Canada, prepare for the big squeeze. Trump will press on several sensitive fronts

From trade to migration to defence spending, a high-pressure year ahead with incoming U.S. administration

Alexander Panetta, Mark Gollom 

 CBC News · Posted: Nov 06, 2024 

Donald Trump's presidential win could wreak havoc on global economies through the use of tariffs. (Brian Snyder/Reuters)

Canada, prepare for the big squeeze. A new Trump administration is likely to press this country on sensitive fronts: trade, migration and military spending.

The reverberations of Donald Trump's election win will ripple internationally with his plan for sweeping tariffs, mass deportation of migrants and intense pressure on countries to spend more on their own defence.

The animating principle of Trump's political career is that the U.S. must get tough with allies who have grown too reliant on it, economically and militarily.

And few are as reliant as Canada, as illustrated in a Washington think-tank report that said the northern neighbour risks being among the countries hardest hit by Trump's plan for a minimum 10 per cent global tariff.

The still-undefined details of his plan have provoked a gamut of estimates about the potential damage to Canada's economy, ranging from less than a half per cent of GDP to an eye-watering five per cent.

Trump has made clear his intention to impose a minimum 10 per cent fee on all imported products, memorably calling "tariff" the "most beautiful word in the dictionary."
Canada braces for Trump 2.0 as the former president takes the lead in U.S. presidential raceTrudeau congratulates Trump on 'decisive' victory

Canadian officials have spent months seeking clarity from Trump associates on whether the country might be exempted; they received no assurances.

Donald Trump is seen with Prime Minister Justin Trudeau at a NATO round table meeting in December 2019. 

(Frank Augstein/AP Photo)

One scenario some trade-watchers envisioned is that Trump will swiftly announce tariffs on everything early next year, then use them as leverage to force other countries to reorient certain policies.

In other words, Canada faces an intense year ahead in bilateral relations.
A sense of déja vu

In an effort to set a positive tone on Wednesday, Prime Minister Justin Trudeau congratulated Trump on his victory and called the friendship between Canada the U.S. the envy of the world.

"I know President Trump and I will work together to create more opportunity, prosperity and security for both of our nations," Trudeau said.

But for Canadian veterans of the trade battles with the first Trump administration, there is a sense of déja vu.

"Welcome back to an administration that put national security tariffs on the Canadian aluminum that its own military buys to make a point no one understood," said Flavio Volpe, head of Canada's auto-parts lobby association, referring to Trump's past tariffs on Canadian steel and aluminum.What impact will the U.S. election have on Canadian politics? That is the topic of our Ask Me Anything segment this week on Cross Country Checkup. Leave your question here and we may read it on the Nov. 10 show

Volpe held out hope that Canada's co-operation with the U.S. to keep out Chinese imports might create common ground between the two countries.

But the big change from Trump's first term is that he's now talking about placing tariffs on everything, from everywhere, describing the move as a strategy to force manufacturers to build in the U.S.
WATCH | Donald Trump tells supporters he 'made history', as he declares election victory:

 Donald Trump claims a 'magnificent victory' after winning several key battleground states, including Pennsylvania, and tells supporters they are a part of the 'greatest political movement of all time.'

It's believed Ottawa will try negotiating exemptions to the tariff, and failing that, will threaten retaliation. Canada's ambassador to Washington has already mused publicly about the possibility of a response.

This in turn risks plunging Canada into a painful trade war with its powerful neighbour.

A recent report from TD Economics was more optimistic, saying Trump's best and most likely use of tariffs would be as a bargaining chip to force Canada into concessions when it comes time to renegotiate CUSMA — the trade agreement between Canada, the U.S. and Mexico — in 2026.

The question of military spending

It's not just Canadian trade that could be impacted by Trump. Military spending is another possible flashpoint.

A potentially important player in the next Trump administration, Elbridge Colby, told CBC News this year that he would urge using unprecedented means like economic penalties as a stick to prod Ottawa to scale up its contribution.

There will be pressure to spend more, faster, especially in the Arctic.

Washington has not been mollified by the Trudeau government's recent promise to reach the historic military spending target of two per cent of GDP. This was illustrated by a recent op-ed from a powerful Republican congressman ridiculing Canada as the greatest threat to NATO.

At a rally in South Carolina earlier this year, Trump said the U.S. would not protect allies who fail to meet the two per cent target.

WATCH | We may be on the verge of an era of global trade wars, says David Frum:


'We may be on the verge of an era of global trade wars' if Trump wins, says Frum

Duration3:41

David Frum, staff writer at The Atlantic and a speech writer for former president George W. Bush, believes Donald Trump could 'mess up' the Canada-U.S.-Mexico free trade agreement and hold those countries 'to ransom' in order to get what he wants. He also suggests Trump could cut of weapons to Ukraine and cost it the war against Russia.

 

Immigration is another question mark for Canada.

