{"id":8911,"date":"2021-04-16T19:32:26","date_gmt":"2021-04-16T19:32:26","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/04\/16\/partial-strike-at-montreal-port-disrupting-supply-chain-piling-on-extra-costs-shippers-and-manufacturers-warn\/"},"modified":"2021-04-16T19:32:26","modified_gmt":"2021-04-16T19:32:26","slug":"partial-strike-at-montreal-port-disrupting-supply-chain-piling-on-extra-costs-shippers-and-manufacturers-warn","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/04\/16\/partial-strike-at-montreal-port-disrupting-supply-chain-piling-on-extra-costs-shippers-and-manufacturers-warn\/","title":{"rendered":"Partial strike at Montreal port disrupting supply chain, piling on extra costs, shippers and manufacturers warn"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\">\n<h2 class=\"visually-hidden\">Breadcrumb Trail Links<\/h2>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\"> Transportation <\/li>\n<li class=\"breadcrumbs__item\"> News <\/li>\n<li class=\"breadcrumbs__item\"> Economy <\/li>\n<\/ol>\n<\/nav>\n<p class=\"article-subtitle\"> Strike could force manufacturers to slow down or halt some of their production lines almost immediately <\/p>\n<div class=\"article-meta\">\n<div class=\"published-by\">\n<p>Author of the article:<\/p>\n<p> <span class=\"published-by__author\">Avery Mullen<\/span> <\/div>\n<div class=\"published-date\">\n<p>Publishing date:<\/p>\n<p> <span class=\"published-date__since\">Apr 16, 2021<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">38\u00a0minutes ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">4 minute read<\/span> \u00a0\u2022\u00a0 <span>  <span class=\"comment-bubble\"> <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" height=\"16px\" viewbox=\"0 0 24 24\" width=\"16px\"><path d=\"M4,0 C2.93914,0 1.921718,0.421428 1.171572,1.171572 C0.421428,1.921718 0,2.93914 0,4 L0,24 L3.846,20.158 L4,20.16 L20,20.16 C21.0608,20.16 22.0782,19.73858 22.8284,18.98842 C23.5786,18.23828 24,17.22086 24,16.16 L24,4 C24,2.93914 23.5786,1.921718 22.8284,1.171572 C22.0782,0.421428 21.0608,0 20,0 L4,0 Z M2,4 C2,3.46956 2.21072,2.96086 2.58578,2.58578 C2.96086,2.21072 3.46956,2 4,2 L20,2 C20.5304,2 21.0392,2.21072 21.4142,2.58578 C21.7892,2.96086 22,3.46956 22,4 L22,16.16 C22,16.69044 21.7892,17.19914 21.4142,17.57422 C21.0392,17.94928 20.5304,18.16 20,18.16 L4,18.16 L3.048,18.126 L2,19.174 L2,4 Z\"\/><\/svg><\/span> Join the conversation  <\/span> <\/div><\/div>\n<figure class=\"featured-image\"><picture class=\"featured-image__ratio featured-image-category__transportation\"><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=564&amp;type=webp,&#10;            https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=1128&amp;type=webp 2x\" type=\"image\/webp\"\/><source media=\"(min-width: 1200px)\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=564&amp;type=jpg,&#10;            https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=1128&amp;type=jpg 2x\" type=\"image\/jpeg\"\/><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=472&amp;type=webp,&#10;            https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=944&amp;type=webp 2x\" type=\"image\/webp\"\/><source media=\"(min-width: 768px)\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=472&amp;type=jpg,&#10;            https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=944&amp;type=jpg 2x\" type=\"image\/jpeg\"\/><source media=\"(max-width: 767px)\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=288&amp;type=webp,&#10;            https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0416montreal-port.jpg?quality=90&amp;strip=all&amp;w=576&amp;type=webp 2x\" type=\"image\/webp\"\/><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">Shipping containers on a ship docked at the Port of Montreal.<\/span> <span class=\"credit\">Photo by Dario Ayala\/The Gazette<\/span> <\/figcaption><\/figure>\n<\/header>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>Logistics firms and manufacturers are warning that a partial strike at the Port of Montreal will disrupt supply chains and potentially force factories to rack up extra costs.<\/p>\n<p>On Tuesday, longshoremen began refusing to work overtime and weekends, restricting the amount of cargo that can be processed by the port. The work slowdown is part of an ongoing labour dispute dating back to a strike last August that forced at least 21 ships to divert to other ports.<\/p>\n<p><span class=\"x_aCOpRe\">A.P. Moller \u2014 Maersk, one of the world\u2019s largest shipping lines, told clients it will accelerate its contingency measures since the Montreal port will not be operational on weekends, until further notice. \u201cWe encourage our customers to utilize the alternate gateways we are able to offer,\u201d Maersk told clients in an advisory.<\/span><\/p>\n<p>The shipping company said extra fees will be implemented for Toronto\/<span class=\"x_mark0ej1kodse\">Montreal<\/span>\u00a0cargo to Atlantic gateway ports in Halifax and Saint John.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-1\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>\u201cIt\u2019s important to understand that every port must compete for business and cargo volumes are not guaranteed,\u201d Omar Shamsie, managing director of Maersk Canada, told the Financial Post in an emailed statement. \u201cCustomers have a choice in ports and their business will always find the most efficient way to flow. The Port of Montreal\u2019s labour negotiations have lasted 30 months and this uncertainty has influenced the confidence of local supply chains and pushes cargo to alternative ports.