CUSTOMER ADVISORY

Dear Customer,

Please find excerpts from a number of advisories issued to the industry by CN yesterday regarding the service impact resulting from the fires burning in the Jasper, AB region.

“The wildfire situation in Jasper is dynamic and fluid. As conditions worsened yesterday afternoon, CN safely suspended rail operations in coordination with the Unified Command Centre. CN is coordinating with the Unified Command Centre and remains engaged with all parties responding to this incident. Once we are permitted access, we will have to assess damage before we can estimate what is required and timeline to restore operations in the impacted area.”

***

“With the dynamic wildfire situation in Jasper, Alberta and the resulting uncertainty on how long it will take to restore operations through Jasper, CN will proactively take the following steps for traffic moving through this corridor to safely protect and secure your goods, and to minimize the impact of this temporary suspension of service.

Effective as of 12:01 p.m. MT, Thursday, July 25th, 2024, CN will embargo:
 

All Foreign traffic from BC inbound interchanges destined to all provinces except BC.

All BC inbound traffic. Permits will be available for BC origin to BC destinations.
All BC outbound traffic excluding key local BC customers. Permits will be available for local traffic.”

***

“Further to the various updates we have been providing regarding the wildfires around the Jasper, AB region, we would like to provide a further update and plan to our Shipping Line customers as we work through this situation: 
 

• Any capacity that has already been provided to various ports to Western Canada from all CN inland terminals, and customers have reservations secured, will be honored (both export loads & empties). At this point, any unbooked capacity will be removed.

• We request customers who have reservations secured to in gate containers (export loads & empties) to Malport & Brampton Intermodal currently to deliver those containers with the same reservation to CN-MISC. Once the line reopens and traffic is able to move, CN will dray these containers back to the respective terminal for departure.

• Our customer experience team is monitoring all export loaded traffic moving on line and will keep customers updated should there be traffic that is in jeopardy of missing vessels.

• Customers who would like to pick up export loaded traffic already in gated at a CN ramp, will be allowed to do so, provided the containers are operationally available. Customers will be required to provide our customer experience team a list of containers 24 hours in advance. Once the containers have been made available, customers will be notified accordingly.

 Please be advised, the above only pertains to ports in Western Canada; CN’s services to the Ports of Montreal, Halifax, St John, Mobile and New Orleans are operating under normal conditions.”

This situation remains very fluid. We will continue to update you as new information is made available.

Customers can expect delays in the movement of all cargo currently moving within the CN network.

At current, CPKC is advising that their “network is not directly impacted and that trains in the region are operating normally”.

Please note that we are working to assess the exposure on a per file basis and are reviewing alternative booking / transport options where they are available.

Please reach out to your Hensall Global representative should you have any questions / concerns.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please note that high levels of congestion persist at the Port of Singapore and reports suggest that there are increasing congestion levels at neighbouring Malaysian ports of call, as carriers look for alternative discharge options to avoid the backlog at Singapore.

The bottleneck is a result of increased traffic due to the conflict in the Red Sea, with carriers choosing to avoid transit through the Suez Canal. 

Singapore is the world’s largest transshipment hub, connecting more than 600 ports from 123 countries.

The severe congestion at the Port has led to significant berthing delays for ships, extending transit times and arrivals at final destination ports.

Please be guided accordingly and plan to buffer arrival dates if routing via Singapore.

Kind reminder that special consideration should be given to commodities prone to inherently degrade over time as most insurance policies will not cover losses of / damage to cargo attributed to inherent vice.

Please reach out to your Hensall Global representative should you have any questions or concerns.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please find excerpt from a news release issued Friday by CPKC.

“Today, the Canada Industrial Relations Board (CIRB) informed CPKC that it intends to issue its decision regarding the Ministerial Referral on the maintenance of activities by Friday, August 9. The CIRB has advised it will issue a decision without holding oral hearings.

This development helps provide some predictability regarding the timelines for a potential work stoppage because the parties cannot legally strike or lockout prior to the CIRB issuing its decision. In any event, a legal strike or lockout would require a minimum of 72 hours notice, subject to any extension of the cooling off period ordered by the CIRB. We have asked the CIRB to extend the cooling off period by 30 days.”

CN Rail had issued a very similar advisory to the industry.

We continue to monitor the situation for further developments and will advise as new information is received.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please note that over the weekend there was some activity between the ILWU and BCMEA.

