- Significant delays and disruptions are expected throughout Europe due to strikes and protests planned throughout April and May
According to the UPS’s weekly freight and logistics news and market update report on April 27, 2023:
TOP TAKEAWAYS
- A tentative agreement has been reached between the International Longshore and Warehouse Union (ILWU) and West Coast Ports. After eleven months of negotiations, the two parties may be nearing the end with key components of a deal in sight.
- Customers shipping to/from the ISMEA region can expect improved ocean connectivity with the rest of the world, in addition to increased cargo capacity.
- Customers shipping to Europe should expect significant delays and disruptions in rail, bus and air travel due to multiple strikes and protests planned throughout April and May 2023.
- North American carriers and airports continue to invest in cargo capacity with new freighter routes being launched and additional port facility upgrades underway.
NORTH AMERICA
Air
- The Dallas Fort Worth (DFW) airport is redeveloping their cargo facilities to grow its e-commerce capabilities and improve future cargo capacity. The upgrades will add 350,000 square feet of warehouse space and additional aircraft parking. The renovations are projected to finish in late 2024.
- WestJet Cargo launches new services with three converted Boeing frieghters. The flights will service routes between Halifax, Calgary, Los Angeles, Miami, Toronto and Vancouver. An increase in capacity is expected. WestJet also has plans to add services to Latin America as they continue to add to their fleet.
- Gary, Indiana is expanding their ability to handle cargo service to address the crowded Chicago cargo market. Chicago area airports have been investing heavily in their cargo infrastructure as the region anticipates further cargo volume growth.
Ocean
- Tentative agreements have been reached between the International Longshore and Warehouse Union (ILWU) and the West Coast ports, as contract negotiations hit their eleventh month. The ILWU has not yet specified what key issues have been addressed.
- The Port of Vancouver’s new terminal, part of the enhancements planned under the Roberts Bank Terminal 2 Project, will include three additional berths representing a 2.4 million TEU capacity increase.
LATIN AMERICA
Air
- Avianca Airlines plans to release a new route between Quito, Ecuador and Cancun, Mexico starting June 15. This new route will offer three flights per week with hopes of increasing the cargo capacity within the region.
- Belo Horizonte International Airport in Brazil and Avianca Airlines launch a direct connection flight between Brazil and Colombia with five flight routes per week. The flight frequency is expected to increase the available cargo capacity between the two countries.
ASIA-PACIFIC
Air
- CMA CGM Air Cargo has launched a new freighter route from Paris to Guangzhou. The route will be operated three times a week and will handle over 20,000 tons of air cargo capacity annually.
- SF Airlines launches new freighter routes between China and Belgium. The twice a week flights will add around 400 tons of express air cargo capacity. SF Airlines recently increased their freighter fleet to 80 and is expected to continue to grow this year.
Ocean
- The Xiamen Port in China is planning the construction of four additional deep water berths, enabling them to accommodate several large, medium and small containerships simultaneously, increasing their containter handling capacity by 4 million TEUs.
- The impact from the pandemic, geopolitical tensions and the Russia-Ukraine war have prompted shippers to look for alternative shipping routes. This has caused China’s transpacific trade dominance to lessen and has allowed Vietnam to grow it’s US-bound container exports by 156% since 2017.
EUROPE
Air
Upcoming union labor-actions in Europe may cause delays and disruptions in air freight operations:
- UK-based civil service members of the Public and Commercial Services (PCS) Union’s industrial action impacting all Border Force staff will take place on Friday, April 28, 2023. There may be disruptions and delays on international arrivals to the UK by air and ground.
- Unite, the union, announced another round of Heathrow strike action plans, which is scheduled to last eight days, beginning on May 4 to 6, continuing on May 9 and 10 and finishing between May 25 and 27. According to the estimates, about 1,400 Heathrow staff are predicted to take part in the upcoming strike and more than 5,000 flights are expected to be impacted. Therefore disruptions and delays in freight operations can be expected.
- Following the industrial action over pay dispute by trade union Verdi on Monday, April 24 at Berlin-Brandenburg Airport (BER), negotiations are expected to take place on April 27 and 28. According to sources, if a negotiable offer is not presented, the union will urge further strike action in May causing further delays and disruptions in aviation.
Ocean
- Effective Monday, April 24, 2023, Rotterdam World Gateway (RWG) terminal has implemented a 15 euro surcharge (excluding VAT) for booking a peak time slot.
Ground
Upcoming strikes in Europe may cause delays and disruptions in ground freight:
- France rail workers will go on strike on April 28 and May 1, due to continuing dispute over French President Emmanuel Macron’s pension reforms. Major French cities are expected to be impacted by the action and delays and disruptions can be expected in freight operations.
- Italian railway employees will go on strike on April 30 starting at 9 pm and will conclude on May 1 at 9 pm.
- In solidarity with the USB (Unione Sindacati di Base) union's protest for low wages and work contracts, a nationwide 24-hour general strike is planned for May 26. This strike is expected to impact bus and tram services, as well as metro lines, causing significant delays and cancellations on that day. It is currently unclear if the strike will also affect local and interregional rail services.
- Air Dolomiti's cabin staff, a subsidiary of Lufthansa that serves thirteen different Italian destinations from Germany, will participate in a nationwide 24-hour strike on May 19. In addition, cabin crews of Volotea from various locations across the country will also strike on May 19 from 1 pm to 5 pm.
INDIA, MIDDLE EAST AND AFRICA
Air
- Beginning July 5, 2023, Emirates will launch daily direct flights using their Boeing 777-300ER between Dubai International Airport (DXB) and Montréal-Trudeau International Airport (YUL). Cargo capacity between the two countries is expected to increase.
- Beginning June 30, 2023, Qatar Airways will launch four weekly flights between Doha Hamad International Airport (DOH), Casablanca Mohammed V International Airport (CMN) and Marrakesh Menara International Airport (RAK). This flight frequency should increase the cargo capacity between the regions.
Ocean
- Starting from May 2023, Ocean Network Express (ONE) will enhance the frequency of its Africa, India and Middle East (AIM) service from bi-weekly to weekly in aims of improving services in Africa. The AIM service rotation will maintain its current route, covering Jebel Ali, Mundra, Nhava Sheva, Colombo, Durban, Tema, Tincan, Apapa, Durban and Jebel Ali with a weekly frequency.
CUSTOMS AND BROKERAGE
- In response to Russia's ongoing efforts to evade the multilateral sanctions and export controls imposed on Moscow for its invasion of Ukraine, the Bureau of Industry and Security (BIS) has added 28 entities to the Entity List to further restrict Russia’s ability to import critical technologies.
- The Department of Homeland Security (DHS) plans to utilize artificial intelligence technology to better identify supply chain threats, detect forced labor and more.
This document is for informational purposes only. It does not constitute legal advice. Information herein was obtained from government, industry, and other public sources. It has not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient's specific circumstances.
