CIFFA Letter to Prime Minister
CIFFA wrote to Prime Minister Justin Trudeau to acquaint him with some disturbing developments concerning international shipping and its impacts on Canada’s economy and asking the government to take immediate decisions to avoid a serious economic situation.
The current geopolitical climate presents threats for international shipping: Panama Canal authorities announced that the severe drought experienced in that region has forced them to reduce traffic by 35%. Houthi attacks in the Red Sea are leading to sharp increases in transportation costs, with diversion of shipping around the Cape of Good Hope and additional fuel and labour costs, as well as shortages of vessels and containers.
There is also cause for alarm concerning the deteriorating situation in labour relations at the Port of Montreal. With the most recent actions taken by the disputing parties, Canadian shippers are experiencing steadily deteriorating service levels, a slow strangulation of trade which threatens a serious economic blow to Montreal, to Quebec and to Canadian business generally. CIFFA’s full letter expands on these concerns.