Here are some of the top news stories in global shipping right now.
The EU’s naval commander is arguing for the return of shipping in the Red Sea region. He emphasizes the importance of maintaining maritime security and countering the threat of piracy but points out that the continued rerouting away from the region undermines the resilience of the industry. With proper risk management and the cooperation of Operation Aspides, it would be possible to achieve a 15% return of ships to the area. One recommendation is for ships to turn off their Automatic Identification Systems and transit at night—stealth mode style.
Our take: Although interesting, this idea is, unfortunately, just a suggestion. The reality is there is no imminent solution to the problems in the Red Sea and the impact they continue to have on global supply chains. Importers should continue to factor in this disruption as part of their 2025 planning.
Read more here.
Tensions are escalating between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX), with the two sides back to arguing over the issue of technology at ports. The ILA, which opposes job-replacing technology, specifically things like semi-automated cranes, halted negotiations on November 13, saying that the USMX is trying to strong-arm them into including automation technology language in the contract. The USMX contends that in order to grow, while remaining efficient and sustainable, modernization is necessary. Both sides are accusing the other of prioritizing profits or outdated methods at the expense of progress.
Our take: Things are getting down to crunch time again. If you were caught up in the first work stoppage, don’t let it happen again. Contact Transmodal to talk about ways to avoid problems if the worst happens in January. It’s possible the next stoppage could be longer.
Read more here.
To combat ongoing issues caused by persistent droughts, the Panama Canal Authority (ACP) is considering creating a “land bridge” to transport cargo across Panama using rail or road. Droughts have reduced water levels, limited vessel transport and draught capacity, and had a global impact on shipping operations. The bridge would be a way to bypass bottlenecks during drought season. However, the proposal, which would require funding in the area of $1.2-$1.4 billion, faces skepticism, mostly due to the cost and the inefficiency when compared to more traditional shipping methods. Other plans include a new reservoir—another $1.6 billion—that will improve water supply and increase transit capacity.
Our take: The Panama Canal issues were overshadowed by the Red Sea and port labor issues in 2024. But they were impactful earlier in the year. The canal’s importance is magnified by both, however. Longer-term solutions, like a bridge, could bring more stability to global supply chains as labor and geopolitics remain important.
Read more here.