Month in Review – October 2024
Maritime
October 1: Impacts Apparent After One Day of Three-Day Strike Action at Port of Montreal – Port of Montreal press release
The Montreal Port Authority (MPA) has revealed the operational impacts of Day 1 (September 30) of the partial strike at the Port of Montreal.
While the ongoing work stoppage at the Viau and Maisonneuve terminals is paralyzing 40% of total container handling capacity, MPA is seeing an accumulation of containers on the ground, including temperature-controlled containers for food, pharmaceutical and medical products. In addition, goods scheduled to transit through the Viau and Maisonneuve terminals are being held up at forwarding agents, and five container ships due to arrive at the Port of Montreal in the next few days have been delayed.
October 1: East and Gulf Coast Ports Strike, with ILA Longshoremen Walking Off Job from New England to Texas, Stranding Billions in Trade – CNBC
Approximately 50,000 ILA union longshoremen walked off the job at East Coast and Gulf Coast ports from New England to Texas starting at 12:01 am ET on October 1 after failing to reach an agreement with ports ownership on a new contract, the union’s first strike since 1977.
Between 43% and 49% of all U.S. imports and billions of dollars in trade monthly move through the U.S. East Coast and Gulf ports.
October 2: Port of Montreal Negotiations Update – MEA update
After a three-day strike, activities are to resume on October 3 at the Viau and Maisonneuve terminals.
In an online update, the Maritime Employers Association (MEA) said: “Clearly, the current mediation process is no longer producing results. The mediation meeting on September 26 unfortunately led to the longshore workers’ Union filing a strike notice the next day.”
October 2: Box Lines Declare Force Majeure as White House Defends ILA – The Loadstar
Shipping lines are beginning to declare force majeure, as the U.S. East and Gulf Coast port strike continues.
Any hope from employer association USMX that the government might intervene to halt the economically damaging strike was dashed when the White House landed firmly on the side of the union. The administration also warned carriers against ‘price-gouging.’
A statement from President Biden urged both sides to restart collective bargaining, saying “the best way for workers to get the pay and benefits they deserve.”
He added: “I have urged USMX, which represents a group of foreign-owned carriers, to come to the table and present a fair offer to the workers of the International Longshoremen’s Association that ensures they are paid appropriately in line with their invaluable contributions.
“Ocean carriers have made record profits since the pandemic and, in some cases, in excess of 800% compared with their profits prior to the pandemic. Executive compensation has grown in line with those profits and profits have been returned to shareholders at record rates.
“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well.”
October 3: U.S. Port Strike Ends as Workers Agree to Tentative Deal on Wages and Contract Extension – CNBC
The ILA and USMX agreed on October 3 to a tentative deal on wages and have extended their existing contract through January 15 to provide time to negotiate a new contract.
The move ends a strike that had snarled East Coast and Gulf Coast ports since the beginning of the week.
“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues,” the parties said in a joint statement.
October 4: Hapag-Lloyd Introduces Low-Water Surcharge from North Europe and Mediterranean to Canada – Container News
Hapag-Lloyd will implement a low-water surcharge from North Europe and Mediterranean to Canada, effective October 14.
“The water levels in the St. Lawrence River have significantly dropped, and the Canadian Coast Guard has forecast further reductions in the coming weeks,” noted the German carrier.
In response to these conditions, Hapag-Lloyd will introduce a surcharge of US$150 per TEU for all cargo transported via the Port of Montreal.
October 7: Port of Montreal Longshoremen to Refuse Overtime – CTV News
The longshoremen’s union at the Port of Montreal is announcing further pressure tactics: They will refuse to work overtime from 7 am on October 10 for an indefinite period.
A mediation session between the parties was held on October 4 in the presence of two federal mediators after the longshoremen resumed their activities.
Management of working hours and work-life balance were among the main issues in dispute.
October 7: Port of Montreal Negotiations Update – MEA update
In response to the announcement from the Port of Montreal longshoremen’s union, the Maritime Employers Association said that the complete cessation of overtime has a significant impact on deployed crews and the tasks required for operations.
As a result, the MEA has decided that employees assigned to shifts with incomplete crews will not be paid, saying that incomplete shifts will cause imminent slow downs or even halt operations at the port.
The MEA has formally asked the union to withdraw this strike notice.
October 15: Port of Montreal Labour Negotiations Update – MEA update
A meeting was held on October 15 with federal Minister of Labour Steven MacKinnon to advance the matter of the labour contract between the MEA and the Montreal Longshoremen’s Union. The meeting was attended by both the employer and the union.
