Category Archives: Supply Chains

Felixstowe dockers lose overtime and union threatens ‘action until Xmas’

The labor strike at the port of Felixstowe in the UK is growing more acrimonious. German ports of Hamburg and Bremerhaven are also seeing industrial actions. The current negotiations on the US West coast are also not seeing results yet. And there are impending strikes at Liverpool and the East Coast US looming.

I think there are going to be more of these strikes and actions for more pay and better benefits for port workers.

From the union perspective, when is a better time to strike? When congestion is a problem, when everyone is complaining about missed or late delivery, that is clearly the time to get management to cough up more wages and benefits. And the ocean carriers and port terminal operators are clearly making big money from the high freight rates for containers. some ocean lines have made over 100% profit this past year.

And it’s also true that the recent spate of inflation is making even substantial proposed raises seem paltry. Inflation at 10% makes a single-digit percent raise going backward for workers.

By Mike Wackett 24/08/2022

Felixstowe dockers lose overtime and union threatens ‘action until Xmas’ – The Loadstar

Rapidly plunging Rhine remains supply chain problem

Low water levels in the Rhine River severely impact barge and shipping traffic. The Rhine is one of the most important inland shipping routes in Europe. EU nations have for years now tried to emphasize getting freight traffic off the roads and onto rivers via barge.

One of the most severe impacts is to refineries along the Rhine. They have had to shut down because of lack of supply. That’s bad for Europe, because of the shortage of petroleum fuels due to the Ukraine war.

This map shows the problem.

Source: S&P Global Commodity Insights.

The depth measurements at Kaub, shown in the middle of the map, increased in the last few days due to extensive rain in Switzerland, but remain far below normal levels. There’s not enough water to float some barges that would normally be used for river cargo and petroleum products.

It’s a blow for the EU caused by a natural problem. Is global warming to blame? We don’t know, but cyclical droughts have been known for years, and clearly disrupt our plans. Trucking congestion is rising fast, and is neither as efficient nor as clean as the barge traffic.

John Kingston Friday, August 19, 2022

Rapidly plunging Rhine remains supply chain problem even as some relief looms – FreightWaves

Drought and power shortages bring crucial factories in China to a standstill

Here is the latest in a long series of supply chain catastrophes. China’s drought has severely affected hydroelectric power, and in the area of Sichuan province, factories have had mandatory power shutoffs. A number of these are chip factories and solar panel makers, as well as battery makers. All these are much-needed products for integration into items for consumers.

Shipping prices from China by ocean continue to fall, and these shutdowns will reduce the number of export containers. And according to Container xChange, the demand for empty containers for export is also lower than expected.

By Sam Whelan 22/08/2022

Drought and power shortages bring crucial factories in China to a standstill – The Loadstar