July and August, 2024. At this stage, it is unclear whether this will result in stopping all operations, or only in a  slowdown. The strike has been announced nationwide, and risks impacting the ports of Trieste / Genoa / Venice / Ravenna / Livorno / Salerno / Gioia Tauro, etc. Terminal authorities have pledged to put in place the preventive actions required to minimize operational delays. We foresee that these movements will lead to Rail Network limitations from / to Genoa.

 

We kindly ask for your understanding in view of the extraordinary character of these events which are of course beyond our control. Our offices remain at your disposal to provide the information and support you may need and should you have any queries, please contact your GEODIS Representative.

2 July 2024

STATE OF EMERGENCY DECLARED IN NEW CALEDONIA - UPDATE

The partial reopening of Tontouta airport for the day, decided by the French authorities on 16 June, 2024, still involves time constraints.

 

Within this context, maintained flights for the periods 1-7 July 2024 as well as 8-21 July can be found here: Flight information and useful news in real time (aircalin.nc)

 

Should you have any queries, please contact your GEODIS Representative.

19 June 2024

STATE OF EMERGENCY DECLARED IN NEW CALEDONIA - UPDATE

The High Commission of New Caledonia has decided to extend the curfew from 8 p.m. to 6 a.m.. Consequently, and after month-long closure, Tontouta airport has partially been reopened for the day on Monday 16 June. The NOU flight schedule shows delays and cancellations.

 

List of Aircalin flights cancelled on departure from or arrival at Nouméa

 

  • Nouméa Auckland rotation on 15, 16, 18 June 
  • rotation Nouméa Sydney on June 11th, 13th and 20th 
  • rotation Nouméa Brisbane from 12, 14, 19 June 
  • rotation Nouméa Melbourne from 10, 12, 14, 17, 21 June 
  • rotation Nouméa Nandi Papeete from 11/12 June 
  • rotation Nouméa Papeete from 15, 21 June 
  • rotation Nouméa Nandi Wallis from 15/16, 17/18 June 
  • rotation Nouméa Wallis from 10/11 June 
  • Noumea Port-Vila rotation on 14, 16 June 
  • rotation Nouméa Singapore from June 13th 
  • Noumea Tokyo rotation on 10, 12, 15 June 

 

Should you have any queries, please contact your GEODIS Representative

14 June 2024

STRIKES AT FRENCH PORTS - UPDATE

The FNPD-CGT union (National Federation of Ports and Docks) has suspended planned strike action against the government’s pension reform until September, as it no longer has a negotiating partner at government level.

 

Should you have any queries, please contact your GEODIS Representative

10 June 2024

STRIKES AT FRENCH PORTS

The FNPD-CGT union (National Federation of Ports and Docks) is intensifying its actions to oppose the increase in the legal retirement age from 58 to 60, introduced by the 2023 reform. 

 

  • Daily 4-hour walkouts are scheduled at the following dates: June 04, 06, 10, 12, 14, 18, 20, 24, 26, 28, 2024
  • 24-hour work stoppages have also been scheduled at the following dates: June 07, 13, 21 and 25, 2024.

 

These strikes have considerably reduced the number of port appointments, with impact on pre & post-carriage operations, resulting in longer-than-normal delivery and return-to-terminal times. At the same time, vessel operations have been considerably lengthened, whether they are waiting in port or alongside the quayside.

 

Should you have any queries, please contact  your GEODIS Representative

6 June 2024

PORTS CONGESTION IN ASIA

The diversions to the traditional liner service routings caused by the unrest in the Red Sea area and elevated demand of goods sourced in China have created a bottleneck in the Singapore hub. Analysts calculate that there are up to 450,000 TEU in the queue waiting to berth.

 

Due to this congestion, some carriers are beginning to omit their planned Singapore port calls to offload and tranship their cargo in neighbouring ports (i.e., Port Klang, Malaysia or Bangkok/Laem Chabang, Thailand).

 

Delays at present are tracking between 2 to 7 days for each vessel to berth in Singapore instead of 1 to 2 days previously. 

