Customer Advisory - Hensall Global Logo

Port Congestion in Shanghai

Dear Customer,

 

Due to the impact of new COVID restrictions in Shanghai, the port is experiencing considerable congestion.  It has been reported that over 300 ships are currently anchored waiting to be unloaded or loaded.

 

Please be advised that vessel lines may decide to employ clauses that are available to them under their Bill of Lading and Sea Waybill Terms and Conditions.

 

These clauses may include, but are not limited to:

  • Discharging containers at an intermediate or alternative port and holding them there until it is possible to forward them to the designated port.

  • Abandon the voyage and advise where containers may be collected.

In these cases, the vessel line may be entitled to charge to the cargo additional freight and costs including but not limited to additional transshipment, storage, demurrage.

 

Unfortunately, under the circumstances, these additional costs are out of our control and regrettably will be assessed to the account of the cargo.

 

Please feel free to reach out to your Hensall Global representative should you wish to discuss further or should you have any specific questions or concerns.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Please find the following excerpt from a press release issued by CP late yesterday.

 

 

The Teamsters Canada Rail Conference-Train & Engine (TCRC) provided Canadian Pacific (CP) with its 72-hour strike notice late evening on Wednesday, March 16, 2022, to be effective 00:01 ET on Sunday, March 20, 2022. For greater clarity, CP’s 72-hour lockout notice issued on March 16, 2022, as previously communicated, also to be effective 00:01 ET Sunday, March 20, 2022, remains in effect.

CP will continue to meet with the TCRC in the hopes of reaching agreement that is in the best interests of the entire CP family, its customers, shareholders and the broader North American economy.

 

 

Hensall Global will continue to do our best to keep you informed of new developments as they are communicated to the industry.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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CP Locks Out TCRC

Dear Customer,

 

Please find the following excerpts from a press release issued by CP late yesterday.

 

“CP has issued 72-hour notice to the Teamsters Canada Rail Conference (TCRC) of its plan to lock-out employees at 00:01 a.m. ET on Sunday, March 20, 2022, if the union leadership and the company are unable to come to a negotiated settlement. The TCRC represents approximately 3,000 locomotive engineers, conductors, train, and yard workers across Canada.

 

CP took this undesirable step because we cannot prolong the uncertainty associated with a potential strike for weeks or months. Since Sunday, TCRC has been in a position to issue a 72-hour strike notice, introducing uncertainty into the supply chain that is already being felt.

 

We have been negotiating in good faith since September and over the past week, Canadian Pacific (CP) and the TCRC leadership have been meeting daily with federal mediators to reach a negotiated new collective agreement in hopes of avoiding a labor disruption. Despite those talks, our positions remain far apart.

 

CP will continue to bargain in good faith with the TCRC leadership to achieve a negotiated settlement or enter binding arbitration. The Canadian economy could avoid all the pain and damage of a work stoppage if the TCRC would agree to binding arbitration, an outcome we continue to push for.”

 

CP has commenced its work stoppage contingency plan and will work closely with customers to ensure a smooth, efficient, and safe wind-down of Canadian operations.

 

Further details will be provided, including embargos, as CP’s shut down plan progresses.”

 

Customers should expect disruption to planned cargo.

 

While we continue to do our upmost to ensure that your cargo moves seamlessly through the pipeline to its destination, our efforts will be impacted by factors beyond our control. There may be additional expenses applicable that cannot be avoided and which in turn must be charged to the account of the cargo.

 

Hensall Global will continue to do our best to keep you informed of new developments as they are communicated to the industry.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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CP Labour Update

Dear Customer,

 

As previously communicated, the Teamsters Canada Rail Conference (TCRC) previously announced that it has voted to authorize a strike mandate as early as March 16, 2022. The TCRC represents approximately 3,000 of Canadian Pacific’s locomotive engineers and conductors.

 

The parties continue to participate in the mediation process with the assistance of the Federal Mediation and Conciliation Service (FMCS) with planned meetings taking place between March 11-16th.

 

While there is heavy pressure being put upon the Government to avoid a strike, indications are such that they will permit the collective bargaining and mediation processes to run their course in hopes that resolution can be achieved between the two parties.

