The truce between the Dockworkers’ union CUPE 375 and the Maritime Employers Association is set to end. This has a significant impact on Canadian businesses’ economics and logistics – specifically, Quebec and Ontario. The Port of Montreal is the main port used for the importing/exporting of these provinces’ shipments. As of February 17th, the negotiation process was suspended. Now, the Montreal Port Authority (MPA) hopes they can reach an agreement to avoid any future stop workage issued by the dockworkers.
With the end of the truce set for March 21st, the Port of Montreal is already feeling the impacts. Businesses in Quebec and Ontario use other ports to ship containerized goods, including essential equipment to combat COVID-19. Other companies are thinking about doing the same, fearing the unprecedented occurrence of another stop workage. This situation is reminiscent of the 19-day stop workage that occurred in the summer of 2020 when companies were very vocal about the impact on their operations, costs, and the delay on their supply chain. This can cause a similar effect while the economy begins to slowly reopen amid the ongoing COVID-19 pandemic.
Impacts of the Summer 2020 Strike
According to Statistics Canada, the delays cost wholesalers around $600 million in sales over only two months. The dockworkers’ strike in 2020 also caused 40% of Quebec SMEs to suffer – negatively impacting their business. Furthermore, competing ports could secure more than 20 container ships and 80,000 twenty-foot equivalent units (TEUs) – were either rerouted or grounded thoroughly. These statistics signify the impacts of the strike on the container industry. Additionally, it took over three months to get back on track to normal operations.
The Impact Beyond Port Operations
The Port of Montreal’s strike has impacted more than 6,000 Logistics and Transportation Businesses in Greater Montreal, either directly or indirectly. Most importantly, over 2,500 essential cargo necessary to handle the ongoing pandemic, including medical equipment, was taken and transported through the Port of Montreal in 2020. To put it in perspective, that is equivalent to 20 containers per port call. During two weeks in August between the 10th – 22nd, the Port of Montreal did not transport a single one.
The port is essential for cargo, medical equipment, food and other basic goods and supplies. It is vital to continue operations in the Port of Montreal to grow the economy and supply foods and goods to Greater Montreal. The repercussions on the economy, international trade for Canadian businesses and our own citizens can be severe pending another halt in operations.
King City Northway is Here for You
Here at KingCity Northway, client satisfaction is of the utmost importance! We always work hard to make sure our clients get their goods to where they need to go, on time! That’s why we wanted to keep everyone in the loop about the current issues being faced in our city. If you have any questions or concerns, don’t hesitate to reach out to us at kingcitynorthway.com.