The port strike on the East Coast of the United States has just ended, and Canada's Port of Montreal dockworkers Union has announced an overtime strike notice that will begin at 7 a.m. on October 10. As a result, freight rates on transatlantic routes are likely to rise.

Not long ago, the Port of Montreal's two major longshoremen held a three-day strike, resulting in the disruption of terminal operations. On Sept. 27, the union representing the Port of Montreal's dockworkers gave 72-hour notice of a strike, which began at 7 a.m. on Sept. 30 at the Port of Montreal's Viau and Maisonneuve terminals, affecting about 41 percent of the port's container traffic.

After the union announced that its members would stop working overtime, the Canadian Maritime Employers Association called for the strike notice to be withdrawn, calling it a "pressure tactic."

The Canadian Maritime Employers Association has warned that ending overtime entirely would have a significant negative impact on duty teams and their performance in port operations. It said employees involved in the strike would not be paid, in a sign of escalating labor disputes between the two sides.

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 as well as the social economy." According to the Wall Street Journal, in a worst-case scenario, an overtime strike could shut down ports.

It is understood that since December last year, the 1,200 dockworkers represented by the Port of Montreal dockworkers union and management negotiations have not reached a consensus. The disagreement centered on the scheduling of dockworkers' shifts. According to the Longshoremen's Association, some workers want a better work-life balance.

The Port of Montreal Authority said that this long delay and repeated Labour disputes have affected the economy of Quebec and Canada, and the resulting significant decline in freight traffic at the Port of Montreal has caused serious financial challenges for the Port of Montreal Authority.

Meanwhile, in transatlantic trade, several shipping lines announced higher surcharges yesterday.

Danish shipping company Maersk Line will impose a peak season surcharge (PSS) of $2,000 for both TEUS and TEUS on routes from Europe and the Eastern Mediterranean to Canada from October 23.

CMA CGM has issued PSS for shipments from Northern Europe to Canada's east coast since October 15 at a cost of $250 per TEU and $500 per foot. Starting November 2, the French airline will introduce additional PSS from Northern Europe, the Mediterranean, Adriatic, Black Sea and North Africa to the East coast of Canada, the United States and the East coast of Mexico at rates of $500 per TEU and $U1,000 per FEU1,000.

MSC will raise 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, Bahamas, Canada and Mexico.

From Israel to these destinations, MSC charges $750 per TEU and $1,500 per FEU for PSS.