The Canadian government has acted decisively to resolve the ongoing labor disputes at major ports in Vancouver, Prince Rupert, and Montreal. These disruptions, which began earlier this month, had halted crucial trade routes, creating widespread congestion across North American supply chains. Labor Minister Steven MacKinnon invoked federal authority to mandate final and binding arbitration, requiring both unions and port operators to resolve their conflicts under enforced terms. This intervention follows a prolonged stalemate that began when union contracts expired in March 2023. Strikes and lockouts had caused significant delays, impacting over $1.3 billion in goods daily, with ripple effects felt across retail, manufacturing, and logistics networks in both Canada and the U.S. With Vancouver and Prince Rupert facilitating 20% of U.S. trade and Montreal serving as a critical hub for cross-border rail shipments, the stakes were high. The Retail Council of Canada emphasized the severe strain on supply chains during the peak holiday season, while American logistics leaders highlighted cascading delays and mounting costs throughout North America. As operations resume under government-mandated arbitration, the focus now shifts to clearing backlogs and restoring normalcy. While essential goods remain available, full recovery for the retail and logistics sectors may take weeks. This event underscores the importance of resilient supply chains and effective crisis management in an increasingly interconnected global trade environment.
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🚢 Peak season is already off to a rocky start - and it could stay that way. Last week, the International Longshoremen’s Association (ILA) has suspended negotiations with the United States Maritime Alliance (USMX) over a new labor contract, protesting the use of automated technology at APM Terminals and Maersk. With no new developments since ILA suspended negotiations, points for shippers, carriers and forwarders to take away about the dispute and it's pending impact on rates during freight's budding peak season include: 1. Suspended Negotiations Due to Automation Dispute: The ILA has halted talks with the USMX over a new labor contract, citing the use of automated technology at key terminals by APM Terminals and Maersk. The union views this automation as a violation of their current agreement and a direct threat to union jobs. 2. Potential for Significant Labor Disruptions: With the ILA's contract set to expire on September 30, there is a growing risk of a strike, particularly given the union's strong opposition to automation. This potential disruption comes at a critical time for global trade, echoing recent labor disputes on the West Coast that caused severe delays. 3. Strategic Shifts in Cargo Movement: In response to the ongoing labor uncertainties and the peak shipping season, logistics companies are preemptively redirecting cargo to West Coast ports. This shift aims to mitigate the impact of potential East Coast disruptions and navigate current global trade challenges, including increased container rates and transit delays. The squeeze on rates is going to continue to put pressure on smaller shippers. Forwarders and partners should advise their clientele accordingly of the situation, the forthcoming rate increases and be open to adjustments shippers need to manage tough(er) financial conditions. With peak season underway, the stress could last the whole summer. #freight #containershipping #supplychain https://lnkd.in/dg284rqC
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The potential for an East Coast port strike is moving closer to reality, as the largest U.S. port union suspends labor talks, according to CNBC. This move increases the risk of a major #supplychain disruption ahead of the holiday shopping season. As consumers increase their reliance on #ecommerce, the growing power of the labor movement is coming into focus. What's at stake? --The movement of millions of containers of goods from overseas markets into the North American port network. --The flow of nearly one-quarter of the U.S. containerized volume of imports from Europe. --The flow of retail goods heading into the critical fall/holiday buying season. --The exports of goods for green energy initiatives and the automobile industry. Patricia (Paty) Perman Peter Kroner https://lnkd.in/ghhWA4xm #supplychain #industrial #holidayshopping #portstrike
Biggest U.S. ports union suspends labor talks, with East Coast, Gulf Coast strike risk rising
cnbc.com
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Labor disputes at Canada’s #Pacific and #Atlantic ports threaten US$800 million in daily #trade, impacting #SupplyChains across #NorthAmerica. Read more on #MexicoBusinessNews for updates on this and other #Logistics industry insights!
