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Shippers may face detention charges as Canadian ports resume operations

Canadian ports resume operations


Strike-hit ports across Canada have resumed operations, but the shutdown has left a huge backlog of containers and shippers facing a possible new round of demurrage (D&D) charges.

The Port of Montreal resumed work at 7 a.m. Saturday at the request of the Canadian Industrial Relations Board (CIRB) after a strike at the Temont Terminal began on Oct. 31.

The Port of Montreal Authority (MPA) revealed that there are more than 5,000 TEUs on the ground, with 22 vessels en route or waiting at berth, and about 2,750 TEUs of rail cargo to be handled.

"It may take several weeks to re-establish supply chain liquidity and process all cargo currently in port or in transit in Montreal and due to arrive in the coming days," the statement said.

Maersk noted that "backlogs and congestion may pose challenges in the coming days" and warned of possible delays on its Nord-Canada CAE route operated with CMA CGM Marine, as well as on its Mediterran-Canada MMX route operated with CMA CGM Marine and Hapag-Lloyd.

Hapag-lloyd said THE Alliance's AT1 service would be down for a week, and its vessels, which include the Toronto Express and Quebec Express, could also see AT2 service declines.

Meanwhile, on Canada's west coast, the Vancouver Fraser Port Authority (VFPA) said the 10-day strike had also "significantly disrupted port operations", adding: "As a result, several merchant vessels are currently offshore waiting to enter and berth in the Port of Vancouver."

The VFPA said it was implementing a "prioritized berthing allocation system to balance the needs of various commercial sectors and commodities."

The ships currently docked include the CMA CGM Orfeo, CMA CGM Endurance, MSC Palak Chin and ESL Nhava Sheva, which have been waiting to berth for more than 13 days, It affected the PN4, PN1, PNW1, PN3 and CPNW routes of the Ocean Alliance.

Ships still waiting at anchor include YM Plum (spent eight days offshore and nine days at anchor) as well as OOCL Veracruz, HMM Peridot, Cosco Venice and Argus, as well as six other vessels moored outside the VFPA's jurisdiction, Among them is Conti Contessa, which has been moored for six days and is expected to dock on Thursday.

The VFPA encourages its supply chain partners to "bring offshore areas... Deemed to be the 'place of arrival' at which the notice of readiness is issued ".

The port authority also asked ship operators to take "necessary measures" such as slowing down navigation in order to "arrive on time as possible."

Maersk confirmed that for Canadian ports affected by the strike, most carriers will restore D&D clocks on the day the affected Marine terminals resume gate operations.

However, due to the huge backlog of containers and the high demand, shippers and freight forwarders may find it difficult to make an appointment to pick up or unload, which may result in D&D charges.

Maersk advises: "If you are unable to get a terminal or rail appointment during the recovery period, remember to record your attempt to make an appointment via a time-stamped screen shot. If there are any additional costs these days, we will consider that."

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