Recently, CUPE Local 375, a dockworkers' union at the Port of Montreal in Canada, announced that a 24-hour strike action will take place from 7:00am on October 27th (Sunday local time) to 6:59am the next day. This decision poses a serious threat to the supply chain of cross-border sellers.
The Maritime Employers Association (MEA) expressed concern that the impact of the strike could extend far beyond 24 hours and could last longer, causing serious disruptions to cross-border sellers' supply chains.
Reasons for port strike
Since December 31, 2023, dockworkers at the Port of Montreal have been unable to sign a new collective agreement, and the two parties have not reached an agreement on key issues such as scheduling management and work life balance.
Despite attempts by various parties to resolve the issue through mediation, including a 90 day negotiation with a special mediator proposed by Minister of Labor and Elderly Affairs Steven MacKinnon, substantial progress has yet to be made. The Ministry of Foreign Affairs reported that after 15 months of 35 mediation meetings, the two sides are still deadlocked.
This strike is not an isolated event, but a continuation of a series of labor actions at the port. As early as the end of September, the strike at the Vio and Mezonnev ports lasted for three days, causing 41% of the port's activities to be paralyzed. In addition, the overtime ban implemented since October 10th has exacerbated the disruption of port operations.
The impact of the port strike
Montreal Port, as the largest port in Quebec and the second largest port in Canada, serves 110 million people in Quebec, Ontario, and the Midwest of the United States, and multiple industries rely on its operation.
This strike will result in strikes including Cast Maisonneuve、Racine、Viau、 The Logistec terminals in Montreal and Condec œ ur, as well as several major terminals including Lantic, are closed, and no railway, ship, or truck services will be provided during this period.
This means that a large amount of goods will not be able to enter and exit the port on time, resulting in backlog of goods, delayed delivery, and increased costs, which will have a significant impact on the business of cross-border sellers. Especially those ships heading towards Montreal Port, such as the 5000teu MSC Anya, which is expected to arrive at Viau Container Terminal in Montreal on October 26th and is scheduled to depart on October 28th, will be directly affected by this strike.
In addition to the strike, the Port of Montreal is also facing low water levels, which have led to restrictions on ships entering the port. MSC、 Major shipping companies such as Hapag Lloyd have introduced a low water level surcharge, which is expected to continue until the water level improves.