PORT METRO VANCOUVER AT CRISIS LEVEL, FORCE MAJEURE DECLARED

PORT METRO VANCOUVER AT CRISIS LEVEL, FORCE MAJEURE DECLARED 2014-03-14

The ongoing Vancouver port labour dispute has reached a crisis level as terminals are nearing full capacity. As shippers are seeking alternative options by rerouting cargo to nearby ports, some ocean carriers have introduced more drastic measures declaring a Force Majeure, indicating their intent to discharge Vancouver-bound cargo in other ports such as Tacoma and Seattle.
 
Terminal Systems Inc., (TSI) the operator of Vancouver’s Deltaport and Vanterm terminals, has announced that without a resolution to the strike Vanterm will reach capacity and buffer space for local traffic will be exhausted by the the week of March 16, 2014. As a result of a Force Majeure, Vanterm will only be able to discharge import containers destined for rail, and local Vancouver import containers will be unable to discharge for trucking off the terminal. 
 
The existing backlog is so extreme that the effects of the strike are not yet being felt for east bound rail cargo. However, the strike actions are compounding delays already being experienced due to extreme weather and high volumes since late January, and matters will only get worse unless a solution is found. 
 
In order to minimize the delays for all rail bound cargo, we recommend the optional ERS (Expedite to Rail Service) service offered by Vancouver’s Deltaport and Vanterm terminals. This added service prioritizes containers on to rail for an additional charge. Currently, containers on that service are in fact loading substantially quicker to rail. 
 
Without immediate action the ports may in fact close by early next week. The consequences of mass vessel diversions and declarations of Force Majeure will be devastating. CIFFA broadcasted an announcement (copy attached) urging every Canadian citizen every CIFFA member firm, association, importer and exporter to express their concerns to the federal government to the following contacts:
 
The Honourable Ms. Kellie Leitch
By email to: kellie.leitch@parl.gc.ca
Minister of Labour
Ottawa, ON K1A 0A6
 
The Honourable Ms. Lisa Raitt
By e-mail to: mintc@tc.gc.ca
Transport Canada
Minister of Transport,
Ottawa, ON K1A 0A5
 
The Honourable Mr. Ed Fast
By e-mail to: ministerofinternationaltrade@international.gc.ca
Minister of APG & International Trade
House of Commons, Ottawa, ON K1A 0A6
 
Action plan requests an immediate return to work by the striking truckers.
 
Late last night the Honourable Lisa Raitt, Minister of Transport, the Honourable Todd Stone British Columbia Minister of Transportation and Infrastructure, and Robin Silvester, President & Chief Executive Officer, Port Metro Vancouver, announced concrete action to end the trucking dispute in Port Metro Vancouver. A 14-point action plan (attached) has been collectively agreed upon to return the port to normal operations. 
 
Nevertheless, it will take weeks to sort out the backlog and regrettably, newly arrived containers may be delivered before some containers that are buried in the backlog.