Industry News

US EAST COAST & GULF COAST PORT STRIKE - CANADA LABOUR DISPUTE

USA

The strike that began on October 1, 2024, involving dockworkers at U.S. East and Gulf Coast ports, is creating significant disruptions for both national and global supply chains.

With around 45,000 workers at 36 ports participating, these facilities handle nearly half of the U.S. containerized trade. The key issues behind the strike include disputes over wages, healthcare benefits, and automation.

The economic impact is substantial, especially as it coincides with the busy holiday season. Each day of the strike is expected to lead to delays that could take 4 to 6 days to recover from, worsening pre-existing supply chain issues. These include logistical challenges from recent events like the Baltimore bridge collapse and disruptions caused by Hurricane Helene. Consequently, businesses dependent on these ports for imports and exports are facing shipment delays, potential price increases, and labour shortages.

Ocean carriers have already stopped accepting export container transiting through these ports, and as of today import containers will be unavailable for collection. Port congestion surcharges have been implemented by the carriers and in some cases they have discussed invoking force majeure clauses, which relieves parties from their contractual obligations.

US West Coast Ports are currently unafected directly by the strikes, however it is expected that Port Congestion will rise as East Coast Shippers and Importers turn to the West Coast and domestic drayage services in an effort to bypass the effected ports. 

CANADA

The labour dispute in Montreal centres around the Port of Montreal Longshoremen's Union (CUPE Local 375), which initiated a three-day strike starting on September 30, 2024. This strike impacts two major terminals—Viau and Maisonneuve—operated by Termont Montreal. The strike stems from unresolved issues related to wage increases and work-life balance. The union has been without a collective agreement since December 2023, leading to intensified negotiations with the Maritime Employers Association, which have not yet resulted in an agreement.

The port authority has enacted a business continuity plan to minimize disruptions, though delays and congestion at the affected terminals are expected. Other terminals, such as those operated by Montreal Gateway Terminals Partnership, remain operational and are unaffected by this specific strike action.

Should you require further information relating to this topic please contact your local TCF representative.