Trendwatch: Air Freight Could Take 'Days or Even Weeks' to Recover from CrowdStrike Crash; One killed in blast on containership in Arabian Sea off India; Shipping gets even dirtier as Houthi attacks fuel longer voyages

Air freight could take 'Days or even weeks' to recover from CrowdStrike crash

Supply chain stakeholders are still assessing the fallout from a global CrowdStrike cybersecurity software outage, with the air freight industry expected to experience the largest impacts.

A glitch brought on by a software update for CrowdStrike's platform reportedly caused Microsoft Windows systems to go down across the globe on July 19, grounding thousands of flights, temporarily shutting down ports, and even affecting banks and hospitals. While most industries have recovered in the days since the outage, supply chain consulting firm Xeneta says that air freight will likely take the longest to bounce back.

“Planes and cargo are not where they are supposed to be, and it will take days or even weeks to fully resolve,” Xeneta chief air freight officer Niall van de Wouw told CNBC.

Maersk Frankfurt owner declares General Average, as fire-fighting continues

Shippers with cargo on the Maersk Frankfurt, which has suffered fires on board for six days, have been, or will be, served General Average (GA) notices by vessel owner Tokei Kaiun, according to the latest Maersk update.

“We have received notification that the vessel owner has decided to declare General Average, and has appointed Richards Hogg Lindley as the GA adjusters to collect relevant securities,” the Danish carrier, which had chartered the vessel, told affected customers.

“This means that, once the onboard containers are discharged from the vessel at a safe location, they would not be released for on-carriage or delivery until cargo interests have made the required security arrangements through the GA adjusters,” it explained.

Shipping gets even dirtier as Houthi attacks fuel longer voyages

Shipping’s carbon emissions climbed by 23 million tons in the first half of this year, partly as vessels took longer routes to avoid attacks in the Red Sea.

The 6% increase from a year earlier — equal to the annual amount spewed out by six coal-fired power plants — pushed the industry’s emissions to about 450 million tons, according to data from Marine Benchmark, which uses ship-tracking data to calculate the figures. The jump was biggest among container vessels, which emitted roughly 15% more over the period.

New proposed Trump tariffs could 'Fundamentally alter' U.S. supply chains

With former President Donald Trump proposing new 10% tariffs on all imported goods, shippers and ports alike are working to figure out what that might mean for them in the event of a second Trump presidency.

"The former president is putting out a lot of proposals that would fundamentally alter the approach to trade," said Footwear Distributors and Retailers of America President and CEO Matt Priest during a July 17 briefing with the Port of Los Angeles.

Trump first floated the idea in May, as a means to offset the extension of tax cuts he implemented in 2017, during his first term. The proposal would include a 60% tax on all goods from China, which accounted for roughly 15% of all U.S. imports in 2023, by value. As for how that would affect the U.S. supply chain, Port of Los Angeles executive director Gene Seroka said that there's still "a long way from here to there, wherever 'there' may be."

FMC rejects claims it is using new container rule to regulate prices

The Federal Maritime Commission has rejected arguments that it is trying to regulate rates in issuing a new rule largely prohibiting ocean carriers from refusing to provide vessel space for their customers’ containers.

The final rule, which also addresses instances in which carriers unreasonably refuse to deal or negotiate contract provisions with their customers regarding container vessel space, was required under the Ocean Shipping Reform Act of 2022. It goes into effect Sept. 23.

Delta faces US investigation over handling of system outage

Delta Air Lines Inc. is under investigation by US authorities over its handling of a technology glitch that has led to thousands of canceled flights.

The Department of Transportation has opened a probe “to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions,” US Transportation Secretary Pete Buttigieg said Tuesday in a post on X.

The decision adds to the strain on the carrier after it said a day earlier that it expects cancellations to stretch later into the week. Delta has fared the worst among US carriers, with most other airlines getting back on track over the weekend after an outage Friday caused by CrowdStrike Holdings Inc. disrupted systems across numerous industries worldwide.

MSC continues to expand fleet with vintage vessels as profits top scrap value

In its trawl for tonnage, MSC has been buying vintage containerships ripe for demolition as, thanks to firm freight rate levels, their market value convinces owners to sell rather than to scrap.

For example, this month, the Swiss-Italian market leader took delivery of the 1999 5,652 teu MSC Unity VI, from Taiwanese peer Evergreen. The ship has a current market value of $22.5m, whereas its scrap value is just $14.5m.

Port of Long Beach nets giant spike in June cargo volumes

The Port of Long Beach experienced a massive 41% year-over-year increase in June cargo volumes, driven by continued higher consumer demand, potential tariff increases and the ever-looming labor contract expiration date for the East and Gulf Coast ports, according to a July 16 press release.

“We are recapturing market share and consumer spending is driving cargo to our docks as we head into the peak shipping season,” Port of Long Beach CEO Mario Cordero said in the release.

Powerful Typhoon Gaemi churns toward Taiwan, expected to drench an already soaked China

A powerful and rapidly intensifying typhoon is bearing down on Taiwan, killing at least one person and injuring dozens of others as authorities close financial markets, schools and offices.

Conditions in Taiwan have worsened as Typhoon Gaemi brought heavy rainfall, gusty winds and a dangerous storm surge. The storm is expected to strengthen into a super typhoon before making landfall on Taiwan’s northeastern coast Wednesday afternoon.

Bangladesh partially restores telecommunication services as protests taper off

Bangladesh partially restored telecommunication services on Wednesday although internet connection was slow and social media remained suspended, days after deadly protests against reservations for government jobs killed almost 150 people.

The country has mostly been calm since Sunday when the Supreme Court scaled down reservations for various categories to 7%, overruling a high court verdict reinstating a 56% quota in government jobs that had been scrapped in 2018.