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Supply Chain Effects From Ian Could Last for Weeks, Port of New York and New Jersey Takes Top Import and Export Spot, IBEW Becomes Third Union to Ratify Rail Labor Agreement.

By September 29, 2022 No Comments

Ocean

Supply chain effects from Ian could last for weeks. Experts are predicting severe disruption to supply chains from power outages, flooding, and wind damage caused by Hurricane Ian that could stall freight movement through major airports, ports, highways and rail nodes. The storm could impact up to 2,800 manufacturing firms in aerospace, automotive components, heavy machinery, chemicals and plastics, as well as about 7,000 healthcare producers in pharmaceuticals, medical devices, diagnostics and other fields.

2.6 million without power after Hurricane Ian makes landfall in Florida. According to poweroutage.us, almost 2.6 million homes and businesses were without power shortly after 8 a.m. ET as a result of Hurricane Ian. The hurricane hit land in southwestern Florida as a major Category 4 hurricane, just shy of a Category 5, as one of the strongest hurricanes ever to hit the U.S. President Biden approved a disaster declaration for Florida, allowing for the use of federal funds to supplement recovery efforts in areas impacted by the hurricane. The hurricane center said Ian’s eye  was “expected to move off the east-central coast of Florida soon and then approach the coast of South Carolina on Friday. The center will move farther inland across the Carolinas Friday night and Saturday. … Some re-intensification is forecast, and Ian could be near hurricane strength when it approaches the coast of South Carolina on Friday. Weakening is expected Friday night and Saturday after Ian moves inland.”

Hurricane Ian updates from Radiant Logistics: Check back for new information on Hurricane Ian and its impacts on freight as it becomes available here

For real-time updates in Florida, continue to check the following resources:

Ports

Port of New York and New Jersey takes top import and export spot. The Port of New York and New Jersey became the top port in the U.S. after moving 843,191 TEUs (imports + exports) in August. Traditionally in the top spots, the Ports of Long Beach and LA were second and third in cargo volume as a result of ongoing concerns about labor strikes and lockouts leading to trade moving away from the West Coast. “We are exceeding pre-Covid numbers. It is astonishing, and it is a credit to the men and women who are moving the cargo with such efficiency,” said Kevin O’Toole, chairman of the Port Authority. “Our planning with rail to complement the actual infrastructure and the dredging are allowing this added capacity that would not have happened four or five years ago.” According to CNBC, this August was the busiest August in the history of the Port of New York and New Jersey. 

Customs

CBP publishes privacy evaluation report of Traveler Verification Service. The U.S. Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO), and the Office of Privacy and Diversity (PDO) released a report of the Traveler Verification Service (TVS) in support of CBP’s Biometric Entry-Exit (BE-E) Program. The program is aimed at continuing efforts to promote organizational accountability and transparency, according to CBP. “The publication of this report underscores CBP’s commitment to promote transparency and accountability across the agency while ensuring that traveler data is well protected within our systems” said Matthew S. Davies, Executive Director of Admissibility and Passenger Programs in the Office of Field Operations at U.S. Customs and Border Protection. CBP said that the report found that OFO and the Office of Information Technology were utilizing TVS in support of the BE-E Program in a manner that is compliant with requirements in current privacy compliance documentation, DHS/CBP policy, and U.S. law. You can read the full report here. 

Trucking

Navistar announces third recall of trucks affected by faulty connecting rods. 8,002 trucks across four model lines in the U.S. and Canada have been recalled by Navistar because of faulty connecting rods, which previously led to two other recalls. All three actions account for 23,802 trucks sold between 2018 and 2021, according to FreightWaves. The latest recall affects certain International HV, HX, LT and RH models built between March 2017 and February 2020 that have International’s A26 engine. Navistar did not report any crashes or injuries related to the recall. Earlier recalls had projected failure rates of 17% and 13%. 

Rail

IBEW becomes third union to ratify rail labor agreement. The National Carriers’ Conference Committee (NCCC) announced on Sept. 28 that the membership of the International Brotherhood of Electrical Workers (IBEW) has ratified the tentative rail labor agreement. IBEW is the third union to ratify the agreement resolving the current national bargaining round, according to Railway Age. Tentative agreements with nine other labor organizations remain subject to ratification. The ratification process is likely to continue through mid-November. All 12 unions have agreed to maintain the status quo until all union ratification votes are completed, no matter if any fail to ratify.

Air

Global demand for aviation fuel to return to pre-pandemic levels says Shell. The head of aviation at Shell estimated that global aviation fuel demand will fully recover to pre-pandemic levels in the next one to two years at a rate of 300 million tonnes per year. Demand in the United States is back up to the same levels as 2019, while Europe’s consumption is on track for full recovery in the next year after rising more than 80%, Shell Aviation President Jan Toschka told Reuters at the 38th Asia Pacific Petroleum Conference (APPEC).

Justice Department brings airlines to court over 2021 deal. The Justice Department brought American Airlines and JetBlue Airways to court in Boston this week in a bid to dissolve a year-and-a-half-old pact between the airlines in the Northeast U.S. The carriers argue the deal between them, allows them to better compete against larger airlines. American Airlines and JetBlue launched their alliance in the Northeast in 2021, and the agreement allows them to coordinate routes and allow passengers to book on each other’s sites. The Justice Department said that the deal would drive up airfare. Last September, the Justice Department along with the attorneys general of six states and the District of Columbia sued to block the partnership, according to CNBC.

International

British pound falls to record low against U.S. dollar. On Monday, the British pound crashed to a record low against the U.S. dollar plunging nearly 5% to just above $1.03. The crash came during trading in Asia and Australia and extended a dive of 3.6% from Friday. It rose back up to $1.07 as European traders came online. The dive happened amid growing fears about the stability of the UK government’s finances following British Chancellor of the Exchequer Kwasi Kwarteng’s announcement last week that the United Kingdom would implement the biggest tax cuts in 50 years, while at the same time as boosting government borrowing and spending in the face of high inflation, according to CNN

Other

Nasa and Google team up to offer an interactive online solar system experience. Take a break and peruse this 3D adventure through our cosmic neighborhood created by Google and NASA.