Month in Review – August 2026
Maritime
August 3: MSC Sends a Message on Container Fire Safety By Suing a Customer – The Maritime Executive
Cargo fires rank at the top of the list of hazards aboard a modern container ship, in part because the operator has limited control over the cargo. In general, the ship sails with the cargo it’s given – along with any risks hidden therein.
In a lawsuit filed last week in New York, ocean carrier MSC is sending a warning to cargo owners: It is seeking steep damages from one of its customers for allegedly setting up the conditions for a cargo fire.
MSC is seeking a large payment from its former customer in compensation for its costs, including $60,000 for the fire survey, $60,000 for claim settlements from other cargo owners, $86,000 for extra handling and disposal, and $25,000 for container loss and damage – in all, about $230,000, plus attorneys’ fees, interest and $43,000 in pre-litigation mitigation.
August 5: Hamburg Turns to Rail as Rhine Levels Fall – Port Technology International
The Port of Hamburg has highlighted regular rail connections from Cologne and Duisburg as an alternative for container traffic affected by persistent low water levels on the Rhine.
Low water is continuing to restrict inland waterway transport, reducing available capacity and contributing to longer transit times and higher costs. According to the port, export shipments routed through Antwerp and Rotterdam are particularly affected by the disruption.
The connections are operated by HGK Logistics and Intermodal GmbH and IGS Intermodal Container Logistics GmbH. The services are available for both export and import cargo.
Hamburg has advised cargo owners to plan transport arrangements at an early stage while the restrictions remain in place. HGK and IGS are supporting companies that want to transfer container volumes from inland waterways to rail and can develop arrangements based on individual transport requirements.
August 5: Panama Canal Reduces Draft for Neo-Panamax Locks – Seatrade Maritime News
The Panama Canal has announced that it will reduce the draft for vessels transiting in the neo-Panamax locks from August 26.
The neo-Panamax locks have a current draft of 15.09 metres, which has been in place since July 1. This will drop to 14.63 metres as of August 26 and to 14.48 metres as of September 3.
The Panama Canal Authority said the adjustment to the draft will not involve any changes to the maximum number of daily transits, around 38, and is part of the water resource management and conservation measures implemented since December 2025 as part of preparations for the 2026 dry season.
While the latest draft reductions will not affect transit numbers, they will be of concern to the industry, wary of a repeat of previous El Niño events in 2023 and 2024. The maximum number of daily transits dropped to between 18 and 22 in early 2024 due to drought restrictions.
August 10: Proposed Hapag-Lloyd-ZIM Deal Enters Choppy Waters in Israel – WorldCargo News
The proposed sale of ZIM to Germany’s Hapag-Lloyd and Israeli investment firm FIMI is facing growing scrutiny, with several Israeli government agencies said to be opposed to the transaction.
Local business newspaper Calcalist reported that a meeting between the eight government agencies expected to submit positions on the deal has been postponed by a month to September 9. The newspaper said a majority of the agencies are expected to oppose the transaction, although the state has yet to make a final decision.
The main issue identified in the reporting is the structure of the new ZIM Israel that would be spun off as part of the transaction. Under the proposed US$4 billion deal, ZIM’s international activities would be transferred to Hapag-Lloyd, while the new company would focus primarily on the Israeli market. The buyers have argued that ZIM Israel would begin operations without the existing company’s roughly US$2.9-billion debt, operate 16 vessels and retain access to international shipping networks and major ports.
Calcalist reported that the Shipping and Ports Authority remains concerned that the new company would be too dependent on Hapag-Lloyd. An assessment cited by the newspaper said Hapag-Lloyd would retain significant influence over access to international routes, vessel capacity, key markets, infrastructure and commercial relationships.
August 11: Port of Quebec Container Terminal Clears Federal Hurdle – Port Technology International
The Impact Assessment Agency of Canada (IAAC) has decided that QSL International’s proposed container terminal at the Port of Quebec does not need to be designated for a federal impact assessment under the Impact Assessment Act.
The decision, issued on August 10, concerns plans to redevelop land already operated by QSL in the port’s Beauport sector. The proposed terminal would have a maximum capacity of 200,000 TEUs per year and would use existing wharves, with no expansion into the St. Lawrence River or in-water construction.
According to IAAC’s analysis, the terminal would begin with an expected volume of around 40,000 TEUs before gradually increasing towards its maximum annual capacity. Construction is expected to take between 12 and 18 months.
