Canadian Pacific Railway Limited – Labour Update

Message sent from Hapag-Lloyd (America) LLC as agent of Hapag-Lloyd AG  • May 29, 2018

Dear Customer,

Further to our Customer Info of May 28, 2018, advising that the Teamsters Canada Rail Conference-Train & Engine (TCRC) and the International Brotherhood of Electrical Workers (IBEW) had issued notice to Canadian Pacific Railway Limited (CP) of their respective plans to strike at 2200 Eastern Standard Time on Tuesday, May 29, 2018, we take this opportunity to provide further guidance should an agreement not be reached and the work stoppage commences tonight as had been threatened.

In the event of a CP work stoppage, an event which is beyond our control, Hapag Lloyd AG has, pursuant to the terms and conditions of the relevant underlying contracts of carriage as evidenced by our standard Bill of Lading and/or Sea Waybill, as the case may be, including, without limitation, Clause 17 – “Methods and Routes of Carriage” and Clause 18 – “matters affecting Performance”, and the Hapag-Lloyd Tariffs applicable thereto, elected to invoke the following as regards all arriving Import traffic:

Diversion Fee

For customer requested diversions, we are waiving our Tariff diversion fee.

Gate Fee – For cargo that was originally being railed inland

We will be charging a Gate Fee (GRD) of USD $75.00 per container for any customer requested diversion to a port move for customer arranged trucking.

It is to be noted that Customers electing to avail themselves of this choice will be required to return the empty container(s) to the designated location referred to on our website and not to CP’s yard.

Empty Repo – for cargo that was originally being railed inland.

We will waive the empty repo fee.

For your general information, please consider:

• The current North American Truck power shortages are well known within the industry and much publicized. Diverting all rail volumes to truck is
• Using the alternative railroad, the Canadian National Railway Company (CNR) is not an option and there are no other Rail providers available in
• For containers already discharged, if we can access them at the Port, customers are invited to switch to a CY move and arrange their own inland move subject to the above-noted Gate Fee.
• If containers are already within the CP rail network, they will be inaccessible during the
• CP will continue to receive containers into their ramps until such time as the ramps become congested. Once containers are in the ramp, they cannot later be accessed.
• Lanes NOT impacted: All of Halifax

Between Saskatoon, Indianapolis, Calgary, Halifax and Port of Montreal Between Saskatoon, Indianapolis, Memphis and Port of Vancouver

• Lanes that WILL be impacted:

Between Toronto, Winnipeg, Edmonton, Calgary, Regina, Chicago, Detroit, Minneapolis and Port of Montreal

Between Toronto, Winnipeg, Edmonton, Regina, Chicago, Detroit, Minneapolis and Port of Vancouver

For more information, please contact your Scarbrough rep or email info@scarbrough-intl.com.