 

The situation is forecasted to worsen in the coming weeks and expected to continue into August 2024. Should you have any queries, please contact your GEODIS Representative

27 May 2024

CYCLONE REMAL, BANGLADESH

Bangladesh evacuated hundreds of thousands as the country and neighbouring India awaited the arrival of a severe cyclone that has formed over the Bay of Bengal. The cyclone crossed Bangladesh and India’s West Bengal coasts around midnight Sunday.

 

The India Meteorological Department said it is expected to reach maximum wind speeds of up to 120 kilometers per hour (75 mph), with gusts up to 135 kph (85 mph) hitting West Bengal’s Sagar Island and Bangladesh’s Khepupara region on Sunday night.

 

Authorities in Chattogram, Bangladesh, suspended operations at the Shah Amanat International Airport, the seaport, and the Bangabandhu Tunnel on Sunday, 26 May 2024, due to cyclone Remal.

 

The Chittagong Port Authority asked all vessels to go to the outer anchorage and suspended all port activities immediately after the Met Office advised them to hoist danger signal 9 early Sunday.

 

All loading and unloading activities for cargo and containers at the port jetties will remain suspended after Sunday morning.

 

Shah Amanat International Airport has suspended all flight schedules and closed the runway at noon on Sunday. All scheduled flights landed at the airport on time until 12:00 noon.

 

Bangabandhu Tunnel will remain closed until 6:00am on Monday to avoid any unwanted occurrences due to cyclone Remal.

India's Kolkata airport will be closed for 21 hours from midnight Sunday.

 

Should you have any queries, please contact your GEODIS Representative

17 May 2024

STATE OF EMERGENCY DECLARED IN NEW CALEDONIA

Violent clashes have broken out in Noumea, the capital of New Caledonia since the announcement of the proposed constitutional revision to enlarge the electorate. In response to the riots and following a Defense Council meeting at the Elysée Palace, the French President declared a state of emergency in New Caledonia, effective Wednesday May 15, 2024. In practical terms, this state of emergency is an exceptional procedure that allows public or individual freedoms to be restricted for an initial period of 12 days. 

 

The authorities have imposed a curfew. The airport is closed, and commercial flights are cancelled until further notice. Due to the state of emergency, the airport closure may be extended. 

 

As regards the port situation, the French army is currently securing the port. At this stage, port handling operations are limited and severely slowed down. The feasibility and days of call for the next vessels have yet to be confirmed by the shipping lines. 

 

As residents are invited to stay at home, the GEODIS office in Noumea is closed. Our employees will continue to work from home, putting safety first. 

 

We will post updates as the situation evolves. Should you have any concern and/or queries, please your GEODIS Representative

16 April 2024

CONTAINER SHIP DALI – GENERAL AVERAGE DECLARATION

As a consequence of the Dali’s crash into the Baltimore bridge on March 26 which caused the collapse of the 1.6-mile structure, the ship and cargo were in position of peril. 

 

Salvage services were required to free the vessel from the collapsed bridge and bring her to a safe place, where salvage operations have been engaged. 

 

The Shipowners have declared General Average and have appointed Richards Hogg Lindley / Charles Taylor (Japan) Ltd. as General Average adjusters. General Average shall be adjusted in accordance with York-Antwerp Rules 1994.

 

Before any cargo can be released to owners, a General Average surety (bond) will need to be provided. 

 

—If you have any specific questions, please reach out to your GEODIS Representative

15 April 2024

ESCALATING CRISIS IN THE RED SEA PUTS ADDITIONAL PRESSURE ON SHIPPING AND GLOBAL TRADE

Iran has seized a commercial ship with links to Israel as it passed through the Strait of Hormuz early on Saturday 13 April, 2024. The MSC Aries was boarded by Iranian special forces about 50 miles (80km) off the coast of the United Arab Emirates. The 14,000 TEU container ship, owned by Zodiac Maritime, operated by MSC, which leases the vessel from Gortal Shipping Inc, was en route to the port of Nhava Sheva, India.

