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Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes

2024-05-15

On May 1st, the Teamsters Canada Rail Conference (TCRC), representing over 9,000 employees of the Canadian National Railway Company (CN) and the Canadian Pacific Kansas City Railway (CPKC), announced with an overwhelming majority vote in favor, that its union members would be going on strike, with the earliest possible strike date set for May 22nd.

The President of TCRC stated that simultaneous strikes by CN and CPKC would disrupt the supply chain on a scale possibly unprecedented in Canada's history. Previously, a major strike occurred at the Port of Vancouver, resulting in the loading and subsequent detention of grain on approximately 52 vessels. Operations management professors at Western University suggest that the impact of a railway strike or shutdown on Canada's supply chain could far surpass that of the Vancouver port strike.

Contracts between the railway companies and union workers expired on December 21st, 2023. If a new agreement is not reached between the parties, railway freight and passenger services across Canada will be interrupted.

Given Canada's vast expanse and heavy reliance on railway transportation for the export of grains, potash, and coal, railways are crucial to the Canadian economy.

Maersk's Emergency Announcement!

Faced with the threat of a strike by Canadian railway workers and to ensure continuity of the supply chain and mitigate potential congestion, shipping giant Maersk has announced emergency measures to address the potential impact of strikes. The logistics adjustments are as follows:

Optimizing West Coast Port Operations: Maersk will collaborate closely with CN, CPKC, and terminal operator DP World to accelerate and optimize operations at Canadian West Coast ports, such as Prince Rupert Port, by diverting cargo from Centerm in Vancouver, thus dispersing transport pressures and improving overall logistics efficiency.

Adjusting Maersk TP1 Service Ports of Call: Maersk will adjust the TP1 service route, designating Tacoma Port as a temporary port of call for US import/export rail cargo in the next four sailings to mitigate potential strike impacts. This adjustment will ensure the continued flow of goods and alleviate potential disruptions caused by strikes.

  • Maria Y – Voyage 419N 422S
  • Santa Barbara – Voyage 420N 423S
  • MSC Domna X – Voyage 421N 424S
  • GSL Effie – Voyage 422N 425S

TP1 is a service provided by the 2M Alliance (MSC & MSK), calling at ports in Asia such as Xiamen, Yantian, Ningbo, Shanghai, Busan, and Yokohama.

Reviewing Railway Routes and Transit Times: Maersk will review feasible railway routes and evaluate transit times to destinations in the US via Tacoma. This will help identify alternative logistics paths to ensure goods arrive at their destinations on time.

Assessing Trucking Transport Options: Considering potential trucking constraints in Western/Eastern Canada, existing trucking transport options will be reviewed, and alternative solutions explored.

By implementing the above logistics adjustments, Maersk aims to mitigate potential disruptions and congestion resulting from Canadian railway worker strikes, ensuring the continuity and stability of the supply chain.

Maersk also warns that if strikes occur, severe congestion may ensue, leading to a ripple effect. If interruptions persist for several days or more, the recovery period may be prolonged.

Furthermore, according to Reuters, a Canadian government official stated yesterday that the Canadian government is taking action to postpone potential strikes.

latest company news about Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes  0

National Strike! Port Operations Interrupted!

In addition to potential strikes in Canada, Argentina is also facing the impacts of strikes. On May 9th local time, a nationwide strike initiated by Argentina's largest labor union federation, the General Confederation of Labor, may paralyze the country.

This nationwide strike will affect the normal operations of various industries and have a serious impact on the economy. Strikes will cause significant disruptions to transportation and commercial operations and affect the operations of all ports.

Kuehne+Nagel has issued a warning on its official website: Unions across Argentina will begin a 24-hour nationwide strike on May 9th. It is expected that freight transport and port operations in Buenos Aires will be interrupted.

latest company news about Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes  1

Shippers and freight forwarders are advised to make advance shipping plans and emergency plans, stay informed about local strike dynamics, understand cargo node information in transit, and update transportation plans accordingly to avoid unnecessary losses!

