The port strike on the east coast of the United States has just ended, and the Canadian Montreal Port Longshoremen's Union immediately announced an overtime strike notice, which will continue indefinitely from 7 a.m. on October 10. Major shipping companies have notified freight rate increases.
Previously, two major dock workers at the Port of Montreal had held a three-day strike, which interrupted terminal operations. On September 27, the union representing the dock workers at the Port of Montreal issued a 72-hour strike notice. The dock workers started at 7 a.m. on September 30 and held a three-day strike at the Viau and Maisonneuve terminals under the Port of Montreal, affecting about 41% of the port's container transportation. After the union announced that its members would stop working overtime, the Canadian Maritime Employers Association called for the withdrawal of the strike notice and called it a "pressure strategy." The Canadian Maritime Employers Association warned that a complete stop to overtime would have a significant negative impact on the duty team and its performance in port operations. It also stated that employees participating in the strike will not be paid, indicating that the labor dispute between the two sides is gradually escalating. The Canadian Maritime Employers Association explained: "This measure is necessary considering that the strike will lead to the imminent slowdown or even cessation of port operations, which will have serious consequences for the port and the social economy." According to the Wall Street Journal, in the worst case, the overtime strike may lead to the closure of the port. It is understood that since December last year, 1,200 dock workers represented by the Montreal Port Dockworkers Union have not reached a consensus in negotiations with the employer. The disagreement mainly focuses on the formulation of the dock workers' duty schedule. According to the Dockworkers Association, some workers want a better balance between work and life. The Montreal Port Authority said that this long delay and repeated labor disputes have affected the economies of Quebec and Canada, and the resulting sharp decline in cargo volume at the Port of Montreal has brought serious financial challenges to the Montreal Port Authority.
Meanwhile, in terms of transatlantic trade, several shipping companies recently announced an increase in surcharges.
Danish shipping company Maersk will impose a peak season surcharge (PSS) on routes from Europe and the Eastern Mediterranean to Canada from October 23, with both standard containers and standard containers at US$2,000. CMA CGM has introduced a PSS for cargo from Northern Europe to the east coast of Canada since October 15, with charges of $250 per TEU and $500 per FEU. From November 2, the French carrier will introduce additional PSS from Northern Europe, the Mediterranean, the Adriatic, the Black Sea and North Africa to the east coast of Canada, the United States and the east coast of Mexico, with rates of $500 per TEU and $1,000 per FEU. MSC will increase its PSS from November 1 "until further notice" to $1,100 per TEU and $2,200 per FEU from the Western Mediterranean and Adriatic to the United States, Puerto Rico, the Bahamas, Canada and Mexico. From Israel to these destinations, MSC's PSS charges are $750 per TEU and $1,500 per FEU.