August 17: Blank Sailings Curb Ocean Capacity Gains – Supply Chain Dive
With blanked sailings outpacing capacity growth, ocean shippers could be facing a market with less space to book their cargo, according to Sea-Intelligence’s Blank Sailings tracker from July 24.
Despite injecting new capacity into the market, ocean carriers have increased blank sailings by up to 4.5 times higher to execute tighter supply control during the first half of 2026 compared with the same period in 2019, per Sea-Intelligence.
The research, data and advisory firm found that, although scheduled capacity grew by 46%, blank sailings grew by 215% in the Asia-to-U.S. East Coast trade lane during the first half of 2026 compared with the first half of 2019. While West Coast capacity grew 16%, blanked sailings went up 62%.
August 17: Empty Containers a Freighted Issue for Global Trade Growth – American Shipper
Global trade is turning in a surprisingly strong performance this year, along with a rising tide of empty containers that have always been problematic for shipping lines and ports.
“Container volumes turn out more resilient than expected this year, despite all headwinds,” said Rico Luman, senior economist for Dutch investment bank ING. “But it comes with much more empties.”
Luman said this has been driven in particular by exports from China.
“[T]he disbalance in East-West trade grows even larger, leading to much more empty containers on the backhaul [for which liners earn no revenue],” he said. Growth is strong across the board, but especially in components involved in electrification such as data centres and electric vehicles.
“All these empties are also handled by terminals, creating landside pressure and inefficiencies,” Luman said.
August 18: Container Lines Under Fire over Panama Canal Surcharge Lack of Transparency – Seatrade Maritime News
Four carriers have introduced Panama Canal adjustment surcharges (PCAS), but Drewry Shipping Consultants argues that there is no transparency on what shippers are paying for.
According to Drewry’s senior manager, Simon Heaney, surcharges are there to recover funds lost through lost capacity, due to the Panama Canal Authority (ACP) introducing draft restrictions, as El Niño and other climate-related events are limiting water levels.
“Container lines are starting to announce Panama Canal adjustment surcharges, but, as usual, there is little context or justification provided to customers,” noted Heaney in his report published last week.
James Hookham, director of the Global Shippers’ Forum, said that, due to high demand and lower capacity, there are auctions of available transit slots every day, raising the cost per TEU.
“These higher costs need to be spread over fewer boxes, hence the carrier surcharges,” explained Hookham, who added, “Whether the surcharge truly reflects the additional charge having to be paid is the great unknown. Shippers have no visibility on how much transit costs have actually risen.”
August 19: 1.7-Million-TEU Vessel Space Absorbed in Delays – Sea-Intelligence
Global container vessel schedule reliability remains somewhat stable, around 60% to 65%, showing no signs of improvement, and in stark contrast to the 2011‑2019 normality of 70% to 80%. Furthermore, late vessel arrivals are now settling into 5 to 5.5 days of delay, up from the pre-pandemic norm of 3 to 4 days. This structural shift to a larger risk of vessel delays, and their longer durations, inexorably leads to a larger share of global capacity being rendered unavailable, as vessels stuck in delays do not move cargo.
The share of these delayed vessels combined with the duration of the delays, can be used to calculate the amount of global deep‑sea capacity effectively absorbed by delays.
A total of 5.0% of all global deep‑sea capacity is now tied up. We can use the current global fleet size to calculate how much total cargo space is currently unusable due to vessel delays. Right now, with a 5% absorption rate, the global market is “missing” capacity for 1.7 million TEUs from continuous delays.
August 20: Panama Canal Begins Reducing Daily Transits Due to Declining Water Levels – The Maritime Executive
The Panama Canal Authority is expanding what it is calling “temporary modifications to the lock’s transit capacity” as the forecasts for a worsening drought continue to grow. The isthmus is experiencing significant declines in rainfall, with forecasts for the Super El Niño effect to further intensify for the remainder of 2026.
Despite the arrival of the rainy season in Panama, and the water-saving measures implemented by the Panama Canal to mitigate the adverse effects of the El Niño event, the Authority warns that current watershed conditions, including below-expected precipitation in the canal watershed, require additional action to support the long-term sustainability of transit operations.
