GLOBAL SUPPLY CHAIN DISRUPTIONS CONTINUE DUE TO RED SEA SITUATION
The fallout from the ongoing Red Sea situation continues to create significant challenges for global supply chains and customers, according to Maersk’s Asia Pacific July Market Update. Since December 2023, industry-wide disruptions have forced vessels to divert around the Cape of Good Hope, causing unprecedented logistical challenges. Maersk ships are currently rerouting around Africa via the Cape of Good Hope, resulting in longer transit times. The situation has particularly impacted Asian exports, as Asian countries are major global exporters, and routes between the Far East and Europe via the Suez Canal have been directly affected. The disruptions extend beyond these routes, impacting the entire ocean network. “We are faced with these challenges together and we need to make sure that we stay close to them as we handle the new set of circumstances that continues to unfold in front of us. These disruptions, and the impact they are having on your business, is not something that I, nor any colleagues at Maersk, take lightly. We know it is hard. We know it is difficult for you. We know it puts you under a lot of pressure,” said AP Moller, CEO of Maersk.
CMA CGM TO INTEGRATE GOOGLE AI ACROSS SHIPPING AND LOGISTICS OPERATIONS
Leveraging Google’s proven AI solutions and insights from experts, CMA CGM aims to empower its employees’ decision making processes. Every program and tool developed within this partnership will be designed to assist users in several key workflows. CMA CGM will leverage Google’s AI to enhance employees’ decision-making processes through various programs and tools designed. The collaboration aims to revolutionize the shipping industry by improving efficiency, responsiveness, and adaptability, resulting in faster and more responsive customer service. CMA CGM says its focus will be on optimizing vessel routes, container handling, and inventory management to ensure efficient, timely delivery of goods while minimizing costs and carbon footprints. CEVA Logistics, the logistics arm of CMA CGM, will utilize the technology to implement a smart management tool for warehouses, enhancing volume and demand forecasting to better anticipate and plan operations.
ILA PRESIDENT WARNS OF OCTOBER STRIKE AT ATLANTIC AND GULF COAST PORTS
The leader of the International Longshoremen’s Association (ILA) has warned that a strike at all Atlantic and Gulf Coast ports is becoming increasingly likely as time runs out to negotiate a new contract. With the current contract set to expire in 80 days on September 30, 2024, ILA President and Chief Negotiator Harold J. Daggett has expressed concerns over the slow progress in negotiations with the United States Maritime Alliance (USMX). He highlighted that employers represented by USMX are running out of time to reach a new Master Contract agreement, potentially setting the stage for a coastwide strike starting on October 1, 2024. The ILA stated on June 10, 2024, that it would not meet with USMX until the Auto Gate issue is resolved. The union is also awaiting results from an audit on jobs created by new technology, a report they have been expecting for almost two contract periods. Concerns have been raised over the increasing number of IT personnel on marine terminals, with the ILA accusing APM and Maersk’s IT departments in Charlotte, North Carolina, of encroaching on their jurisdiction. The ILA expects shipping companies to recognize the significant contributions of ILA longshore workers during the pandemic in future negotiations.
FEDERAL MARITIME COMMISSION REQUESTS MORE DETAILS ON GEMINI COOPERATION
The Federal Maritime Commission (FMC) has called for more details on the potential impact of Gemini Cooperation on the competition in the ocean shipping sector. Thus, there is a possibility for Maersk and Hapag Lloyd to wait further before launching the joint service. The agreement was to come into effect from July 15, but the FMC has found the details submitted by the shipping lines insufficient to completely assess their competitive impact from the cooperation. The two container shipping giants submitted the Gemini Cooperation Agreement to the FMC on May 31, 2024. The agreement would permit these companies to share vessels in trades between the United States and Asia, the Middle East, and Europe. Agreements typically become effective 45 days after filing unless the Commission issues a Request for Additional Information (RFAI).