Week 45 of the freight market finds labor action in Canada creating port congestion and rail operations impacting North America.
SPECIAL EDITION: CANADA PORT WORKER LABOR ACTION SUPPLY CHAIN IMPACT
The union representing longshoremen at the Port of Montreal (CUPE 375) went on strike effective Thursday, October 31, 2024, at 11:00 AM. This strike has impacted container terminals operated by Termont, specifically at the Maisonneuve and Viau facilities, halting all terminal operations, rail services, and truck gate activities. Currently, there is no indication of when the strike will conclude.
In addition to the Montreal strike, shippers may face severe disruption across Canada due to labor actions on both coasts. The British Columbia Maritime Employers Association (BCMEA) has declared a lockout of ILWU union workers planning to strike, effectively shutting down all terminal operations of BCMEA members. This coast-wide lockout affects major western ports, including Vancouver and Prince Rupert, adding to the existing closures at Montreal since October 31. Operational anchorage capacity is expected to decrease at both Vancouver and Prince Rupert, creating significant uncertainties regarding sailing schedules and port rotations for Pacific Northwest (PNW) services during the stoppage.
Operational Updates as of November 5, 2024:
- Montreal Gateway Terminals (MGT) Suspension: Effective November 5, 2024, at 7:00 AM, CN Rail operations at the Cast and Racine terminals are suspended until further notice due to operational constraints and the uncertainty surrounding the Montreal Longshoremen’s collective agreement renewal.
- U.S. Rail Lanes Closure: All rail lanes from the United States to Montreal have closed as of November 5, 2024.
- Truck Gate Operations: MGT truck gates will remain open daily from 7:00 AM to 11:00 PM.
Additional West Coast Rail Impact:
- CN Rail (November 4, 2024): CN has halted all international intermodal shipments bound for western Canadian ports, including Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks.
- CPKC Rail (November 4, 2024): CPKC has suspended the acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Demurrage & Detention Guidelines during Work Stoppage:
- For Exports:
- Demurrage: Paused as of November 1, 2024.
- Detention: Paused as of November 1, 2024.
- For Imports:
- Demurrage: Charges will apply for MGT imports as truck gates remain operational. However, demurrage will be paused for Termont-related import shipments.
- Detention: Charges will continue as MGT and other depots remain open.
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