CANADA’S TWO LARGEST RAILWAYS SHUT DOWN
Canada’s two biggest railways have shut down after a midnight deadline passed without an agreement overpay conditions. The stoppage of work by 9,300 engineers, conductors and yard workers at Canadian National Railway Co (CN) and Canadian Pacific Kansas City (CPKC) marks the first-ever simultaneous shutdown at the country’s main railroad operators with ports across the nation braced for a severe drop in business. The Teamsters Canada Rail Conference said the “parties remain far apart, and both CN and CPKC have begun their employer-driven work stoppage.” The shutdown is the first of what could be a problematic couple of months for North American supply chains with the real threat of industrial action come October 1 by dockworkers across the US east and Gulf coasts. CMA CGM issued a notice detailing several measures, including potential rerouting of vessels to US ports and restrictions on rail shipments. The company has also implemented embargoes on specific intermodal shipments, including hazardous materials and temperature controlled containers, across its network.
ANOTHER CMA CGM SHIP LOSES CONTAINERS OFF SOUTH AFRICA
Adverse weather conditions have led to yet another large container vessel losing 99 containers off the east coast of South Africa, according to the South African Maritime Safety Authority (SAMSA). In response, a navigational warning to sailing vessels has been issued and a public call made to report any sighting of the cargo containers possibly still floating at sea. The incident happened on the 13,000 teus CMA CGM Belem, a ship featuring a wind shield which was delivered from Hudong-Zhonghua Shipyard at the start of this year. The stow collapse happened late last Thursday off Richards Bay. This is the second box spill to hit the French line off South Africa in the space of a month. The 18,000 teus CMA CGM Benjamin Franklin lost 40 containers last month off South Africa’s east coast.
TANKER ADRIFT AFTER MULTIPLE ATTACKS IN RED SEA
A Greek-flagged tanker was adrift in the Red Sea on Wednesday after repeated attacks that started a fire on the vessel and caused the ship to lose power, the UK maritime agency said. Iran-aligned Houthi militants have launched attacks on international shipping near Yemen since November in solidarity with Palestinians in the war between Israel and Hamas. They did not immediately claim responsibility for Wednesday’s attacks. Delta Tankers, the ship’s operator, confirmed the ship was adrift and had sustained minor damage. The crew were assessing the situation, and it would proceed on its journey, it said in a statement. Sounion is the third Delta Tanker-operated ship targeted by the Houthis. The militants earlier this month attacked the Liberia-flagged Delta Atlantica and Delta Blue tanker ships in separate attacks. The assaults have forced ship owners to reroute vessels away from the Red Sea and Suez Canal to the longer route around the southern tip of Africa, cascading costs and delays through global supply chains. The Houthis so far have sunk two ships and killed at least three crewmembers. Experts say their attacks will not stop until Israel and leaders of the Palestinian group Hamas agree to a ceasefire in Gaza.
WISCONSIN IMPORTERS PAY $10M TO SETTLE CUSTOMS FRAUD CASE
Two Wisconsin-based industrial products suppliers and their owners have paid more than $10 million to resolve allegations that they submitted fraudulent commercial invoices to avoid millions of dollars in customs duties owed on imports from China. Precision Cable Assemblies Inc., which sell wire harnesses, battery cables and other wiring products, and Global Engineered Products, which sells power distribution products, submitted false invoices to U.S. Customs and Border Protection that significantly undervalued goods imported from China from 2016 to 2021, the Department of Justice announced last week. The value and the tariff rate of a product are the primary factors in determining the amount of import duty. Global Engineered Products paid CBP $4.2 million in lost duties from the undervaluation scheme. The defendants paid an additional $6 million to the Justice Department to resolve liabilities for alleged evasion of duties under the False Claims Act. The case was brought to the attention of authorities by a former Precision Cable employee who took advantage of whistleblower protections in federal law to come forward. He received $1.2 million for initiating a fraud suit against the company, which the government ended up litigating.
