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Newbuildings head for Asia-Latin America trades as volumes boom

Deliveries in the past week have been primarily deployed to services between the Far East and Latin America, highlighting growing volumes on these trades. Alphaliner noted that Imabari Shipbuilding completed the 13,932 teu ONE Symphony that will be deployed on ONE's Asia-WCSA AX3 service the pan-Japanese carrier runs jointly with MSC and Hapag-Lloyd. This is the 14th in a series of at least 15 vessels that various Imabari Group yards are building for ONE. Symphony will sail to Qingdao to commence operations. MSC took delivery of the 10,300 teu MSC Licia X from Zhoushan Changhong International Shipyard, and will assign the ship to its solo Far East-East Coast of South America Carioca loop that deploys a fleet of 15 ships of between 8,000 and 12,000 teu capacity. The new dual-fuel vessel is the sixth in a series of ten the yard is scheduled to deliver to MSC this year and next. MSC ordered the series in August 2023 for around $130m per unit. Zhoushan Changhong delivered the MSC Licia X 11 months ahead of schedule, illustrating the improving techniques of Chinese shipbuilding. Another Chinese firm New Times Shipbuilding, delivered the 8,454 teu CMA CGM Austral to Eastern Pacific Shipping. The ship is the last of four sisters New Times built for the Singapore-based non-operating shipowner. All four vessels are committed to long-term charters to CMA CGM, and CMA CGM Austral will serve the French line's Far East-Mexico M2X service. Finally, George Economou's TMS Group took delivery of the 7,900 teu Garnet from South Korea's HJ Shipbuilding & Construction. This is the second of four sisters commissioned in 2024 for $108m each, all for long-term charter to Zim. The Garnet will be assigned to the newly launched Far East-east coast South America ZFS service Zim runs with Hapag-Lloyd, part of a sustained shake-up of vessel sharing agreements on the Asia-South America trades, and features a port rotation of Shanghai-Ningbo-Xiamen-Hong Kong-Yantian-Rio Grande-Paranagua-Itajai-Santos-Rio de Janeiro. It turns in 77 days and will eventually deploy a fleet of 11 ships. So far, ZFS is served by vessels in the size range from 5,500 to 9,000 teu, with both carriers acting as vessel providers. Trade between China and South America has been growing in the past three years, with Container Trade Statistics registering 4% year-on-year growth, to 563,407 teu, in August. China exports machinery, electrical equipment, telecoms infrastructure, and electronics to South America, while importing vital agricultural and mining products.

LA/LB port complex braces for potential strike as labour contract expires

The US ports of Los Angeles and Long Beach face potential disruption from Sunday, as around 250 security workers, represented by the International Longshore and Warehouse Union (ILWU) Local 26, prepare for strike action amid the ongoing labour dispute. The latest labour contract extension will expire at 5pm Pacific Time on Sunday, negotiations on an extension or new deal, between the union and employers represented by the Pacific Maritime Association (PMA), continue - no strike has yet been confirmed. However, the impact of such action would extend well beyond the security workforce. According to the PMA, approximately 85% of all container cargo at Long Beach and 33% at Los Angeles passes through the terminals employing the affected workers. The concern is that, as industry consultant Lars Jensen pointed out, traditionally other ILWU members will not cross picket lines, potentially bringing operations at affected terminals to a standstill. "Hence this impacts a significant part of operations," he added, noting there was also a risk that the disruption could spread across more operations. The threat comes as the South California port complex is handling record volumes. LA/LB processed an average of 68,000 teu a day in September, according to Mr Jensen, meaning even a short strike could quickly create bottlenecks for landside trucking and arriving vessels. Meanwhile, inland rail congestion is already adding pressure. CargoTrans reported that, on Monday, approximately 35,700 containers were awaiting rail transportation, including around 10,500 that had been at terminals for nine days or longer. CargoTrans advised customers with released cargo at the ports to collect it before this Sunday evening and "allow flexibility in delivery schedules", particularly for rail shipments. And further logistical challenges are approaching: the Vincent Thomas Bridge is scheduled to close from 7 November for approximately 16 months, potentially lengthening drayage journeys through the port complex. Plus there is an 'international dockworker day of action' today, 30 October, with the Palestinian-led BDS movement reporting that more than 25 unions across 22 countries are planning strikes, demonstrations, or other action in protest against war and militarisation. The action, endorsed by 17 Palestinian trade unions and confederations, includes 24-hour strikes in France, Italy, India, Greece, and Turkey, alongside demonstrations and rallies at ports and in cities across four continents. Markos Bekris, president of Greek dockworkers' union ENEDEP, said: "Dockworkers do not work for war." The campaigners want an end to militarisation and military relations with Israel, citing the conflict in Gaza. While the international campaign is separate from the ILWU Local 26's dispute, both developments highlight the potential for labour action to affect port operations and international supply chains. At the time of writing, negotiations at Los Angeles and Long Beach are ongoing, with no strike yet confirmed.

Cyclone Arnab brings more disruption along India's eastern coast

Vessel-handling services have been suspended or restricted across several major ports along India's east coast since Monday, due to Cyclone Arnab warnings. The severe storm made landfall on India's eastern coastline this morning, bringing huge swells and gale winds across the region, according to reports. One key gateway port that suspended all operations until further notice was Visakhapatnam, a critical feeder port for Maersk's coverage out of India's east coast, especially for cargo moving in and out of Kolkata. Kuehne+Nagel told customers: "Potentially impacted container ports include Visakhapatnam, Gangavaram, and Krishnapatnam, all of which have received cyclone or storm warnings as Arnab approaches India's east coast." Industry sources in India believe the port suspensions could inevitably cause congestion and delays to freight flow, but the scale will only be known when terminals fully reopen. "Visakhapatnam terminals are slowly getting back to business, in tandem with government guidelines and updates," one carrier official told The Loadstar. "The ports were told to keep operations suspended as part of contingency planning." According to the latest updates, the cyclonic storm claimed three lives in India's Andhra Pradesh State, in addition to causing extensive damage to residential properties and utility installations in the region. Several Indian ports had already been experiencing operational pressures due to widespread vessel bunching tied to delayed arrivals from Asian origin ports, and "the cyclone disruption is another blow to the supply chains", said a Visakhapatnam-based ship agent. Visakhapatnam handled 302,926 teu year-to-date through September, edging down from 308,861 teu year on year, according to data collected by The Loadstar. Meanwhile, the authorities in Bangladesh issued similar cautionary alerts for ports as the cyclone threatened gusty weather over the northern Bay of Bengal and adjoining coastal areas. "Cyclonic Storm Arnab has formed over the east-central and adjoining west-central Bay of Bengal and is forecast to intensify into a very severe cyclonic storm before making landfall along the Andhra Pradesh and Yanam coasts on 28 October," London-based port agency service provider Inchcape Shipping Services told customers. Congestion and operational disruption issues are not limited to the Indian coast. K+N also reported an average vessel waiting time of two days across terminals in Sri Lanka's Colombo port, "due to ongoing transhipment congestion, missed feeder connections, vessel omissions and routing changes", the company said.