The recent confirmation of a potential strike by the US dockworker union ILA across east and Gulf coast ports is already causing significant disruption, with shippers bracing for increased airfreight costs. Even before the official strike, many businesses have had to pivot their strategies to mitigate the potential impact on their supply chains.

“Containers will be in the wrong spot, and shippers will have to deal with that,” said Niall van de Wouw, chief airfreight officer for Xeneta. “Some have already pulled back freight they had dispatched. So they will need to supplement their stock in a different way or stick it out. Either way, things are going to be a mess; and when there is a mess, airfreight comes in.”

This disruption is already evident. Shipco Transport has reported increased demand for airfreight as businesses look for alternative ways to keep their goods moving. According to Kim Ekstroem, global COO for airfreight at Shipco, “A couple of weeks ago, we started to see quote requests for large shipments that normally would be LCL or even FCL. Forwarders and their customers began bracing themselves for a potential strike. Now, many of these early requests have turned into bookings.”

But the strike isn’t the only factor. The confluence of seasonal trends, such as the typical Q4 ecommerce spike and the airline winter schedule reducing bellyhold cargo capacity by 20%, is adding to the pressure. “It’s a perfect storm,” warns van de Wouw. “Add a strike to an already tense supply chain, and the consequences could be severe.”

This heightened demand for airfreight has already started pushing up prices. “We’ve seen a slight increase in transatlantic air rates,” said Ekstroem, “but the question is, for how much longer?” He cautioned that airfreight rates could jump from $2 per kg to $6 or more within days if capacity continues to tighten.

While some shippers have opted to avoid east and Gulf coast ports altogether, many are turning to airfreight to bypass potential blockages. However, the airfreight market is quickly becoming a battleground where only the best-paying cargo will fly. “When demand and capacity are imbalanced, the market will go into a frenzy,” said Ekstroem. “Airlines will prioritise express or guaranteed products at premium rates, leaving many businesses scrambling for space.”

As capacity diminishes and rates skyrocket, the need for visibility and agility in supply chains has never been more critical. Implementing supply chain visibility software that provides real-time data is key. For BCOs (Beneficial Cargo Owners) and LSPs (Logistics Service Providers), such tools are vital for making fast, data-driven decisions in this volatile environment. By providing insights into port conditions, shipment statuses, and capacity constraints, visibility solutions can help businesses navigate disruptions and ensure critical goods are not delayed or lost in transit.

These disruptions and the looming climate impact make supply chain visibility software indispensable. Real-time data gives businesses the insights they need to not only manage immediate concerns but also optimise long-term resilience, counteract climate impacts, and improve overall sustainability.

As van de Wouw pointed out, with limited options on the ocean and airfreight costs set to soar, only those equipped with the right tools will be able to navigate the complexities of the coming months. The storm is brewing—businesses need to be ready.

The Port of Montreal’s longshore workers have entered mediation talks with the Maritime Employers’ Association (MEA) after voting overwhelmingly to strike earlier this week. With 99.63% of members rejecting the MEA’s latest offer and 97.88% voting for pressure tactics “up to and including strike action,” tensions at one of Canada’s key ports are running high.

The longshore workers, represented by the Local 375 branch of the Canadian Union of Public Employees (CUPE), have been without a collective agreement since the start of the year. Despite months of negotiation, core issues like wages and work-life balance remain unresolved. The dockworkers are demanding a 20% wage increase over four years and improvements to their work-life balance.

Under Canadian labour law, dockworkers must provide 72-hours’ notice before commencing any strike action. The union has up to 60 days to exercise this mandate, raising the possibility of a strike coinciding with similar labour actions at ports along the US east and Gulf coasts.

Economic and Supply Chain Impact

The uncertainty surrounding this labour dispute is already having ripple effects across the Canadian supply chain. According to the MEA, a significant drop in cargo at the Port of Montreal, driven by ongoing labour disputes, is posing severe financial challenges. “The Canadian supply chain is already fragile,” the MEA stated, pointing out that delays and recurring labour disputes are affecting both the Québec and Canadian economies. It also noted that Canada’s reputation as a resilient and reliable trading partner is at risk.