During the meeting, the Minister proposed the appointment of a special mediator so the parties can resume negotiations, without any pressure tactic from either party for a period of 90 days.
The MEA and the union must submit their respective responses to the Minister of Labour no later than October 18 at 5:00 pm.
October 15: Carriers Battle for Market Share as Demand Falls and Alliance Shuffle Looms – The Loadstar
The shuffling of container shipping alliances in 2025 is prompting liner operators to fight for market share, impeding capacity discipline, despite a relentless fall in freight rates.
Linerlytica’s report this week notes that just 37 box ships, amounting to 77,185 TEU, equivalent to 0.3% of the active fleet, are currently unemployed.
The consultancy noted: “Demand for additional tonnage shows no signs of cooling down, with carriers snapping up all tonnage coming open on the charter market in the next two months. The idle fleet remains unusually low at this time of the year, while scrap sales for the year remain well short of 100,000 TEU as carriers set the stage for a fresh battle for market share ahead of the 2025 alliance reshuffle.”
October 21: More Cargo Chaos at Chittagong Port as Transport Operators Strike for 48 Hours – The Loadstar
Shippers are facing more upheaval at Chittagong Port – transport operators began a 48-hour strike on the morning of October 21, leaving export and import containers stranded.
The Chittagong District Prime Move Trailer Workers Union’s action will impact 3,000 to 4,000 TEU at the port each day of the strike.
Secretary general of the Bangladesh Inland Container Depots Association Ruhul Amin Sikder said: “If the strike continues, shipment of boxes would not be possible in time. Many containers will miss designated feeder and mother vessels.”
October 22: Overtime Ban at Port of Montreal Goes On as ‘Special Mediator’ Is Rejected – The Loadstar
Canadian shipping stakeholder hopes of a prompt resolution of the dispute at the Port of Montreal have been quashed, after Canadian Minister of Labour Steven MacKinnon’s proposal for “special mediation” was rejected.
Last week, Mr. MacKinnon made a proposal to the Maritime Employers Association (MEA) and Montreal Longshoremen’s union Local 375 to appoint a special mediator so the parties could “resume negotiations without any pressure tactics from either side, over a 90-day period.”
But Mr. MacKinnon wrote on X on October 21: “The parties have been unable to reach an agreement,” indicating that a mediator would therefore not be appointed.
But he urged: “They must find a path forward towards a negotiated settlement as quickly as possible,” and added that he would “continue to closely monitor the situation.”
Meanwhile, the overtime ban at the port that started on October 11 is set to last indefinitely.
October 23: BCMEA–Local 514 Bargaining Update – BCMEA update
The Canada Industrial Relations Board (CIRB) provided a written decision on October 23 on outstanding issues between the BC Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union Local 514, and has found, for the third time in this round of negotiations, that Local 514 has bargained in bad faith.
The decision follows the CIRB’s ruling this past summer that Local 514’s attempt to isolate DP World with a strike vote and strike notice in July 2024 was bargaining in bad faith, and therefore illegal. In that same ruling, it also held that Local 514’s proposal regarding DP World’s Nanaimo terminal constituted bargaining in bad faith because it was raised too late into the negotiation process.
Now the CIRB has determined that Local 514 bargained in bad faith by tabling a minimum manning proposal at DP World (Canada) Inc., more than a year into the bargaining process.
October 24: Union Issues Notice of 24-Hour Strike at Port of Montreal – MEA update
The Maritime Employers Association (MEA) received a strike notice on October 24 from the Port of Montreal Longshoremen’s Union, CUPE Local 375, which will see a complete stoppage of work on Port of Montreal territory, including the Contrecœur terminal, for 24 hours, from Sunday, October 27, at 7:00 am to Monday, October 28, at 6:59 am.
October 28: Port of Montreal Dockworkers Launch Partial Unlimited Strike – Global News
After holding a 24-hour strike on October 27, dockworkers at the Port of Montreal have decided to continue their pressure tactics with a general strike at two terminals.
The union representing nearly 1,200 longshore workers at the country’s second biggest port announced a job action will begin October 31 at the same two container terminals affected by a three-day strike earlier this month and continue until further notice.
The union says the terminals that will be impacted by the unlimited strike are operated by Termont and are responsible for about 40 percent of container traffic.
October 29: Port of Montreal Labour Negotiations Update – MEA update
The Maritime Employers Association (MEA) has asked Minister of Labour Steven MacKinnon to appoint a special mediator to break the deadlock between the MEA and the Longshoremen’s Union.
