Port workers affiliated with the German trade union ver.di have threatened strike action at key German hubs, exacerbating stress for North European shippers as labour tensions also rise in France.

Ver.di is organising a series of dock strikes in Bremerhaven, Hamburg, Bremen, and Emden after talks with the Central Association of German Seaport Operators (ZDS) last week ended without success. The union is demanding a €3 increase in hourly wages for port workers as of June 1, along with a corresponding increase in shift bonuses to address the lack of an increase in the 2022 collective bargaining agreement.

Negotiations continued in Hamburg on June 17 and 18, but a warning strike is taking place today in Emden. Ver.di stated, “It remains to be seen whether there will be another warning strike if the ZDS does not submit an offer in the next round of negotiations.” The union recalled that in 2022, warning strikes during talks “paralysed the ports for around 80 hours.”

Ver.di negotiator Maren Ulbrich expressed frustration, saying, “The employees are disappointed and outraged that the employers have not shown any concessions, but have only referred to their own difficult economic situation and competition with foreign ports. In doing so, they have not shown any appreciation for the work of the employees.”

Rising Labour Tensions in France

Meanwhile, in France, labour unions representing dockers and other port workers have engaged in several one-day strikes, as well as numerous four-hour work stoppages this month, protesting pension reform that increased the statutory retirement age. Additional 24-hour strikes occurred on June 21 and 25, and four-hour walkouts on three days of each week this month at ports including Le Havre, Marseille-Fos, Dunkirk, Rouen, Bordeaux, and Nantes Saint-Nazaire. The action could extend into July if the unions do not receive a satisfactory response from the government.

If strikes at Le Havre, Hamburg, and Bremerhaven coincide, ports like Antwerp and Rotterdam could be inundated with North European shippers seeking to shift capacity to fully operational ports.

Impact on Supply Chains

Freightos head analyst Judah Levine commented, “Destination ports in North Europe and North America are not reporting significant congestion yet. Disrupted schedules at origins could lead to some vessel bunching at these hubs, but with elevated volumes still expected to be seasonal and not at the levels seen during the pandemic, destination ports may be able to avoid extreme levels of congestion and delays.” However, this outlook could change drastically if negotiations fail in both Germany and France.

Enhancing Supply Chain Visibility and Decision-Making

To navigate these potential disruptions, the implementation of supply chain visibility software is crucial. Real-time data insights provided by such software will assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions to counteract impacts on their supply chains. By leveraging these insights, stakeholders can effectively manage disruptions, ensuring smoother operations and greater adaptability in a dynamic market environment. This technology will enhance the reliability of supply chains by enabling better planning and response strategies for all parties involved.

The combination of strategic visibility software and proactive negotiation can help mitigate the impact of labour strikes, ensuring that the global supply chain remains resilient and responsive to challenges.

**Transpacific Eastbound Routes Experience Record Volumes**

Volumes on Transpacific Eastbound (TPEB) routes remain robust, surpassing last year’s figures. Despite the strong demand, structural blank sailings due to Cape of Good Hope (COGH) routings and port congestion in Asia and North America are causing significant disruptions. These disruptions further straining American supply chains and bettering the case for more advanced visibility software for the industry. 

Current data indicates that spot rates for container shipments from Asia to North America have surged. Coming to the end of June, rates have reached record highs, with prices for a 40-foot-equivalent unit (FEU) rising by £600 to £700 depending on the destination. The ongoing strong demand, coupled with limited supply, has prompted carriers to implement general rate increases (GRIs) and Peak Season Surcharges (PSS), with further hikes expected in the coming months.

**Far East Westbound Routes Struggle with Equipment Shortages**

Far East Westbound (FEWB) routes are facing severe equipment shortages at major loading ports in Asia. Liners are repositioning empty containers to alleviate the situation, but delays due to COGH rerouting continue to impact the return of empty containers. The shortage has led to rate increases of £1,500-£2,000 per 40-foot container in the second half of June 2024, with further rises expected to come in the latter half of the year.

Port congestion in Asia is exacerbated by high yard utilisation, adverse weather, and vessel bunching, resulting in low terminal operation efficiency and long waiting times. Carriers have been frequently omitting ports to maintain transit times, and demand remains high, leading to additional PSS charges.

**Transatlantic Westbound Routes See Stable Demand**

In North Europe, Transatlantic Westbound (TAWB) routes are experiencing stable demand, with rates holding steady. However, equipment issues persist in Southern and Eastern Germany and the Hinterlands, while the Western Mediterranean faces congestion and equipment problems at key ports. Carriers plan to implement GRI/PSS from July in response to sustained demand. Booking 2 to 3 weeks in advance is recommended to ensure smooth operations.