In this context, the ability of businesses to maintain visibility and control over their supply chains has never been more critical. The potential for simultaneous strikes at key North American ports could create widespread disruptions, making it imperative for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to prepare for every eventuality.

The Need for Real-Time Data Visibility in Supply Chains

In these unpredictable times, real-time data visibility software can provide BCOs and LSPs with the critical insights they need to make informed business decisions. By leveraging advanced supply chain visibility platforms, companies can track cargo movements, predict delays, and quickly respond to disruptions caused by labour strikes or other unforeseen events.

Additionally, with climate change increasingly affecting shipping routes and port operations, the integration of climate impact visibility into supply chain management becomes even more crucial. Real-time data not only helps businesses adapt to immediate disruptions but also provides insights to plan for long-term resilience. Implementing such systems is no longer optional; it’s essential for safeguarding supply chains in an increasingly volatile global market.

Labour Disputes and Government Intervention

The CUPE has urged the government to refrain from intervening in this round of negotiations. National president Mark Hancock stated that government interference during the 2021 negotiations—when the Trudeau government imposed forced arbitration and legislated workers back to work—had only prolonged the issues, which have now resurfaced.

“Our message to the Trudeau government is simple – back off; let the parties negotiate a fair deal,” said Hancock. He warned that government involvement would only stifle genuine negotiations and delay a fair resolution for both parties.

Meanwhile, the MEA has emphasised the need to reach a negotiated agreement swiftly, stating, “Our priority remains the signing of a negotiated collective agreement as soon as possible, in order to work on bringing the cargo back to the port.”

A Call for Preparedness

As labour disputes continue to destabilise key North American ports, businesses reliant on maritime trade must stay ahead of disruptions. Implementing real-time data visibility and climate impact tracking software is essential for BCOs and LSPs to navigate these challenges, ensuring they can make timely, informed decisions that safeguard their supply chains.

A looming strike along the US east and Gulf coasts threatens to unravel global container supply chains, with significant ramifications for businesses far beyond American shores. Experts are warning that even a short-lived strike could ripple through logistics networks well into 2025, leaving major importers and exporters scrambling to adjust.

Peter Sand, chief analyst at Xeneta, highlighted the critical nature of the issue. “There are ships on the ocean right now carrying billions of dollars of cargo, heading to ports on the US east and Gulf coasts,” he said, warning of congestion at anchorages that could send shockwaves across international trade routes.

For logistics service providers (LSPs) and beneficial cargo owners (BCOs), the risk is not just in delays but in lost opportunities, missed connections, and unanticipated costs. Many vessels, such as the Monte Tamaro, OOCL Guangzhou, and Seaboard Pioneer, are scheduled to arrive at key ports, including Port Elizabeth in New Jersey, on or just after the 1 October strike deadline. A delay for these ships could mean extensive rerouting or a painful wait offshore.

According to the latest analysis from eeSea’s liner schedules, a total of 39 container ships are expected to arrive at the Port of New York and New Jersey in Week 40. While 28 remain on schedule, 11 are already delayed—underscoring the fragile state of the current logistics environment.

“This is not just a local problem,” Sand continued, “The knock-on effect will be felt across global schedules, particularly with vessels heading back to the Far East. A strike lasting even a single week could push disruptions into January, delaying ships bound for the US from Asia.”

Given the complexity of global supply chains, real-time data insights are no longer a luxury but a necessity. For BCOs and LSPs navigating these challenging waters, tools providing real-time visibility into port conditions, rerouting options, and alternative supplier networks could be the difference between absorbing the shock and sustaining severe operational impacts.

Visibility software can empower decision-makers to pre-emptively divert shipments or optimise their logistics strategies, mitigating the economic fallout. As John McCown, a noted maritime economist, pointed out, the US port system handles nearly $194 billion in goods each month, with the east and Gulf coasts responsible for more than half of that. Given that 16% of the global container fleet operates in this region, the scale of disruption is almost unimaginable.