\u201d<\/p>\n<p>Maersk said its railway partners Canadian National Railway Ltd. and Canadian Pacific Railway Ltd. were also adjusting the receiving windows to avoid weekend departures. CN said it\u2019s working with customers and supply chain partners to minimize the impact of the labour dispute. CP did not respond to a request for comment by the time Financial Post went to press.<\/p>\n<p>The striking longeshoremen, who are represented by the Canadian Union of Public Employees, are asking for better work-life balance. They voted to start the partial strike after the port told them Friday that it would exercise its lockout rights, although when it will do so is unclear. CUPE did not respond to several requests for comment.<\/p>\n<p>Martin Imbleau, CEO of Montreal Port Authority said the strike is \u201cseriously impacting\u201d activities at the port.<\/p>\n<p>\u201cAnd the potential for escalation will only further curtail it. After an 11 per cent decline in volumes in March, the Port now has to deal with decisions that will drop its port capacity by close to 30 per cent. For once in its history, the Port of Montreal is posting results that pale in comparison to its competitors on the U.S. East Coast, who are enjoying significant growth.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>Manufacturing groups have stepped up their calls for Ottawa to intervene in the labour dispute.<\/p>\n<p>\u201cThis isn\u2019t just a Quebec issue, it\u2019s a Canadian issue,\u201d Dennis Darby, CEO of the Canadian Manufacturers and Exporters association, told the Financial Post in an interview. \u201cIt\u2019s important that we say to the federal government, \u2018You need to find a way to get the parties, if not talking, then at least to find a process that doesn\u2019t result in a slowdown.\u2019\u201d<\/p>\n<p>Because just-in-time supply chains remain the dominant paradigm in manufacturing, the partial strike could force manufacturers to slow down or halt some of their production lines almost immediately, said Darby, even if some factories might be holding slightly more inventory than usual because of concerns around COVID-19.<\/p>\n<blockquote>\n<p>This isn\u2019t just a Quebec issue, it\u2019s a Canadian issue<\/p>\n<p>Dennis Darby, CEO, Canadian Manufacturers and Exporters<\/p>\n<\/blockquote>\n<p>\u201cIt won\u2019t be a matter of months,\u201d\u00a0he said.\u00a0\u201cIt will be a matter of days or weeks before we see an impact.\u201d<\/p>\n<p>The slowdown will impact manufacturers\u2019 access to materials and components, as well as restrict their ability to export finished goods, he said. More than 35 million tonnes of cargo passed through the port last year, according to data from Statistics Canada.<\/p>\n<p>Brian Kingston, CEO of the Canadian Vehicle Manufacturer\u2019s Association, said while the port is less crucial for auto exports as most cars are shipped to the U.S. via train or truck, the disruption to supply chains will severely increase costs for automakers.<\/p>\n<p>\u201cThe strike at the port isn\u2019t\u00a0necessarily going to shut down (auto) production, it\u2019s just going to make the\u00a0supply\u00a0chain even more inefficient and increase costs,\u201d he said. \u201cCanada, as a\u00a0manufacturing jurisdiction, we have to\u00a0constantly compete with the United\u00a0States and Mexico. And a critical component of being a competitive\u00a0manufacturing\u00a0jurisdiction is having a reliable trade infrastructure.\u201d<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-3\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>Kingston said manufacturers have known a strike could be brewing in Montreal for some time, so many had begun reorganizing their supply chains, such as by redirecting ships to ports in Saint John, Halifax and the northeastern U.S.<\/p>\n<p>But that solution comes with\u00a0increased costs and complexity, including additional rail travel\u00a0and\u00a0the bureaucracy-intensive process of moving goods over the U.S.-Canada border.<\/p>\n<p>\u201cIt would be damaging enough in a\u00a0situation where we were looking at a normal economic growth path,\u201d\u00a0Kingston\u00a0said. \u201cBut we\u2019re now coming out of the biggest downturn since the Great\u00a0Depression\u2026 And so this is the\u00a0definition of an own goal.\u201d<\/p>\n<section aria-labelledby=\"moreTopicLabel4460149361126604888189844868961135\" class=\"more-topic\" data-carousel-icon-button=\"\" data-carousel-type=\"list\"><button aria-hidden=\"true\" class=\"more-topic__button-prev\" data-carousel-prev=\"\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><\/p>\n<ol class=\"more-topic__items list-unstyled\" data-carousel-slide-list=\"\" tabindex=\"0\">\n<li class=\"more-topic__item\" data-carousel-item=\"\"><picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"A container ship docked at the Port of Montreal.\" class=\"lazyload\" src=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0414port-of-montreal.jpg?h=96&amp;strip=all&amp;quality=80\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0414port-of-montreal.jpg?h=96&amp;strip=all&amp;quality=80,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0414port-of-montreal.jpg?h=192&amp;strip=all&amp;quality=80 2x,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0414port-of-montreal.jpg?h=288&amp;strip=all&amp;quality=80 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"><span class=\"more-topic__item-text-clamp\"> Partial strike at Eastern Canada\u2019s biggest port to clog shipping already under strain <\/span><\/h3>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"><picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Stacks of wood pallets in the U.K.