On July 06th, the International Longshore and Warehouse Union (ILWU) Local 514 issued a 72-hour strike notice to the British Columbia Maritime Employers Association (BCMEA) placing them in a formal strike position as of 4:30pm Mon., July 08th at DP World Centerm and CP Fraser Surrey Docks.

In response, the BCMEA issued a press release advising that they had requested an urgent intervention of the Canada Industrial Relations Board (CIRB).  While the request was under review, the BCMEA then decided to take defensive action and issued a formal notice to the ILWU that they would lock out all ILWU employees as of July 09 @ 16:30.

Following review of the case, the CIRB determined the ILWU declaration of strike action against DP World was in contravention of the Canada Labour Code and as such directed the Union to rescind its strike notice.

In response, the BCMEA then rescinded the industry-wide lock out notice they had issued.

Read more on the negotiation

Business is proceeding today as per usual.

We continue to monitor the situation for further developments and will advise as new information is communicated.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

CP has issued following update to the industry:

“Today, CPKC filed its reply submission to the Canada Industrial Relations Board (CIRB) pursuant to the deadline established by the CIRB as it considers the Federal Minister of Labour’s referral regarding maintenance of activities during a potential railway strike or lockout.

While it remains unclear how long it will take for the CIRB to issue a decision, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout before mid-July or later. In any event, a legal strike or lockout cannot occur until at least 72 hours after the CIRB renders a decision.

Our customers, employees, and stakeholders want predictability and certainty restored. Our supply chains have been through so much disruption in recent years and are now having to plan for a possible railway work stoppage that could come at an unknown time and on very short notice. This represents a major challenge for Canada’s supply chains, which is causing avoidable damage to Canada’s international trade reputation. CPKC has requested the CIRB order that a strike or lockout cannot occur until 30 days after the date on which the CIRB issues its decision to allow stakeholders to plan for any potential work stoppage.

In response to the Ministerial referral, the TCRC proposed that the bargaining timelines of both CPKC and CN be staggered by two weeks to allow for further negotiation and potential staggered work stoppages. CPKC was prepared to consider such a proposal provided there was a mechanism to resolve any dispute if negotiations failed. The TCRC refused and appear fully committed to strike action.

CPKC’s offer to resolve any labour dispute through binding interest arbitration in order to avoid a work stoppage remains on the table. CPKC’s previous offers to the TCRC, both of which provide significant benefits to our employees and fully comply with new regulatory requirements for rest, also remain on the table. Neither offer compromises safety and to suggest otherwise is patently false.

We will continue providing regular updates to keep all stakeholders informed.

Access all our TCRC Bargaining Updates online here.”

Please be guided accordingly.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please find excerpt from an article published by Global News:

“A looming strike by Canada Border Services Agency workers was averted Tuesday after the union representing over 9,000 employees announced they have reached a tentative contract agreement.

The Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU) were in intense negotiations with the federal government over a new contract that were extended last week to allow more time for talks. Both sides were facing down a 12:01 a.m. Friday deadline, when the union said job action would begin if no deal was reached.

“Our bargaining team has been working around the clock to secure the best contract for our members, and this tentative agreement is a testament to their incredible hard work and dedication,” PSAC national president Sharon DeSousa said in a statement, calling the result "a well-deserved victory" for all union members.

Details of the agreement were not immediately released. Members are being told they will see the full deal on Thursday.

The Treasury Board Secretariat said in a statement the tentative deal will include "wage enhancements and other benefits for employees."

"The government and PSAC have spent long hours at the bargaining table to find solutions and common ground," the statement said. "In the end, an agreement was reached that is fair for employees and reasonable for Canadians."

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please find excerpt from an industry updated issued by the Global News:

“Canada Border Services Agency members will strike starting this Friday if no deal is reached, the union representing workers said on Monday.

A statement by the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU), which represents more than 9,000 CBSA workers, advised that if an agreement is not reached with the CBSA and Treasury Board, the job action would begin at 12:01 a.m. ET on June 14.

The notice of action comes after it paused its original plan to begin at 4 p.m. on June 7 to allow for negotiations to continue until June 12.

A strike by CBSA workers would potentially impact border crossings across the country.

CBSA workers have been without a contract since the last one expired in June 2022.