 

In anticipation of expected lockout, we are starting to see carriers communicating preemptive actions to manage the volume of cargo in the pipeline.

 

Customers should expect disruption to planned cargo.

 

While we continue to do our upmost to ensure that your cargo moves seamlessly through the pipeline to its destination, our efforts will be impacted by factors beyond our control. There may be additional expenses applicable that cannot be avoided and which in turn must be charged to the account of the cargo. 

 

Hensall Global will continue to do our best to keep you apprised of new developments as they are communicated to the industry.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

 

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Dear Customer,

 

Please find below information obtained from RealAgriculture and Pulse Canada.

 

 

On February 28, the Teamsters Canada Rail Conference (TCRC) union representing 3,100 Canadian Pacific Railway (CP) trades employees reported that its membership voted "96.7% in favour of strike action if necessary". 

 

The most recent labour agreement between CP and the TCRC expired on December 31, 2021. Negotiations between the two parties are continuing, including with the aid of a Conciliation Officer appointed by the Federal Mediation and Conciliation Service.

 

The union said it will continue in the mediation process with meetings planned for March 11 through 16. The union also noted a legal work stoppage can only take place 21 days after the conciliation process is complete.

 

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Ukraine / Russia Situation Update

Dear Customer,

 

As a result of the dramatic escalation of events in the Ukraine, we are beginning to receive communications from vessel lines regarding the cessation of services to ports in the Ukraine and the acceptance of cargo to and from Ukraine.

 

We are also working to gather information regarding vessel services to and from Russia, as this situation is expected to evolve. We are receiving current advice from some vessel lines that service to Novorossiysk, Russia will be ceased with immediacy.  

 

Vessel lines could seek alternatives for cargo at sea and are reserving the right to declare end of voyage if necessary and legally required.

 

Simply put, cargo loaded to vessel and intended for discharge in the area of conflict may be discharged at an alternative port location without notice / approval. All charges associated with the same will be for the account of the cargo.

 

At this time, it is recommended that cargo be withheld from the pipeline in all cases possible in an effort to mitigate risk exposure and cost. We also recommend checking insurance cover for those cargo’s already in transit.

 

We will continue to monitor the situation and advise as new information is made available.

 

Please reach out to your Hensall Global representatives to review the situation further.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Please see below bulletin received from CP:

 

Quebec, NB, NS and PEI Ministry of Transport annual spring thaw weight restrictions. 

 

In support and preparation of the province of Quebec and the Maritime’s spring weight restrictions, CP will be implementing our reduced weight requirements as outlined below in Tables 1 & 2.

 

Effective Friday, February 25, 2022 CP will not accept or in-gate any overweight containers.

Overweight loads will be returned to the Shipper at the payer of freight’s expense. Domestic shipments where CP performs the drayage, weights must be reduced and evenly distributed in the unit in order to avoid possible charges and fines associated with the Quebec and New Brunswick spring thaw restrictions. The payer of freight retains responsibility for any such charges. If the Government of Quebec issues an earlier date for spring thaw weight restrictions than CP’s effective date, we will advise accordingly.

CP will advise via Customer Bulletin when the reduced weight restrictions will be lifted, this will be based on Quebec and the Maritimes spring thaw restrictions end dates published by the their respective Ministry of Transport.

Final dates to ship without restrictions:

The final shipping dates without restrictions are listed below in Table 1. Maximum payload is noted in Table 2. We encourage you to visit the Government of Quebec website here and the New Brunswick website here for a complete guide on spring thaw zones, dates, regulations, and restrictions.

 

Overweight traffic delayed online, but shipped prior to Last Shipping Date, will be delivered by CP without the application of overweight charges.

