Customer Advisory - Hensall Global Logo

Montreal Port Labour Strike Announced

Dear Customer,

 

Please see below notice received from the industry:

 

General strike notice:

  • The Labour Union has given notice this morning to the Maritime Employers Assn. (MEA) for a general strike starting next Monday, August 10th at 7:00 am EST.

  • (A general strike is defined as the entire port has no Labour available to work i.e. container terminals, grain terminals etc.)

  • The duration of the strike is not known at this time.

Negotiations status:   

  • Talks continue today (schedule is Friday, Saturday, Sunday this week).  

Terminal status: 

  • Terminals highly recommend customers pick up imports - especially high value reefers.  

  • Gates are still closed to general export receiving.   

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Port of Montreal - Update

Dear Customer,

 

Please note that further to previous advisories, we are seeing the situation in Montreal worsen and the pipeline rapidly shutting down in response.

 

Notification regarding port omissions are starting to be issued by the respective vessel lines. Noted vessels with planned call at Montreal are being diverted to Halifax or Saint John for the unload of import cargos.

 

As a result of the omissions and disruption to port operations, we are seeing the rail carriers react in an effort to mitigate congestion in the pipeline.

 

At current, it would appear that no new CN RVs will be provided to the market – regardless of intended terminal. Indications received from CN this morning would suggest that export receiving may not commence again until week of Aug. 17th . As a result, containers returning to a CN inland hub will only be accepted for ingate if there are pre-existing CN RVs in place. 

 

CP, who has remained open for receiving throughout this is now advising that they too have shut off export receiving – for omitting vessels specifically. We are working obtain clarification on their overall position. It is still possible that we may be able to continue to move some cargo through their corridor however all is dependent at the moment on the vessels continuing to call Montreal.

 

It would appear that there is a small volume of local Montreal cargo being permitted entry into the port. We are working to gauge a better understanding on the application of acceptance.

 

It is important to note that entering further containers into the pipeline at this time could result in extended delays as well as material charges for the account of the cargo.

 

Your HGL Co-ordinators are working to review the status of each booking at this time.

 

The situation remains fluid and we will continue to update as new information is made available. 

 

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Update at the Port of Montreal

Dear Customer,

 

Please note that we have received notice that the Maritime Employers Association (MEA) has presented a notice of modification of working conditions to the executive committee of Longshoremen’s CUPE 375 Union.

 

Effective Thursday, August 6th @ 1500hr, the MEA will refrain from paying time-and-a-half and double-time for evening and weekend shifts. As such, port will operate a daytime shift only Monday to Friday from 7:00 a.m. until 3:00 p.m. solely.

 

According to the MEA, the decision was necessary following the numerous pressure tactics set in place by the Union which have translated into an unusually high amount of overtime shifts.

 

It is expected that the reduction in hours of operation will impact the operational fluidity of the port.

 

Both the MEA and the Union are being encouraged to reach a quick and mutually beneficial agreement.

 

We will continue to keep you advised as new information is made available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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72 Hour Notice - Termont

Dear Customer,

 

Please see below notice received from the industry:

 

A new 72hr notice has been issued this morning by the Longshoremen. This will impact TERMONT terminals only (Viau and Maisonneuve), NOT MGT TERMINALS (Racine & Cast).

 

Will be applicable through next week, Monday August 3rd 7am – Friday August 7th 7am.

 

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Port of Montreal

Dear Customer,

 

Please see below notice received from the industry:

 

The Montreal Port Authority (MPA) is advising its clients and partners that due to Wednesday evening’s events both container terminal operators, Termont and MGT, have advised  there will be no operations in any of their terminals (Cast, Maisonneuve, Racine and Viau Terminals) on Friday, July 31st.    

 

This mutual decision was taken by the two operating partners in order to ensure the health and safety of all the employees working in their facilities. Operations will resume on Saturday, August 1st from 7:00 a.m. in these four container terminals. In addition, truck gate operations will be open on Saturday, August 1st and Sunday, August 2nd from 7:00 a.m. to 3:00 p.m.

 

The MPA invites customers to consult the respective Termont and MGT websites for additional information.

 

All other Port of Montreal’s terminals which were initially impacted by the 4-day strike will be operational as of July 31st at 7:00 a.m.

 

The MPA believes it is essential to provide a healthy and safe working environment for all port employees and look forward for the longshoremen’s employer, the Maritime Employers Association, and the Union will be able to reach an agreement promptly.