The MEA is concerned about operational upheavals expected from the union’s unlimited general strike at the Viau and Maisonneuve terminals starting on October 31, and the financial impacts they will have.
October 31: BCMEA–Local 514 Bargaining Update – BCMEA update
In response to ILWU Local 514’s second industry-wide strike notice set to commence on November 4 at or about 8:00 am PT, and in anticipation of escalating and unpredictable strike action, the BCMEA has made a decision to take defensive action in the form of a coastwide lockout.
Air
October 2: Airlines Scramble to Avoid Middle East Airspace as Missiles Fly – The Loadstar
Israeli, Jordanian and Iraqi airspace is temporarily closed after Iran’s biggest-ever missile attack on Israel, with disruption to air cargo traffic expected.
Israeli officials reported that Iran launched some 200 ballistic missiles at the country on October 1, following days of attacks on Hezbollah targets in Beirut, Lebanon.
October 10: Soaring Airfreight Rates See Dhaka Cargo Being Moved via China – The Loadstar
Bangladeshi freight forwarders have started sending air cargo to the U.S. west coast via China, as elevated airfreight rates elsewhere mean this is more cost-effective than using Middle East hubs.
As well as soaring rates out of Dhaka, forwarders have reported hubs in the Middle East as congested in recent weeks, particularly as regional tensions increase and airlines were forced to cancel flights.
October 11: Air Cargo Spot Rates Hit 2024 Peak, While Vietnam Becomes a Hotspot – The Loadstar
As of October 11, air cargo spot rates had risen to their highest level this year, despite the recent Golden Week holiday in China.
Tonnages fell by 7% week on week out of Asia Pacific, in the week to October 6, WorldACD said. But worldwide spot rates went up 1% in the week to $2.84 per kg – their highest level this year.
Asia Pacific rates rose 1%, while Africa was up 2% and Central and South America up 5%. WorldACD noted that contract rates out of Asia Pacific rose 2%.
One current hotspot is Vietnam – and it has not gone unnoticed by carriers.
October 17: Incendiary Device Revealed to Have Been Found in UK Parcel Network in July – Air Cargo News
It has been revealed that a shipment containing an incendiary device found its way into DHL’s UK parcel network and caught fire in July, with the incident under investigation by the country’s counter-terrorism police.
The Guardian reported that the device had been transported by aircraft into the UK and later caught fire at a DHL warehouse in Birmingham.
The incident occurred in July but only came to light on October 17 following an investigation published by the news services.
At this stage, it is not known whether the package was transported on a freighter or a passenger aircraft, or what its final destination would have been.
A similar incident occurred in Germany earlier this year with the package igniting in Leipzig.
The head of Germany’s domestic intelligence service, Thomas Haldenwang, said the shipment had been delayed and would otherwise have been on an aircraft when it caught fire and would have resulted in a crash.
October 18: Passenger Rush to Attend Festivals Puts Strain on India’s Air Cargo Flows – The Loadstar
Indian air freight forwarders and shippers are reporting a severe strain on airline bellyhold capacity, due to festival-linked passenger traffic.
Various Indian Hindu festivals run between September and November, with Diwali – the festival of lights – the biggest celebration, starting on October 31.
Industry sources complain that the cargo capacity crunch is seriously impacting supply chains, especially time-sensitive or perishable cargo movements.
“With the festive season in full swing, the surge in passenger air travel has put immense pressure on air cargo logistics players, particularly those relying on belly space to transport goods,” said Hector Crasto, GM (international division) at Mumbai-based 3PL Patel Integrated Logistics.
“Airlines are experiencing significant capacity pressures, both on domestic and international routes,” he noted, and explained that cargo volumes had seen strong surges in recent weeks, causing clearance delays of up to four days at major airports.
Rail
October 2: CPKC Integration Update
CPKC has scheduled the integration of its Canadian/U.S. systems for Q2 2025. Complete integration with Mexico is planned for a later date.
Significant progress on this has already been made by CPKC, including active collaboration with Railinc and Interline partners to ensure a successful transition. Customer training, support and ongoing communication regarding critical system or process changes will be provided well in advance.
October 7: Disputed CN Rail Hub in Milton Gets Go-Ahead from Federal Court – CHCH
There’s been a major development regarding the construction of a quarter-of-a-billion-dollar rail hub in Milton.