While a Maine-to-Texas strike could have devastating consequences, some believe it’s unlikely to reach that point. McCown speculates that the economic risks are so severe that President Biden may be forced to invoke the Taft-Hartley Act, requiring an end to the strike. Others anticipate selective action targeting specific ports, which could still be highly disruptive but more contained.

Government intervention, says Sand, could be critical to prevent a widespread shutdown. “Closing the east and Gulf coasts would be toxic for supply chains,” he said, arguing that it’s imperative to find a resolution before severe damage is done to the economy.

But for LSPs and BCOs, waiting for government action may not be an option. With advanced visibility tools, they can make swift, business-critical decisions to counteract the looming strike’s impact. As the world of logistics becomes increasingly complex, embracing real-time data insights is the only way forward.

With just one week until a potential strike threatens to halt operations at US East and Gulf Coast ports, carriers are rolling out contingency plans in anticipation of significant disruptions. Shipping giants, including Maersk, Hapag-Lloyd, CMA CGM, and ONE, have announced a range of surcharges, halts on inland cargo movement, and reefer container monitoring limitations, all aimed at mitigating the impact on the global supply chain.

As the strike looms, the need for advanced supply chain visibility has never been more apparent. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) must leverage real-time data to make critical business decisions, ensuring minimal disruption to their operations.

Maersk will introduce a ‘local port disruption surcharge’ of $1,500 per TEU and $3,000 per FEU for cargo moving to and from US East and Gulf Coast terminals starting 21 October. This surcharge is designed to cover the additional operational costs due to service interruptions. Meanwhile, Hapag-Lloyd will implement a Work Interruption Destination Surcharge (WID) of $1,000 per TEU for imports from East Asia on 19 October, and a Work Disruption Surcharge (WDS) for the rest of the world on 18 October.

CMA CGM, which introduced an $800 surcharge per TEU and $1,000 per FEU on exports from East and Gulf Coast ports starting 11 October, will also add a peak season surcharge of $1,000 per unit for imports from the Indian Subcontinent and the Middle East on 1 November. Similarly, Japanese carrier ONE has warned of potential booking cancellations and vessel rollovers, while North American intermodal operator CSX is halting Canadian exports and will only accept imports until the strike commences.

The threat to refrigerated (reefer) cargo is particularly critical. Maersk and ONE have both urged customers to pick up their imports before 30 September, as the ability to monitor temperature-sensitive containers will be severely hampered if ports go on strike. Hapag-Lloyd has taken precautionary measures, pausing reefer bookings for US exports after 1 October and stopping East Coast export traffic from 29 September.

While these surcharges and operational halts aim to protect carriers and the supply chain from the most severe impacts, they underscore a larger issue: the pressing need for real-time supply chain visibility and climate impact monitoring. For BCOs and LSPs, the ability to access accurate, real-time data will be essential to counteract potential delays, reroute shipments, and make strategic decisions that mitigate risks across their logistics networks.

As Sara Dandan, founder of FourOneOne, a company specialising in detention, demurrage, and maritime dispute resolution, stated: “Any LSP worth their salt has contingencies in place to mitigate issues caused by a strike at these ports. We’ve been given plenty of warning, and most shippers and LSPs should already have alternative plans and routes in place.”

This evolving scenario serves as a reminder that in today’s complex and climate-sensitive global trade environment, having the right technology to provide real-time data insights is no longer a luxury—it’s a necessity. The integration of supply chain visibility software allows companies to monitor their shipments in real-time, providing critical information that can prevent costly disruptions, reduce emissions, and ensure smoother, more sustainable logistics operations. As the US port strike nears, these tools are more vital than ever.

The long-standing issue of container shipping’s “hurry-up-and-wait” scenario continues to plague the industry, leading to inefficiencies, higher CO2 emissions, and mounting costs. In this all-too-familiar situation, box ships race to catch up on schedules by increasing speed, only to find themselves anchored outside their destination ports, waiting for a berth to become available. Estimates suggest that this inefficient practice increases container shipping’s CO2 emissions by up to 15%, a staggering figure that adds to the industry’s carbon footprint and hinders global decarbonisation efforts.