\" class=\"lazyload\" src=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0409pallets.jpg?h=96&amp;strip=all&amp;quality=80\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0409pallets.jpg?h=96&amp;strip=all&amp;quality=80,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0409pallets.jpg?h=192&amp;strip=all&amp;quality=80 2x,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/04\/vw0409pallets.jpg?h=288&amp;strip=all&amp;quality=80 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"><span class=\"more-topic__item-text-clamp\"> The forgotten shipping pallet stages a pandemic-era rally <\/span><\/h3>\n<\/li>\n<li class=\"more-topic__item\" data-carousel-item=\"\"><picture class=\"more-topic__item-image\"><img decoding=\"async\" alt=\"Shipping containers at the Port of Los Angeles in California.\" class=\"lazyload\" src=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/02\/vw0202shipping.jpg?h=96&amp;strip=all&amp;quality=80\" height=\"96\" loading=\"lazy\" srcset=\"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/02\/vw0202shipping.jpg?h=96&amp;strip=all&amp;quality=80,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/02\/vw0202shipping.jpg?h=192&amp;strip=all&amp;quality=80 2x,&#10;                                    https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/02\/vw0202shipping.jpg?h=288&amp;strip=all&amp;quality=80 3x\" width=\"96\"\/><\/picture>\n<h3 class=\"more-topic__item-text\"><span class=\"more-topic__item-text-clamp\"> \u2018It\u2019s a perfect storm\u2019: A shipping container crisis has upended the global food trade <\/span><\/h3>\n<\/li>\n<\/ol>\n<p><button aria-hidden=\"true\" class=\"more-topic__button-next\" data-carousel-next=\"\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>Lane Ferguson, a spokesperson for\u00a0the Port of Halifax, said space is already at a premium, thanks to a surge in\u00a0shipping activity that began in the second half of 2020 as the economy began to\u00a0recover.<\/p>\n<p>He said the limited space means shipping companies probably will not divert many of their vessels to Halifax. Port Saint John spokesperson Paula Copeland said her employer still has capacity for more ships.<\/p>\n<p>Darby said intervention from the federal\u00a0government is needed to protect the\u00a0manufacturing industry and\u00a0broader economy.<\/p>\n<p>\u201cWe\u2019re hoping that the federal government can weigh in and use whatever powers it has,\u201d he said. \u201cHistorically, it could be anything from binding arbitration to temporary back-to-work legislation.\u201d<\/p>\n<p><em>Financial Post<\/em><\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt=\"beforeunload\" data-evt-typ=\"scroll-depth\" data-evt-val=\"{\" control_fields=\"\" of=\"\" page=\"\" viewed=\"\" story=\"\">\n<h2 class=\"visually-hidden\">Share this article in your social network<\/h2>\n<\/section>\n<div class=\"article-content__ad-group\">\n<div class=\"ad__section-border ad__section-border--category visually-hidden\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-acceptable\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div><\/div>\n<div class=\"widget article-content__widget-group article-content__widget-group--slot1\">\n<section aria-labelledby=\"TheLogic1981608846266768920326755176221303\" class=\"feed-section feed-section--partner-story list-widget--partner-story the-logic\" data-async=\"\">\n<div class=\"widget-title widget-title--partner-story flex-align-center row row--no-padding--left row--no-padding--right\">\n<p> In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n<div class=\"widget article-content__widget-group article-content__widget-group--slot2\">\n<section aria-labelledby=\"TopStoriesNewsletter8417269778082114973365993920148479\" class=\"newsletter-widget\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-widget__body\">\n<h2 id=\"TopStoriesNewsletter8417269778082114973365993920148479\">Top Stories Newsletter<\/h2>\n<p class=\"newsletter-widget__text\">Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n<div aria-hidden=\"false\" class=\"newsletter-widget__bottom js-form-main\">  <small> By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. 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Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n<footer aria-label=\"Article Comments\" class=\"article-footer\">\n<section class=\"comments__section\" id=\"comments\">\n<h3 class=\"widget-title comments-anchor\" id=\"comments-area\">Comments<\/h3>\n<p class=\"comments__section-disclaimer\"> Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications\u2014you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings. <\/p>\n<\/section>\n<\/footer>\n<\/div>\n\n<br \/>Partial strike at Montreal port disrupting supply chain, piling on extra costs, shippers and manufacturers warn<\/a><br \/>\n<br \/>2021-04-16 19:32:26<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Transportation News Economy Strike could force manufacturers to slow down or halt some of their production lines almost immediately Author of the article: Avery Mullen Publishing date:&#8230;<\/p>\n","protected":false},"author":2,"featured_media":8912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-8911","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/8911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=8911"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/8911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/8912"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=8911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=8911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=8911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}