**Export Routes Face Extended Transit Times and Congestion**

U.S. exporters are experiencing extended transit times due to routing around the Cape of Good Hope and increasing congestion at key ports. This has worsened the container equipment situation, especially at inland rail points. Key transshipment hubs for U.S. exports, including ports in Asia and the Strait of Gibraltar, are also facing congestion. Booking 3-4 weeks in advance for coastal port loading and 4+ weeks for inland rail point loading is advised to mitigate delays.

**The Need for Visibility Supply Chain Software**

To navigate these challenges, implementing visibility supply chain software is essential. Real-time data insights provided by such software assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions to counteract impacts on their supply chains. This technology enables stakeholders to anticipate delays, optimise routing, and adjust to changing conditions effectively, ensuring smoother operations and greater adaptability in a dynamic market environment.

By leveraging real-time data, BCOs and Freight Forwarders can better manage disruptions, maintain supply chain efficiency, and mitigate the effects of port congestion and equipment shortages. This comprehensive approach is crucial for maintaining the reliability and resilience of global shipping routes amid ongoing challenges.

London Gateway, celebrating its 10-year anniversary, is set to unveil its new fourth berth later this summer. This £350 million project will increase the port’s capacity by a third and mark a significant milestone in port technology and sustainability. The new berth will be the world’s first all-electric berth, utilizing advanced technology such as electric straddle carriers and automated stacking cranes, which aligns with DP World’s vision for full electrification by 2050.

The increased capacity at London Gateway offers numerous benefits. Firstly, it will enhance trade efficiency by facilitating quicker turnaround times for ships, reducing congestion, and improving overall trade flow. This is particularly crucial for maintaining the smooth movement of goods in and out of the UK, especially post-Brexit. Additionally, the expansion is expected to generate significant economic benefits, including job creation and increased business opportunities within the logistics and supply chain sectors.

Driving Sustainability and Economic Growth

From a sustainability perspective, the all-electric berth represents a pioneering step in reducing the environmental footprint of port operations. The use of electric straddle carriers and automated stacking cranes will decrease reliance on fossil fuels, significantly lowering greenhouse gas emissions. This initiative positions DP World as a leader in sustainable port operations, contributing to global efforts to combat climate change.

Andrew Bowen (chief operating officer for UK Ports & Terminals at DP World) highlights the success of the Modal Shift Programme (MSP) at DP World Southampton as a complementary initiative to the developments at London Gateway. Since its launch in September 2023, the MSP has significantly increased the proportion of freight moved by rail, reducing carbon emissions by approximately 4,500 tonnes. The introduction of new train services has played a pivotal role in this shift, underscoring DP World’s commitment to sustainability.

These advancements are integral to DP World’s end-to-end logistics offerings, enhancing resilience and flexibility for customers. The integration of cutting-edge technology not only boosts operational efficiency but also sets a new standard for ports worldwide. By improving supply chain resilience, the enhanced capacity at London Gateway will make it easier to handle disruptions and fluctuations in trade volumes, a critical factor in today’s global economy.

The new fourth berth at London Gateway is more than just an expansion; it is a strategic enhancement that underscores DP World’s commitment to innovation, sustainability, and economic growth. This development not only benefits DP World but also strengthens the broader logistics and supply chain industry, setting a new benchmark for port operations globally.

To further support these advancements, the implementation of supply chain visibility software is crucial. Providing real-time data insights, this technology assists Beneficial Cargo Owners (BCOs) and Logistic Service Providers (LSPs)in making business-critical decisions. By leveraging these insights, stakeholders can effectively counteract impacts on their respective supply chains, ensuring smoother operations and greater adaptability in a dynamic market environment. This focus on visibility and real-time data underscores the comprehensive approach DP World is taking to not only enhance operational capacity and sustainability but also to empower its customers with the tools needed for effective supply chain management.

European retailers are racing to secure Christmas orders ahead of time due to escalating shipping costs and disruptions in trade routes. Vessels owned by Western firms have faced attacks in the Red Sea by Houthi rebels, spiking shipping prices. Container costs, which previously peaked in January before a brief decline, have surged once again.

