“Critical situation”, “considerable impact”, “conservation affected”… an importer fears that explosive labor conflicts in American ports and in port of Montreal are being felt faster than we think in stores in the citrus, mango and banana sections.
“The products currently affected are all citrus fruits from South Africa, Argentina, Peru and Chile. These are oranges, clementines, lemons and grapefruits,” specifies Journal Chris Sarantis, senior vice president of business development at wholesaler Canadawide.
“Mangoes and melons from Brazil arrive in Canada via the United States. Ultimately, it is bananas from all countries that will have the most impact on availability, because it is a widely consumed product,” he continues.
Termont, responsible for some 40% of container traffic at the Port of Montreal, was described Friday as a “delinquent operator” by union representative, member of the Canadian Union of Public Employees (CUPE), Michel Murray.
Photo Martin Jolicoeur
“A strike like this is an irritant. If it lasts for weeks, we will have price increases because we will create scarcity,” also warns Guy Millette, vice-president of business development for Courchesne and Larose.
He points out that banana brands Chiquita and Dole have their own ships and still manage to send them to ports that are not on strike.
“We receive more than 75 semi-trailers of bananas per week. We are able to load in other ports,” he adds.
“We expected this strike and we have been careful in recent weeks. We have an inventory of several weeks for several products like oranges,” says Guy Millette from Courchesne and Larose.
Penalties for importers
For his part, Pierre Dolbec, CEO of Dolbec International, recalls that each day of closure is equivalent to six days of catch-up.
“These strikes will have a big impact,” he whispers.
“You have five days to take the container, clear it through customs, transport it, unload it and return it to the terminal,” explains Mr. Dolbec.
“After that, the shipping line will charge a container detention fee of around US$500 per day. It can cost money. The big impact is there,” he summarizes.
Upcoming price increases
At the Quebec Trucking Association (ACQ), its CEO Marc Cadieux fears that perishable and emergency products will be affected.
“Transportation costs will increase. Supply and demand will come into play,” he observes.
“When the product costs more, you practically have no choice but to sell it for more. The entire retail supply chain is affected,” concludes Michel Rochette, president of the Retail Council of Canada (CCCD).
Highlights
According to the Port of Montreal, the strike could lead to a 10% drop in the total volumes of goods handled. The work stoppage at the Viau and Maisonneuve terminals blocks 40% of the total container handling capacity.