August 21: Canada and Manitoba Welcome New Research Confirming Feasibility of Year-Round Shipping from Churchill – Maritime Magazine
The governments of Canada and Manitoba announced last week that they welcome new research confirming the feasibility of year-round shipping from the Port of Churchill using existing ice-class vessels, while changing sea-ice conditions are expected to make marine access increasingly favourable over the coming decades. The announcement came from Premier Wab Kinew and federal Northern and Arctic Affairs Minister Rebecca Chartrand, minister responsible for the Canadian Northern Economic Development Agency.
“These studies are clear: Year-round shipping out of the Port of Churchill is achievable today,” said Mr. Kinew. “This breakthrough means we can stop asking if year-round shipping from Churchill is possible and start building the infrastructure and attracting the investment we need to get it done. Now is the time for industry, investors and governments in Canada and around the world to invest in Churchill so we can build new trading partnerships that are fair and mutually beneficial, while we decrease our reliance on the United States.”
August 26: Port of Vancouver Upgrade Halves Truck Transit Times – Splash Ports
The Vancouver Fraser Port Authority has completed a major package of road and rail upgrades serving terminals in the Fraser Surrey Port Lands, cutting inbound container truck transit times by more than half.
The Fraser Surrey Port Lands Transportation Improvements Project included an extension of Timberland Road, a dedicated inbound container truck lane and upgrades to road and rail crossings aimed at removing bottlenecks and improving access to port terminals.
Since the new infrastructure opened, average inbound truck transit times through the area have fallen from more than 30 minutes to around 14 minutes.
August 28: Grand Opening of $750-Million CANXPORT Logistics Hub a Triumph for Canadian Trade – Prince Rupert Port Authority press release
Ray-Mont Logistics, Canadian National Railway and the Prince Rupert Port Authority announce the grand opening of CANXPORT, a $750-million export logistics facility at the Port of Prince Rupert.
CANXPORT provides expanded capacity for rail-to-container transloading of multiple export products at the Port of Prince Rupert, including from the petrochemical, forestry, agriculture and mining sectors.
Air
August 3: WestJet Strike Ends After Tentative Deal Reached – Global News
The strike by WestJet flight attendants has ended after a tentative agreement was reached.
The Canadian Union of Public Employees (CUPE) local 8125 and WestJet announced they reached a tentative agreement on August 3.
The agreement will need to be ratified within 30 days.
August 20: Cargojet to Pass Large Pilot Wage Increase onto Customers – American Shipper
Canadian freighter operator Cargojet plans to recover the substantial increase in costs stemming from a new five-year contract with pilots through productivity gains and by raising rates on customers that ship goods on its domestic overnight network and rent planes for international transportation.
The collective bargaining agreement, which was finalized by an arbitration award late last month, calls for a 53% increase in wages over the contract’s term, including an immediate 26% bump retroactive to July 1, followed by annual increases of 5% over the following four years.
It’s a huge raise in wages, but one that Cargojet management acknowledged was necessary to bring its pilots up to industry standards, while providing operational stability for the company and its customers through continuation of a no-strike, no-lockout provision.
“As customer agreements come due, we will look to pass these costs through. Many of these conversations have begun,” said CEO Pauline Dhillon. The goal is to absorb the costs without impacting long-term margins. Customers with shorter-term contracts will be first to feel the rate increases, she added.
Trucking
August 10: Diesel Squeeze Expected to Worsen as Winter Approaches – Transport Topics
A diesel squeeze spurred by wars in the Middle East and Ukraine is setting the stage for an even worse crunch as demand rises ahead of the Northern Hemisphere winter.
Disruptions in the Strait of Hormuz and damage to Persian Gulf refineries, as well as a wave of Ukrainian attacks on Russian plants, have severely constrained exports from regions that together accounted for around a third of global diesel exports last year.
Europe, which lacks processing capacity and relies most heavily on imports, is the most vulnerable area to a shortfall. Refiners in the U.S. and Asia are running flat out, but with demand set to rise and stockpiles dwindling, the situation will intensify in the coming months.
To make matters worse, there’s likely to be more consumption of diesel this year by some Asian power generators, which are turning to the fuel as they can’t get enough liquefied natural gas due to the war in the Middle East. Barring a breakthrough in either of the conflicts, Asian and U.S. refiners will also probably cut down on diesel exports as winter approaches to meet growing demand in their own regions.