 

Please see attached link for further elaboration on the events of Wednesday evening:

 

https://www.insidelogistics.ca/port-operations/violence-erupts-near-montreal-port-amid-strike-four-terminals-remain-closed-friday-172335/?utm_medium=email&utm_source=newcom&utm_campaign=MMandD&utm_content=2020073180642

 

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Please see below notice received from the industry:

 

Further to the strike action announced by the Montreal Longshore Union, which started at 07:00 on Monday 27th July, and is scheduled to end at 06:59 on Friday July 31st.

 

The Port of Montreal Checkers Union has announced a separate 24-hour strike that will begin at 05:59 on July 31, 2020 and end at 05:59 on August 1, 2020.

 

The Terminals will remain closed for all activity during this separate 24-hour strike, and normal operations should resume from 06:00 on Saturday August 1, 2020.

 

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Please see below notice received from the industry today:

 

MONTREAL – Port of Montreal dock workers plan to walk off the job again for four days next week as ongoing negotiations over a new labour contract drag on.

Work will cease on Monday (July 27) at 7 a.m. and resume Friday (July 31) at 6:59 a.m., Local 375 of the Canadian Union of Public Employees said Friday in a statement posted on Twitter. Union officials have sent a 72-hour notice confirming their intention to strike, said a spokesperson for the Maritime Employers Association.

 

“While discussions were ongoing, the Maritimes Employers Association (MEA) was not only surprised but disappointed by the executive committee of the Longshoremen’s Union to go ahead with means of pressure like a strike,” the association said in an emailed statement.

Dockers have been without a labour agreement since Dec. 31, 2018. Negotiations had resumed recently after a ruling by the Canada Industrial Relations Board on essential services to maintain in the event of a strike.

 

This latest strike falls on the heels of a similar strike that took place at the beginning of this month.

 

We will continue to provide updates as they become available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Please be advised that there is impending strike action at the Port of Montreal.

 

The Port has confirmed that 2 of their terminals (Cast and Racine terminals) will close from Thurs., July 02 at 15:00 until Sat., July 04 at 6:59.

 

Consequently, the Port of Montreal and its partners expect to be able to resume activities as soon as Sat., July 4 at 7:00 and are advising that efforts will be made to make up for the delays that will be caused by this exceptional situation.

 

The longshoreman at the Port of Montreal had been in a position to strike since June 08th after an industrial relations board ruled the port wasn’t an essential service to the region.

 

The Canada Industrial Relations Board ruled that the maritime Employers Association (MEA) hadn’t demonstrated that a strike would cause enough risk to public safety and security, pointing to alternative routings and modes for cargo transport to the Montreal region if longshore workers did strike. The ability to strike could give the longshore workers’ union Canadian Union of Public Employees (CUPE) Local 375 more leverage in its negotiations with employers for a future contract.

 

The six-year contract between port workers and employers expired December 2018.  Approximately two months earlier, the MEA filed a complaint with the industrial relations board, arguing that the Port of Montreal should be considered an essential service, and therefore not subject to strike or a lockout. 

 

We are continuing to monitor these events and will provide further update as they are made available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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A Message from Hensall Global

Dear Customers, Suppliers and Friends:

With COVID-19 continuing to evolve, our government and organizations in Canada and abroad are moving quickly to respond. We’re no different at Hensall Global Logistics. We are committed to putting the health and safety of our employees, customers and communities at the forefront.

We have assembled the right people within our organization to stay connected and be continuously up-to-date on COVID-19. This is our Business Continuity and Crisis Management team (Emergency Preparedness Team). This team includes our business and operational leaders and our business continuity team. This team is receiving and researching the government policies and expert medical science to make the best decisions based on the information available to us. We are meeting once a day and connect multiple times a day to ensure we are doing our best to protect our employees and prioritize our essential services. We are part of the critical supply chain and we are fortunate to have an employee team that understands what this means.

We have taken significant steps with respect to social distancing. As such, your customer service representatives may be working remotely from home or from temporary, alternative office locations. We are working equally hard to ensure every employee who continues works in our offices is well protected. Our operations teams have enhanced their cleaning procedures and we have established visitor guidelines to limit exposure.

We will continue to evaluate the situation day-to-day and take the necessary steps for the best interests of our employees, customers and the communities in which we live.

Hensall Global Logistics wishes you and your families good health.

Sincerely,

Hensall Global Logistics

 

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Dear Customer,

The bill of Lading (B/L) is one of the most important documents in the whole shipping and freight chain.

