Important Notice Re Toronto CTAO Tru cker’s Work Stoppage

Date: September 11, 2015
Subject: Important Notice Re Toronto CTAO Trucker’s Work Stoppage
Delmar has now been informed that all offers made to the Container Trucking Association of Ontario (CTAO) have been rejected and Patrick Rhodin, President of the CTAO, last evening announced the suspension of all negotiations with local transportation companies. CTAO members are preparing new proposals and these developments will now ensure a prolonged disruption to services.

The early days of a strike are the most sensitive with the most violence and damages seen and, as a result, in the interest of safety, we have been informed local transportation companies have essentially halted all container delivery operations in the GTA.

Delmar had anticipated the escalation of these events and used the interim period to retrieve as many containers as possible from CN and CP rail heads since the commencement of the work disruption. The containers which were pulled are being held in secure yards. Delmar is contracting security agencies and will attempt to use leased equipment to execute final mile deliveries to our customers. There will be a surcharge of minimum USD$500.00 added to all containers needed to be delivered in the interim stage while the work stoppage remains in place. All of these deliveries will be subject to a “live un-load” scenario. Alternatively, customers have the option to wait for deliveries when the situation returns to normal.

In connection with LCL cargo and full containers currently stuck in rail terminals or about to arrive, Delmar will attempt to have all containers diverted through domestic rail channels to Montreal immediately. This action is to avoid what will be substantial storage and carrier demurrage charges if no action is taken – not to mention the major damages which may be caused to our customers’ supply chains.

Delmar is now recommending to all customers that any containers currently on the water or being booked destined to Toronto be diverted to Montreal. We will be taking unilateral action to do so with all LCL groupage containers immediately. From historical experience when these types of incidents occur, railheads get jammed quickly and related costs will far exceed any diversion or re-handling costs.

At this time, Delmar will take all prudent measures to continue to protect our customers’ supply chains in the most affordable manner possible. Experience shows these additional measures will carry some form of additional cost. Fortunately, it has been determined that the costs relating to these options being advanced will be far more beneficial than the alternatives of customers not receiving their products and paying heavy storage fees.

We trust all customers will appreciate every effort is being made to mitigate delays and costs to the best of our abilities.

Please communicate with your local Delmar customer service representative for additional information.

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