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Company news about-Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes

Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes

2024-05-15

On May 1st, the Teamsters Canada Rail Conference (TCRC), representing over 9,000 employees of the Canadian National Railway Company (CN) and the Canadian Pacific Kansas City Railway (CPKC), announced with an overwhelming majority vote in favor, that its union members would be going on strike, with the earliest possible strike date set for May 22nd.

The President of TCRC stated that simultaneous strikes by CN and CPKC would disrupt the supply chain on a scale possibly unprecedented in Canada's history. Previously, a major strike occurred at the Port of Vancouver, resulting in the loading and subsequent detention of grain on approximately 52 vessels. Operations management professors at Western University suggest that the impact of a railway strike or shutdown on Canada's supply chain could far surpass that of the Vancouver port strike.

Contracts between the railway companies and union workers expired on December 21st, 2023. If a new agreement is not reached between the parties, railway freight and passenger services across Canada will be interrupted.

Given Canada's vast expanse and heavy reliance on railway transportation for the export of grains, potash, and coal, railways are crucial to the Canadian economy.

Maersk's Emergency Announcement!

Faced with the threat of a strike by Canadian railway workers and to ensure continuity of the supply chain and mitigate potential congestion, shipping giant Maersk has announced emergency measures to address the potential impact of strikes. The logistics adjustments are as follows:

Optimizing West Coast Port Operations: Maersk will collaborate closely with CN, CPKC, and terminal operator DP World to accelerate and optimize operations at Canadian West Coast ports, such as Prince Rupert Port, by diverting cargo from Centerm in Vancouver, thus dispersing transport pressures and improving overall logistics efficiency.

Adjusting Maersk TP1 Service Ports of Call: Maersk will adjust the TP1 service route, designating Tacoma Port as a temporary port of call for US import/export rail cargo in the next four sailings to mitigate potential strike impacts. This adjustment will ensure the continued flow of goods and alleviate potential disruptions caused by strikes.

  • Maria Y – Voyage 419N 422S
  • Santa Barbara – Voyage 420N 423S
  • MSC Domna X – Voyage 421N 424S
  • GSL Effie – Voyage 422N 425S

TP1 is a service provided by the 2M Alliance (MSC & MSK), calling at ports in Asia such as Xiamen, Yantian, Ningbo, Shanghai, Busan, and Yokohama.

Reviewing Railway Routes and Transit Times: Maersk will review feasible railway routes and evaluate transit times to destinations in the US via Tacoma. This will help identify alternative logistics paths to ensure goods arrive at their destinations on time.

Assessing Trucking Transport Options: Considering potential trucking constraints in Western/Eastern Canada, existing trucking transport options will be reviewed, and alternative solutions explored.

By implementing the above logistics adjustments, Maersk aims to mitigate potential disruptions and congestion resulting from Canadian railway worker strikes, ensuring the continuity and stability of the supply chain.

Maersk also warns that if strikes occur, severe congestion may ensue, leading to a ripple effect. If interruptions persist for several days or more, the recovery period may be prolonged.

Furthermore, according to Reuters, a Canadian government official stated yesterday that the Canadian government is taking action to postpone potential strikes.

latest company news about Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes  0

National Strike! Port Operations Interrupted!

In addition to potential strikes in Canada, Argentina is also facing the impacts of strikes. On May 9th local time, a nationwide strike initiated by Argentina's largest labor union federation, the General Confederation of Labor, may paralyze the country.

This nationwide strike will affect the normal operations of various industries and have a serious impact on the economy. Strikes will cause significant disruptions to transportation and commercial operations and affect the operations of all ports.

Kuehne+Nagel has issued a warning on its official website: Unions across Argentina will begin a 24-hour nationwide strike on May 9th. It is expected that freight transport and port operations in Buenos Aires will be interrupted.

latest company news about Global Supply Chain Crisis: Maersk Implements Emergency Measures in Response to Canadian Railway Strikes  1

Shippers and freight forwarders are advised to make advance shipping plans and emergency plans, stay informed about local strike dynamics, understand cargo node information in transit, and update transportation plans accordingly to avoid unnecessary losses!