[070820.EN.SEA] Hapag-Lloyd Diverts 3,800-TEU Ship From Montreal Dock Strife

GERMAN shipping giant Hapag-Lloyd rerouted one of their ships as the Port of Montreal longshoremen's union continues to threaten to disrupt port operations, reports London's S&P Global.

The 3,800-TEU Detroit Express has been diverted to Saint John, New Brunswick, and is expected to arrive on August 8. Meanwhile, the 4,402-TEU Toronto Express is maintaining its call to Montreal on August 5.

The International Longshoremen's Association (ILA) local struck again August 3, which is expected to last until August 7. The strike is aiming at two container terminals at the Port of Montreal that belong to the Tremont company.

The strike comes after a four-day strike last week, as a result of negotiations over wages and hours went nowhere.

A retailer with distribution centres near the Port of Montreal is contemplating rerouting its container shipments to Halifax and moving them by truck or rail.

"The shipping industry is very competitive, and once you start rerouting supply you may not want to change it back. The Port of Montreal is not like New York or Los Angeles where it can not be avoided," the retailer said.

The Port of Montreal had a throughput of 826,705 TEU in the first half, a 3.8 per cent year-on-year decrease. The Port of Montreal is Canada's second-largest container port by volume after Vancouver.

Source : HKSG.