Trump has promised the mass deportation of millions who entered the U.S. illegally. The fear of deportation could produce a surge of asylum claimants seeking refuge at the Canadian border, one analyst said.

"Individuals [may] try to run to Canada to avoid that [deportation]," Christopher Sands, head of the Canada Institute at Washington's Wilson Center, told CBC News last week. "So we could fight over that."

Such a phenomenon could exacerbate tensions within Canada. Ottawa has already been under pressure from the provinces to curb immigration levels.

Just last month, the Trudeau government announced cuts to immigration to relieve pressure on the housing market. Trump noticed this, posting on social media: "Even Justin Trudeau wants to close Canada's borders."

Kelly Craft, a former U.S. ambassador to Canada, told Radio-Canada that Trump intends to continue his policies from 2016. 'Just look at the first four years — that's a good gauge of what's going to be coming forward.' (Timothy D. Easley/The Associated Press)

"We are the only 'stupid ones' that allow people, including hundreds of thousands of criminals, to freely come into the United States through our ridiculous 'open borders' policy," Trump said.

There was a swift sign of the potential ripple effects the migration issue could have within Canada.

The Quebec government hinted Wednesday that it will step up policing of its own border, deploying provincial personnel to the international boundary.

Francois Legault's government faces a difficult re-election fight against the pro-independence Parti Québécois, which has seized on migration as an argument for separation.

WATCH | The potential impact of Trump's tariff plan on Canadian trade

Trump's tariff plan poses threat to Canadian trade, says economist
Duration 8:09

Jimmy Jean, chief economist for Desjardins, says U.S. president-elect Donald Trump's plan for across-the-board tariffs on imports could spark a trade dispute and disrupt the Canadian economy.

With files from John Paul Tasker

Emperor penguin turns up on Australian beach, thousands of miles from home

The emperor penguin, pictured on Ocean Beach near Denmark, Western Australia.

 Supplied by DBCA via CNN Newsource

Jack Guy
Published Nov. 6, 2024

An emperor penguin surprised locals when it appeared on a beach in Australia after making an epic journey of thousands of miles from its home in Antarctica.

The penguin arrived on Ocean Beach in Denmark, Western Australia, on Friday, according to a statement from Australia’s Department of Biodiversity, Conservation and Attractions (DBCA), sent to CNN on Wednesday.

A spokesperson described the penguin as “malnourished,” adding that the animal “remains in the care of a trained and registered local wildlife carer.”

“The rehabilitation process is expected to take a few weeks,” said the spokesperson, who added that the wildlife carer is being supported by a DBCA officer.

Ocean Beach is more than 2,200 miles (3540 km) due north of Antarctica, suggesting the penguin probably swam significantly further to reach Australia.

Belinda Cannell, a research fellow at the University of Western Australia, told Australian public broadcaster ABC News that this is the first time an emperor penguin has been seen so far north.

The penguin may have followed a current north from Antarctica, she said.

“What they tend to do is follow certain currents where they’re going to find lots of different types of food,” Cannell told ABC.

“So maybe those currents have just tended to be a little bit further north towards Australia than they normally would.”

Local surfer Aaron Fowler told ABC that he saw the penguin emerging from the sea.

“It was massive, it was way bigger than a sea bird and we’re like, what is that thing coming out of the water? And it kind of had a tail sticking out like a duck,” Fowler said.

“It stood up in the waves and just waddled straight up to us, an emperor penguin, he was probably about a meter high, and he was not shy at all,” he added.


“He tried to do like a slide on his belly, thinking it was snow, I guess, and just face-planted in the sand and stood up and shook all the sand off,” Fowler said.

Emperor penguins are the tallest and heaviest of the 18 penguin species. They can weigh up to 88 pounds (40 kilograms) and stand 45 inches (1.1 metre) tall.

A female emperor lays one egg per breeding season, then passes it over to her male partner to incubate while she forages for food for about two months.

The animals are only found in the wild in Antarctica, but they are increasingly threatened by the climate crisis.

Emperor penguins rely on sea ice to form their breeding colonies, avoid predators in the ocean and forage for food. But as Earth’s temperature rises as a result of greenhouse gas and carbon dioxide emissions, sea ice is at risk of disappearing.

Four out of five emperor penguin colonies analyzed in the Bellingshausen Sea, west of the Antarctic Peninsula, saw no chicks survive in 2022 as the area experienced an enormous loss of sea ice, according to a study published in August 2023.

This widespread “catastrophic breeding failure” is the first such recorded incident, according to the report, and supports grim predictions that more than 90% of emperor penguin colonies will be “quasi-extinct” by 2100 as the world warms.

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B.C. ports are frozen amid a labour dispute. What does this mean for Canadians?

Experts say impact won't be seen on shelves right away, but businesses could take hit

Alexandra Mae Jones · CBC News · Posted: Nov 05, 2024 

The Port of Vancouver is shown on Monday, after a negotiating deadline passed amid a labour dispute between the B.C. Maritime Employers Association and the International Longshore and Warehouse Union Local 514. (Jennifer Gauthier/Reuters)

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A major trade artery was shut down on Monday when employers locked out more than 700 foremen at ports across British Columbia, sparking fears across the country for Canada's supply chain.