The Federal Court of Appeal has ruled construction can proceed as planned, even though there has been push-back from the community over environmental concerns.
CN Rail says the new transportation hub will meet the growing demand for the transportation of household goods across the GTHA.
Construction is well under way on the Milton Logistics Hub and is expected to take approximately two years to complete.
October 10: Unifor, CPKC Open Contract Talks; Conciliators Appointed for CN Negotiations – Progressive Railroading
Unifor has initiated contract negotiations with Canadian Pacific Kansas City, weeks after it opened negotiations with CN for a new contract agreement.
“Our bargaining team has prioritized the key issues of work ownership and protection, improving working conditions, and resolving poor labour relations,” Unifor officials said in a notice to members. “We are focused on securing protections against high levels of contracting out and forced overtime, as well as tackling strict company policies that negatively impact work-life balance.”
October 22: Ottawa Set Precedent in Rail Dispute, Labour Court Says – Radio-Canada (translated from French)
The Canada Industrial Relations Board has said the federal government’s directive to end work stoppages to allow rail traffic to resume across the country in August was an “unprecedented” move.
In a new document explaining its decision, the CIRB said Labour Minister Steven MacKinnon’s direction that the quasi-judicial body end the work stoppages and begin binding arbitration amounted to an order.
These ministerial directives are unprecedented in that […] the minister effectively ordered the Board to end the strikes and/or lockouts and impose final and binding arbitration to settle the terms of the collective agreements, wrote President Ginette Brazeau in a unanimous decision released on October 22.
Union members and worker advocates criticized the move, saying it undermined workers’ bargaining power and negotiating rights.
MacKinnon said he supports collective bargaining, but the directive was necessary to limit the impact of a work stoppage that has disrupted the movement of goods and people across the country.
October 24: Railways and Union to Begin Binding Arbitration Meetings in March – Inside Logistics
Following the August 23 order from the Canada Industrial Relations Board (CIRB) imposing binding arbitration between CN, CPKC and the Teamsters Canada Rail Conference (TCRC), CN recently announced it has agreed on an arbitrator to determine the terms of the next collective agreement.
Mediation meetings will occur over seven days in March. If a mediated settlement is not reached during those seven days, arbitration will be scheduled to take place in April. As per the protocol negotiated between the parties, the arbitrator will have 60 days to make a ruling. In view of this, a decision is expected before the end of the second quarter.
CIRB also directed that the current collective agreement remain in place until a new one is reached, meaning no strike or lockout can occur.
October 24: Arbitrator Tabbed for CPKC-TCRC Rail Contract Talks – FreightWaves
There is progress in contract negotiations between Canadian Pacific Kansas City (CPKC) and its largest union.
Teamsters Canada Rail Conference says the Federal Mediation and Conciliation Service has appointed William Kaplan as the arbitrator in its collective bargaining with the railway.
Kaplan is also serving as arbitrator for the TCRC’s contract negotiations with Canadian National, the union said in a news release.
A schedule has not been set for mediation.
October 29: Unifor Files for Conciliation in Contract Talks with Canadian Pacific Kansas City – CBC News
The union that represents mechanics and labourers at Canadian Pacific Kansas City Ltd. has filed for conciliation in its contract talks with the railway company.
Unifor, which represents more than 1,200 mechanics, labourers, diesel service attendants and mechanical support staff at Calgary-based CPKC, said its negotiations with the railway are at an impasse.
Trucking
October 2: U.S. FMCSA Targets Falsified ELD Records in New Approach – Transport Topics
Faced with evolving tactics to bypass hours-of-service rules, the U.S. Federal Motor Carrier Safety Administration is taking steps to combat electronic logging device fraud. The agency is launching a multipronged approach to address what it describes as a “moving target.”
In particular, the agency cited National Transportation Safety Board concerns with so-called ghost drivers as well as drivers utilizing multiple ELD accounts, and it is exploring various technological requirements to target those specific issues. It also is monitoring ELD performance data, training enforcement personnel to identify and act against fraud, removing noncompliant ELD providers from the market, and updating its ELD rules.
October 3: Halton Region Enforcement Blitz Puts One in Four Inspected Trucks Out of Service – Today’s Trucking
Enforcement officials placed 27% of inspected trucks out of service during a recent commercial vehicle enforcement blitz in Halton Region, situated in the Golden Horseshoe of Southern Ontario.