Nick Glynn, head of the Buy It Direct group, emphasized the necessity of advanced planning to ensure on-time deliveries. However, this forward-thinking approach strains cash flow and warehouse space. Glynn highlighted the substantial increase in spot rates for immediate delivery, jumping from $4,500 to $7,500, impacting low-margin bulky items like furniture and kitchen appliances.

Additionally, the diversions from the Red Sea have compelled vessels to take longer routes around Africa, extending journey times to over 100 days for Asia-Europe trades. This having a knock-on effect of importers reevaluating their reordering levels and whether or not to expand their warehousing capacity to ensure consistent stock levels. Beyond the increase transit time the matter is further complicated by unreliable arrival times, with only approximately 50% of global container shipping arriving on time.

To overcome these obstacles, the implementation of visibility supply chain software is essential. Providing real time data insights, there is a substantial reduction in the informational lag for BCOs and LSPs. This reduction in lag empowers BCOs and LSPs to be more informed when making critical decisions.  By harnessing these real-time insights, BCOs and Freight Forwarders strengthen their resilience against disruptions through increasing transparency, improving coordination, and enabling informed decision-making. Ultimately, this enhanced visibility optimizes supply chain efficiency and minimizes operational costs, bolstering the overall resilience of the logistics network.

Congestion in Singapore, the world’s second-busiest container port, has reached a critical level, compounding the shortage of ships and containers. Data from Inertia indicates that containerships have to wait up to seven days to berth in Singapore, recently seeing up to 450,000 TEU of vessels in the queue. This bottleneck at Singapore is primarily due to the diversions caused by the Red Sea crisis and shipping lines skipping the less busy Port Klang in Malaysia. Normally ships berth upon arrival or within half a day when arriving at Singapore. This discrepancy will likely cause chaos to the supply chains of the BCOs, and their downstream partners, tied up in this congestion.

Linerlytica’s report today states: “The severe congestion has forced some carriers to omit their planned Singapore port calls, which will exacerbate the problem at downstream ports that will have to handle additional volumes. The delays have also resulted in vessel bunching, which is causing spillover congestion and schedule disruptions at downstream ports.”

Asian ports are the most congested, with ports in South-east Asia accounting for 26% of global bottlenecks, while north-eastern Asian ports make up 23%. As congestion in Singapore has a considerable impact on the reliability of Asia-Europe services, trading of China’s container futures closed at a higher price of $4,209/TEU for the EC2406 contract, which expires on 24 June. The price is 6% higher than on 20 May and a 25% premium on the Shanghai Containerized Freight Index.

Not only in Singapore and Asia but globally port congestion is worsening and has tied up 2 million TEU of ships, nearly 7% of the fleet. Giving credence to the rate hikes seen across the industry. This also shows the disruption and chaos to supply chains isn’t isolated and confined to one region but instead a global problem. Limiting the available options BCOs have to realign their supply chains. And it is unlikely that congestion in Asia or globally will be rectified quickly, with The Consultancy expecting port congestion to worsen into June. This has forced operators to secure containers and vessels well beyond their normal time horizons, with some booking out to beyond September.

This critical situation underscores the need for visibility supply chain software, providing real-time data insights to assist BCOs and LSPs in making business-critical decisions to counteract the impacts on their respective supply chains.

 For BCOs, real-time data insights can help manage and mitigate the impacts of delays by providing comprehensive tracking of shipments across multiple transportation modes. This capability allows BCOs to anticipate bottlenecks, reroute cargo proactively, and maintain optimal inventory levels, thus avoiding stockouts and ensuring timely delivery to customers. Enhanced visibility also facilitates better collaboration with suppliers and other stakeholders, enabling quicker adjustments to production schedules and more informed decision-making to counteract disruptions.

LSPs similarly benefit from improved visibility by gaining the ability to monitor shipments in real time, allowing them to provide more accurate delivery estimates and improve customer satisfaction. With detailed insights into port conditions and transit times, LSPs can optimize route planning and resource allocation, ensuring efficient use of assets and minimizing delays. Furthermore, the integration of advanced analytics and predictive tools in visibility software enables LSPs to identify potential risks early and implement contingency plans, such as securing alternative transportation modes or adjusting schedules to maintain service levels despite disruptions.  

By leveraging these capabilities, both BCOs and LSPs can enhance their resilience against the pervasive challenges posed by global port congestion. Additionally, real-time tracking ensures transparency across the supply chain, enhancing coordination and communication among all parties involved, ultimately leading to improved efficiency and reduced operational costs.

