Port of Montreal returns to full operations

Operations at the Port of Montreal have begun returning to normal following several weeks of disruption due to industrial action by longshore workers, although customers of Canada’s second-largest port may still experience delays in the coming weeks.

The resumption of operations this week came after high-level political intervention in Canada, leading to the passage by the House of Commons of legislation to provide for the resumption and continuation of operations. Port operator Montreal Port Authority (MPA) said the decision “means that the operational and commercial uncertainty related to labour relations between the dockworkers’ union   CUPE Local 375 and the Maritime Employers Association (MEA) is now over”.

Delays to be expected

But MPA warned that “a return to the usual smooth flow of goods” would take several days, with potential disruptions to customers waiting to import or export goods continuing “in the coming weeks”. It acknowledged that “the recent partial strike and unlimited general strike episodes seriously affected cargo handling in the container and dry bulk sectors”.

MPA said that in the days leading up to the resumption of operations, “teams from the MPA, terminal operators and intermodal partners in rail and trucking have been preparing for the resumption of port activities”. It noted that at the start of the week, about ten vessels are about to call at the Port of Montreal and close to 20,000 TEUs were on port territory following the recent work stoppages.”

MPA added: “The resumption of operations and the return to the usual smooth flow of goods will take several days of work by port workers and supply chain stakeholders. Because of this, clients waiting to import or export goods can expect delays in the coming weeks. Customers are encouraged to check the terminal web pages for hours of operation and operational details for the next few days.”

The intervention by Canadian lawmakers came after MPA warned that in the recent partial strike episode, after a single weekend of stoppage, the impact was already significant, with close to 10,000 TEUs grounded, a backlog and delays in rail convoys, and shipping lines with vessels en route to Montreal obliged to rework their logistics. MPA also highlighted that previous strike episodes in the summer of 2020 had hit the port hard, with 80,000 TEUs grounded or rerouted and some 20 vessels diverted to competing ports, “a trend that certain shipping lines began in recent months given the uncertainty associated with the labour dispute”.

MPA said the process established by the legislation “will lead to establishing a new collective agreement between the parties, with no possibility of work stoppages. While a prior settlement between the parties would have been preferable, the strategic character of port operations has led to a decision that highlights the need to resume this major economic activity.”

Martin Imbleau, president and Chief Executive Officer of the Montreal Port Authority, commented: “This new turning point lets the Port of Montreal regain stability and the capability to fulfil its strategic role as a public service without long-term interruptions. This role is especially important while we are still in the middle of a pandemic.

It highlighted that every day, an average of $275 million worth of goods move through Port of Montreal docks, ranging from agri-food products, pharmaceuticals and construction equipment to flagship products exported by local companies.

The Port of Montreal is the second-largest port in Canada and a diversified transhipment centre that handles containerised and non-containerised cargo, liquid bulk and dry bulk. The only container port in Quebec, it is a destination port served by the largest shipping lines in the world and “an intermodal hub with a service offering that is unique in North America, featuring its own rail network directly dockside connected to Canada’s two national rail networks”.

Freight forwarder Metro Shipping welcomed the news that the threat of strike action at Montreal had been lifted, but noted that “disruptions should be anticipated throughout the supply chain”. It noted that the threatened further strikes would have been costly for Montreal, which suffered a 13-day strike in 2020 leading its total traffic to drop 14% compared to 2019, while its container throughput dropped almost 9% in 2020.