August 11: Federal Action Clears Path for Canadian 2027 Heavy Truck Imports – TruckNews.com
A regulatory roadblock that threatened the availability of 2027 model-year medium- and heavy-duty trucks in Canada appears to be easing after the federal government outlined a pathway to keep U.S.-built trucks flowing across the border.
The Canadian Automobile Dealers Association (CADA) and its Canadian Truck Dealers (CTD) division say Environment and Climate Change Canada has issued a regulatory comfort letter outlining steps it intends to take, including future interim orders that would allow affected trucks to continue entering Canada.
While some regulatory details remain unresolved, CADA says the letter gives truck manufacturers greater certainty as they prepare to open Canadian order books for 2027 models.
August 12: U.S. Federal Truck Safety Bill Takes Aim at Lawsuit Abuse – Transport Topics
Republican lawmakers from five states are seeking federal legislation to create nationwide trucking safety standards to curb what they describe as frivolous lawsuits stemming from inconsistent state interpretations.
The bicameral legislation, called the Uniform Vehicle Safety Standards Act, was introduced August 6 in the House and Senate.
The legislation would amend Title 49 of the U.S. Code to prohibit common law liability claims alleging a motor vehicle should have been manufactured or equipped to standards stricter than those established by the National Highway Traffic Safety Administration.
“In recent years, we’ve seen a sharp rise in lawsuits awarding damages based on state standards instead of the federal safety standards trucking companies are already required to meet,” House sponsor Congressman Mike Flood said.
His office noted that businesses across the country would have clear expectations through a single, consistent federal safety standard instead of today’s lawsuit-abuse climate, in which trucking companies are targeted for massive payouts by juries reaching different conclusions about requirements in various states.
Rail
August 18: Regulators Set Schedule for Review of UP-NS Merger – TrainsPRO
The Surface Transportation Board this week adopted a schedule for review of the Union Pacific-Norfolk Southern revised merger filing, removing a hold it placed on the proceeding in May. But the board’s decision did not address the merits of the application or any of the comments filed since UP and NS submitted their 412-page supplemental filing on July 27.
The review schedule would push a final decision on the $85-billion deal well into the second half of 2027.
“In this decision, the Board removes the proceedings from abeyance, adopts a procedural schedule, directs Applicants to resubmit certain workpapers with unfiltered data, rules on a pending procedural request, and advises that the Board will address other outstanding motions at a future date,” the decision said.
CIFFA Advocacy, Communications, Activities
August 14: CIFFA Consultation Submission for the 2026 Federal Budget
In its submission in advance of the release of Canada’s federal budget, CIFFA offered four key recommendations.
- Make necessary investments for CBSA to begin the process of updating legacy digital infrastructure and software
- Begin the process to create and implement a National Trade Single Window Initiative
- Modernize the processes for bargaining and mediation, address worker availability and labour shortages
- Extend legislative amendments to the Excise Tax Act to further temporarily suspend the application of the federal fuel excise tax on gasoline, diesel fuel and aviation fuels
August 21: CIFFA Submission for Strengthening Transportation Security for One Canadian Economy
Transport Canada is modernizing the Transportation Security Clearance (TSC) Program as part of its Strengthening One Canadian Economy initiative. The goal is to address emerging supply chain security risks, reduce cargo bottlenecks, and fight illicit port activities while keeping the system predictable for trade and industry.
Key goals of the initiative
- Manage insider threats: Update background checks and risk assessments for individuals working in critical areas like ports and airports.
- Protect supply chains: Stop illegal activities at marine facilities and borders to keep trade flowing smoothly.
- Reduce red tape: Remove duplicate rules and make compliance simpler for transport operators.
- Improve efficiency: Support trade growth and export capacity across Canada.
August 24: Minister Hajdu Launches the Transportation and Supply Chain Workforce Alliance, Led by Trucking HR Canada, in Partnership with CIFFA – Employment and Social Development Canada press release
Minister of Jobs Patty Hajdu on August 24 announced the launch of the Transportation and Supply Chain Workforce Alliance.
Led by Trucking HR Canada, in partnership with CIFFA, the new Transportation and Supply Chain Alliance will bring together employers, educators, labour organizations and Indigenous partners to identify workforce challenges and develop coordinated solutions. The Alliance will support initiatives to strengthen skills development, attract new talent, adapt to new technology and improve collaboration across the sector.
