In Week 33, port congestion remains a challenge throughout the global supply chain. Recent dangerous goods container explosions aboard Yang Ming and MSC vessels impacted operations in Ningbo and Colombo while the threat of potential labor action sees shippers placing orders early to avoid potential delays.
CONTAINER EXPLOSIONS AT MAJOR PORTS: DISRUPTIONS AT NINGBO AND COLOMBO
Both Yang Ming and MSC carriers had dangerous goods containers explode while in port. On Friday, August 9th, 2024, the Yang Ming YL Mobility experienced the explosion of a container vessel while in the Port of Ningbo-Zhoushan. In an unrelated incident, the MSC Capetown II experienced a fiery explosion while berthed in Port Colombo. Both incidents created temporary operation closures at impacted ports for fire control and repairs. Shippers should expect shipping delays in the days and weeks after these disruptions.
NORTH AMERICAN LABOR UNREST
Contract negotiations between rail workers in Canada and port workers in the U.S. remain strained. Strike action as early as August 22, 2024, is possible in Canada. Both CN and CSKC railroads have indicated that a phased slowdown of operations is likely with a potential labor lockout on August 22, 2024. U.S. dockworkers and Ports continue negotiations with no tentative agreements reached.
CHINA: INCLEMENT WEATHER IMPACTS PORT CONGESTION
Strong winds, heavy rain, and dense fog significantly impacted ports in China leading to temporary closures and vessel delays. Shanghai and Ningbo faced the longest operational impact for several days.
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