WEEK 47 MARKET UPDATE

EU AND UK ISSUE SANCTIONS AGAINST IRISL  

The UK and the European Union have targeted Islamic Republic of Iran Shipping Lines (IRISL) in their latest round of sanctions. The Iranian containerline and its CEO, Mohammadreza Modarres Khiabani, have been sanctioned over the company’s ongoing military support to Russia’s war against Ukraine and to armed groups and entities in the Middle East and the Red Sea region such as the Houthis from Yemen. “Iran’s attempts to undermine global security are dangerous and unacceptable,” British foreign secretary David Lammy said. An Iranian government official said the allegations made against IRISL were “completely illusionary”. The US has had similar sanctions in place against IRISL since 2020.  

CANADA CONTAINER PORTS FACE BACKLOGS, DELAYS  

Container operations have resumed following labor-related disruptions at Canada’s busiest ports, which continue to work through backlogs toward normal operations. The Canada Industrial Relations Board on Nov. 14 granted a request by Labor Minister Steven MacKinnon and ordered an end to lockouts of union workers at West Coast ports as well as at the Port of Montreal. The order also called for binding arbitration in the ongoing contract disputes. Since operations resumed at the Port of Vancouver’s four container terminals Nov. 15-20, average dwell is 7.7 days and trending  downward (Wednesday’s dwell was 5 1/2 days) but above October dwell of 4 1/2 days. Daily rail production is 54,000 feet per day, almost back to 57,000 feet per day before the labor disruptions. As of Thursday, Vancouver’s on-dock rail from CN and CPKC totaled 221,846 feet across four terminals. Dwell at Vanterm and FSD was 0-3 days; 3-5 days at Deltaport, and seven days or more at Centerm, the busiest hub with 58,988 feet of on-dock containers.0020Vancouver showed seven container vessels at berth, with five vessels waiting at anchor and two vessels waiting outside the port.
ports containers

US IMPORTERS URGE BIDEN TO STEP UP RED SEA PROTECTIONS  

A year after attacks on Red Sea shipping began to reshape the global supply chain, a U.S.-based group is calling on President Joe Biden to do more to protect vessels transiting the Mideast trade route. The American Apparel & Footwear Association (AAFA) also urged union longshore workers and employers to resume contract negotiations and avoid another shutdown of East and Gulf Coast ports that could put a chokehold on the American economy. The AAFA in a letter to Biden urged the government to significantly expand efforts to protect international shipping lanes in the Red Sea from Houthi terrorists based in Yemen. While longer voyages diverting around the Red Sea and resultant higher freight rates have pumped up container lines’ profits, the trade group said the situation has become intolerable. United States Central Command in a release Nov. 13 said U.S. air and sea forces defeated Houthi-launched weapons while transiting the Bab al-Mandeb Strait between the Red Sea and the Gulf of Aden. CENTCOM offered no other details. The European Union’s Eunavfor Aspides operation is also guarding shipping in the Red Sea, Gulf of Aden and portions of the Indian Ocean.  

VANCOUVER AIRPORT CLEARS DAMAGED AMAZON AIR CARGO JET FROM RUNWAY AREA 

The Amazon Air freighter aircraft that ran off the north runway at Vancouver International Airport two days ago has been safely removed from buffer area, the airport authority announced Thursday night. The north runway at the Canadian airport remains closed to air traffic as officials assess systems and infrastructure. Passenger and cargo aircraft continue to experience flight delays with only a single runway in operation. Canada’s Transportation Safety Board allowed crews in the morning to begin the process of relocating the Boeing 767 freighter from the runway area after gathering evidence for their accident investigation. Specialists from Air Canada’s heavy aircraft removal crew lifted the nose of the aircraft from the mud, the airport said. The plane’s landing gear broke when the plane left the runway. More than 50 people from various organizations, including aircraft operator Cargojet, are participating in recovery efforts. Removing the cargo jet required offloading cargo, constructing temporary roadways and staging pads, setting up cranes to lift the aircraft and dispatching tow crews to transport it safely to a nearby hangar for cleaning and further  inspection.

 

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