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Port crisis! Operational Disruption! Shipping Giant Urgently Releases ......

2024-05-15 09:37

The Canadian Truckers Association (TCRC), which is made up of more than 9,000 employees at the Canadian National Railway (CN) and the Canadian Pacific Kansas City Railway (CPKC), announced on May 1 that its union members voted overwhelmingly in favor of the strike and that they would strike as early as May 22.

The president of the TCRC said that the simultaneous shutdown of CN and CPKC will disrupt the supply chain on a scale that Canada may never experience.

Previously, there was a major strike at the Port of Vancouver. It is understood that about 52 ships of grain were loaded and stranded on that occasion. A professor of operations management at Western University said a rail strike or lockout would have a much greater impact on Canada's supply chain than a strike at the Port of Vancouver.

It is understood that the contract between the railway company and the union workers expired on December 21, 2023. If a new agreement is not reached, rail freight and passenger services will be disrupted throughout Canada.

Railways are vital to the Canadian economy due to Canada's vast size and the fact that it relies heavily on rail for exports of grains, potash and coal.

Maersk Urgent Release!

In the face of the threat of a possible strike by Canadian rail workers, shipping giant Maersk has issued emergency measures to mitigate the impact of potential shutdowns to ensure supply chain continuity and reduce potential congestion. The logistics adjustment plan is as follows:

Optimizing West Coast Port Operations: Maersk will work closely with CN, CPKC and terminal operator DP World to accelerate and optimize operations and reduce congestion at Canada's West Coast ports by diverting cargo from Centerm in Vancouver to Prince Rupert to improve overall logistics efficiency, including by diverting cargo from Centerm in Vancouver to Prince Rupert.

Adjustment of Maersk TP1 Service Call: Maersk will adjust its TP1 service to use the Port of Tacoma as a temporary port for U.S. import and export rail cargo for the next four voyages in response to a possible strike.

This adjustment will ensure that goods can continue to circulate and mitigate the logistical disruptions that may result from strikes.

· Maria Y – voyage 419N 422S
· Santa Barbara – voyage 420N 423S
· MSC Domna X – voyage 421N 424S
· GSL Effie – voyage 422N 425S
TP1 is a service provided by the 2M Alliance (MSC&MSK) and calls at the ports of Xiamen, Yantian, Ningbo, Shanghai, Pusan, and Yokohama in Asia.

Review of rail routes and transit times: Maersk will conduct a review of viable rail routes and evaluate transit times to destinations in the U.S. via Tacoma.

It helps to find alternative logistics routes and ensure that goods can reach their destination on time.

Evaluating Trucking Options: Considering the trucking constraints that may be faced by shipping within West/East-East/West Canada, existing trucking options will be reviewed and possible alternatives will be explored.

Through the implementation of the above-mentioned logistics adjustment plan, Maersk said that it will strive to alleviate the logistics disruption and congestion problems that may be caused by the strike of Canadian rail workers, and ensure the continuity and stability of the supply chain.

At the same time, Maersk also warned that if a strike occurs, there could be a serious backlog with a knock-on effect. If the outage lasts more than a few days, the recovery period is also extended.

In addition, according to the latest news from Reuters, a Canadian government official said yesterday that the Canadian government is taking action to postpone a possible strike.

National Strike! Port operations are interrupted!

In addition to a possible strike in Canada, Argentina is also facing the effects of the strike. On May 9, local time, a national strike launched by Argentina's largest trade union union union may paralyze the country.

This general strike will affect the normal operation of various industries and will have a serious impact on the economy. The strike will cause significant disruption to shipping and commercial operations, and will also affect the operations of all ports.

Kuehne+Nagel issued an alert on its official website: trade unions across Argentina will begin a 24-hour nationwide strike on May 9. Disruptions to cargo transportation and port operations are expected in Buenos Aires.

Please make a shipment plan and emergency plan in advance, pay attention to the local strike dynamics in time, and understand the information of the cargo nodes in transportation, so as to update the next transportation plan and avoid unnecessary losses!

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