Maersk has instructed all of its vessels headed for the southern entrance to the Red Sea to halt immediately due to heightened hijack fears. The shipping giant sent a message to all crews in the vicinity of the Bab al-Mandab Strait to stop after two of their vessels were attacked on December 14th and 15th. If the decision is echoed by other shipping lines, sea trade markets could see a drastic impact in both transit times and cost hikes.
The Panama Canal water shortages remain as the canal authorities continue to impose restrictions limiting the number of vessels that can pass through daily. In November, the total transits declined 22% from the prior month. Reservation slots are being slashed in December and into January 2024. The Panama Canal is the primary route for 57% of the total cargo transported in container ships from Asia to the eastern coast of the US.
What can businesses do to mitigate the impact on their supply chains?
Diversify their shipping routes. Businesses should consider using alternative shipping routes. An experienced freight forwarder, like Logistics Plus, can assist in evaluating such routes’ transit time and cost trade-offs.
Work with suppliers to manage inventory. Businesses should work with their suppliers to manage inventory levels and ensure they have enough stock to meet customer demand.
Communicate with customers. Businesses should communicate with their customers about potential delays and disruptions caused by these issues.
Logistics Plus is actively monitoring both situations to avoid supply chain disruptions. If you have any questions or concerns about how these issues may affect your supply chain, contact our team of experts today.
The Panama Canal drought is causing a shipping bottleneck with ripple effects on supply chains worldwide. The canal is a critical waterway for shipping goods between the Atlantic and Pacific oceans, and the low water levels have forced the canal authorities to impose restrictions on the size and weight of ships that can pass through.
The Panama Canal is the primary route for 57% of the total cargo transported in container ships from Asia to the eastern coast of the US. According to Reuters, the average wait time for non-booked vessels at the Panama Canal jumped by between 44% and 59% last month as the drought has led to restrictions on daily transits. Earlier this year, the Panama Canal Authority began imposing the restrictions in a move to conserve water. Currently, only 32 vessels with a draft up to 44 feet are allowed to pass per day.
What can businesses do to mitigate the impact on their supply chains?
Diversify their shipping routes. Businesses should consider using alternative shipping routes, possibly importing to U.S. eastern seaports, to avoid the Panama Canal. An experienced freight forwarder, like Logistics Plus, can assist in evaluating the transit time and cost trade-offs of such routes.
Work with suppliers to manage inventory. Businesses should work with their suppliers to manage inventory levels and ensure that they have enough stock on hand to meet customer demand.
Communicate with customers. Businesses should communicate with their customers about potential delays and disruptions caused by the drought.
Logistics Plus is actively monitoring the situation to avoid supply chain disruptions. If you have any questions about how the drought may be impacting your supply chain, contact our team of experts today.
The West Coast MTO Agreement (WCMTOA) announced that on November 1, 2023, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 4%. The adjustment matches the combined 4% increase in longshore wage and assessment rates recently ratified in the coastwide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.
Beginning November 1, the TMF will be $35.57 per TEU (twenty-foot equivalent unit) or $71.14 per forty-foot container. The TMF is charged on non-exempt containers.
On March 2nd, 2023, the U.S. Departments of Justice, Commerce, and Treasury issued a joint compliance note on the use of third-party intermediaries or transshipment points to evade Russian- and Belarussian-related sanctions and export controls. This note marks the first collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws.
Since Russia invaded Ukraine on February 24th of last year, the Department of Commerce has launched a series of export control restrictions on Russia in partnership with over three dozen allies. These restrictions have severely impacted Russia’s ability to sustain its aggression.
The west coast of Florida is bracing for Hurricane Ian to hit as early as Wednesday, September 28.Widespread power outages are expected from Fort Myers to Tampa Bay with tropical force winds reaching 100-plus miles from the center. Storm surges are estimated to reach 10 feet of ocean water and 10 inches of rain across the Tampa Bay area.
You can view all of the latest details regarding Hurricane Ian on the National Hurricane Center Website: https://www.noaa.gov/ian
**Please note that the updates below are from 9/28/22 at 7 am EST. The status of each port/airport may continue to fluctuate.**
Florida Port Operations
All ports currently have adequate fuel supplies and are staging appropriate measures to be well-positioned after the storm to quickly reinstate operations and keep fuel supplies moving.
Ports currently closed include Port Tampa Bay, Port of St. Petersburg Seaport Manatee, Port of Fort Pierce, Port of Palm Beach,Port Canaveral,and Port of Key West.
Ports currently open with restrictions include the Port of Ft. Pierce and Port of Palm Beach.
Ports currently open while preparing for storm impacts include Port Everglades, Port Miami, Port Fernandina, JAXPORT, Port Canaveral, Port of Pensacola (with restrictions), Port Panama City, and Port St. Joe.
Florida Airport Operations
The current status of airports is listed below. While some facilities have scheduled closures, individual airlines may decide to cease flights earlier than that.
Tampa International Airport will suspend operations at 5 pm Tues Sept 27
St.Pete/Clearwater International Airport will close at 2 pm Tues Sept 27
Sarasota/Bradenton International Airport- Airport will close at 8 pm local Tuesday, Sept. 27 through 8 pm Thursday, Sept. 29
Tallahassee International Airport- Currently open and continuing storm preparations
Pensacola International Airport- Currently open and continuing storm preparations
Punta Gorda Airport- Currently open and continuing storm preparations
Orlando International Airport- Closing Wednesday, September 28 at 10:30 am
Orlando Sanford International Airport- Passenger terminal closing at 5 pm. Airport facility closes at 11 PM. Flights on Wednesday and Thursday are cancelled
As a reminder, you can visit the Logistics Plus Weather Maps page to view all potentially impactful weather conditions worldwide.