According to the union, the two sides remain in negotiations this week with assistance from a mediator. PSAC and CIU would not provide further comment.”

We continue to monitor the situation and will advise as further updates are received.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please find excerpt from an article published by CTV News:

“The union that represents 9,000 CBSA workers said Friday they won't strike until at least Wednesday, as mediation continues.

The Public Service Alliance of Canada initially said border workers were set to strike as early as 4 p.m. Friday if the two sides hadn't reached a deal.

But shortly after 4 p.m., a spokesperson for the union said negotiations would continue.

The spokesperson said later Friday that a new strike deadline would be set in the coming days and job action was still possible if an agreement couldn't be reached at the table.

The federal Treasury Board said Friday it was pleased PSAC has committed to staying at the negotiating table.

"To date, discussions have been productive, and we remain committed to reaching an agreement that is fair and reasonable for members of the Border Services group as quickly as possible," the department said in a statement.

The union did not immediately elaborate on how the talks are going.

The government says 90 per cent of front-line border officers are designated as essential, which means they can't stop working during a strike.

But union members could work-to-rule, a tactic in which employees do their jobs exactly as outlined in their contracts.

Experts say that could still cause serious slowdowns, which could turn into massive disruptions given the volume of traffic that normally moves across the border.

"CBSA employees in essential services positions must provide uninterrupted border services and cannot intentionally slow down border processing," the border agency said in a statement.

"Job action would slow down commercial traffic at the border and ports of entry, impacting international travel, mail and parcel deliveries, and disrupting the collection of duties and taxes on goods entering Canada," the group said.

"In short, a strike would be massively disruptive to any commercial traffic and business travel for manufacturers."

Please note that we continue to monitor the situation and will advise as new updates become available.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

Please find excerpt from a news article published by Global News.

“Thousands of employees at the Canada Border Services Agency could begin striking as early as Friday afternoon, potentially causing “major delays” across the country at airports and border crossings.

More than 9,000 members of the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU) will begin job action at Canada’s borders starting Friday at 4 p.m. ET if an agreement is not reached with the CBSA and Treasury Board by then.

While essential CBSA workers can’t walk off the job, the union said Canadians will still feel the effects, highlighting a brief strike three years ago that “nearly brought commercial cross-border traffic to a standstill, causing major delays at airports and borders across the country.”

The looming strike could mean Canadians and visitors find themselves in long lines at the border yet again during the busy travel season.

Mediation sessions between the union and employers began Monday and continue “in a last-ditch effort to reach an agreement,” PSAC says.”

We continue to monitor the situation and will provide updates as they become available.

Sincerely,

HENSALL GLOBAL LOGISTICS

Dear Customer,

CN has issued following update to the industry:

“To stay informed about the collective bargaining updates between the Teamsters Canada Rail Conference (TCRC) union and CN, please visit: www.cn.ca/TCRCinfo.
 

Last week, CN and other parties met with the Canada Industrial Relations Board (CIRB) to discuss the Minister of Labour’s request for clarity on the continuation of activities during a work stoppage.

As part of this process, the parties had until May 31 to reply to submissions filed earlier on the issue. The CIRB has now extended this deadline to June 14 and has asked that specific themes identified in the submissions filed by stakeholders be addressed in the replies.

A work stoppage cannot occur until the CIRB issues its decision. While the CIRB does not have a set timeline, we believe a work stoppage is unlikely before the mid to late July timeframe. The CIRB’s request for clarity does not impact CN and the TCRC’s ability to continue bargaining, nor does it impact our service levels. Our trains continue to run to schedule, delivering your goods safely and efficiently.

Negotiations with the TCRC continued on June 4, with the support of federal conciliators. In an attempt to find a resolution that protects the North American economy and not impact its supply chains, CN made a formal offer to the TCRC to enter into binding arbitration. Binding arbitration would mean that the union and CN agree that a mutually agreed upon independent arbitrator will resolve the terms of the new collective agreement. The TCRC has declined CN’s proposal for binding arbitration.

As previously communicated, CN tabled a revised offer to the TCRC in May that focuses on reaching a mutually beneficial negotiated agreement with the TCRC that avoids a work stoppage and protects North America’s supply chains, while maintaining a safe work environment for our employees.”

 

We continue to monitor the situation and will provide updates as they become available.

Sincerely,

HENSALL GLOBAL LOGISTICS