The 72-hour strike at two of the four terminals at the Port of Montreal ended as scheduled at 7 am Thursday, October 3rd. While operations recover from the work stoppage, companies waiting to import or export goods can expect some delays in the coming weeks. It is also important to note that talks between the employer and union are still deadlocked. This is a situation we will continue to monitor.
Focused on Clearing the Backlog with the End of the ILA StrikeAs the third day of the East Coast and Gulf Coast port strike ended last night, the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) reached a tentative agreement on wages. They have also agreed to extend the current contract through January 15th to suspend the strike and allow more time for contract negotiations. The strike was the first major stoppage for East Coast and Gulf Coast Ports since 1977. The IlA originally demanded a 77% increase in pay over six years and limitations to automation in the ports. The tentative agreement includes an increase in workers’ wages by 62% over the 6-year contract but does not yet address concerns about automation. The issue of using automated equipment will remain a key focus in discussions in the coming months. While port workers returned to work, more than 50 ships remained anchored outside ports from Maine to Texas, waiting for loading or unloading, with more ships arriving daily. In addition to the backlog caused by the strike, another 75 containerships are currently inbound on the Atlantic side. Thousands of containers were also dumped at the wrong ports throughout the week while the strike was going on, and shipping costs had started to rise, though the swift end to the strike should minimize any additional effect on rates. The Port of New York and New Jersey and the Port of Virginia also both announced that their gates would remain closed to trucks today, while they work to position containers on their grounds. Containers will begin to be unloaded starting at 7 pm this evening, and the gates will reopen to trucks on Saturday. Other ports are also considering adding weekend hours temporarily to work through the backlog. However, it will still take weeks before the flow of goods returns to normal.
We are committed to delivering solutions that adapt to the ever-changing logistics landscape. Contact our global forwarding division, TOC Logistics, today to learn how we can help you navigate your logistics needs. You can reach our team at +1 317-240-4100 or toll-free at +1 800-717-0574 and by email at import-quotes@toclogistics.com and air@toclogistics.com. |
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