Canadian Pacific Railway Limited – Labour Update #2

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 untenable.
• Using the alternative railroad, the Canadian National Railway Company (CNR) is not an option and there are no other Rail providers available in Canada.
• 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 strike.
• 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 further information please contact your local Hapag-Lloyd office.
  This notice is written without prejudice to the terms and conditions contained in the relevant underlying contracts of carriage as evidenced by Hapag-Lloyd AG’s standard Bill of Lading and/or Sea Waybill and the Hapag-Lloyd Tariff applicable thereto and/or any other applicable agreement governing the carriage of the subject cargo, as the case may be, all of which said terms and conditions continue to remain in full force and effect without any modification or waiver.