Some US-bound cargo diverted from DP World’s Vancouver terminal

Cargo interests this summer began diverting some of their U.S. freight through the Canadian Pacific Coast ports of Vancouver and Prince Rupert as a hedge against possible labor disruptions associated with contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association.

Vancouver has struggled to handle the cargo diversions. On Aug. 7, DP World, the second-largest terminal operator in Vancouver, announced that it would not accept U.S.-bound rail freight. Carriers such as Hapag-Lloyd are advising their customers that the U.S. freight will be discharged at ports in the Pacific Northwest and California.

Hapag-Lloyd said the NYK Demeter, operating in the G6 Alliance’s Pacific-Atlantic service, will discharge Chicago and Indianapolis cargo in Oakland. Minneapolis, Detroit and Memphis cargo will be discharged in Los Angeles.

The Hyundai Faith, operating in the North Pacific 2 service, will discharge all U.S. cargo in Tacoma.

Hapag-Lloyd stated that because of the increased costs associated with this diversion, a surcharge of $450 per 20-foot container and $900 per 40-foot container will be charged.

Although the ILWU-PMA negotiations did not reach a contract by the July 1 deadline, both parties have pledged to keep cargo moving while negotiations continue.