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45 Million illegal cigarettes seized in massive crackdown at ports 🚬
Ben Thompson
September 27, 2024
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Welcome to all our new subscribers and a warm “Ahoy” to our loyal readers. Another new week, let's take a look 🔭
In today’s email:
Looming: 🛑 US Ports strike update.
Options: 🇲🇽 Mexico looks to create Panama Canal alternative .
Big Fish: 🐟 Vietnam hits record tuna exports.
Busted: 🚬 45million illegal cigarettes seized in major bust.
SHIPPING NEWS
US Ports Strike Update
Thousands of dockworkers at major East and Gulf Coast ports are preparing to strike, which could disrupt the flow of about half of all goods shipped in and out of the U.S. The strike, set to start after September 30, stems from a breakdown in negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), which represents terminal operators and ocean carriers.
The union is demanding higher wages and a ban on port automation to protect jobs. East Coast dockworkers earn significantly less than their West Coast counterparts, who recently secured a pay raise. The ILA wants a 77% wage hike to counter inflation, but USMX has offered a lesser increase.
A strike would affect 14 key ports, including New York, Baltimore, Savannah, and Houston. Experts warn that a shutdown could significantly impact supply chains, causing delays, increasing shipping costs, and leading to shortages in industries like automotive and pharmaceuticals. Even a brief strike could take days or weeks to recover from, and the U.S. economy could lose up to $5 billion a day.
Some companies have already stockpiled goods, but if the strike persists, federal intervention may be considered under the Taft-Hartley Act. This would mark the first mass work stoppage at these ports since 1977. The Biden administration is monitoring the situation but has not yet taken any steps to intervene. Watch clip
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VIDEO OF THE WEEK
Panama Canal Alternative
Mexico’s $7.5 billion interoceanic corridor aims to ease a major chokehold in a global shipping mess and rival the Panama Canal. The stretch of land extends 188 miles across the Isthmus of Tehuantepec connecting the Pacific and Atlantic Oceans. But will Mexico’s revived railway be a faster or cheaper option to alternatives for shipping
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 | 3PL (Third-Party Logistics): What They Are, What They Do, and Why Use One. Discover how 3PL providers streamline global supply chains, reduce costs, and improve efficiency in this essential logistics guide. |
 | What are Trade Barriers? Uncover the types of trade barriers that impact global trade, from tariffs to quotas, and how they affect businesses. |
GLOBAL TRADE SNIPPETS
Record canned sales fuel Vietnam’s tuna export growth. Vietnam’s tuna exports are seeing significant growth, driven by record-breaking canned tuna sales. This surge is boosting the country's seafood industry and solidifying its position in global markets.
Australia introduces stricter regulations for European and Commonwealth of Independent States air cargo. Australia has implemented tighter security measures for air cargo shipments to and from Europe and the CIS, aligning with global standards to enhance safety and streamline logistics.
Customs software glitch disrupts Chittagong Port export/import operations. A software malfunction in customs systems caused significant disruptions to export-import (EXIM) activities at Chittagong Port, Bangladesh, delaying trade operations and affecting thousands of containers in the country’s busiest port.
Russia may lift gasoline export ban with domestic surplus. Russia is considering ending its gasoline export ban if the country experiences a domestic fuel surplus, as authorities aim to stabilize the domestic market while balancing export demands.
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TRADE NEWS
45 Million illegal cigarettes seized in major crackdown
In a significant crackdown, the Australian Border Force (ABF) seized over 45 million illicit cigarettes within just five days, targeting illegal tobacco operations across New South Wales and Victoria. The extensive operation, which included seizures at shipping ports, highlights the ABF's ongoing commitment to combating the illegal tobacco trade, which costs the government billions in lost tax revenue annually.
Ports are a common entry point for smuggling, with sophisticated methods employed to hide illicit cigarettes in shipping containers. Despite these efforts, the ABF, working closely with law enforcement, remains vigilant in identifying and dismantling criminal syndicates behind the illegal trade. This recent seizure, involving multiple sites, underscores the scale of the black market for tobacco in Australia.
ABF officials have confirmed that these efforts aim to protect both Australia's legitimate tobacco industry and public health by preventing untaxed and potentially dangerous products from entering the market. Acting on intelligence, officers intercepted shipments at ports, preventing millions of illegal cigarettes from reaching Australian consumers.
The ABF maintains a zero-tolerance stance on tobacco smuggling, with serious penalties awaiting those involved. This operation sends a clear message that authorities are committed to pursuing offenders and upholding Australian law and health standards. The success of this operation marks a critical victory in the ongoing fight against illicit tobacco trade.
SHIPWRECK OF THE WEEK ⚓️☠️
Launched in 1940, the SS Thistlegorm was a British merchant ship transporting military supplies during World War II. In 1941, it was sunk by German bombers in the Red Sea. Today, its wreck is a famous dive site, attracting divers to explore the well-preserved cargo of military vehicles, ammunition, and supplies resting on the seabed....................... Click to see Shipwreck👀
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