Lines agree to cut Vancouver cargo

February 17, 2005

17 February 2005

Lines agree to cut Vancouver cargo

The following article is excerpted from the 16 February 2005 edition of “The Journal of Commerce”.

Ocean carriers have agreed to cut import cargoes at Vancouver's Deltaport … by 25 percent a week for four weeks beginning February 28 as the … port struggles to clear a stubborn backlog of containers.

"The backlog hasn't changed" from more than 5,000 containers, said Morley Strachan, vice-president of TSI Terminals Inc….. TSI declared force majeure in mid-January -- meaning that it was not liable for delays in delivering boxes - blaming Canadian National Railway for a shortage of railcars.

Strachan said CN had yet to provide the extra capacity it promised at the time, from 11,800 feet per day to 14,000 feet, although "they are supposed to be working on it."

Canadian National spokesman Mark Hallman, however, said "we're putting in 14,000 feet a day -- we're up there." He said that capacity has been affected by events outside of the railroad's control, including a recent collision between a passenger train and a truck that disrupted mainline traffic, but that "the week of February 7, for instance, we averaged 14,100 feet per day."

But with no significant reduction in the backlog and the surge of Asian imports continuing, TSI just over a week ago urged steamship clients of Canadian National to reduce their import cargoes….

Strachan said carriers agreed to reduce imports "for a period of time, until we see some change in the backlog."

The carriers were given until February 28 to implement reductions, if they chose, simply by not loading their ships with as much Vancouver cargo. The lines could also choose to divert cargo to another port….

Initially, TSI predicted it would take seven to 10 weeks to clear the backlog. But after a month with no change, there are no new forecasts of long a clean-up would take with the reduced cargo levels.


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
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