US shippers avoid NY-NJ labour strife by using cheaper and better Montreal
Time：2016-03-10
Browse：79
The average US shipper saves $109 per shipment by moving inbound cargo through Canadian ports, according to a US Federal Maritime Commission report released in 2012.
The wildcat strike on January 29 by dockers of International Longshoremen`s Association (ILA) at the New York-New Jersey was a wakeup call.
The existing contract covering US east and Gulf Coast ports expires September 30, 2018 while the ILA in Montreal work under a contract that expires in December 2018.
But Montreal has limited capacity. New York-New Jersey handled 3.4 million TEU last year compared to Montreal`s 1.45 million TEU.
Draft restrictions on the St Lawrence River also prevent Montreal from handling ships more than 4,200 TEU.
Montreal throughput has grown three to five per cent a year and the share of cargo moving between Europe and the US Midwest is 18 - 20 per cent, said Montreal Port Authority vice president Tony Boemi.
Even without the threat of ILA strife, the port has an attractive proposition for transatlantic shippers moving time-sensitive imports, such as auto parts.
Mr Boemi said shippers using Montreal can get cargo to the US Midwest three to five days faster than via New York and New Jersey port.
Shippers save US$200 to $250 by moving a container unit via a Canadian port rather a US port through lower fees, according to Canadian National Railway.
Which does not include the savings from not paying US Harbour Maintenance Tax.