With a partial closure already affecting two terminals at the Port of Montreal due to a separate labour dispute, this new stoppage could see more shipping backlogs for businesses as the window closes on importing goods for the holiday season.

The B.C. Maritime Employers Association (BCMEA) said it had made the "difficult decision" to lock out workers on Monday afternoon, after the International Longshore and Warehouse Union (ILWU) Local 514 issued a 72-hour strike notice for limited job action, which was set to begin at 8 a.m. PT on Monday.

The lockout doesn't apply to grain or cruise operations.

The union said its limited action consisted of an overtime ban and a refusal to implement tech changes on Monday if an agreement wasn't reached. It previously accused BCMEA of "acting recklessly" by threatening the lockout. 

• B.C. port employers launch lockout at terminals over contract dispute with foremen

Canada's West Coast is its main trade portal for shipping goods by sea. 

"Our West Coast ports handle $800 million worth of cargo every single day," Pascal Chan, senior director of transportation, infrastructure and construction at the Canadian Chamber of Commerce, told CBC News. "That accounts for something like 25 per cent of the goods flowing through the country."

Members of the International Longshore and Warehouse Union Ship & Dock Foreman Local 514 picket in North Vancouver on Monday. (Maggie MacPherson/CBC)

What happens next

When the functioning of a major port is impacted, some ships that were supposed to bring goods to that port end up anchored outside it, waiting for the strike to end. This is often the case for ships containing perishable food products, said Fraser Johnson, a professor of operations management at the Ivey Business School at Western University in London, Ont.

But most ships are rerouted — which in this case means more goods intended for Canada being rerouted to U.S. ports on the West Coast, upping the end cost for Canadian businesses.

Freight rates have already increased threefold over the last year due to a number of factors, including problems in the Suez Canal and a drought in the Panama Canal, Johnson said.

The B.C. ports being closed down "affects virtually everything," he said, ranging from food and retail goods for the holiday season to commodities that are exported, such as lumber, coal and automobiles.

"The general rule of thumb is that for every day that the port is shut down, it takes a week to be able to recover," Johnson said.

A container ship makes its way into the Port of Vancouver, past vessels at anchor in English Bay, as seen from Grouse Mountain in North Vancouver on May 10, 2024. (Chris Helgren/Reuters)

In Montreal, two terminals are also currently closed after longshore workers went on strike last week, paralyzing 40 per cent of total container capacity at Canada's second-largest port. The Montreal Port Authority stated last Thursday that some ships already on their way to Montreal had turned back to other ports.

The union's main request in B.C. is protections for job security amid increasing automation at the ports. In Montreal, work-life balance is one of the key points at stake for striking workers. 

How consumers are impacted

The average Canadian won't see shortages on their grocery shelves or in retail stores in the short term, Johnson said. But if the labour dispute stretches on for several weeks, those impacts could trickle down as costs add up.

"It might not be Day 1, but ... when you start to see millions and millions of dollars in trade lost every single day, absolutely, Canadians are going to feel that," Chan, of the chamber of commerce, said.

Johnson said small- and medium-sized businesses will likely feel the impact first because they don't have as much flexibility in terms of contracts, meaning increased costs and delays when shipment plans change. 

Members of the ILWU Local 514 picket in North Vancouver on Monday. The union called employers' decision to lock them out on Monday an 'overreaction' to their limited job action, which didn't require workers to walk off the job but consisted of an overtime ban and a refusal to implement tech changes. (Maggie MacPherson/CBC)

For distributors that serve multiple retailers, a big enough delay can mean they can't fulfil their contractual obligations, potentially leading to penalties, according to Christina Santini, director of national affairs at the Canadian Federation of Independent Business (CFIB), a lobby group. In 2023, after a 13-day strike at B.C. ports, manufacturers that relied on glass imports also reported to CFIB that they weren't able to produce goods on their usual timeline.

Those scenarios aren't kicking in yet, Santini acknowledged. But while many CFIB members used to report having three to six months of inventory in advance, she said more of its members now say that they're only stocked two weeks ahead. According to a Friday statement from the Canadian Manufacturers and Exporters, the 2023 strike cost manufacturers an average of $207,000 per day.

"It all comes down to how long the strikes last and what's the backlog," Santini said. "Some businesses are going to be more resilient than others."

When goods aren't flowing through ports, that includes exports. Last year's B.C. ports strike saw B.C. exports fall 23 per cent in July 2023, hitting their lowest point since the pandemic, Chan said.

Fertilizer Canada, which represents Canadian producers and distributors of fertilizers, warned in a statement on Friday that a shutdown of the B.C. ports would cost the industry $9.7 million per day in lost sales revenue of potash fertilizer, of which Canada is the world's largest producer.

