All posts in Canaan Transport Blog Post

March 24, 2021 – An article in Quebec’s La Presse newspaper (available only in French) on March 23 suggests that the Trudeau government plans to react quickly to any strike action on the part of the longshoremen at the Port of Montreal. Apparently, Filomena Tassi, the Minister of Labour, is preparing back-to-work legislation in the event a strike is declared. Quebec Premier François Legault is said to have met with Prime Minister Justin Trudeau last week and to have stressed that a strike would harm any economic recovery after a year dealing with the COVID-19 pandemic.

The two parties, the Longshoremen’s Union Local 375 and the Maritime Employers’ Association, are said to be heading back to the negotiating table this week after the union rejected the employer’s so-called "final offer" on Sunday, March 21. The office of Labour Minister Tassi told the Canadian Press that it is pleased with the parties’ return to the bargaining table and invites the parties to come to an agreement as soon as possible. “The government’s clear intention is for the parties to come to an agreement. This has been made clear to the parties,” said Lars Wessman, Director of Communications for Minister Tassi. Wessman also noted the Port of Montreal’s pivotal role.

“We are aware that the current situation is creating a lot of uncertainty in supply chains, and risks harming our reputation and the Canadian economy, especially in Montreal as well as in Quebec and in Ontario. We have heard the concerns of numerous parties over the course of the last several weeks and we take them seriously,” the Minister’s office said.

March 21, 2021 – The Longshoremen’s Union Local 375 held a press conference broadcast on its Facebook page on Sunday, March 21 at 4:00 pm. After a special meeting of its members during the day on March 21 (from 7:00 am to 3:00 pm), at 3:00 pm, 91% of the union local members voted on the Maritime Employers’ Association’s final offer, which was presented to the union on March 12. Of 1,023 total votes, 1,020 members refused the final offer, meaning that 99.71% voted no to the MEA offer. During the press conference, the union cited hours of work, job security, ocean carrier profitability and the need for the “real decision-makers” to be at the table as issues. Michel Murray, the CUPE union representative, said that, “Symbolically, the union also voted today to ask the employer to go back to the negotiation table. We intend to call the mediators this evening and our goal is to go back to the negotiation table to work on a collective agreement.” Murray also commented during the press conference that the union is aware of vessels already being diverted through the Port of Halifax even before the end of the truce and that this to them shows the employer is not playing fair. In a release, the MEA said that it acknowledges the employees’ vote. MEA said it would have preferred a yes vote to the final job offer, but recognizes the will of the union to pursue further negotiations. MEA said it is looking at its options and its priority is to have a decision as soon as possible. Beyond this, MEA said it would not comment further.

March 17, 2021 – Here is the latest on the Port of Montreal potential labour situation. On March 15, a hearing took place before the Canada Industrial Relations Board on the issue of the union being said to be negotiating in bad faith. A ruling from the CIRB is expected soon. On March 12, the employer, the Maritime Employers Association, put forth a final offer to the union. This is not an agreement in principle. The union will send out the final offer to members on March 18. The Port of Montreal will be closed on March 21 from 7:00 am to 3:00 pm for a special meeting of members, during which time the contents of the final offer will be discussed. The union will follow up with information on timing and format of the meeting in order to facilitate maximum attendance for voting on the final offer.

March 15, 2021 – In a memo, the Canadian Union of Public Employees (CUPE) 375 informed its members on Sunday that the Maritime Employers Association (MEA) issued a final offer to the union late on Friday, March 12. The union president stresses that this is an offer, not an agreement in principle between the parties. There are no details on the content of the MEA offer. The memo says the union executive committee will undertake a detailed analysis of the offer and submit it for a vote by the members.

March 9, 2021 – The Maritime Employers Association (MEA) and the longshore workers at the Port of Montreal represented by the Canadian Union of Public Employees (CUPE) are meeting again this week with mediators. Canaan Transport will keep apprised of developments and will publish any significant updates on this blog.

March 4, 2021 – As of March 15, food import transactions will automatically be rejected unless a valid Safe Food for Canadians (SFC) licence is entered in the Integrated Import Declaration (IID); a valid licence includes the food commodity(ies) that the licence holder intends to import. The CFIA has noticed some confusion around the types of foods that fall into the ‘Fresh fruits and vegetables’ and the ‘Processed fruits and vegetables’ commodities on the SFC licence application. The following link clarifies the differences between fresh and processed fruits and vegetables.

https://www.inspection.gc.ca/importing-food-plants-or-animals/food-imports/food-import-notices-for-industry/2021-03-02/eng/1614373100177/1614373222390

March 1, 2021 – Ocean carriers are preparing to roll out peak season surcharges (PSSs), some four months earlier than normal. Indeed, Hapag-Lloyd advised on February 25 it will implement a PSS of $875 per TEU between Asia and North Europe from March 1. The early introduction of a PSS on the trade is further evidence of the confidence that carriers have on their booking visibility into the second quarter.

February 24, 2021 – There is no relief in sight for ocean shippers looking for a downturn in rates on the Transpacific route, as spot prices have risen another 7% in the last week between China/East Asia and the North American West Coast. Volume flowing to the West Coast is expected to stay elevated in the coming weeks, with the forecast from the Port of Los Angeles showing volumes up nearly 503% YoY in the second week of March.

February 22, 2021 – Boeing 777 freighters will remain in the skies despite the recommendation to ground some B777 aircraft following a United Airlines engine failure on Saturday over Denver. Yesterday, Boeing said it “recommended suspending operations of the 69 in-service and 59 in-storage 777s powered by Pratt & Whitney 4000-112 engines, until the FAA identifies the appropriate inspection protocol.” Only 777-200s and 777-300s are affected, and not all of those have the P&W engine type under scrutiny. 777 freighters are powered by GE90 engines.

February 19, 2021 – As many of our customers will recall, there was a strike at the Port of Montreal in August 2020 and your cargo was delayed for weeks, and in some cases well over a month, due to labour problems between CUPE Local 375 and the Maritime Employers Association. That 12-day strike only ended when the parties agreed to a 7-month truce, paving the way for Canada’s second largest port to reopen, and labour negotiations to re-start. As the truce expires on Mach 21st, 2021, the talks continue with the assistance of a new team of federal mediators. We do not have information about the status of negotiations, and whether further labour actions will be averted. Canaan Transport is currently urging our customers to contact us to identify potential options to minimize disruptions to your supply chain.