Disruptions at Canadian ports restrict rail operations
- November 15, 2024
- News
Disruptions persist at Canadian ports as rail embargoes take effect, leaving carriers with the choice of keeping ships at anchorage or rerouting them. The union representing longshoremen at Montreal’s port, CUPE 375, initiated an indefinite strike on 31 October over a contract dispute with the Maritime Employers Association. This has impacted container terminals operated by Termont, with no resolution in sight.
The rail operations at Montreal Gateway Terminal’s (MGT) Cast and Racine facilities were suspended “until further notice” due to “operational constraints and uncertainty.” In response, Canadian National will cease capacity at its inland terminals for exports bound for Cast and Racine, although truck gates will remain open, even as rail lanes from the US to Montreal are closed.
For exports from Montreal, Hapag-Lloyd has paused detention and demurrage (D&D) fees. However, since MGT’s truck gate remains operational, import D&D fees will still apply, although demurrage fees for Termont-related imports will be waived. The Port of Montreal reported a “major slowdown” in container handling, with four vessels at anchorage and one at berth, as listed in the eeSea database.
On the Canadian west coast, the Longshore Workers Union (ILWU514) began a strike, impacting all container terminals in Vancouver and Prince Rupert, halting vessel, rail, and truck operations. Consequently, a British Columbia Maritime Employers Association (BCMEA) coastwide lockout remains in place indefinitely.
Hapag-Lloyd informed customers that vessels would remain off-berth during the strike and said it would work with partners to explore alternative solutions. The eeSea database reports four vessels waiting outside the port of Vancouver, with none docked. As no resolution is in sight, carriers must decide whether to wait, reroute, or turn back.
Maersk stated that, for the 2M alliance’s TP1/Maple service, the Marcos V would wait at anchor in Vancouver until the dispute ends, with the San Felipe doing the same at Prince Rupert. Canadian Pacific Kansas City (CPKC) railroad has stopped accepting export loads and pre-billed empty containers bound for Vancouver, while non-billed marine empties remain accepted.
Canadian National Railway (CN) has suspended all international intermodal services at its inland terminals, including CSX & NS interchange traffic from the Ohio Valley, for exports headed to Prince Rupert, Roberts Bank, Centerm, Vanterm, and Fraser Surrey Docks, citing the need for a safe and orderly shutdown of trains bound for British Columbia ports.
For exports, Maersk and Hapag-Lloyd have suspended D&D fees. Import demurrage fees have also been paused, though import detention fees will continue since return options are still available in Vancouver.