WATCH | Lockout move is employers' strategy to push for federal intervention, professor says:Hundreds of foremen in Vancouver and Port Rupert were locked out by their employer, the B.C. Maritime Employers' Association, on Monday afternoon, with the employer calling it a "defensive action" after port workers served 72 hours strike notice. The union says the BCMEA is overreacting.

Labour Minister Steven MacKinnon said in a Saturday post on X that "federal mediators are on site, ready to assist the parties," but that it is the "responsibility" of the employers and the union to reach an agreement.

"Businesses, workers and farmers are counting on them to get a deal," he said.

The labour disputes at Canada's ports are just the latest in a string of supply chain disruptions, including a four-day strike at grain terminals in September and a temporary shuttering of Canada's two biggest railways in the summer due to a rail strike.

• Union for B.C. foremen accuses port employers of 'acting recklessly' with threat of lockout

• Striking dockworkers shut down 2 Port of Montreal terminals

Experts are concerned these disruptions could damage Canada's reputation in international trade.

"Other partners globally have seen Canada as a reliable partner for conducting business," said Hossein Piri, assistant professor with the Haskayne School of Business at the University of Calgary.

"So with continuous threats for supply chain in Canada, it can tarnish our reputation globally, and recovering that is not easy."

Business groups say B.C. port stoppage will

 hurt companies, Canadian economy

Rosa Saba
Published Nov 05, 2024 • 

A water taxi travels on the Fraser River past cargo containers stacked at Fraser Surrey Docks below houses on a hill, in Surrey, B.C., on Monday, November 4, 2024. Business groups say the work stoppage at B.C. ports is the latest in a run of supply chain disruptions affecting Canadian companies and the country's economy.

THE CANADIAN PRESS/Darryl Dyck Photo 

Business groups say the work stoppage at B.C. ports is the latest in a run of supply chain disruptions affecting Canadian companies and the country’s economy.

Canadian Port Strike Halts $800M in Daily Trade, Impacting U.S. Imports menu


Canadian Port Strike Halts $800M in Daily Trade, Impacting U.S. Imports
Canadian West Coast port closed Monday as the International Longshore and Warehouse Union launched a labor strike, halting container traffic. This closure impacts around $800 million in daily trade, significantly affecting U.S. markets relying on Canadian ports for goods like chemicals, auto parts, and perishable foods. The contract expired in March, and talks stalled after a 96% strike approval vote in September. This disruption follows earlier strikes in Montreal, affecting 40% of East Coast 

“It’s been absolutely brutal. I mean, the timing of this is just really challenging,” said Pascal Chan, senior director of transportation, infrastructure and construction at the Canadian Chamber of Commerce.

Canadian supply chains have been under considerable strain over the past few years, from labour disputes to wildfires and floods as well as the COVID-19 pandemic, he said.

The latest disruption comes less than a year and a half after a 13-day strike by different workers at most B.C. port terminals and just a few months after a countrywide work stoppage at Canada’s two biggest railways.

Greater Vancouver Board of Trade president Bridgitte Anderson said the shutdown will disrupt $800 million in goods every day, warning it could put upward pressure on inflation.

“The Port of Vancouver is far and away the most significant port that we have in Canada,” said Fraser Johnson, a professor of operations management at the Ivey Business School at the University of Western Ontario.

He said the port handles about 45 per cent of the total volume of Canada’s ports, with the next largest being Montreal at about 10 per cent.

“I think a lot of people tend to focus on what’s coming into the country in terms of consumer goods, automobiles, electronics, especially this time of the year, when we’re coming up to the holiday season,” said Johnson.

“But there’s a lot of stuff that gets exported out of Canada. So lumber, commodities like coal, for example, iron ore, all get shipped out of Canada via our West Coast ports.”

Johnson said the longer the port stoppage goes on, the harder businesses’ bottom lines and the economy will be hit.

If it goes on for several weeks, consumers could start to see more of an impact as well, he said.

But for some retail goods that aren’t stockpiled as far in advance, the impact could be more immediate, said Matt Poirier, vice-president of federal government relations at the Retail Council of Canada.

Retailers are still playing catch-up from previous disruptions heading in to their busiest time of year, said Poirier.

“These last-minute holiday goods are arriving and they’re being stopped. So absolutely it won’t take long for empty shelves to start showing up.”

The 2023 B.C. port strike cost manufacturers an average of $207,000 per day, Canadian Manufacturers and Exporters president and CEO Dennis Darby said in a statement Friday.

The Chamber’s Chan urged the government in a statementto “use every tool at its disposal to resolve this dispute.”

The federal government was relatively hands-off in last year’s port dispute, said Johnson — unlike the rail stoppage, which saw the government ask the Canada Industrial Relations Board to order a return to work and binding arbitration, which it did.

Despite the importance of Canada’s ports, Johnson said the rail disruption posed a more imminent threat.

“Railroads touch most of the products that people consume at some point in the supply chain, so they’re really the lifeblood of the Canadian economy,” he said.