While technology has long been touted as the solution to this problem, the reality is that neither VSAT broadband, digitalisation, machine learning, nor AI have been able to make “smart-steaming” a widespread practice. Despite years of technological advancements, the solution to smarter shipping – essentially adjusting speeds based on real-time berth availability – could be as simple as a phone call. Yet, the practice remains stubbornly elusive.

This issue persists in part because of the high demurrage charges carriers can levy on shippers, creating a perverse incentive for shipping lines to perpetuate the “hurry-up-and-wait” behaviour. As Napa CEO Mikko Kuosa explains, “Often, demurrage can be more profitable than doing normal business.” This leads to a misalignment of priorities, where the short-term financial gains from demurrage charges outweigh the long-term benefits of improved fuel efficiency and lower emissions.

Despite a growing recognition of the problem, industry efforts over the past decade to address this inefficiency have fallen short. The conflicting interests embedded in shipping contracts have thwarted progress, with incentives driving behaviour that runs counter to sustainability goals. In fact, queues of more than a dozen vessels waiting at major global ports have become routine, exacerbating the problem.

However, there is hope on the horizon. Finland’s Napa has launched its latest initiative, Napa Studio, bringing together a wide range of industry stakeholders including shipyards, owners, classification societies, and technology providers, as well as legal and commercial entities. This collaborative approach aims to create a solution that neutralises the conflicting interests embedded in contracts, realigning the shipping industry towards decarbonisation.

Kuosa emphasises that the key to solving this issue lies in sharing the benefits across the entire supply chain: “There needs to be a solution that neutralises these conflicting interests, so that shipping, from a contractual point of view, would be aligned toward this decarbonisation market.”

At the heart of this solution is the need for real-time supply chain visibility software that provides accurate data insights to help Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) make critical business decisions. By leveraging real-time data, stakeholders can optimise operations, avoid costly delays, and reduce their carbon footprint – moving towards more sustainable, efficient, and resilient supply chains.

Ultimately, smart shipping isn’t just about technology; it’s about aligning the interests of all players in the supply chain, and ensuring that decisions are driven by data that enable BCOs and LSPs to counteract potential disruptions. With the right tools in place, the shipping industry can break free from the “hurry-up-and-wait” cycle, reduce emissions, and pave the way for a more sustainable future.

Typhoon Bebinca, the strongest storm to strike Shanghai since 1949, has wreaked havoc on the city’s vital container terminals, causing severe disruptions and highlighting the vulnerability of global supply chains to extreme weather. As the storm made landfall early Monday, it forced vessels to divert from Shanghai’s two key ports—Yangshan and Waigang—leading to significant congestion and erratic departures. The ripple effects from this storm have now spread across Southeast Asia, putting further strain on the global shipping network.

According to data from Windward AI, the immediate impact was stark: port calls at Shanghai plummeted by 56% from Friday to Saturday and a further 95% into Sunday, with neighbouring Ningbo experiencing an 86% drop in vessel arrivals before coming to a complete standstill on Sunday. The storm’s aftermath is expected to persist for over a week, with delays of up to 60 hours for ships attempting to berth in Shanghai and up to 48 hours in Ningbo.

This disruption comes at a particularly challenging time, as southern China and Vietnam are still reeling from Typhoon Yagi’s impact just a week prior, causing heavy congestion in ports like Yantian, where ships are currently facing a four-day wait to berth. Further compounding the issue, ongoing disruptions in the Red Sea and rerouting of vessels around Africa’s Cape of Good Hope have worsened bottlenecks at major Southeast Asian ports, including Singapore and Kelang.

S&P Global reports that container operations at Shanghai and Ningbo were suspended starting Saturday and Sunday, respectively, with no sign of a quick recovery. Kuehne + Nagel’s Seaexplorer tool also indicates “heavily disrupted operations” at both ports. As of Monday, 36 vessels were anchored near Shanghai and Ningbo, intensifying the backlog.

