MSC Diversion fallout

 Short term work stoppages followed by an indefinite longshore workers strike in the Port of Montreal started on October 31. The employers then declared a lock out as of November 10. The strikers were ordered back to work, by government edict, effective today, November 16, with binding arbitration to follow. As a result of the Montreal shutdown The Mediterranean Shipping Company (MSC) diverted ships to Halifax. The scale of the diversions was apparent from the number of MSC boxes piled up at the two container terminals. [see previous posts]

It is also apparent that clearing those boxes and sending them back on their way to Montreal now that the strike is over will be a major operation. CN Rail has added extra trains, but that is apparently insufficient to move the large number of stranded containers on top of the normal amount of cargo moving through the port at the height of the consumer goods season.

Montreal is a terminal port, where ships unload completely then load new cargo. Halifax in the other hand is usually a waypoint, handling only a portion of the cargo aboard any given ship. When Montreal is unavailable the ships that divert to Halifax must offload all their cargo here. It is fortunate that the Port of Halifax has the additional capacity available so that ships can keep moving instead of being stalled at anchor for the duration of a strike.

MSC has applied for coasting licenses to use two foreign flag ships to move the stranded boxes from Halifax to Montreal. There are no Canadian ships able to handle the amount and type containers, so it is expected that permission will be granted. Trade between Canadian ports is restricted by law to Canadian flagged ships. If no suitable Canadian ships are available a coasting license may be granted to a foreign flag ship by the Minister of Public Safety and Emergency Preparedness upon recommendation by the Canadian Transportation Agency (CTA).

In their application to the CTA, MSC requested permission to use the MSC Baltic III 2526 TEU and MSC Sagitta III 3426 TEU for three trips each between November 24 and December 31 from Halifax to Montreal. The ships normally operate on the Canada Gulf Bridge route from Montreal to Mexico, so may be calling in Halifax on their northbound legs and adding the diverted boxes to whatever cargo they may already have on board or they may be making special trips. They also have relatively large reefer capacity - in excess of 300 TEU each.

In its application to the CTA MSC noted the names of ships that were diverted to Halifax while en route to Montreal: MSC Nahara, MSC Levina III, MSC England and MSC Jordan III [see previous posts]. The application suggests that in excess of 5,000 containers are involved, both loads and empties. There are several hundred temperature controlled containers included, that must be maintained in operation.

Readily identifiable MSC boxes, and others that may have been carried on MSC ships, are stacked in all available space in the two terminals sharing space with the regular number of containers from other lines.

A letter from the Port of Halifax supporting the CTA application states that yard utilization stands at 60% for PSA Fairview Cove and 92% for the PSA Atlantic Gateway. Plug in space for temperature controlled boxes stands at 95% for Fairview and 65% for the Atlantic Gateway.

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