The Halton Regional Police Service, working with more than 80 police officers and ministry officials from police services and agencies across the Greater Toronto Area and Southwestern Ontario, inspected 487 trucks, placing 132 OOS during the annual event that took place October 1 and 2 at Elements Casino Mohawk, just off Highway 401.
Areas of concern included driver licensing, daily trip inspections and hours of service, along with truck-oriented issues that included mechanical fitness, load security, and weights of trucks and loads.
October 4: Cargo Theft Trends: Motor Carrier Number Manipulation Is on the Rise in the U.S. – FleetOwner
Imagine you’re a freight broker who has done business with the same trucking company in the U.S. for many years. The fleet has a good reputation, and you know them personally. Unbeknownst to you, those in charge of the trucking company sell its motor carrier number; unbeknownst to the fleet, those who purchase the number are cargo thieves.
With this MC number, the cargo thieves come to you, the freight broker, for a load. The cargo thieves paid extra to the original fleet for its phone number, email and other contact information. So, on your end, nothing has changed; the fleet information looks the same in your system. You have no idea that your once-trusted carrier sold its MC number. You give them a load, and the thieves steal it and others in one fell swoop, abandoning the MC number afterward.
This Trojan Horse method is called motor carrier number manipulation, and according to cargo theft experts, it’s currently on the rise.
October 4: Emission Regulations Leave Frustrated B.C. Truckers Tampering with Controls: Report – Business in Vancouver
A report from Metro Vancouver Regional District’s air quality department says there is “growing evidence” B.C. truck drivers are “tampering” with emission controls on their vehicles – a phenomenon confirmed by the BC Trucking Association.
The report states that tampering of medium and heavy truck (MHT) emission control software is a concern in meeting local nitrogen dioxide particulate and greenhouse gas emission targets.
The need for alternatives – such as renewable biofuels and short-sea shipping of containers, per the report – is evident because zero emission goals for MHTs are not attainable under current realities, said Dale Earle, president and CEO of the BC Trucking Association.
“We’re not there yet and it’s really frustrating” to face some of the regulations in place or about to be put in place, said Earle.
“The cold, hard truth is there is no mathematical way we can get to emission targets using zero emission vehicles,” said Earle, noting no electric truck can make it even halfway up the Coquihalla Highway.
October 10: FMCSA Guidance on Buying and Selling MC Numbers – Overdrive
Is it legal to sell an MC number? Trucking businesses obviously get bought and sold all the time.
But then there’s a grey, or maybe even black, market for MC numbers to help fraudsters evade detection from carrier vetting software or even the Federal Motor Carrier Safety Administration itself. Some shady operations offer trucking companies up to $30,000 for an MC number with a good history and relationships with big shippers.
Since 2013, FMCSA does not process “applications for transfer of operating authority, issue transfer approvals, or require the $300 fee formerly associated with such applications,” a notice in the Federal Register reads. “Under the new transfer recordation process, both transferors and transferees will be asked to provide basic identifying information concerning their business operations, ownership, and control, e.g., name, business form, business address, and name(s) of owner(s) and officers. No application form is required, and no transfer fee applies.”
Basically, these days, when two willing parties want to transfer an MC, they’re asked, not required, to tell FMCSA about it, and there isn’t even an application.
October 18: Q3 Cargo Theft Incidents 14% Higher Than Last Year – Today’s Trucking
Cargo thefts across the U.S. and Canada saw a sharp rise in the third quarter of 2024, with 776 theft events reported, representing a 14% increase compared with the same period in 2023, according to a new report from CargoNet. The total value of stolen goods in the third quarter of the year exceeded $39 million.
Despite a slight 1.6% decrease in incidents compared with the second quarter of 2024, the gap is expected to close as delayed reports come in, CargoNet said. The report added that organized crime groups continue to drive the increase in cargo theft, turning to increasingly sophisticated tactics of strategic nature that typically involve some form of document fraud, identity theft and intent to steal the property they are being entrusted to transport.
October 25: Non-Compliant Carriers Gaming the System for Profit: CTA’s Laskowski – Today’s Trucking
Non-compliant carriers are gaming the system and gaining market share, warned Stephen Laskowski, president of the Canadian Trucking Alliance (CTA).
He observed that the government is not taking the issue seriously and wants rules enforced.
Laskowski said industry members are getting increasingly frustrated about enforcement regarding personal services businesses and employee misclassification.
“Why isn’t the law being applied? Is a political calculus being applied to the law?” he asked. “We are entering an era where we have seen decisions made that don’t factor in the application of the law exclusively. Enforcing the rules is not black and white anymore.”