Despite these challenges, industry analysts such as Linerlytica suggest that these disruptions are unlikely to reverse the current downward trend in long-haul freight rates. Demand for cargo remains weak, with carriers fiercely competing for market share in anticipation of upcoming alliance reshuffles.

Climate and Supply Chain Visibility: A Critical Need

The chaos unleashed by Typhoon Bebinca has brought to light an urgent need for real-time supply chain visibility tools, which can provide immediate insights to assist Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in making critical, data-driven decisions.

Given the increasing frequency of climate-related disruptions, such as typhoons and storms, the capacity to predict, monitor, and react in real-time is essential to minimising delays and financial losses. Visibility software with advanced data analytics could enable firms to swiftly adjust routes, optimise inventory levels, and forecast alternative port solutions. Without these capabilities, BCOs and LSPs risk navigating blind in the face of major disruptions like Typhoon Bebinca.

Beyond the shipping sector, the typhoon’s broader impact has been severe. Flights at both Pudong and Hongqiao International Airports were cancelled, railway operations at Shanghai Railway Station were suspended, and highways imposed strict speed limits. Winds reached 151 kph (94 mph), and torrential rainfall—up to three inches in some areas within an hour—crippled infrastructure. Over 400,000 people were evacuated, with 30,000 households losing power, and more than 10,000 trees were felled by the storm.

As Typhoon Bebinca moves inland towards Anhui and Henan provinces, it is expected to weaken, but heavy rainfall of up to 12 inches is still forecast for the region over the next 48 hours. The timing of the storm, coinciding with China’s three-day Mid-Autumn Festival holiday, adds further complexity to recovery efforts.

Embracing Technology to Navigate Supply Chain Disruptions

As the global shipping industry faces increasingly unpredictable challenges, there has never been a more pressing need for implementing real-time supply chain and climate visibility software. Such tools can provide the critical insights BCOs and LSPs need to make proactive, informed decisions to mitigate the impact of extreme weather events. Typhoon Bebinca serves as a harsh reminder that without these technological advancements, supply chains remain vulnerable to severe disruptions, resulting in delays, financial losses, and uncertainty.

In September 2019, Amazon made waves by announcing its ambitious Climate Pledge, committing to reach net-zero carbon emissions by 2040. It was seen as a bold move, positioning the e-commerce giant as a leader in sustainability. Yet, a recent report from the Stand.Earth Research Group, Ship It Zero, and Pacific Environment casts doubt on the company’s environmental progress, exposing a staggering 25% increase in CO2 emissions since the pledge’s launch.

This report brands Amazon’s green initiatives as “greenwashing,” revealing that despite its public commitments, the company’s carbon footprint continues to climb. Between 2019 and 2023, emissions from Amazon’s logistics network skyrocketed, particularly within air transport, which saw a 67% increase in emissions. Airfreight now accounts for more than 42% of the carbon emissions for every parcel delivered through Amazon’s U.S. system. The company’s heavy reliance on air transport and fossil fuel-powered delivery vans — whose emissions have surged 195% — are seen as major contributors to its rising carbon footprint.

The Cost of Speed: Air Freight and Carbon Emissions

The growing role of air transport in Amazon’s logistics network has been a key driver of emissions. Between 2019 and 2023, emissions from airfreight surged, contributing to the 5.84 million tonnes of CO2 from transporting goods in 2023. Airfreight was initially ramped up to counteract port disruptions during the pandemic, but remains a significant source of emissions as Amazon continues to prioritise speed over sustainability.

Despite introducing initiatives such as the deployment of 120,000 electric vans by 2030, these efforts are seen as insufficient. Even with this fleet, annual emissions growth would only decrease marginally, from 36% to 35%. Given its dominance in the U.S. e-commerce market, where it controls 38%, Amazon holds the market power — and responsibility — to make significant changes in its logistics network.

