"The 24-hour general strike in Canadian ports caused a total 'shutdown', and MSC ships were affected
Date：2024-10-30 15:36:00 View：
CUPE Local 375, the longshoremen's union at the Port of Montreal in Canada, announced a 24-hour strike from 7:00 a.m. to 6:59 a.m. on Sunday, October 27. This decision poses a serious threat to the supply chain of cross-border sellers.
The Maritime Employers Association (MEA) expressed concern that the impact of the strike could go well beyond 24 hours and could last much longer, causing significant disruption to the supply chain for cross-border sellers.
Cause of port strike
Longshoremen at the Port of Montreal have been unable to sign a new collective agreement since Dec. 31, 2023, with the two sides unable to agree on key issues such as scheduling management and work-life balance.
Despite attempts to resolve the issue through mediation, including a 90-day negotiation with a special mediator proposed by Labour and Older People's Affairs Minister Steven MacKinnon, no substantial progress has been made so far. The Foreign Ministry reported that after 15 months and 35 mediation meetings, the two sides remain deadlocked.
The strike is not an isolated incident, but a continuation of a series of industrial actions at the port. At the end of September, a strike at the Viau and Mesonneuve terminals lasted for three days, paralyzing 41 percent of the port's activities. In addition, the overtime ban imposed since October 10 has also exacerbated the disruption of port operations.
Port strike impact
As the largest port in Quebec and the second largest in Canada, the Port of Montreal serves 110 million people in Quebec, Ontario and the U.S. Midwest, and several industries depend on the port's operations.
The strike will result in the closure of several major terminals, including Logistec terminals in Cast, Maisonneuve, Racine, Viau, Montreal and Contrec Riur, as well as Lantic, with no rail, boat or truck service.
This means that a large number of goods will not be able to enter and leave the port on time, resulting in a backlog of goods, delayed delivery and higher costs, which has a significant impact on the business of cross-border sellers. In particular, those vessels on their way to the Port of Montreal, such as the 5,000TEU MSC Anya, which is expected to arrive at Montreal's Viau container terminal on October 26 and is scheduled to depart on October 28, will be directly affected by the strike.
In addition to the strike, the Port of Montreal has also faced problems with low water levels, resulting in restrictions on ships entering the port. Major shipping companies such as MSC and Hapag-Lloyd have introduced low water level surcharges, which are expected to remain in place until water levels improve.
In response to the incident, the relevant Canadian authorities expressed concern that if the issue is not resolved quickly and a lasting industrial peace is achieved, customers may seek more stable alternatives, which will cause long-term damage to the reputation and operations of the Port of Montreal, and cross-border sellers may also lose important customers and market share.
How sellers respond
For cross-border sellers, supply chain disruption is one of the important risks faced in the process of operation. In order to ensure the continuity and stability of the business, the seller needs to continue to pay attention to the impact of subsequent delays, timely adjust the transportation plan, and avoid and reduce unnecessary losses.
In addition, the use of third-party overseas warehouses is one of the effective strategies to enhance competitiveness, which can not only effectively alleviate supply chain tensions caused by price increases or other force majeure factors, but also bring many additional advantages to cross-border sellers. This solution ensures that goods can be put on shelves quickly, while ensuring the smooth flow of funds, thereby optimizing overall operational efficiency and effectiveness.
