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Terminal Congestion – TorontoWednesday, June 29, 2022
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Dear Customer,
Please note that both the CN and CP rail terminals in Toronto are communicating to the industry that they are working at near capacity volumes.
We continue to see CN restrict the provision of CN reservations when and where needed to limit accumulative volumes and today CP has announced that they will limit the daily ingate of containers laden for export for furtherance to Montreal until further advised.
“Effective 00:01 06/29 the Vaughan terminal will be limiting the acceptance of exports destined to Port of Montreal. Exports will be capped at 60 per day.”
Dwindling drayage capacity is a significant driver, contributing to the backlog / congestion issues at Toronto.
As a result of growing congestion at the inland facilities, the rail carriers are metering how many trains they are deploying to the respective ports of sail. With this reduction in train capacity, rail containers continue to back up at both the inland and marine terminals growing congestion levels.
Neither rail carrier are ready to forecast a return to normal. “The drayage and warehouse capacity constraints in Toronto (and Montreal) have become so chronic that we are now in a situation of a potential back-up for some time until this gets addressed,” CN said in a statement.
CP, which said “heavy volumes” of intermodal cargo are also contributing to excessive container dwells at the ports, adds that the main issue in the supply chain can be traced to long-dwelling containers at the inland rail ramps. “To maintain network efficiency, all participants in the supply chain must work together to pick up and return equipment promptly,” CP said in a statement.
Please note that as a result of current market conditions cargo may be subject to additional costs including but not limited to drayage, terminal wait time, rehandling fees and storage. In addition, cargo may be subject to potential delays due to rollout where carriers are unable to ingate cargo for the intended / planned vessels.
Unfortunately, under the circumstances, these additional costs are out of our control and regrettably will be assessed to the account of the cargo where incurred.
Please feel free to reach out to your Hensall Global representative should you wish to discuss further or should you have any specific questions or concerns.
Sincerely,
HENSALL GLOBAL LOGISTICS |
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