RECESSION FEARS STOKED ON DAY THREE OF AMERICA’S PORT STRIKE
Around 45,000 dockworkers at ports stretching from Maine to Texas went on strike on Monday night in the largest terminal industrial action seen anywhere in the world this century, something that has seen several box lines call force majeure
this week. The International Longshoremen’s Association (ILA) union has not been able to come up with a new contract with an employer group, the United States Maritime Alliance (USMX), having sought wage increases of more than 70% plus commitments by port operators not to automate their facilities. The USMX said yesterday it is ready to reopen negotiations with the International Longshoremen’s Association (ILA), but not under pre-conditions set by the union. At least 45 container vessels that have been unable to unload had anchored up outside the strike-stricken ports by Wednesday, up from just three before the strike began on Sunday, according to Everstream Analytics. The vessel backlog could double by the end of the week, the data firm warned. Projections from Sea-Intelligence, a Danish liner advisory, suggest for every week of strike, more than
60 container vessels will start to pile up outside east coast ports.
LITHIUM-ION BATTERY FIRE DISRUPTS TERMINAL OPERATIONS AT PORT OF LOS ANGELES
Several terminals were closed Friday at the Port of Los Angeles after a tractor-trailer carrying lithium-ion batteries overturned and caught fire nearby on Thursday. Port officials said that APM Terminals, Fenix Marine, Everport and Yusen Terminals were closed as emergency crews continue to work at the scene. Officials for the Los Angeles Fire Department said the fire could burn for up to 48 hours and that a roughly 7-mile stretch of California State Route 47, from the Vincent Thomas Bridge to Long Beach, would be closed in that period. The truck overturned around noon Thursday, along a portion of the 47 Freeway at Navy Way, east of the Vincent Thomas Bridge. The fire backed up tractor- trailers for miles along the roadway. The Trapac and West Basin container terminals, along with the World Cruise Center, will maintain operations at the Port of Los Angeles on Friday, authorities said.
GLOBALX AIRLINES TO OPEN CARGO LANE BETWEEN CHICAGO, PUERTO RICO
Startup carrier Global Crossing Airlines has struck a unique partnership with a digital freight exchange to launch cargo service between Chicago and Puerto Rico, filling a market need for direct, affordable containerized transport while providing the airline’s fledgling cargo business a welcome jolt. Under a deal announced last week, Airblox, a startup airfreight capacity wholesaler for medium-term contracts, will have primary responsibility for feeding shipments to Global Grossing Airlines (OTCQB: JETMF) and sustaining the route. GlobalX, as the airline is also called, said it will fly an Airbus A321 converted freighter three times per week between Chicago O’Hare International Airport and San Juan beginning Oct. 10. The service will be exclusively available to freight forwarders through the Airblox platform, which is essentially operating as marketing partner for Global Crossing.
HOUTHIS DAMAGE VESSELS IN NEW WAVE OF ATTACKS
The Houthis are taking credit for attacks on several merchant ships with reports saying that at least two vessels have suffered damage in the new barrage. These are the first attacks in nearly a month on merchant ships and come as the Houthis threatened escalations after Israel attacked Yemen’s seaport over the weekend and launched its attacks on Hezbollah in southern Lebanon. UK Maritime Trade Operations is confirming attacks on two vessels, a tanker and a bulker, in the same general area of the Red Sea and both damaged but with no reported crew injuries. The vessels are both reported proceeding according to UKMTO. The Houthis also claimed a third unconfirmed attack on a Maersk-chartered containership in the Arabian Sea as it was approaching Oman.