Clearing backlog at Canada's ports could take weeks

Clearing backlog at Canada's ports could take weeks

Container carriers report significant congestion at Canada's ports and container yards, MSC and CMA CGM to apply congestion surcharges late November

by Manal Barakat, SeaNewsEditor


Operations in Canada's major ports are expected to resume gradually today after the government intervened to end the strikes in Montreal and British Columbia.


In a statement, the Port of Montreal reported that cargo handling activities will gradually resume over the coming days.


However, it expects the process to take several weeks until terminal backlogs are cleared and supply chain fluidity is restored.


Similarly, the British Columbia Employers Association (BCMEA), which locked out ILWU port workers on the West Coast on 4 November, said it would "fully comply" with the government's interim order.


"With the resumption of work, coupled with an anticipated high volume of vessels and cargo, there will be extensive province-wide labour requirements across all port areas," said the BCMEA.


Both unions, representing British Columbia and Montreal port workers, denounced the government's intervention.


According to local media, the ILWU Local 514 plans to challenge the federal government's decision.


In the meantime, the Canada Industrial Relations Board will meet with the parties on Monday, 18 November 2024, to hear responses to the ministerial direction under the Canada Labour Code. 


Carriers apply congestion surcharge


While operations are set to resume, container carriers reported significant congestion at the ports and container yards.


Consequently, liners MSC and CMA CGM announced the implementation of a congestion surcharge (CGS) to ensure service continuity.


MSC's CGS will apply on 25 November until further notice "for all containers routed export Northern Europe Scanbaltic, West Mediterranean, Adriatic, and Israel to Canada."


Meanwhile, CMA CGM will apply the charge as of 23 November to all cargo moving to/via Canada's East Coast.


For more information about your shipment, please reach out to your local Kuehne+Nagel representative.

Source: CUPE, CTV News, MSC, CMA CGM, Montreal Port, BCMEA