The current challenges facing container ports around the western Mediterranean highlight the crucial role of supply chain visibility software in assisting Beneficial Cargo Owners (BCOs) and Logistic Service Providers (LSPs) to navigate disruptions effectively. Port executives report nearing full capacity, leading to overflowing storage yards and vessel berthing delays, primarily due to increased traffic following Houthi attacks on ships in the Red Sea.

With many analysts concluding that these delays will force companies to hold extra stock, thus increasing inventory costs. Additionally, there’s a risk to the supply of components for manufacturers, exacerbating the challenges faced by retailers and manufacturers in maintaining efficient supply chains.

Supply chain visibility software would provide real-time data insights to BCOs and LSPs, enabling them to monitor port congestion, vessel schedules, and rerouting options. With access to such information, stakeholders can proactively adjust their logistics strategies, optimize routing decisions, and manage inventory levels to mitigate the impact of disruptions on their supply chains.

For instance, as shipping lines redirect traffic via alternative routes such as the Cape of Good Hope, visibility software would enable BCOs and LSPs to track vessel movements and anticipate potential delays. They can then explore alternative transportation modes or reroute cargo to less congested ports, thus minimizing disruptions and ensuring timely delivery of goods.

Moreover, with the surge in trans-shipment traffic at ports like Algeciras and Tangier-Med, supply chain visibility software would provide insights into terminal capacities and productivity levels. Armed with this information, stakeholders can optimize port operations, allocate resources efficiently, and mitigate the risk of congestion-related delays.

In conclusion, the current challenges facing container ports in the western Mediterranean underscore the critical need for supply chain visibility software to empower BCOs and LSPs in making informed decisions to counteract disruptions. By providing real-time data insights, visibility software enables stakeholders to proactively manage port congestion, optimize routing decisions, and maintain supply chain resilience amidst evolving market conditions.

Global ocean carriers, including MSC, CMA CGM, and Cosco, have initiated direct container shipping services from Asia to Mexico, reflecting the rising container volumes and increased Chinese investments in Mexico. 

Cosco Shipping Lines and its subsidiary OOCL introduced the Transpacific Latin Pacific 5 (TLP5) line, offering direct connections between China, South Korea, Japan, and Mexico. This move aims to enhance network coverage in emerging markets, with transit times ranging from 15 to 20 days from Qingdao, China, to Ensenada and Manzanillo, Mexico. Utilizing eight ships of 4,000 to 6,000 twenty-foot equivalent units, the TLP5 signifies a significant development in Asia-to-Mexico trade. 

CMA CGM introduces the M2X – Mexico Express Service, providing streamlined shipments from the Far East to Mexico’s West Coast. With a weekly fixed-day schedule and port rotations including Tianjin, China; Qingdao; Busan; Ensenada; Manzanillo; Lazaro Cardenas; Yokohama; Busan; and Tianjin, the M2X aims to cater to market dynamics in the region. Operating eight ships of undisclosed capacity, CMA CGM emphasizes the importance of meeting the growing demand for efficient shipping solutions. 

MSC launches a loop shuttle service connecting Asia to Mexico, augmenting coverage and frequency in response to market needs. Port rotations include Qingdao, Ningbo, Shanghai, Busan, Manzanillo, Lazaro Cardenas, and Qingdao, showcasing MSC’s commitment to providing reliable shipping services. 

The surge in import container bookings from China to Mexico, coupled with an 11% year-over-year increase in Chinese direct investments in Mexico to $135 billion in 2023, underscores the growing importance of Asia-to-Mexico shipping routes. As global manufacturing shifts away from China to locations such as Mexico, the need for greater visibility in supply chains becomes even more critical. By harnessing such technology, BCOs and LSPs can make informed decisions to counteract the impacts on their supply chains. Visibility software enables them to optimize routes, anticipate disruptions, and adapt to dynamic market conditions effectively. 

In conclusion, as manufacturing diversifies to regions like Mexico, it highlights the evolving dynamics of global trade. With the introduction on shipping routes from Asia to Mexico, the complexity of supply chains is bound to increase to new hights. Necessitating the need for  advanced tools for monitoring and managing logistics operations. Visibility software offers a holistic view of the supply chain, allowing BCOs and LSPs to identify inefficiencies, mitigate risks, and enhance overall performance, ensuring seamless operations and maintaining competitive advantage.  

Unlocking Deeper Channels for Maritime Traffic

Officials in Baltimore are making strides in reopening the city’s port following the collapse of the Francis Scott Key Bridge. Officials have cleared enough wreckage to open the new channel to “commercially essential vessels” temporarily, with stringent safety measures in place. However, the channel will close again for salvage operations, demonstrating the dynamic nature of port operations amidst disruptions.