 

Consequently, shipping is once again being drawn into the Middle East conflict, and the expected recovery in the international exchange of goods is jeopardized by the geopolitical risks.

 

GEODIS is closely monitoring the situation and doing our utmost to mitigate potential risks for our clients. Should you have any concern and/or queries, please feel free to contact your GEODIS Local Representative

MSC Aries card

4 April 2024

TAIWAN RECORDS ITS BIGGEST EARTHQUAKE IN 25 YEARS

At 19:30 local time yesterday, Taiwan has been hit by a magnitude 7.4 earthquake, its most powerful in 25 years. 

 

The earthquake hit Taiwan's east coast, severely affecting infrastructure in the mountainous region Hualien and capital city Taipei. 

 

The quake and aftershocks caused 24 landslides and damage to 35 roads, bridges and tunnels. Taiwan's President Tsai Ing-wen vowed "we will work together" as rescue efforts are ongoing. Our thoughts are with those impacted by this tragedy. 

 

Chip disruptions are expected as the island plays an outsized role in the global chip supply chain. GEODIS is closely monitoring the situation and doing our utmost to mitigate potential risks for our clients. At this point, with the information we have, air and ocean systems and infrastructures are operating normally. 

 

We will post updates as the situation evolves. Should you have any concern and/or queries, please feel free to contact your GEODIS Local Representative

Taiwan earthquake

26 March 2024

MAJOR BRIDGE IN BALTIMORE COLLAPSES AFTER BEING STRUCK BY CARGO SHIP

Francis Scott Key bridge, a major bridge in Baltimore, Maryland collapsed after being struck by a cargo ship early Tuesday 26 March, 2024.The incident occurred when the 9,962 TEU containership Dali directly hit one of the pillars of the bridge, bringing down the complete structure. 

 

The container vessel Dali, owned by Grace Ocean Investment, and managed by Synergy Marine Group, is chartered by Maersk. The Singapore-flagged vessel departed at 1AM local time from Baltimore and was en route to Colombo, Sri Lanka when reports of accident came at 1:30 AM local time. Traffic was diverted from the closed lanes of the Key Bridge. As authorities worked to assess the extent of the damage and search for potential victims, our thoughts are with those impacted by this tragedy and hope for their safe return.

 

Your supply chain is of our utmost concern. GEODIS is closely monitoring the situation and doing our utmost to mitigate potential risks for our clients. We will post updates as the situation evolves. Should you have any concern and/or queries, please feel free to contact your GEODIS Local Representative

Baltimore bridge

8 March 2024

RED SEA - TRADE DISRUPTIONS UPDATE

Ongoing disruptions in the Red Sea continue to affect the development of the freight market. Vessels are still being predominantly routed via the Cape of Good Hope, and carriers are working to maintain supply-demand balance in the mid-term with regard to capacity. While Lunar New Year related demand is soft, this is temporary and equipment availability has improved, partly due to slow LNY recovery. Carriers are evaluating options to resume service via the Suez Canal, we will keep you updated with any firm communications. 

 

Following the Lunar New Year, demand remains unchanged, prompting carriers to adjust rates to accommodate new cargo in the first half of March. Carriers continue to levy PSS/Contingency Surcharges due to rerouting, though questions about additional costs persist, with adjustments expected in Q2/2024. 

 

To mitigate the disruption of operational challenges (sailing schedule adjustments, vessel downsizes, equipment shortages, rollover, etc.), shippers can consider premium services offered which come with higher costs. This approach will help guarantee space and equipment and shorten delays. 

 

Ocean Alliance continuously announced voided plans for March. With 2M’s Winter Program ending, carriers are actively investigating the demand & supply. 

 

If soft demand continues from Week 12 onwards, we expect potential more blank sailings.

12 February 2024

RED SEA CRISIS X LUNAR NEW YEAR

The Red Sea crisis persists, impacting the Asia-North Europe freight market. CMA CGM has once again halted Red Sea transits indefinitely due to security concerns. 

