Partial strike at Montreal port could be costly
MONTREAL — Logistics firms and manufacturers are warning that a partial strike at the Port of Montreal will disrupt supply chains and potentially force factories to rack up extra costs.
Last Tuesday, longshoremen began refusing to work overtime and weekends, restricting the amount of cargo that can be processed by the port. The work slowdown is part of an ongoing labour dispute dating back to a strike last August that forced at least 21 ships to divert to other ports.
A.P. Moller — Maersk, one of the world’s largest shipping lines, told clients it will accelerate its contingency measures since the Montreal port will not be operational on weekends, until further notice. “We encourage our customers to utilize the alternate gateways we are able to offer,” Maersk told clients in an advisory.
The shipping company said extra fees will be implemented for Toronto/montreal cargo to Atlantic gateway ports in Halifax and Saint John.
“It’s important to understand that every port must compete for business and cargo volumes are not guaranteed,” Omar Shamsie, managing director of Maersk Canada, told Postmedia News in an emailed statement. “Customers have a choice in ports and their business will always find the most efficient way to flow. The Port of Montreal’s labour negotiations have lasted 30 months and this uncertainty has influenced the confidence of local supply chains and pushes cargo to alternative ports.”
Maersk said its railway partners Canadian National Railway Ltd. and Canadian Pacific Railway Ltd. were also adjusting the receiving windows to avoid weekend departures. CN said it’s working with customers and supply chain partners to minimize the impact of the labour dispute. Canadian Pacific declined to comment.
The striking longeshoremen, who are represented by the Canadian Union of Public Employees, are asking for better work-life balance. They voted to start the partial strike after the port told them Friday that it would exercise its lockout rights, although when it will do so is unclear. CUPE did not respond to several requests for comment.
Martin Imbleau, CEO of Montreal Port Authority said the strike is “seriously impacting” activities at the port.
“And the potential for escalation will only further curtail it. After an 11 per cent decline in volumes in March, the Port now has to deal with decisions that will drop its port capacity by close to 30 per cent. For once in its history, the Port of Montreal is posting results that pale in comparison to its competitors on the U.S. East Coast, who are enjoying significant growth.”