Table 1:

 

Last shipping date with regular payload weight:

 

Traffic origin

Quebec Destination

Maritimes Destination

Edmonton IMS

Monday, February 28

Friday, February 18

Minneapolis IMS

Monday, February 28

Friday, February 18

Vancouver IMS

Monday, February 28

Friday, February 18

Calgary IMS

Tuesday, March 1

Friday, February 18

Regina IMS

Tuesday, March 1

Friday, February 18

Winnipeg IMS

Tuesday, March 1

Friday, February 18

Schiller IMS

Tuesday, March 1

Friday, February 18

Vaughan IMS

N/A

Tuesday, February 22

Vaughan IMS

N/A

Tuesday, February 22

 

Table 2:

 

Maximum Payloads - allowable content weight:

 

Chassis

Container type

Destination Lachine (Pounds)

Destination STJ (Pounds)

Tridem

53' CPPU Refrigerated

46,500

46,500

Tridem

53' CPPU Heater

48,300

48,300

Tridem

53' CPPU Dry Van

50,500

50,100

Tridem

53' CDAU & EMHU

48,100

48,100

Tridem

40' Marine Dry

51,000

50,100

 

CP Dray Restrictions:

 

CP will not move any containers with a payload in excess of the Government of Quebec and Maritimes spring thaw weight restrictions on CP chassis (Triaxles and Tandems). On all overweight shipments, the payer of freight is responsible for securing their own dray vendor and chassis equipment to move overweight containers to and from CP’s Lachine and Saint John ramp.

 

Should the payer of freight request CP assistance to support movement of overweight load from Lachine terminal, CP may arrange for use of a quad axle chassis. Quad axle chassis use fee as per Tariff 3 is $600 per unit, per day or part thereof. This fee applies from the time the chassis leaves the terminal until it is returned to Lachine. Please refer to CP’s Tariff 3 for all ancillary charges or click here. The overweight arrangements will be done after receiving written confirmation that the payer understands and accepts the charges. Only live offload deliveries will be permitted.

 

Shipments moving to/from Lachine IMS, destined for Eastern Ontario:

 

Please click here to refer to CP’s Domestic Dray tariff 7551 for a complete list of Ontario cities serviced by Lachine IMS which are subject to spring thaw weight restrictions.

This broadcast is intended for Intermodal customers shipping to Quebec, QC and Saint John, NB (excludes International marine traffic). If you have difficulty reading this email, click here to log into Customer Station and view it there.

 

Service Plan (22, 25, 62, & 65)

 

CP will not load any overweight containers on CP chassis (Triaxles and Tandems) as per the Government of Quebec spring thaw weight restrictions after CP’s spring thaw start date of February 28, 2022. When booking a load as Door-to-Ramp or Ramp-to-Ramp, the payer of freight is responsible for securing their own dray vendor and chassis equipment at destination Lachine IMS ramp.

 

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

 

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State of Emergency Declared

Dear Customer,

 

Please find an excerpt from CTV News:

 

 

Ontario Premier Doug Ford has declared a state of emergency in an effort to put an end to the “siege” in Ottawa and Windsor as the truck convoy protests continue to disrupt traffic and prevent the transport of goods across the Canadian border.

 

Ford made the announcement Friday at Queen’s Park, saying he will convene cabinet and “use legal authorities to urgently enact orders” that will protect international border crossings, as well as the 400-series highways, airports, bridges, ports, and railways in the province.

 

The premier said the orders will “make crystal clear it is illegal and punishable to block and impede the movement of goods, people and services along critical infrastructure.”

 

The province will also be providing “additional authority” to take away the personal and commercial licenses of those who do not comply.

 

“While these emergency orders will be temporary, we have every intention to bring new legislation forward that will make these measures permanent in law. We are taking the steps necessary to support our police as they do what it takes to restore law and order,” Ford said at the news conference.

 

The protests in Ottawa have surpassed the two-week mark, forcing the mayor to declare its own state of emergency last weekend, while the blockade in Windsor at the Ambassador Bridge has been ongoing since Monday.

 

The demonstrators say they are against vaccine mandates and other COVID-19 measures currently in place.

 

Speaking on Friday, the premier made it clear the new measures will not impede on anyone’s right to protest—but also said the protests in Ottawa and Windsor have gone on too long and are now impacting the economy of the province.

 

“We are now two weeks into the siege of the City of Ottawa. I call it a siege because that is what it is. It’s an illegal occupation,” Ford said. “This is no longer a protest. With a protest, you peacefully make your point, and you go back home, and I know that the vast majority of people did that. They came, they peacefully demonstrated, they made their point and they left.” And I want to say to those people, you have been heard, Canada has heard you.”

 

“My message to those still in Ottawa, to those at our border crossings, please go home.”

