What is the current scene at the Port of Montreal?
The five-year collective agreement between the Maritime Employers Association (MEA) and the Longshoremen's Union (CUPE), which covers contracts of about 1000 longshoremen of Canada’s Montreal Port, ends on 31 December 2023.
Early signs of a potential strike next year began to appear in Canada, especially after the September meetings between the two parties ended with the union executive committee sending a notice of dispute to the Canada Industrial Relations Board (CIRB).
In addition, the MEA filed a complaint to the CIRB last month, claiming that the union executive refused to negotiate before sending the dispute. A conciliation period of 60 days started on 6 October after mediators were appointed to help reach an agreement.
While strikes are generally prohibited during a conciliation period, it is important that shippers plan in case such a scenario takes place.
What could a strike bring to the port?
The Port of Montreal is Canada’s second-biggest port, and a strike could lead to major disruption for container shipping in the region.
In April of 2021, the port’s longshoremen started a week-long strike that ended when the Canadian government voted in favour of legislation forcing the workers back to work.
The two parties had been in contract negotiations since 2018 before the longshoremen decided to strike, bringing port operations to a standstill.
According to a BNN Bloomberg report, the loss caused by the strike was nearly C$25 million per day. Significant delays in the handling of vessels were also reported at the time.
Not long ago, in July of this year, Canada's West Coast ports of Vancouver and Prince Rupert suffered prolonged disruption due to a 13-day dockworker strike. By the end of the industrial action, the 7-day average vessel waiting time reached nearly 9 days at the Port of Prince Rupert.
The consequences of the West Coast's strikes could prompt the government to push for a faster solution for the Port of Montreal.
While it is difficult at this point to predict the outcome of the current deliberations, we encourage you to reach out to your Kuehne Nagel representative to discuss potential alternative routings for your shipments.