“Shutting down a port for a couple of weeks probably isn’t going to be something that people are going to notice, but … a rail disruption would have much more significant economic impact and significant impact on consumers directly.”

On Friday, Fertilizer Canada also raised the alarm about the impending labour disruption, saying the ports are vital for exporting potash overseas and a shutdown would cost the industry $9.7 million per day in lost sales revenue.

The organization said the 2023 dispute cost the fertilizer industry more than $126 million, and had knock-on effects beyond the 13 days workers were off the job: in the months after the stoppage, Canada lost significant market share to Russia in key markets, it said.

“We are once again on the brink of losing access to a critical trade corridor, and potash fertilizer will be one of the hardest-hit commodities,” said president and CEO Karen Proud in a statement.

The organization called on the federal government to amend the Canada Labour Code to “ensure the continuous movement of fertilizer products at ports during labour disputes.”

Nutrien, the world’s largest potash producer, said that its marketing and delivery subsidiary Canpotex is exploring alternatives to mitigate the stoppage’s effect on customers.

However, a prolonged disruption could negatively affect farmers and food security globally, said media relations manager Shawn Churchill in an emailed statement.

On the other side of the country, the Port of Montreal is also in the midst of a dispute, with two terminals closed until further notice as about 1,200 longshore workers began striking at the end of October.

“It’s a double whammy for us,” said the Retail Council’s Poirier, adding that the Montreal disruption disproportionately affects retailers because it’s container traffic.

Retailers have learned lessons from the supply chain disruptions of the past few years, said Poirier.

“Some retailers have been avoiding ports for months already in anticipation of this,” he said.

However, smaller businesses don’t have the same flexibility as larger companies, Poirier said.

“When the costs are exorbitant, which they tend to get, then they’re the ones really … getting the short end of the stick.”


— With files from Chuck Chiang in Vancouver

This report by The Canadian Press was first published Nov. 5, 2024.

B.C. ports lockout: Vancouver businesses

already feeling the bite of labour dispute

The lockout has halted operations at more than a dozen terminals run by Maritime Employers Association members, leaving containers of goods behind picket lines

Author of the article:
Derrick Penner
Chuck Chiang
Published Nov 05, 2024 •

Caren McSherry, owner of Gourmet Warehouse and an import company.

 Photo by Arlen Redekop /PNG

Gourmet Warehouse owner Caren McSherry is among the many local specialty importers now waiting for containers worth of orders stuck behind picket lines as the lockout of 714 longshore foremen at Port of Vancouver terminals stretched through its first full day.

The B.C. Maritime Employers Association locked out the foremen, members of the International Longshore and Warehouse Union Local 514, beginning at 4:30 p.m. Monday in response to limited job action launched by the union after it rejected the association’s last contract offer.

The lockout halted operations at more than a dozen terminals run by Maritime Employers Association members, including the container terminal where McSherry was expecting to receive goods of $60,000 to $100,000 worth of olives, olive oil, spices, rices and gift baskets from Spain.

“It is beyond frustrating,” McSherry said. “I’m beaten up on my retail side with thefts and robberies every day. And then on the importing side, we’re hit with the port (dispute).”

Her shipment represents orders that her salespeople in the importing side of her business, Continental Importers, placed in May for delivery now, which her buyers expected to have on shelves for the holiday season.

“All of us in the importing food business, we’re on pins and needles because our clients … we’ve now disappointed them,” McSherry said. “Obviously, it’s not our fault, but the buck stops (with you).”

In the meantime, McSherry said importers such as herself can only “fret and hope that (Ottawa) steps in and ends it for the sanctity and safety and profitability of the fourth quarter” for businesses.

B.C. Chamber of Commerce CEO Fiona Famulak added her organization’s voice to the call for action.

Famulak said the Chamber supports the right to collective bargaining, but “our port infrastructure is too critical to the health and success of businesses and workers to have this dispute continue one moment longer.”

Port workers near the Clark Street overpass in Vancouver on Tuesday. Photo by Arlen Redekop /PNG

Some retailers are still playing catch-up from previous disruptions as they head into their busiest season, said Matt Poirier, vice-president of government relations at the Retail Council of Canada.

“These last-minute holiday goods are arriving, but they’re being stopped,” Poirier said. “So absolutely it won’t take long for empty shelves to start showing up.”

The Greater Vancouver Board of Trade relaunched a “port shutdown calculator” that it created during the 13-day labour disruption in 2023, which tracks a cumulative estimate of the value of trade that has been disrupted based on the assumption that such disputes block about $800 million per day in shipments.

The lockout at west coast ports means that all three of Canada’s major container-receiving ports — Vancouver, Montreal and Prince Rupert — are now behind picket lines as the result of labour disputes, said Jordan Atkins, vice-president of the logistics firm WTC Group.

“On the import side, the damage is immediate,” Atkins said. “Every day that (the port) is closed, it’s setting (businesses) back.”