 

  • As vessels face delays returning to Asia, equipment availability tightens ahead of Lunar New Year departures. Many carriers are arranging container repositioning to ensure shipments proceed as scheduled. Our best advice to our clients is to remain as flexible and accept container substitutions, when possible, to avoid additional delays as well as to arrange early empty pick-up. Carriers are often extending origin free time to minimize Lunar New Year disruptions. 

     

  • Demand is anticipated to remain flat for the latter half of February. Through this ‘lull’ there is downward pressure on the spot market which we expect to remain through February. This despite significant blank sailings already announced (with WK08/09 seeing a 30% average reduction), Ocean Alliance has introduced seven additional void sailings, three of which are scheduled for February and the remainder for March. We anticipate similar void plans will be forthcoming from other alliances. 

     

  • To mitigate operational challenges such as sailing schedule adjustments, vessel downsizing, equipment shortages, and rollovers, shippers may consider transit time extensions or book premium services offered by certain carriers at a higher cost, but with guaranteeing space and equipment which mitigate delays. 

     

  • In the Asia-Mediterranean trade lane, floating rates have remained elevated following the trend in North Europe. From Week 06 onward, rates have seen a slight decrease as carriers strive to attract more cargo to fill vessels before Lunar New Year and prepare roll pools for the latter half of February, considering weak demand and Asian holidays.

17 January 2024

THE IMPACT OF THE PROLONGED RED SEA CRISIS ON GLOBAL TRADE

The global maritime trade supply chain continues to face disruptions caused by the prolonged crisis along the world’s largest trade route through the Red Sea and Suez Canal. Over the last weeks, the Houthi insurgents attacked several container vessels within the Bab al-Mandeb Strait which is leading to suspension or reroute operations from almost all carriers. 262 container vessels in this area have been affected so far, which in turn reduced the Suez passage utilization by 61%.

 

As the crisis continues, we expect schedule integrity to degrade, impacting equipment availability which brings additional challenges to the overall booking and planning process. It is increasingly important to work to secure capacity earlier than normal, at least through the month of February. It is also important to note that this is not an “Asia origin centric” situation, these same conditions are becoming more prevalent in Europe impacting exports not only to Asia but also transatlantic and “north-south” flows.

 

Europe Westbound (US/MX/LATAM)

  • Carriers have announced rate increases on all strings serving this trade lane. 
  • The global transport supply chain and connections are impacted by the situation in the Red Sea. While none of the vessels serving the transatlantic trade is having a detour via Suez or Red Sea and Arabic Gulf, some carriers are having to redirect ships from serving the transatlantic trade into Asia-Europe strings in an effort to re-secure weekly frequency on the longer service via Good Hope. 
  • As a result, transatlantic services are left with reduced capacity, poorer service integrity and lower levels of available equipment.

     

Europe Eastbound (mainly Asia, MEA/IPBC and OCE)

  • 10 days longer transit time due to routing via Cape of Good Hope leading to 14 days longer transit because of change of operational berthing windows at the terminal.

 

Asia Westbound (Asia to Europe)

  • 10-15 days longer transit. More blank sailing and port omissions are expected. 
  • Consequently, 35-40% less weekly capacity in the 2nd half of Jan and until Chinese New Year (CNY). 
  • Additional demurrage and detention might incur in January affecting cargo deliveries. 
  • Additionally, we expect the crisis to drive a higher peak prior to CNY. 
  • Large roll pools are being build up, to secure volume on the vessels during CNY. 
  • Equipment shortages are being experienced SHA, NGB and TAO and are expected to increase later this month. 
  • Short term rate levels have increased considerably, and PSS and emergency surcharges are being applied. 
  • US, British and French military vessels have been deployed to the Red Sea to safeguard commercial vessel convoys and are actively engaged in defending against Houthi attacks. These last days have seen US & British led attacks on Houthi positions in Yemen intended to diminish the ability of Houthi forces to continue to impact international trade.