The most concerning area is Amazon’s aviation operations, which contributed 2.5 million tonnes of CO2 in 2024 alone. With 93 planes in operation, the environmental impact is profound. However, transparency around Amazon’s aviation emissions remains limited, as the company outsources much of its logistics to third-party carriers, making it difficult to assess the full environmental impact.

Lack of Transparency: An Ongoing Challenge

While Amazon’s competitors, such as UPS and FedEx, provide more detailed reporting on their environmental footprint, Amazon lags behind. Critics argue that Amazon’s limited transparency makes it difficult for stakeholders, including Logistics Service Providers (LSPs), to fully understand the environmental impact of their operations and make informed business decisions.

A pressing need exists for real-time data insights that can provide BCOs and LSPs with critical visibility into their supply chains. By leveraging technology that offers real-time monitoring of carbon emissions and logistics efficiency, businesses could counteract the impacts of climate-related disruptions and optimise their operations.

Such tools are essential for companies like Amazon, where fast-paced expansion demands greater oversight. For instance, despite Amazon’s recent pledge to deploy 100,000 electric vans by 2030, a report from Stand.Earth estimates the company will need 400,000 electric vehicles to fully decarbonise its logistics network at its current growth rate.

Moving Forward: The Path to Zero Emissions

As Amazon’s logistics operations continue to expand, the environmental toll is expected to increase. Despite Amazon’s public commitments to sustainability, its “Shipment Zero” initiative, which aimed to make 50% of shipments net-zero by 2030, has been quietly dropped, raising further concerns. Projections suggest that Amazon’s overall emissions will grow at an annual rate of 5.5% to 11.5% through 2030.

Amazon Employees for Climate Justice, an internal group, has also raised questions about the company’s claims regarding renewable energy achievements, further challenging its green credentials. The Science Based Targets Initiative (SBTI), a UN-backed organisation, recently removed Amazon from its list of climate-conscious companies for missing deadlines related to emission reduction targets.

With Amazon holding such a significant share of the logistics market, its decisions have wide-reaching impacts. Critics argue that cutting reliance on air freight would be an obvious first step in reducing emissions. Joshua Archer, a senior campaigner at Stand.Earth, suggested, “If Amazon is serious about climate progress, stop flying so much.”

Without stronger commitments to decarbonisation and greater visibility into its operations, Amazon’s environmental promises risk being perceived as hollow. By embracing real-time data solutions, Amazon and its partners could gain the insights needed to reduce their carbon footprint and make the operational shifts necessary to achieve genuine sustainability.

The maritime industry is at a pivotal juncture. As shipping giants scramble to meet increasingly stringent decarbonisation targets, a fresh challenge has emerged—soaring costs for liquefied bio methane (LBM), which has long been considered the natural successor to LNG (liquefied natural gas). Lloyd’s Register (LR), a leading UK ship classification organisation, has sounded the alarm: shipowners and their eco-conscious customers need to brace themselves as the price of LBM continues to rise compared to other biofuels.

Shipping companies have been looking to biofuels as a critical solution to meet the upcoming FuelEU guidelines. These regulations, kicking off in January 2024, impose increasingly aggressive CO2 emissions reductions, culminating in an 80% reduction by 2050. Yet, while many biofuels are expected to become cheaper between 2020 and 2030, LBM bucks this trend.

Maersk’s Shift and the Industry’s Growing Dilemma

Major players like Maersk, which had originally hoped to spearhead an e-methanol bunkering industry, have begun pivoting towards LNG, with a transition to LBM as a second step. However, LR cautions that the supply of biofuel feedstock is limited and must be shared across multiple transport sectors. This constraint, combined with the discrepancies in carbon emissions reduction between different biofuels, could lead to misinformed decisions by shipowners and customers alike.

For example, used cooking oil biodiesel (UCO) can reduce CO2 emissions by an impressive 84%, making it compliant with the EU’s toughest upcoming environmental regulations. On the other hand, palm oil biodiesel, produced with an open effluent pond (where methane is not captured), only delivers a 20% reduction in emissions. Meanwhile, hydrotreated vegetable oil (HVO), which can replace conventional heavy bunker fuel, offers a modest 22% reduction.

