Global Aperture

Major ocean carriers, including CMA CGM, Maersk, and Hapag-Lloyd, have announced plans to implement carbon emission surcharges in 2024 to comply with the European Union's regulations aimed at achieving carbon neutrality by 2050. The EU Emissions Trading System (EU ETS) will be applied to the shipping sector starting January 1, 2024, requiring carriers to monitor and report carbon emissions and purchase emission allowances, with details for applicability to transshipment ports yet to be finalized.

The October 7 attacks in Israel have sparked a number of changes in services to and from Israeli airports and seaports; while seaports remain open, alerts have been issued by the US and Israel about flying in Israeli airspace, insurers are adjusting rates in the region, and several major carriers have suspended flights.

Americas

Mexico: Inspections of trucks by the Texas Department of Public Safety (DPS) at the Mexico-US border, which began on September 20th, are causing significant disruptions to cargo flow. Shippers are resorting to lengthy detours to deliver urgent shipments to the US, as long wait times and political motivations behind the inspections compound the challenges. Wait times for trucks crossing into the US reached 24 hours on October 6, with lines stretching as long as 12 miles.

Brazil: A severe drought in the Amazon rainforest has disrupted ship traffic near Manaus, the region's largest city. The drought, which has led to limited access to food and drinking water for local communities following mass fish and river dolphin deaths, has prompted the federal government to establish a humanitarian task force, and officials are now warning that it could disrupt grain exports during this year’s corn harvest season.

Asia-Pacific

India: Citing operational constraints and falling export lifts, CMA CGM has suspended its direct call at Bangladesh's Chittagong port. The decision reflects ongoing changes in carrier network strategies to align with current market conditions, as global clothing importers diversify sourcing away from China, impacting the Bangladeshi export market and leading to the suspension of the Chittagong call in an effort to improve service viability.

China: Shippers and carriers in southern China and Taiwan are experiencing significant delays due to Typhoon Koinu, which affected over 20 mainline vessels and shut down at least eight ports while crossing the Taiwan Strait. This is the second major typhoon to impact the region in the past five weeks, following Typhoon Saola in early September, which resulted in substantial schedule disruptions for vessels.

Europe, Middle East & Africa

December throughput at North Europe's container ports is expected to decrease significantly due to carriers implementing blanking programs during China’s Golden Week holidays. This reduction in capacity has prompted shipping alliances to consider network overhauls, including temporary winter season suspensions of some shipping loops as carriers blank 67 major trade lane sailings over the next five weeks to address soft demand.

The European Commission's decision not to renew the Consortia Block Exemption Regulation (CBER) for container shipping in Europe has sparked a debate over the benefits of vessel sharing agreements, as the exemption will expire on April 25th next year. While some shippers welcomed the news, analysts have expressed concerns about potential drawbacks, including the risk of reduced competition, legal uncertainties, and increased bureaucracy, which may result in service issues for shippers and even more consolidation in the industry.

Israel:  Following the deadly assault in Israel on October 7, several major carriers have suspended flights to Tel Aviv's Ben Gurion Airport. While Israel Airports Authority stated that the airport and Ramon Airport near Eilat remain open and operational for evacuations and repatriation, the situation has prompted concerns about insurance coverage for airlines, and both the US Federal Aviation Administration and the Israeli government have issued alerts regarding flying in Israeli airspace. While major seaports like Ashdod and Haifa remain open, they are considered to be at a heightened risk, prompting maritime security companies and insurers to reassess their operations for Israel.

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