News / Ripples from standstill at strike-bound Canadian ports could spread inland

© Mykhailo Polenok

Turmoil persists at Canada’s ports, with warnings that this could lead to spikes in road and rail freight, and congestion at ‘Plan-B’ US west coast gateways.  

Yesterday, the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 began an industry-wide, open-ended strike against all BC Maritime Employers Association (BCMEA) member companies.  

The association issued a coast-wide lockout notice in response, effectively shutting down the principal ports of Vancouver and Prince Rupert. 

This morning, Maersk told customers of its its Vancouver TP1 service that the Marcos V, due to depart on 6 November, “will likely not work unless negotiations are resolved”.  

For its Prince Rupert TP1 service, the Danish carrier will postpone operations on the San Felipe, also due to leave port tomorrow, but will begin work “as soon as negotiations are resolved and work resumed”. 

On its Surrey CASUR service, the Seattle Express was not due to arrive until 8 November, and Maersk told customers to await updates. 

Jena Santoro, senior manager of intelligence solutions at Everstream Analytics, warned that onward intermodal transport from Vancouver could be affected “as prices would likely increase amid trucker shortages and cargo delivery delays”. 

She added: “Current congestion data shows that the port of Vancouver is already experiencing a spike in vessel backlogs, while other Canadian ports like Prince Rupert and even Halifax on the east coast are trending upward as well.” 

Indeed, on Canada’s east coast, Termont terminals at the port of Montreal, accounting for 40% of its container traffic, have been blocked since 31 October. 

International Longshoreman’s Association (ILA) president Harold Daggett said yesterday: “The fight against job-killing automation is currently raging at the port of Montreal.” 

He added: “More than 1,000 members of ILA Local 1657… would see their jobs disappear if Montreal Gateway Terminals and Termont Terminals implement plans to install optical character recognition hardware on all ship-to-shore gantry cranes, top end and reach stackers.” 

ILA Local 1657 business agent Donald Beerworth added: “This will result in us losing at least half of our ILA membership to technology.” 

As both Canadian coasts experience concurrent disruption, in conjunction with fears of renewed strike action at US east and Gulf coast ports in the new year, diversions to US west coast ports are “the most likely scenario”, according to Ms Santoro.  

And she warned that the vessel diversions could cause congestion to spike, prompting cargo processing backlogs at ports including Seattle, Oakland and even further south at Los Angeles and Long Beach.