 A deeper channel, with a controlling depth of 35 feet (10.7 meters), is set to open on Thursday, surpassing expectations and accelerating the cleanup effort. The new channel’s depth exceeds that of the temporary channels established earlier, putting the cleanup effort slightly ahead of schedule. This progress is significant as officials previously aimed to open a channel of similar depth by the end of April.

Impact of Bridge Collapse on Maritime Traffic

The collapse of the Key Bridge disrupted maritime traffic, with the cargo ship Dali grounding amid wreckage shortly after leaving the Port of Baltimore. Crews are working to clear massive pieces of debris from the ship’s deck, highlighting the need for efficient salvage operations.

Real-Time Insights for Informed Decisions

In this challenging scenario, characterized by the recent collapse of the Francis Scott Key Bridge and subsequent disruptions at the Baltimore port, the adoption of supply chain visibility software becomes essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs).

By providing real-time data insights, visibility software empowers stakeholders to make informed decisions and mitigate the impacts on their respective supply chains. Through allowing BCOs and LSPs to adjust shipping schedules and routes accordingly. This proactive approach ensures minimal disruption to supply chains and enhances operational resilience.

Looking Ahead

The reopening of the port’s main channel next month, with a controlling depth of 50 feet (15.2 meters), will restore marine traffic to normalcy. However, continued vigilance and the utilization of visibility software will remain essential to navigate future challenges and maintain supply chain efficiency.

Amid concerns of misleading environmental claims, Dove soap and Hellmann’s mayonnaise maker, Unilever, faces investigation by the Competition and Markets Authority (CMA) over its sustainability assertions. The CMA suggests that Unilever might be overstating the environmental benefits of certain products, raising questions about corporate greenwashing.

Specifically, the CMA points out that Unilever’s use of language and imagery on product packaging, such as green leaves, could mislead consumers by exaggerating the products’ eco-friendliness. This investigation is part of a broader inquiry into misleading green claims across various consumer goods categories.

As consumers increasingly seek out environmentally friendly products, accurate carbon emission tracking becomes crucial in ensuring transparency and accountability. Solutions like FYI’s Carbon Off Track, which adhere to ISO and GLEC frameworks, offer real-time data insights. These tools empower both BCOs and LSPs to make informed decisions and mitigate the impacts of misleading green claims on their respective supply chains.

With shoppers spending billions on household essentials marketed as green, the need for reliable carbon emission tracking has never been more apparent. Unilever, in response to the investigation, affirms its commitment to transparent and responsible claims. However, the scrutiny highlights the importance of accurate carbon emission tracking to uphold environmental integrity in product marketing

Just as the Advertising Standards Authority cracks down on greenwashing in advertisements, supply chain stakeholders must leverage tools like FYI’s Carbon Off Track to navigate the complexities of sustainability claims and drive towards a genuinely greener future.

Costs are poised to surge as disruptions in westbound voyages unfold, impacting supply chains on a global scale. With the escalating security crisis in the Red Sea region, some ocean carriers are rerouting ships from Asia to Europe via the Cape of Good Hope, bypassing the Suez Canal. This diversion adds significant time to voyage durations, exacerbating delays and compounding challenges for businesses reliant on timely shipments.

Furthermore, carriers opting to pause voyages in anticipation of a resolution to the security situation may face extended transit times, exacerbating supply chain disruptions. The resulting bunching of ships at ports, coupled with landside congestion and equipment shortages, echoes the challenges witnessed during the Suez Canal blockage earlier this year.

In this volatile landscape, stakeholders face uncertainty and the prospect of skyrocketing rates. As rates from Asia continue to climb, driven by general rate increases (GRIs) and supply chain disruptions, businesses must navigate the evolving situation with agility and foresight.

To mitigate risks and make informed decisions, visibility supply chain software becomes indispensable. By providing real-time data insights, this technology empowers BCOs and LSPs to monitor vessel movements, anticipate delays, and adjust logistics strategies accordingly. Moreover, advanced software solutions enable stakeholders to track container locations, assess port congestion, and optimize supply chain operations in real time.

As industry experts anticipate prolonged disruptions and rising costs, proactive measures are essential to minimize the impact on supply chains. Leveraging visibility supply chain software, BCOs and LSPs can navigate challenges with resilience and efficiency, ensuring the continuity of operations amidst turbulent waters.