Introduction

Major labor disputes have brought operations to a halt at some of Canada’s busiest ports, including major ports in British Columbia and the Port of Montreal. These disruptions come just one month after a three-day strike shut down U.S. East Coast and Gulf Coast ports, adding even more uncertainty and operational challenges for businesses as we approach the busy holiday season.

Key facts about the current situation:

• On November 4, the BC Maritime Employers Association (BCMEA) locked out over 700 unionized foremen and other members of the International Longshore and Warehouse Union (ILWU) Local 514 at 4:30 p.m. PST.
• At the Port of Montreal, nearly 1,200 dockworkers represented by CUPE Local 375 walked off the job on October 31.
• The Port of Vancouver and Port of Prince Rupert handle about 20% of U.S. trade.
• An estimated $800 million CAD in trade flows through Canadian West Coast ports every day.

British Columbia Port Lockout

The BCMEA described the lockout as a “defensive” action in response to the union’s 72-hour strike notice of limited job action. Key issues in the dispute include:

• Use of automation at ports
• Benefits
• Wage increases
• Welfare improvements

The employers’ final offer included a 19.2% salary increase over four years and an average signing bonus of $21,000. However, no active negotiations are currently underway.

Canadian Labour Minister Steven MacKinnon stated on November 2: “Federal mediators are on site, ready to assist the parties. It is the responsibility of the parties to reach an agreement.”

Port of Montreal Strike

At Canada’s second-largest port, labor disputes have escalated as dockworkers represented by the Port of Montreal Longshoremen’s Union, CUPE Local 375, walked off the job on October 31. Key issues include:

• Salaries
• Scheduling practices impacting work-life balance

The strike is affecting the port’s two Termont-operated terminals, which account for approximately 40% of the port’s container traffic. With no end date in sight, this will continue to impact operations at the Viau and Maisonneuve terminals.

Impact on U.S.-Canada Trade Flows

These port disruptions have the potential to significantly impact trade between the U.S. and Canada:

• Total freight flows between the two countries reached $773.9 billion across all modes of transportation in 2023.
• Trucking accounted for 56% ($435.7 billion) of this trade.
• Rail accounted for 15% ($113.9 billion).

Lars Jensen, CEO and Partner at Vespucci Maritime, noted: “This might create bottlenecks and congestion also down to the U.S. ports closest to the Canadian border if vessels become diverted.”

How FreightAmigo Can Help Navigate These Challenges

As a Digital Logistics Platform, FreightAmigo is uniquely positioned to support freight forwarders and businesses in adapting to these industry disruptions:

• Real-time visibility: Our platform provides up-to-date information on port conditions and potential delays, allowing clients to make informed decisions about routing and scheduling.
• Alternative routing options: We can quickly identify and offer alternative shipping routes to bypass affected ports, minimizing disruptions to supply chains.
• Multimodal solutions: With access to air, sea, rail, and road transportation options, we can help clients switch between modes as needed to keep goods moving.
• Data-driven insights: Our advanced analytics can help predict potential bottlenecks and suggest proactive measures to mitigate risks.
• 24/7 expert support: Our team of logistics professionals is available around the clock to provide guidance and assistance in navigating these complex situations.

We understand the challenges these port disruptions pose to global supply chains. By leveraging our Digital Logistics Solution, we can help our clients maintain operational continuity and minimize the impact of these labor disputes on their businesses.

Conclusion

The ongoing labor disputes at Canadian ports highlight the fragility of global supply chains and the need for adaptive, technology-driven logistics solutions. As the situation continues to evolve, businesses must stay informed and be prepared to adjust their shipping strategies quickly.

We at FreightAmigo are committed to supporting our clients through these challenging times. By providing real-time information, flexible shipping options, and expert guidance, we aim to help businesses navigate these disruptions effectively and maintain the smooth flow of goods across borders.

Stay tuned for further updates on this developing situation, and don’t hesitate to reach out to our team for personalized support in managing your logistics needs during these uncertain times.