The ongoing blockade of tracks of Canadian National Rail (CN) has caused the first diversion of a container service south of the Canadian border, and a second one may follow.
Atlantic Container Line (ACL) is avoiding the port of Halifax, discharging containers headed for the Canadian gateway at US ports instead.
Rail traffic to and from the port has slowed down drastically after CN started a shutdown of its network in eastern Canada due to the blockade of its line in Ontario, severing connections to Montreal and the Atlantic coast ports (s. Loadstar 14/2).
Speaking to the Canadian Broadcasting Corporation, ACL president & CEO Andrew Abbott, said that after two weeks of disruptions, customers have got fed up with the situation.
“We’ve now re-routed it all over to New York or Baltimore,” he announced.
Other container lines may follow suit. Hapag-Lloyd informed its customers in a notice that is was exploring “various options to move/divert cargo out of Halifax”.
The port of Halifax remains open, but containers have been piling up there. The port of Montreal has tweeted that vessels are moving on schedule but there are “certain impacts on rail operations”.
According to Michelle McCaughan, senior director, sales & operations at Montreal-based forwarder AGO Transportation, the impact so far has not been severe.
“The blockade updates change a couple times a day but to be honest, we are still not seeing any major delays and no alternatives (via truck or US ports) are being requested at this time,” she noted.
Protesters blocked CN lines in British Columbia and Manitoba as well as Ontario, which paralysed rail service to and from the port of Prince Rupert and disrupted flows to and from Vancouver. The line to Prince Rupert is open again, but both ports continue to struggle with the backlog from the blockades. Vancouver has advised truckers and importers to expect delays in receiving their cargo due to terminal congestion.
Pressure is mounting on the federal government in Ottawa to bring an end to the blockades. Canadian Manufacturers & Exporters, which claims to be the country’s largest trade and industry association, warned that manufacturers could be forced to halt production if the disruption does not end soon.
“For every additional day that the blockage continues approximately $425 million (US$320.5 million) of manufactured goods that are usually carried by rail are sitting idle,” stated Dennis Darby, the association’s president & CEO.
Agriculture interest groups are also anxious to see the blockade come to an end. The Canadian Federation of Agriculture pointed out that rail disruptions not only impede the delivery of food and other agricultural products but also affect propane supplies to farmers in eastern Canada, which they need to heat their barns. Its members are experiencing the second disruption since last autumn, when an eight-day strike in November affected harvest shipments on CN.
The government in Ottawa has been negotiating with protesters since last weekend, stressing the need for a peaceful resolution. Calls for a more assertive stance are likely going to increase as the repercussions from the blockade mount