Atkins said there is still a little bit of flexibility for exporters to continue moving cargo that they have in the system to ports, where off-terminal facilities can load them into containers ready for shipment, if the disruption is short.

“We’ve probably got until, I would say, the end of the week before the damage starts to become kind of irreparable,” Atkins said.

The export commodities hurt the most include pulp shipments, lumber and agricultural products, Atkins said. Bulk grains handled by the Canadian Wheat Board are still moving through Port of Vancouver grain terminals, but specialty products such as flax seed, peas, lentils and other legumes are packed into containers destined for terminals now behind pickets.

“We’ve got a lot of cargo coming out, both to Vancouver and (Prince Rupert) as well as out to Montreal,” Atkins said.

 KOREA

Strike Turns Into a Fistfight at HD Hyundai

Courtesy KMWU

Published Nov 4, 2024 8:27 PM by The Maritime Executive

 

 

The Korean Metal Workers' Union (KMWU) is calling for a government inquiry after a violent altercation at HD Hyundai Ulsan, which injured multiple people and resulted in the arrest of one security guard. 

The KMWU is demanding higher wages in ongoing contract negotiations, and has launched a series of seven-hour strikes at HD Hyundai Ulsan. On October 30, union members tried to set up sunshade tents on a roadway in the shipyard during a strike action, and they were confronted by a large force of company security officers. The guards attempted to prevent them from setting up the tents, and a fight ensued, resulting in multiple injuries on both sides. The union provided a video of the fight, which appears to show a group of guards chasing down a striker (below).

At least 10 people were injured, including company employees, union members, and one police officer who was hit by a security guard by mistake. The guard was arrested on charges of obstructing official duties. 

"Dozens of workers were injured, including branch manager Kim Dong-yeop, whose face was cut and his nose broken," claimed the KMWU. "The authorities must strictly investigate and punish this act of violence at Hyundai Heavy Industries."

It was the second clash in a month at HD Hyundai. On October 10, a similar altercation resulted in dueling lawsuits between union and management, with both sides alleging assault.  

The union is seeking a basic pay increase of $115, changes to performance pay calculations, and a change to the retirement age. However, the physical altercations have deepened divisions between labor and management, and it is uncertain how long HD Hyundai will take to negotiate a contract with the KWMU. The other Big Three Korean shipyards, Samsung Heavy Industries and Hanwha Ocean, reached new contract agreements with their unions last month. 

 

MSC Mega-Order Revives China's Rongsheng Shipyard, a Long-Defunct Giant

A maze of cranes at Rongsheng during the yard's heyday (Jiangsu Rongsheng Heavy Industries)

Published Nov 5, 2024 3:07 AM by The Maritime Executive

 

 

MB Shipbroking has confirmed long-running rumors that Jiangsu Rongsheng Heavy Industries, a dormant mega-yard near Shanghai, will be revived after a decade of inactivity. A large-scale contract from number-one ocean carrier MSC appears set to bring the shipyard back to life.

Boxship construction slots are all but spoken for through next year at the top East Asian shipyards, but MSC has an insatiable appetite for new tonnage. It has the world's largest boxship fleet, as well as the world's largest boxship orderbook. By underwriting a reboot at a shuttered shipyard, the Swiss-owned company appears to have found a way to acquire even more vessels, even if existing yards are full. 

Rongsheng - located on an island near Nantong - was a cautionary tale from the last boom-and-bust cycle of shipbuilding. It invested heavily in a rapid expansion program in the 2000s, but a downturn in ordering activity and lagging payments from owners left Rongsheng unable to buy parts or service its debt. It collapsed and closed its doors in 2014.

Rongsheng's revival was first rumored in 2022, when George Economou's TMS Bulkers was said to be in talks for a series of bulk carrier newbuilds. That order never firmed up past the letter of intent stage, and the yard remained dormant for two more years - until a flurry of revival for Chinese shipbuilding yards swept it back into the spotlight. 

Word of a possible multibillion-dollar order with the long-defunct Rongsheng Shipyard began circulating in August, but no official confirmations were forthcoming. MB Shipbroking has now confirmed a firm contract for a series order for 12,000 TEU LNG dual-fuel boxships for MSC, a comparatively complex vessel class with a higher profit margin. 

Rongsheng used to have a peak production capacity of about eight million deadweight tonnes, spread across four drydocks. It is so large that if it returns to business, it could increase global shipbuilding capacity by about one percentage point on its own, according to MB Shipbrokers. 

Satellite imagery from earlier this year shows that the yard will be making a substantial transition. Years of inactivity left large areas abandoned and overgrown, with all four drydocks flooded. One dock contained a partially-complete, rusting bulker - visual evidence of the downturn that followed the last shipbuilding boom. 