 

The premier also confirmed Thursday the province successfully applied for a court order to freeze the distribution of donations raised through online fundraising for the convoy, who are protesting vaccine mandates and other COVID-19 measures. An application is also set to be heard by the Ontario Superior Court for an injunction that would prevent protesters from blocking the Ambassador Bridge.

 

 

We are continuing to monitor and will advise as new developments are communicated.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

 

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Spring Weight Restrictions 2022

Dear Customer,

 

Please see below notice received from CN:

 

To all Customers shipping to/from the Province of Quebec: In order to avoid a potential backlog of heavy loads requiring special handling we are implementing our Spring Weight Restrictions in advance of the Quebec Government notice. While the Government of Quebec has not posted the official Thaw period dates, we are planning to have all heavy loads arrive in March prior to the start of restrictions. If the Government of Quebec issues an earlier date, we will adjust accordingly.
 

Spring thaw Zone 1 tentative date is March 21st 00:01 to April 29th 23:59
Spring thaw Zone 2 tentative date is March 21st 00:01 to May 13th 23:59
Spring thaw Zone 3 tentative date is March 28th 00:01 to May 13th 23:59

 

 

Please note that payload weights in equipment to be delivered by CNTL must be reduced to meet the requirements in tables below for shipments planned to arrive after the start dates noted above.

To assist our customers during this period of reduced payload:

CN will establish a "Latest Shipping Date" where customers may ship at regular payload weights from each terminal (based on the consignee receiving the traffic immediately upon arrival at the destination terminal).

Note the shipping date will be referred to as the Reservation Date. CN’s online tools can assist in determining both the Reservation Date and Trip Plan.

In the event of an overweight load, CN may arrange for transloading, or use specialty equipment to deliver the load. Any required transloading will be done at the prevailing market rate. Charges for use of quad chassis are per tariff CN-9100 Item 8560 ($800 per unit plus drayage fees). To ensure that specialty equipment is not detained, all deliveries must be live-unloads. Any overweight arrangements will be completed only after receiving written confirmation that the payer understands the charges.

Overweight traffic delayed online, but shipped prior to the "Latest Shipping Date", will be delivered by CN without the application of overweight charges.

The following table shows the "Latest Shipping Date" relative to the start of CN’s Spring Weight Restrictions:

Table 1 – Latest shipping date for deliveries in Quebec’s Zone 1

 

Traffic Origin

Latest shipping date for Spring 2022

Halifax

21 February

Moncton

21 February

Montreal

-

Toronto 

21 February

Winnipeg

21 February

Saskatoon

14 February

Regina

14 February

Edmonton

14 February

Calgary

14 February

Vancouver

14 February

Detroit

21 February

Chicago

21 February

Memphis

21 February

Jackson

21 February

New Orleans

21 February

Mexico

10 February

 

The maximum payload handled using CNR equipment during the Spring Weight Restriction period is:

Table 2 – Maximum payloads

(Shipment Payload prior to loading)

 

53ft Dry

49,100 lb

53ft Heat

47,700 lb

53ft Reefer

46,500 lb

40ft Ecotherm

51,300 lb

40ft Dry

52,500 lb

45ft Dry

50,400 lb

20ft Dry

51,600 lb

 

Table 3 - Maximum Gross weight
(Shipment maximum after loading)

 

Steer and drive weights cannot exceed

 

Front single axle

12,000 lb

Tandem axle

34,100 lb

Tri axle on 60 - inch spread chassis

46,300 lb

Total Gross weight

92,400 lb

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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Dear Customer,

 

Further to our advisory yesterday, the Ambassador Bridge linking Windsor and Detroit remains partially closed and obstructed to traffic flow for a third day due to protests.

 

The group is protesting a mandate that requires drivers entering Canada to be fully vaccinated or agree to testing and quarantine protocols.

 

We are now being advised that wait times to cross back into Canada at the Blue Water Bridge in Sarnia have increased substantially as a result of the re-direction of traffic flow.

 

Cargo delays should be expected.

 

We continue to monitor the situation at both border crossing locations and will continue to update as new information becomes available.

 

Sincerely,

 

HENSALL GLOBAL LOGISTICS

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