Environmental concerns compound the issue, with reports of deforestation for palm oil production potentially resulting in a higher carbon footprint than conventional fossil fuels. LR’s report concludes that, although biofuels are produced in many countries, their scale is better suited to percentage blending in marine fuel rather than a full replacement for fossil fuels.

The Need for Supply Chain Visibility Tools

In this complex and shifting landscape, shipowners and customers cannot afford to be in the dark. Real-time supply chain visibility tools are becoming essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make business-critical decisions. These tools can provide detailed insights into carbon emissions, fuel costs, and operational efficiencies, empowering companies to adapt to market changes rapidly and minimise their environmental impact.

Visibility tools not only help manage rising costs and carbon reporting requirements but also assist in aligning with the evolving regulatory framework, ensuring that businesses remain competitive and sustainable. With biofuel price fluctuations and environmental complexities on the rise, having access to real-time data is no longer a luxury—it’s a necessity.

By embracing advanced visibility software, shipping companies and LSPs can stay ahead of the curve, optimise their supply chains, and, most importantly, contribute meaningfully to global decarbonisation efforts. As the race to a cleaner shipping future intensifies, those equipped with real-time insights will be best positioned to navigate these challenging waters.

After months of escalating tensions and repeated “warning strikes,” a breakthrough has finally been reached in the labour dispute between Germany’s Ver.di union and the Central Association of German Seaport Companies (ZDS). The dispute, which had disrupted operations at key German ports, including Hamburg, saw Ver.di and ZDS reach a tentative agreement on a new contract after a fifth round of negotiations.

The conflict, initially triggered by disagreements over wages and working conditions, had severely impacted port operations, particularly at the Port of Hamburg. In September, dockworkers at Hamburg’s HHLA-operated container terminals launched another strike, further disrupting the flow of goods. The timing was significant, as it coincided with growing dissatisfaction over Hamburg’s Parliament approving MSC’s acquisition of a 50% stake in HHLA. The strike left HHLA’s intermodal operation, METRANS, struggling, as the Port of Hamburg halted the acceptance of trains, leading to delays of over 24 hours in some cases. METRANS warned that these disruptions would increase transport costs, which the company could no longer absorb.

Despite the heightened industrial action, a tentative agreement was reached on 6 September, with Ver.di calling the latest offer “viable.” The agreement includes base wage increases backdated to 1 October 2023, and further hikes starting on 1 January 2025. Additionally, all workers will receive an inflation compensation bonus of €1,700, and improvements will be made to holiday, Sunday, and overtime pay rates. The contract is set to cover a 14-month period, expiring on 31 July 2025.

Ver.di’s Federal Collective Bargaining Commission has recommended members accept the offer, with the final decision due on 27 September, based on member surveys. If ratified, the agreement will bring much-needed stability to one of Europe’s largest ports after months of unrest.

What’s Next for the Industry?

The labour deal in Germany may have brought temporary stability to the country’s ports, but the larger lesson here is the importance of supply chain resilience. The ability to adapt swiftly to disruptions is key to maintaining operational continuity. Implementing advanced supply chain visibility software will be a game-changer for companies, providing the transparency they need to react in real-time to events that affect their supply chains. From labour strikes to climate-related delays, the future belongs to those who can see—and act—faster.

As the global logistics industry continues to face evolving challenges, companies that prioritise transparency, data-driven decision-making, and sustainability will be best positioned to weather the storms ahead.

 

 

 

The Importance of Real-Time Supply Chain Visibility

The labour unrest in Germany’s ports serves as a stark reminder of how vulnerable global supply chains are to external disruptions. The strikes in Hamburg not only delayed port operations but also had a cascading effect on logistics providers, particularly Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs). METRANS’ warning about rising transport costs due to these disruptions highlights the broader challenges that supply chains face in absorbing sudden shocks.

