
08 Oct Rising Labor Tensions at Port of Montreal Amid Planned Indefinite Strike and Carrier Rate Hikes
Labor tensions are escalating at the Port of Montreal as the Longshoremen’s Union plans to issue a strike notice on October 10, although the strike itself will not begin on that date. This follows a recent three-day strike that disrupted operations at two terminals. The Canadian Maritime Employers Association (MEA) has requested the union withdraw the strike notice, calling it a “pressure tactic.”
The MEA warned that halting overtime would severely impact port operations, resulting in slowdowns or complete stoppages. They also announced that workers assigned to incomplete shifts would not be paid. The union aims to pressure employers for a swift resolution after more than a year of stalled negotiations over pay and working conditions.
The MEA expressed concern about the negative economic impact on Québec and Canada due to repeated labor disputes. The drop in cargo at the Port of Montreal has created significant financial challenges.
At the same time, carriers are increasing rates on the Transatlantic trade. Maersk will introduce a peak season surcharge (PSS) of $2,000 per teu and feu from Europe and East Mediterranean to Canada starting October 23. CMA CGM will impose a PSS on North Europe to the Canadian East Coast from October 15 and additional surcharges starting November 2 for shipments to the U.S., Canada, and Mexico. MSC will also raise surcharges from November 1, impacting various routes, including Europe to North America.
These surcharges are expected to impact shipping costs significantly, with no immediate end to the labor dispute in sight.