Canadian Port Labor Disputes Put US$800 Million at Risk Daily
mexicobusiness.news
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1. Labor Disputes Resolved: A tentative agreement was reached between port unions and employers, ending the labor disruptions at key Canadian ports like Vancouver and Prince Rupert. The deal was facilitated by a federal mediator and has a four-year term . 2. Impact on Operations: Operations at these major ports, which had been disrupted for nearly two weeks, are expected to resume quickly. The strike had caused significant delays in containerized rail and ship movements . 3. Economic Implications: The strike affected imports and exports across North America, leading to supply chain disruptions. Vancouver and Prince Rupert are vital hubs for trans-Pacific trade . 4. Role of Mediation: Federal intervention played a critical role in resolving the standoff. Both parties were given a tight deadline to respond to recommendations, which led to the agreement . 5. Future Stability: The agreement is seen as a step towards restoring confidence in the reliability of Canada’s maritime trade infrastructure, although its success will depend on final ratifications and implementation .
Unions returning to work at Canada ports
freightwaves.com
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🇨🇦 Canadian Labor Minister Ends Port Labor Turmoil Canadian Labor Minister Steven MacKinnon has used federal powers to end work stoppages at the ports of Vancouver, Prince Rupert, and Montreal, ordering binding arbitration between labor unions and port ownership. This intervention, the second this year, aims to resolve strikes and lockouts that have severely disrupted supply chains. The congestion caused by these stoppages will take weeks to clear, affecting both Canadian and U.S. trade, with $572 million in container trade arriving daily in the U.S. from Canada. The Retail Council of Canada highlighted the significant impact on retail supply chains during the busiest time of the year. At John S. James Co., we understand the critical importance of maintaining smooth and efficient supply chains, especially during times of disruption. Our expertise in U.S. customs brokerage and freight forwarding ensures that your cargo moves seamlessly across borders, even amidst industry challenges. Trust us to handle your logistics needs with precision and care. Visit johnsjames.com to learn more about our comprehensive services and how we can support your business. #Logistics #SupplyChain #FreightForwarding #CustomsBrokerage #Canada #USTrade #PortOperations #JohnSJamesCo #Vancouver #PrinceRupert #Montreal #TradeNews
Canada's Labor Minister ends coast-to-coast port labor turmoil, forcing unions back to work
cnbc.com
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“Nobody on the road, nobody on the beach, I feel it in the air, The Summer’s out of reach” 1453 words 5 minute read - Let’s do this! “Short and sweet” is the theme for this week’s market update as we recap some of the key industry news that has been taking place over the last few weeks that could be potential disruptions, especially as we march into peak season. To keep up with the most up to date industry news, we urge you to follow our LinkedIn page and email Marketing@portxlogistics.com to sign up for this weekly Market Update Newsletter. Labor negotiations are continuing to add another layer of potential volatility to U.S. trade lanes and International Longshoremen’s Association (ILA) President Harold Daggett said in a statement that the union’s 45,000 members “are ready to hit the streets if our demands are not met.” There are a few pressing items that need to be addressed by the United States Maritime Alliance (USMX) before the September 30th contact expiration date, such as port automation and the ILA is believed to be seeking an almost 80% wage increase over the life of its next six-year contract with maritime employers. Maersk CEO Vincent Clerc said in a statement on Wednesday: “If a strike were to happen, the impact could be quite significant in terms of the congestion it would create [and] the delays and the absorption of capacity it would suddenly create would be a big bottleneck in a well-traveled route,” he said. Anxiety over a strike by some 9,300 employees at Canadian National Railway (CN) and Canadian Pacific Kansas City Ltd. (CPKC) has already cost the companies business after some customers started to reroute cargo following approval of a strike mandate by union members on May 1st. The Canada Industrial Relations Board (CIRB) is examining whether there are critical shipments — chlorine for water and gasoline for cities, for example — that must continue in the event of job action, putting any potential work stoppage on pause until a ruling is made. Steven MacKinnon, (Seamus O’Regan’s replacement as federal labor minister) met Monday morning with leaders from the two main railways and the Teamsters Canada Rail Conference (TCRC) union to discuss the consequences for the economy and supply chain. All parties say they want to continue negotiating, but each blames the other side for the communication breakdown. CN and CPKC are bargaining separately with the Teamsters union toward distinct collective agreements, though two strikes could happen simultaneously. Read more on our blog. https://loom.ly/CaZUSFI #Logistics #Truckers #Drayage #IndustryNews #WeeklyBlog
“Nobody on the road, nobody on the beach, I feel it in the air, The Summer’s out of reach” - Port X Logistics
