Trendwatch: Labor talks at US East and Gulf Coast ports reach an impasse; Canadian Railroads again face possible work stoppage after Labor-Board ruling; Air cargo players want 'cohesion and consistency' in how aviation reports emissions

Labor talks at US East and Gulf Coast ports reach an impasse

A labor strike that would halt cargo-handling operations at ports from Houston to Boston just weeks before the US presidential election is looking increasingly likely.

Dueling statements from the United States Maritime Alliance, known as USMX, and the International Longshoremen’s Association on Friday indicate the two sides are still pretty far apart.

USMX, which represents terminal operators and ocean carriers, said it remains ready to continue bargaining, and that the latest offer to dockworkers includes “industry-leading wage increases” and retains the current contract’s language on automation.

Canadian Railroads again face possible work stoppage after Labor-Board ruling

Canada’s rail operations face the risk of shutdown later this month after the country’s labor-relations board effectively opened the door to a strike by unionized workers, or a lockout.

The Canada Industrial Relations Board in a ruling Friday determined a work stoppage at Canadian Pacific Kansas City and Canadian National Railway wouldn’t pose an immediate or serious danger to safety or public health. It ordered a 13-day cooling-off period between the rail companies and Teamsters Canada Rail Conference.

In response to the ruling, Canadian Pacific issued a lockout notice for one minute past midnight Aug. 22 if no settlement is reached with the union. Canadian National called on the government to launch binding arbitration and said it would have no choice but to begin a phased and progressive shutdown of its network, starting with embargoes of hazardous goods which would also result in a lockout after midnight Aug. 22

Air cargo players want 'cohesion and consistency' in how aviation reports emissions

Current CO2 air cargo emission calculating methodology has been compared to the VW emissions scandal, with a lack of standardisation allowing passenger ‘greenwashing’ at the expense of cargo. 

The disparity between IATA and ICAO’s baseline figures for calculating air cargo emissions could be resulting in false sustainability data, making passenger operations look cleaner and contributing to global warming.  

Calculating emissions from a given flight is done by dividing fuel burn by the weight, attributed to passengers and cargo, and distance of a flight. Fuel burn is then multiplied by a conversion factor to equate to CO2 produced.  

Dangerous cargoes and container ship fires back in the spotlight

Fires on board container ships have long been a scourge of the industry wreaking huge amounts of damage on both vessels and cargo, and in many cases sadly leading to serious injuries and fatalities among the crew.

In the case of the blast that occurred on the 6,589 teu YM Mobility while berthed in Ningbo-Zhoushan port the vessel’s crew and port would have appear to have been aware of the impending danger and videos showed large amounts of white smoke billowing from containers stowed on the ship’s bow prior to the explosion. This would have given time to evacuate crew from the vessel and port workers in the nearby area and fortunately no fatalities or casualties were reported.

American Airlines Cargo expands partnership with CargoAi across Europe

American Airlines Cargo today announces the expansion of its strategic partnership with CargoAi, a leading digital enabler in the air cargo industry. The expansion aims to enhance airfreight booking capabilities on CargoMART, CargoAi’s cutting-edge platform for freight management, by integrating American Airlines Cargo’s extensive network for use. Following a successful initial launch in France, the cargo carrier has now extended its network on the CargoMART platform to include origins in Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Portugal, UK, Spain, and Switzerland.

In this partnership, American Airlines Cargo will continue to seamlessly integrate into CargoMART, offering freight forwarders access to a comprehensive network of routes and a streamlined booking process. The advanced technology and functionalities of CargoMART complement the carrier’s own digital booking platform, aacargo.com, thereby enhancing the digital experience for customers seeking capacity and managing bookings on American’s cargo network.

Shipping gears up to debate carbon levies

Ahead of the next session of the Marine Environment Protection Committee (MEPC), scheduled to start at the end of September, proposals are pouring into the International Maritime Organization (IMO).

The headline from the global gathering is expected to be the deliberations on some form of carbon levy. 

Lobby group, the International Chamber of Shipping (ICS), has rebooted a greenhouse gas (GHG) levy scheme it has been touting for a number of years. The reworked proposal, pitched in partnership with the Bahamas and Liberia, is a rewards programme to incentivise accelerated production and uptake of zero/near-zero GHG marine fuels, plus a separate IMO fund to be allocated billions of dollars annually to support maritime GHG reduction efforts in developing countries.

India’s ports face indefinite strike over long-standing disagreements

Dockworkers across India’s twelve largest ports have declared an indefinite strike from August 28, following failed discussions over wages and allowances dating back more than three years.

The decision came after a two-day meeting at V.O. Chidambaranar Port in Thoothukudi, where members of the All India Port and Dock Workers’ Federation expressed dissatisfaction over the long-standing deadlock in wage talks.

The previous wage agreement expired in December 2021 and, despite the formation of a bipartite wage negotiation committee by the Ministry of Shipping in March 2021, no resolution has been reached after seven meetings spanning 31 months.

Union leaders blame the impasse on what they describe as "illogical and unlawful guidelines" imposed by the government, which they say have obstructed meaningful negotiations and deepened workers’ frustration.

Etihad cargo revenue up 10% in first half

Etihad Airways’ cargo revenue increased by approximately 10% in the first half of this year compared to the same period of 2023.

The Abu Dhabi-headquartered airline’s cargo revenue was AED1.9bn ($507m) compared to AED1.7bn ($462) year on year.

The increase in revenue was “primarily driven by increased demand and increased belly capacity of our fleet”, said Etihad in a half year press release.

Tsunami of boxship orders grows as Wan Hai lines up 20 newbuilds

Taiwan’s Wan Hai Lines has set out to expand its fleet with up to 20 methanol dual-fuel vessels. 

The world’s 11th largest containerline, which had ordered around 40 ships during the box shipping boom of 2021 and 2022, has inked a letter of intent with compatriot shipbuilder CSBC Corporation for 12 firm and four optional 8,000 teu ships worth between $102.5m and $124m each.

For CSBC, the order is hugely significant. The shipbuilder, which has facilities in Keelung and Kaohsiung, has a history of building boxships but has missed out in the giant wave of boxship ordering in the 2020s.

National railways stop some shipments ahead of possible lockout

The country's two main railways are starting to block shipments ahead of a possible strike or lockout next week.

Canadian National Railway says in an internal memo the company has started to embargo some hazardous goods from the U.S. in anticipation of a work stoppage.

CN says it plans to bar more commodities this week if no agreement with workers is reached. On Friday, Canadian Pacific Kansas City Ltd. said it will temporarily ban traffic of dangerous materials to ensure no such shipments wind up stranded on the tracks in the event of job action.