A B/L has 3 basic purposes or roles.

1. Evidence of Contract of Carriage
2. Receipt of Goods and
3. Document of Title to the goods

1) Evidence of Contract of Carriage – emphasis on the term “Evidence“.
The B/L is the evidence of the contract of carriage entered into between the “Carrier” and the “Shipper or Cargo Owner” in order to carry out the transportation of the cargo as per the sales contract between the buyer and the seller.
2) Receipt of Goods – emphasis on the term “Receipt“.
A B/L is issued by the carrier or their agent to the shipper or their agent in exchange for the receipt of the cargo. The issuance of the B/L is proof that the carrier has received the goods from the shipper or their agent in apparent good order and condition, as handed over by the shipper.
3) Document of Title to the goods – emphasis on the term “Title“.
It means that the goods may be transferred to the holder of the B/L which then gives the holder of the B/L, the rights to claim the goods or further transfer it to someone else.
Based on the above roles, there are several variations or types of B/Ls, important among which are as below.
1) When a B/L is issued in Original(s) to a “named” consignee it is referred to as a “Straight B/L” and a straight B/L is a NON-NEGOTIABLE & NON-TRANSFERABLE DOCUMENT.

Release of cargo at destination may be issued only to the named consignee and only upon surrender of at least 1 of the original bills issued.
2) When a B/L is issued to a “named” consignee but without any originals it may be considered as a “Sea Waybill“. This B/L is also a NON-NEGOTIABLE & NON-TRANSFERABLE DOCUMENT.
A Sea Waybill is usually issued

1. for inter-company shipments, or
2. where the shipment takes place between two different companies but there are no negotiations required between the two either directly or via bank for release of the cargo and
3. the shipper doesn’t need to submit an original B/L to anyone to secure his payment.

Since no originals are issued in the case of a Sea Waybill no surrender is required and the release may also be termed as an Express Release and is mentioned as such on the body of the B/L and manifest.
3) When a B/L issued in Original(s) and consigned “TO ORDER” or “TO ORDER OF SHIPPER” or “TO ORDER OF XYZ BANK” it is termed as “Negotiable B/L or Order Bill“.

One of the most important aspects of a B/L is that it can be used as a negotiable instrument for payments between a buyer and seller using Letters of Credit.

Destination port agent may issue release of cargo only after at least 1 of the issued originals are surrendered and after checking the endorsements on the back of the B/L as it is possible for this type of B/L to be endorsed or transferred to another company.
Care must be taken not to lose a negotiable B/L. Today the consequences of replacing a set of original bills of lading are far more complex and onerous than they were some years ago.

Today, carriers require a letter of indemnity (LOI), counter-signed by a bank representing a guarantee for as much as two to three times the value of the cargo. And the guarantee can be required to be valid for as long as 24 -30 months.

An LOI is a formal letter stating that the company signing it will not make a claim against a carrier, arising out of the carrier’s compliance with the request to either release the cargo without presentation of the OBL, or to reprint the OBLs.

While an LOI contains an obligation for the company signing it to indemnify the carrier, the LOI does not ensure that the company has sufficient funds to fully comply with its indemnification obligations and as such the bank guarantee is required. The bank guarantee ensures that the carrier is protected from payment of all liabilities and costs related to delivery of the cargo without presentation of the OBL.

In an effort to mitigate your exposure and protect your originals, we are strongly recommending that in cases where feasible one of the following practices be put into place:

• Keep at least one original bill of lading in a secured forwarder archive;
• Send only one original bill to consignee, if not received you can send another;
• Where commercial aspects and/or import customs law do not require issuing the original set of bills, the express bill of lading type might be a preferred solution for faster and smoother cargo release from the carrier.

This topic could not be more relevant than it is today, considering the current circumstances and the impact of COVID-19 on the shipping and freight industry.

With the lockdown in various countries around the world due to COVID-19, there are serious restrictions for export customers to get original bills of lading after the cargo has been loaded on board. Similarly for cargo that has arrived or is arriving at a port of discharge during the lockdown period, importers may not get the original bill of lading on time or worse still an original bill of lading may be lost in transit.
We kindly ask that you take a moment to review the information presented in an effort to better understand current risks associated with B/L provision and management. Your customer service team will be in contact to discuss mitigation opportunities as detailed above.


Sincerely,

HENSALL GLOBAL LOGISTICS

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