Trendwatch: East Coast, Gulf dockworkers to meet next month on strike plan; Long-Feared Canada Rail Strike Could Arrive by End of August; Supply chain chaos grips Bangladesh in wake of PM’s resignation

East Coast, Gulf dockworkers to meet next month on strike plan

A labor strike that would shut down six out of 10 of the busiest ports in the US just weeks before the presidential election is looking increasingly likely. 

Negotiations on a labor contract covering trade hubs from Boston to Houston have stalled since June when the dockworker union called off high-level wage talks with the United States Maritime Alliance, which represents ocean carriers and terminal operators.

The International Longshoreman’s Association now says it will present final contract demands to union delegates at a meeting on Sept. 4-5, and will also discuss strike strategies in the event a deal isn’t reached before the Sept. 30 deadline.

Long-Feared Canada Rail Strike Could Arrive by End of August

A long-feared rail strike in Canada could arrive by the end of August, as workers and railroads continue to make little progress on negotiations over a new labor deal. 

According to the Canadian Press, Canadian Pacific Kansas City (CPKC) CEO Keith Creel told analysts on a recent conference call that coming to an agreement on a new deal is "going to be a challenge," warning that a strike sometime before the end of August is "probable." The union representing rail workers at Canadian National Railway (CN) and CPKC reauthorized a strike on June 20, giving them the authority to call for a work stoppage within 60 days. That authorization expires on August 20, and with Creel saying that the union and railways remain "far apart" on negotiations, the stage is set for a late-summer strike that would have wide-ranging impacts on trade across North America. 

Supply chain chaos grips Bangladesh in wake of PM’s resignation

Supply chain chaos across Bangladesh, the world’s third-largest exporter of clothing, has created the longest berthing delays anywhere across the globe. 

Some 50 ships are queuing in a 25 nautical mile stretch outside Chattogram port (see map below) following weeks of protests, curfews, internet outages, all of which culminated yesterday in the resignation of Sheikh Hasina after 15 years of leading Bangladesh. Hasina fled the country as protesters stormed her palace in Dhaka. The army has taken over as an interim government, but chaos remains across the Asian nation.

Analysts at Linerlytica, an Asian container shipping consultancy, which tracks congestion around the world, told Splash today that Chattogram, which handles more than 90% of Bangladesh’s international trade, now has the worst berthing delays in the world, with many ships forced to wait in the Bay of Bengal for upwards of a week. 

Panama Canal introduces new long-term slot allocation method

The Panama Canal announced the introduction of a Long-Term Slot Allocation (LoTSA) Method for Neopanamax vessels, as part of the Transit Booking System.

With this new measure, Panama Canal aims to increase transit certainty and flexibility for its clients.

Currently, the slot offering in the Transit Booking System is done daily with an anticipation period before the required transit date.

Arctic Northern Sea Route a new way to avoid the Red Sea?

Chinese general cargo vessels have found a novel way around the problems in the Red Sea – sailing via the Arctic Northern Sea Route (NSR).

New New Shipping’s  Xin Xin Hai 1 and Xin Xin Hai have embarked on a journey that will take them through the thawing NSR, navigable with icebreaker assistance during the summer months.

But scientists say climate change and melting ice sheets will soon make it possible to use the passage all year – going from China to Northern Europe on a voyage of around 13,000km, a substantial reduction on the 20,000km Suez Canal route, and around half of the distance needed to divert around the Cape of Good Hope.

LATAM increases offering and strengthens position as largest cargo operator between Europe and S. America

LATAM Cargo Group announced the strengthening of its network between Europe and South America with the increase of frequencies on its B767-300F cargo aircraft. Starting October 1st, the company will add two weekly flights, enhancing connectivity between both markets and increasing the total frequencies from 10 to 12, thus leading the capacity offered between the continents.

This expansion totals a weekly offer of over 600 tons on cargo planes between Europe and South America. From Europe, it will complement the 1,100 tons available on LATAM group's passenger planes. In total, LATAM will offer more than 1,700 tons distributed among 8 points in South America and 10 in Europe.

SMEs in Germany see India as the new focus for supply chain reorientation

German SMEs are increasingly turning their attention on India as they look to reorient their supply chains – but suggestions that this forms part of a move away from China may be misplaced.

DZ Bank’s Medium-sized businesses, regional new orientation after crises: India overtaking China and the USA report notes that in the past 18 months, India has overtaken every region, apart from Europe, when it comes to supply chain realignment among German firms.

“This is certainly a result of India’s economic success in recent years, with its economy up 7.7% in 2023,” says the report.

Turkish Airlines awards three-year ground handling contract to WFS in Denver as its U.S. network grows

Worldwide Flight Services (WFS), a member of the SATS Group, has won a three-year contract from Turkish Airlines for ramp handling and cabin cleaning services at Denver International Airport in Colorado.

The contract aligns with the launch of Turkish Airlines’ 14th destination in the United States. Türkiye’s flag carrier began operations to Denver in June 2024 with three weekly flights, increasing to four weekly flights in July, using Boeing 777 and Airbus A350 airliners between Istanbul and Denver.

Under the contract, WFS will provide a range of comprehensive services for Turkish Airlines at Denver International Airport. These include ramp, aircraft pushback, baggage handling, cargo loading/unloading, airside cargo transportation to and from the aircraft, and cabin cleaning.