https://portxlogistics.com
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Canadian ports in Vancouver and Montreal are set to resume operations after government action ended labor disputes affecting millions in daily trade. Has your supply chain been impacted? Reach out to me – Ascent Global Logistics is ready to help you stay on track. Full details: https://lnkd.in/exCDmWmw #LogisticsNews #TradeUpdate #CanadianEconomy
Canada's Labor Minister ends coast-to-coast port labor turmoil, forcing unions back to work
cnbc.com
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Canadian ports in Vancouver and Montreal are set to resume operations after government action ended labor disputes affecting millions in daily trade. Has your supply chain been impacted? Reach out to me – Ascent Global Logistics is ready to help you stay on track. Full details: https://lnkd.in/gF7K3jp2 #LogisticsNews #TradeUpdate #CanadianEconomy
Canada's Labor Minister ends coast-to-coast port labor turmoil, forcing unions back to work
cnbc.com
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The Last Week in Logistics | Week 46 Presented by Robin Transportation Systems Inc. 💼 Port of Montreal Reopens After Labour Dispute The Port of Montreal is resuming operations after a labor dispute that began on October 31. The strike was initiated by longshore workers at two Termont terminals, representing 40% of the port’s cargo volume, who rejected a proposed agreement from the Maritime Employers Association (MEA) and demanded higher wages. The deal offerd was declined, and the MEA imposed a lockout on November 5, halting nearly all activity at the port. Federal Labour Minister Steven MacKinnon intervened on November 7, requesting the Canada Industrial Relations Board (CIRB) to order operations to resume and move unresolved issues to binding arbitration. The CIRB has mandated a return to work, and the port will officially reopen on November 16 at 7 a.m. 🌍 BC Ports Also Reopen After Union Lockout Canada’s West Coast ports, crucial to the country’s trade, Have resumed operations as of November 14th after a significant disruption left over 700 foremen locked out for more than a week. Handling $800 million in daily cargo and representing 25% of goods moving through Canada, the shutdown rippled across industries. Businesses faced shipping delays compounded by a partial closure at the Port of Montreal due to a separate labour dispute. The BCMEA cited a 72-hour strike notice by the union as the reason for its "difficult decision" to initiate the lockout. The union criticized the move, calling it "reckless." Intervention by the Canada Industrial Relations Board ordered operations to resume while the dispute remains under review, with a hearing set for November 18. Stay informed with our latest updates on LinkedIn, Facebook, and Instagram! 👥 Contact Us | 905-612-0755 - sales@robintransportation.com 🌐 Visit Our Website | https://lnkd.in/gs_aPJnc #SupplyChain #Shipping #LogisticsSolutions #RobinTransportationSystems #Logistics #FreightForwarding #MEA #BCMEA #PortStrikes #Strike #Port
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NEW YORK, NY - Striking members of the @International Longshoremen’s Association (ILA) will be back to work on Friday, the union announced Thursday evening, as it reached a tentative deal with the management group representing shipping lines, terminal operators and port authorities. The agreement amounts to a $4-per-hour raise for each year of the six-year contract, a source with knowledge of the negotiations told CNN. That amounts to a first year raise of just over 10% of the current contract’s top pay of $39 an hour. With the five subsequent pay hikes it would raise wages by 62% over the life of the contract The union agreed to extend the contract it had with the UNITED STATES MARITIME ALLIANCE LIMITED, the management group known as USMX. That deal, which had expired at the end of Monday, will be now extended until January 15 and have the union members back on the job while the final details are worked out in a full agreement that will need to be ratified by the rank-and-file. In a statement, President Joe Biden praised the tentative wage deal. “Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” he said. “I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic. And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.” Vice President Kamala Harris also applauded the agreement, saying in a statement: “This is about fairness — and our economy works best when workers share in record profits. Dockworkers deserve a fair share for their hard work getting essential goods out to communities across America.” Acting Secretary of Labor Julie Su was onsite in North Bergen, New Jersey, meeting with both parties as the talks entered their final stages, according to a source familiar with the matter. Su helped broker a deal between West Coast port workers represented by the International Longshore & Warehouse Union and the Pacific Maritime Association in 2023, which resulted in a 32% pay increase over the life of the five-year contract. The 50,000 members of the union working at ports from Maine to Texas have been on strike since early Tuesday morning, halting the flow of the majority of containerized imports into the United States, along with many of the exports, disrupting the sales of American businesses overseas. For more, click on the link below. #escrowcredirt #newmarktitleservices https://lnkd.in/erRaPN6t
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