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News
Sreelakshmi H K
October 10, 2024
2
Min
Read

The Montreal Port Strike: Impacts on Container Shipping and Supply Chains

Understand the impact of the Montreal port strike on container shipping and supply chains, plus access a live spreadsheet of vessels likely affected by the strike.
The Montreal Port Strike Impacts on Container Shipping and Supply Chains

On October 10, 2024, labor tensions escalated at the Port of Montreal as the Longshoremen's Union, CUPE 375, initiated an indefinite overtime strike. This action follows a recent three-day strike and poses significant challenges to the logistics chain, potentially disrupting the flow of essential goods for both businesses and consumers.

The overtime strike means that while all terminals at the Port of Montreal will remain open, dockers will not be working overtime shifts.

Possible Impacts of the Strike

The Port of Montreal is facing critical operational challenges, with the strike expected to:

  • Slow Down Operations: An estimated 50% of goods transiting through the port may experience delays, affecting both imports and exports.
  • Create Backlogs: Processing delays could lead to a buildup of containers waiting to be handled, straining resources.
  • Increase Shipping Costs: Major shipping lines, including Maersk, CMA CGM, and MSC, are implementing surcharges, raising freight costs for Canadian importers and exporters. Maersk has announced a peak season surcharge (PSS) of $2,000 per container for Canada-bound freight from Europe, effective October 23.
  • Reduce Container Availability: As businesses seek alternative shipping routes to avoid delays, fewer containers may be available for Canadian shippers, potentially causing further disruptions.
  • Impact Various Goods: Essential goods, including food, pharmaceuticals, and raw materials, may face disruptions, impacting consumers and industries.

The Significance of the Port of Montreal

As the largest container port in Eastern Canada, the Port of Montreal is a vital transhipment hub that handles diverse cargo types, including containerized and non-containerized goods. Its unique intermodal capabilities, including direct rail connections to Canada's national rail networks, make it an essential gateway for trade. Disruptions at this port reverberate across the entire supply chain, affecting regional businesses and the broader Canadian economy.

Get Real-Time Vessel Updates During the Strike

To assist the global supply chain community during this crisis, Portcast provides access to a live spreadsheet listing the vessels likely to be impacted by the strike. This list includes:

  • Vessels berthed at CAMTR: Current docked vessels that may experience disruptions.
  • Vessels anchored at CAMTR: Ships currently waiting at anchor that could be affected by the strike.
  • Vessels scheduled to visit CAMTR in the next three weeks: Ships as per their schedules or AIS tracking.

Conclusion

The indefinite overtime strike at the Port of Montreal highlights the vulnerabilities within supply chains when labor disputes arise. With a potential disruption of nearly half of the goods transiting through the port, businesses, consumers, and shipping lines must prepare for the ripple effects of this strike. The hope remains for a swift resolution to restore normal operations, ensuring that the Port of Montreal continues to serve as a reliable and efficient hub for international trade.

For reliable real-time container tracking and proactive risk management backed by accurate data, contact us and stay ahead of supply chain disruptions.

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