 

More Woes for Tasmania's Ferries: Newbuild Goes Adrift in a Storm

The newly-built Spirit of Tasmania V pressed up against a tug on the opposite embankment (Courtesy RMC)

Published Nov 3, 2024 11:26 PM by The Maritime Executive

 

 

Just days after it emerged that the brand-new Spirit of Tasmania IV will be transferred to Scotland and laid up, sister ship Spirit of Tasmania V broke loose from its outfitting quay at the Rauma Marine Constructions (RMC) shipyard due to high winds.

On Friday evening, severe "hurricane-force" winds tore the ferry off the dock and sent it drifting towards the opposite wharf. Luckily, the presence of a tug and two barges between the vessel and the quayside prevented serious damage to the hull. Reported weather conditions at Rauma at the time of the casualty included wind speeds of up to 65 knots. 

Spirit of Tasmania operator TT-Line said in a statement that the ferry is floating, safe and secure with every action possible being taken to protect her. “A detailed assessment of any damage is just not possible at this stage, but it appears there has been no breach to the hull,” said Kym Sayers, Spirit of Tasmania acting CEO.

She added that there are three tugs currently alongside Spirit of Tasmania V, and as soon as wind conditions are suitable, the vessel will be returned and secured to the layup berth at RMC.

"The good news is that the vessel has not been transferred to Tasmanian ownership at this stage, so the risk remains with the Finnish boatbuilder," Tasmanian Minister for Transport Eric Abetz told local media.

RMC had earlier released a statement stating that nobody was injured in the incident and there were no known leaks or other environmental damage, a situation that was prevented by advance preparations for the storm the previous day. In anticipation of the heavy weather, the company had assembled an emergency team, called a tug to the scene and doubled up mooring lines.

When completed, the 212-meter car and passenger ferry will serve the ports of Geelong and Devonport on Australia’s Bass Strait, a route known for its challenging sea conditions. The ship was launched in July this year and is currently in outfitting. The ferry, which will have a capacity of 1,800 passengers and a lifespan of 25 years, is expected to be delivered in the last quarter of next year.

Sister ship Spirit of Tasmania IV was delivered in September, but unfortunately cannot begin operations because of multiyear delays in the construction of a dock in Devonport, Australia. The ferry will be transferred to Leith, Scotland where she will be laid up for at least two months to avoid the harsh Baltic winter in Finland. TT-Line said it is still assessing its options for the vessel, which could include the possibility of leasing to a third party.

When both ships finally enter service, they will replace two aging hulls, Spirit of Tasmania I and II. The two new ships will significantly increase the passenger, vehicle and freight capacity on the route.

 

Three-Way Collision at Mongla Port Leaves Fisherman Missing

Courtesy Bangladesh Coast Guard

Published Nov 5, 2024 2:28 PM by The Maritime Executive

 

 

Bangladeshi authorities are searching for a fisherman who went missing in a three-way collision between his boat, a small coal carrier and an LPG carrier at Bangladesh's Mongla Port. It is the latest in a series of major casualties involving LPG carriers and tankers in Bangladesh.  

According to local reports, the LPG carrier Era Star was operating in the Pashur Channel, near Mongla Port, when it collided with the coastal coal carrier Mizan. The Era Star was largely undamaged, but the Mizan's hull was badly damaged and taking on water. 

All members of the Mizan's crew abandoned ship and made it successfully to shore; the vessel remained afloat, and the Bangladesh Coast Guard told The Business Standard that the owner has begun a lightering operation to move the coal cargo to another vessel. 

A small fishing vessel was also caught in the collision, and the sole occupant went missing in the casualty. The Bangladesh Coast Guard has identified the missing man as Lokman Harim, 27, and has launched a search with divers.

The Bangladeshi government plans to make significant dredging improvements to the Pashur Channel, shipping ministry advisor Brig. Gen. M. Sakhawat Hossain (ret'd) told Bangladesh's Daily Sun. The ministry wants to upgrade the port to handle far more containerized cargo and ro/ro cargo, and will be adding two new piers, augmented by channel-deepening work. 

The casualty at Mongla Port follows a series of serious explosions and fires involving tankers at Chittagong. Last month, a blaze broke out aboard two LPG carriers off  Kutubdia, Chittagong, forcing both ships' crews to abandon ship. One of the vessels was carrying a sanctioned Iranian cargo, according to the local energy brokers' association.  A blaze broke out aboard the tanker Banglar Shourabh on October 4, killing one crewmember, and a fire aboard the tanker Banglar Jyoti killed three on September 30.

 

Late Arriving Containership Delays Reach Highest Levels Since Pandemic

Containership delays continue to grow in 2024 as vessels were forced to reroute and experienced port congestion (file phot)

Published Nov 4, 2024 7:29 PM by The Maritime Executive

 

 

The average delay for containerships behind schedule has continued to increase in 2024 rising to the highest levels except during the peak of the pandemic and surge in container volumes. Sea-Intelligence is out with its monthly look at the average performance of the container shipping carriers across 34 different trade lanes highlighting the industry remains broadly impacted by the disruptions of 2024.

