All posts in Canaan Transport Blog Post

Chinese ports shut down due to covid outbreaks

March 28, 2022 – Please see the following summary of the various port situations in China.

Shenzhen: All ports(Yantian, Shekou, Chiwan) are open. Off-dock yards in Yantian/Nansha/Shekou are re-opened. Some areas of Shenzhen resume work. Drivers still need to provide testing report in/out of the terminal which slow down the process of picking an returning the containers in that area. Dongguan was re-opened, but if the factories are in the closed areas in Huizhou, container loading is not possible. Overall, the situation is improving.

Shanghai: The whole Pudong district was shut down from 3/28 to 4/1 while Puxi will be shut down from 4/1 to 4/5 by Chinese government. So far, Ports are still open. The nucleic acid report cannot be released within 12hrs due to the surge of people are doing nucleic acid test at the same time which further reduces the trucking capacity. Container movement between Shanghai and nearby industrial areas in Jiangsu province are restricted. The situation is still developing, no re-opening schedule has been announced yet. Carriers are shifting more allocation to Ningbo port or the river ports on Yangtze River to fill up the ship.

Qingdao: Ports are open. Driver inter-city movement greatly constrained due to testing report requirements. There is 30% drop of trucking power. The whole city transportation process is slowing down.

Tianjin: Ports are open and port operation keeps normal. The COVID situation is severe, several areas are requested personnel nucleic acid test. Container movement around Cangzhou/Langfang/Bazhou/Tangshan are seriously restricted and waiting for further notice, most factories around these areas are locked down.

CP Rail will lockout workers

March 20, 2022 – CP Rail and its workers have not reached an agreement after the union and the company could not come to a negotiated settlement or agree to binding arbitration. The Teamsters Canada Rail Conference (TCRC), which represents the rail workers said employees will start picketing across the country. Workers are calling for better wages and pensions that they say will make the industry more attractive to younger workers.

CP Rail moves to lock out union

March 17, 2022 – Canadian Pacific Railway has issued 72-hour notice to the Teamsters Canada Rail Conference (TCRC)-Train & Engine of its plan to lock out employees at 00:01 ET on March 20, if the union leadership and the company are unable to come to a negotiated settlement or agree to binding arbitration. “For the sake of our employees, our customers, the supply chain we serve and the Canadian economy that is trying to recover from multiple disruptions, we simply cannot prolong for weeks or months the uncertainty associated with a potential labour disruption,” said Keith Creel, CP President and CEO. “The world has never needed Canada’s resources and an efficient transportation system to deliver them more than it does today. Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end.” Over the past week, CP and the TCRC leadership have been meeting daily with federal mediators to reach a new negotiated collective agreement in hopes of avoiding a labour disruption. Despite those talks, the two sides’ positions remain far apart.

Shenzhen to enter a lockdown, will affect supply chains signficantly

March 15, 2022 – Ocean carriers are scrambling to adjust their networks as the Chinese city of Shenzhen begins a week-long lockdown. According to a notice issued by the Shenzhen COVID-19 Prevention and Control Command Office, the city’s circa-17m residents must stay at home until Sunday – apart from going out for three rounds of testing – following which, “adjustments will be made according to the new situation.” Most carriers have yet to release advisories as “we don’t know what to say”, said one carrier source on March 14.

CP Rail talks ongoing, no resolution

March 15, 2022 – With a potential rail strike at CP looming tomorrow, talks are continuing in Calgary today. More news as it develops.

CP Rail strike still a possibilty for this week

March 14, 2022 – As advised last week, approximately 3,000 Canadian Pacific Railway locomotive engineers and conductors may take labour action as early as this week which would significantly affect all rail services in Canada. Its effect would significantly impact rail services in Canada and there may be suspension of certain rail services prior to an anticipated strike date. Canaan Transport will continue to be in contact with our ocean carrier partners, as they review and announce contingency plans and will also advise our clients of options to divert potentially affected cargo to other modes or carriers. The situation is fluid and with the intervention of federal mediators in contract negotiations, there may be strike date extensions to forestall any labour action while talks proceed. We will continue to monitor and update you as the situation progresses.

Potential CP Rail strike

March 7, 2022 – The Teamsters Canada Rail Conference (TCRC) has voted to authorize a strike action as early as March 16, 2022. The TCRC represents approximately 3,000 of Canadian Pacific’s locomotive engineers and conductors. The parties will continue to participate in the mediation process with the assistance of the Federal Mediation and Conciliation Service (FMCS) with planned meetings in the March 11-16, 2022 timeframe. A work stoppage would have far reaching effects on the entire supply chain, particularly with ocean inland moves. Canaan Transport is looking at contingencies in the event of a disruption, which could potentially arise prior to March 16. We will continue to monitor and provide you with updates as they are received. Customers are invited to contact their local representative to discuss contingency planning.

New CERS Form

February 28, 2022 – CERS associations and new applications must now be completed on the CBSA’s new BSF831: Exporter reporting application form. This form can be completed and signed electronically.

Ukraine situation will upend global supply chains

February 25, 2022 – With Russia’s invasion of Ukraine early Thursday, energy costs are soaring, stocks are plunging, Western sanctions are being sharpened, and central bankers already worried about inflation face additional drags from weaker consumer confidence and bigger potential shocks to fragile European economies.

For global supply chains, “a kinetic conflict in Ukraine could generate a wide range of challenges,” Chris Rogers, an economist in the UK with Flexport, says in a report this week. The risks extend beyond higher energy costs to include disrupted air space in the region, higher rates for shipping insurance and cyberattacks, he says.

Empty containers will likely be a problem when supply chains normalize

February 21, 2022 – When global supply chains snap back to some form of normality – widely tipped to be in the second half of the year – transport operators will have to brace for a new headache, with an avalanche of empty containers predicted to cause some chaos. The delays in the supply chain during the pandemic have led to the need for additional containers to be used. When the supply chain normalizes, this will potentially create a pile of 3.5 million TEU of empty containers from the transpacific alone, according to a new report from Denmark’s Sea-Intelligence.