Recent events, including Norfolk Southern’s extended rail line closures in North Carolina and Tennessee due to Hurricane Helene, airlines halting cargo operations across Florida as Hurricane Milton hits, and the withdrawal of Boeing’s contract offer amid an ongoing machinists’ strike, are adding pressure to logistics networks. Norfolk Southern’s key rail segments are expected to remain out of service until late January, causing significant disruptions in the region. Meanwhile, Hurricane Milton has led airlines to suspend shipments at Florida airports, further complicating cargo movement. Boeing’s strike-related production halts are also straining supply chains, particularly in the aerospace sector. In the maritime industry, Maersk and Hapag-Lloyd have chosen to continue sailing around the Cape of Good Hope due to safety concerns in the Red Sea, delaying the return of a critical shipping route until at least 2025. As these challenges unfold, shippers must adjust their strategies to mitigate the impacts of severe weather, labor disputes, and geopolitical instability. Read the full articles below.
Weekly Freight Report: October 11, 2024
October 11th, 2024
Hurricane Milton Slams Into Florida, Leaving Trail of Destruction
Hurricane Milton, a Category 3 storm, slammed into Florida near Siesta Key, leaving millions without power, causing widespread destruction, and killing at least four people, while also disrupting freight markets and port operations across the region.
Boeing Considers ‘Next Steps’ After Pulling Contract Offer for Striking Workers
Boeing has withdrawn its contract offer to 33,000 striking machinists after 27 days of negotiations, citing the union’s non-negotiable demands, while the strike has cost Boeing an estimated $3.5 billion and halted production of its 737 jets, with no immediate resolution in sight.
Railroads Have No Choice but to Rebuild After Hurricane Helene
Hurricane Helene’s catastrophic floods devastated key railroad infrastructure in western North Carolina and eastern Tennessee, leaving CSX and Norfolk Southern with no choice but to rebuild despite widespread skepticism, as today’s rail networks lack redundancy and the financial strength of Class I railroads makes it feasible to absorb the costly repairs.
Port Strike Leaves Lingering Logistics Effects, Analysts Say
The three-day International Longshoremen’s Association strike across East Coast and Gulf Coast ports had minimal impact on trucking freight pricing, but it has left lingering effects on logistics, including container dwell times and rail congestion, with analysts noting that disruptions from hurricanes Helene and Milton have had a more significant impact on the market.
Airlines Halt Florida Cargo Operations as Milton Hits
Airlines suspended cargo operations at key Florida airports, including Tampa and Orlando, because of Hurricane Milton’s landfall, with Delta, United, and American Airlines halting shipments and rerouting cargo to avoid the hurricane’s destructive path, while resuming services is anticipated later in the week if conditions allow.
Norfolk Southern Line Into Asheville to Be Closed at Least 3 Months
Norfolk Southern’s rail line between Asheville, North Carolina, and Newport, Tennessee, which was heavily damaged by Hurricane Helene, will remain out of service until at least late January, while ongoing assessments continue for the route between Asheville and Old Fort, North Carolina, as the railroad works to repair extensive track washouts, bridge damage, and challenging terrain in the region.
Maersk, Hapag-Lloyd Plan to Sail South of Africa Into 2025
A.P. Moller Maersk and Hapag-Lloyd plan to begin their vessel-sharing partnership, the Gemini Cooperation, by routing ships around the Cape of Good Hope starting February 1, 2025, due to continued safety concerns in the Red Sea, with the companies indicating they will return to the shorter route once conditions improve.