“While schedule reliability in 2024 has stabilized within the 50 to 55 percent range, it’s been on a slight downward trend since the May peak,” commented Alan Murphy, CEO of Sea-Intelligence. He however notes that “The low levels of volatility in schedule reliability in 2024 do give shippers a relatively good idea of what to expect month over month.”

Overall, the industry’s schedule reliability slipped a further 1.2 percentage points in September to 51.4 percent. It is the bottom of the range for 2024 and the lowest level the industry has seen in 24 months. From a dismal level of just one in three ships on schedule in 2021, the industry surpassed the 50 percent mark in October 2022 and was able to get as high as 64 percent in mid-2023. The declines resumed in December 2023 as the Houthis began to interrupt containership schedules through the Red Sea.

The current performance compares with 2019 when before the pandemic, the surge in volumes, and now the Red Sea diversions, containerships were reaching 80 percent schedule reliability. Maersk and Hapag-Lloyd have set an ambitious target of reaching 90 percent schedule reliability on key routes once they launch the Gemini Cooperation in 2025. 

Maersk remains at the top of the industry with the best schedule reliability in September 2024 and one of only four carriers among the top 13 that were able to improve performance between August and September. However, Maersk is at just 55.5 percent down from 70 percent a year ago. Zim, PIL, and Wan Hai were the other carriers that were able to improve performance month over month.

All the top carriers are showing a significant decline year over year. From an average of 60 percent in September 2023, the largest carriers are down 13 percentage points to an average of 47 percent in September 2024. Three carriers (MSC, PIL, and Wan Hai) are each down over 20 percentage points year-over-year calculates Sea-Intelligence. The average decline year-over-year is 13 percentage points with a 2.5 percent point average decline in September 2024 versus the prior month.

While schedule reliability has been in a narrow range for 2024, Sea-Intelligence highlights that the September 2024 average delay is “the third-highest figure for the month, only surpassed by pandemic highs of 2021-2022.”

The average delay in September was up a further 0.21 days reports Sea-Intelligence. They calculate that the average delay for late vessel arrivals is now 5.67 days. The average for 2024 is up half a day from the 2023 average. Before the rerouting began, vessels had clawed the delay back to below five days for late arrivals. 

The most consistent level of port congestion remains in Asia reports Linerlytica. In addition to the Chinese ports, Singapore, Hong Kong, and Korea, Linerlytica however shows increased levels at Savannah and in Northern Europe’s large container ports on its October 31 snapshot.

With the diversions around Africa and winter weather challenges off the South Africa, ports and carriers highlighted problems with vessel bunching at ports. This was creating the congestion spikes at individual ports which further added to the delays.

Maersk warned the industry last week that it expects the disruptions coming from the Red Sea rerouting to continue well in 2025. The Houthis over the weekend vowed to continue their attacks while the leader of the group reported they have targeted over 200 vessels in the past year.

 

Portuguese Monitoring VLCC Drifting Offshore While Undergoing Repairs

Portuguese authorities are monitoring a VLCC that lost propulsion offshore a week ago an continues to drift while undergoing repairs (file photo)

Published Nov 5, 2024 4:30 PM by The Maritime Executive

 

Portuguese authorities are closely monitoring the status of a laden Greek-owned VLCC that lost propulsion a week ago and continues to undergo repairs while drifting offshore. The Navy along with the National Maritime Authority (NMA) report they are observing while issuing statements to reassure the public that there is no immediate danger from the disabled vessel.

The Lisbon Maritime Search and Rescue Coordination Center (MRCC Lisboa) reports it was notified on October 29 that the Greek-owned crude oil tanker Nissos Rhenina had lost propulsion and was disabled off the coast near Viana do Castelo in northern Portugal. They report the vessel is carrying 150,000 liters of diesel fuel. 

Built in 2019 by Hyundai Heavy Industries the tanker is 1,092 feet (333 meters) in length. The ship which has a crew of 28 aboard was the final leg of a trip from Saudi Arabia due to reach Le Havre, France on October 31. It is managed by Piraeus-based Kyklades Maritime and owned by the Alafouzos family of Greece and their Okeanis Eco Tankers.

The Portuguese Navy responded by sending its patrol boat Antonio Enes to the vessel which was reported to be 24 nautical miles from the coast. They established contact with the tanker and began monitoring its position as well as warning vessels in the area of the danger. 

A team of technicians boarded the tanker and on October 30 a towline was established to maintain its position at a safe distance from shore. Repairs are underway, but the Portuguese authorities have been advised the ship is not likely to be back under control and underway until late this week.

Onshore, the mayor of Viana do Castelo Luis Nobre is expressing confidence in NMA’s management of the situation. He told reporters that he had been assured there was no immediate danger to the coast. However, he said they were taking the necessary precautions and remained on alert for any eventualities because it is a complex situation.

The tanker continues to show restricted maneuverability. The anchor handler Boka Forward, managed by ALP and registered in Malta, is standing by to prevent the vessel from approaching the coast while repairs remain underway.