In this context, the need for real-time supply chain visibility has never been more apparent. Implementing robust software solutions that provide up-to-the-minute data insights allows BCOs and LSPs to make critical business decisions that can help mitigate the impacts of industrial action or other unforeseen disruptions. Real-time data on port delays, cargo flows, and climate impacts can help businesses reroute shipments, adjust inventory levels, and manage customer expectations with greater precision.

With growing concerns around climate change, real-time visibility into a company’s carbon footprint is also crucial. Monitoring the environmental impact of supply chain operations allows firms to make more informed decisions about the sustainability of their logistics strategies. In an era where sustainability is becoming as important as profitability, having access to this level of insight is not just a luxury—it’s a necessity.

In February 2025, a major shift will take place in global shipping alliances with the formation of the Premier Alliance, a new partnership that brings together Ocean Network Express (ONE), HMM, and Yang Ming Marine Transportation. This five-year collaboration aims to bolster service reliability and extend global coverage across vital East-West trade routes, including Asia-North America, Asia-North Europe, Asia-Mediterranean, and Asia-Middle East.

According to Jeremy Nixon, CEO of ONE, the Premier Alliance will provide strong and highly dependable direct port services along these critical trade lanes. Nixon highlighted the alliance’s commitment to improving end-to-end coverage for customers, ensuring that businesses can depend on reliable shipping solutions for their supply chains in an increasingly uncertain global market. To this end, the Premier Alliance has also secured a slot exchange agreement with Mediterranean Shipping Company (MSC)—the world’s largest container line—which will take effect in early 2025. This partnership will encompass nine services on the Asia-Europe trade, enhancing direct port coverage and increasing the frequency of sailings, further strengthening the network.

This alliance forms in the wake of significant changes in the shipping landscape. Hapag-Lloyd’s exit from the current THE Alliance to join Maersk in the newly formed Gemini Cooperation has left ONE, HMM, and Yang Ming to restructure and solidify their competitive position. Alongside the formation of the Premier Alliance, ONE has announced its expanded East-West trade services, which will include Asia-Europe, Transpacific, and Asia-Middle East routes, offering more than 80 direct port calls—an important move to meet the evolving needs of their customers while maintaining high levels of reliability and expanding their global reach.

Meanwhile, MSC has been making waves by building up its fleet and moving towards operating independently across global tradelanes. By 2025, the company will have 34 standalone loops across five East-West trades, solidifying its position as a dominant force. However, the strategic slot-sharing agreement with the Premier Alliance highlights a cooperative approach that could enhance network flexibility for both parties and provide improved shipping solutions across key markets.

The Growing Need for Real-Time Visibility in Supply Chains

Amidst these sweeping changes in the shipping industry, the Premier Alliance represents more than just a strategic partnership. The complexities of global trade, fuelled by unpredictable market conditions, climate change, and geopolitical tensions, underscore the growing necessity for supply chain visibility. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) increasingly face the challenge of managing these disruptions while maintaining efficiency and profitability.

To mitigate these challenges, the need for real-time data insights has never been greater. Supply chain visibility software, powered by real-time climate impact data and operational insights, can equip BCOs and LSPs to make business-critical decisions that address the volatility in their supply chains. This level of visibility allows for more accurate forecasting, quicker response times, and a deeper understanding of potential risks. The Premier Alliance and MSC’s expansive direct port coverage present opportunities for BCOs and LSPs to leverage this visibility, optimising shipping schedules, reducing delays, and improving overall supply chain performance.

In an era where sustainability and reliability are key drivers of success, companies that utilise visibility software to manage their logistics will be better positioned to counteract disruptions and achieve their sustainability goals. As the Premier Alliance reshapes the landscape of global shipping, businesses need to adapt by implementing digital tools that provide the real-time data required to stay agile and competitive.

The shipping industry’s transformation, spearheaded by the Premier Alliance and MSC, signals not only a new phase of collaboration but also a pressing call for the adoption of advanced technologies that bring end-to-end visibility to supply chains. As 2025 approaches, the companies that embrace these changes will be those that thrive in the ever-evolving global marketplace.