Ongoing Strikes and Freight Challenges in Canada
The logistics landscape in Canada is currently marked by significant disruption, as strikes across major ports bring operations to a near standstill. Canadian freight forwarders are facing mounting frustration as port closures and reduced capacity impact the movement of goods, forcing them to seek alternative routes via U.S. ports. These strikes, involving the International Longshore and Warehouse Union (ILWU Local 514) and BC Maritime Employers Association (BCMEA), have affected not only the crucial West Coast ports of Vancouver and Prince Rupert but also nearly half of the operational capacity at Montreal’s Termont container terminals.
According to Julia Kuzeljevich, Director of Policy and Regulatory Affairs for the Canadian International Freight Forwarders Association (CIFFA), the situation is straining the freight industry. She shared her frustration, saying, “Both ports on the west coast and 40% of capacity at the port of Montreal are closed,” and added that Canadian railways have embargoed the movement of containers to these locations, making re-routing the only viable option for many shippers and forwarders.
Impact on Key Canadian Ports
The Port of Vancouver, the nation’s largest and busiest, is doing its best to manage the high demand, but anchorage capacity is strained. As of the latest reports, anchorage utilization was at 85%, and with recent inclement weather and the peak grain export season, space is limited. Terminals at Centerm, Deltaport, Fraser Surrey, and Vanterm have all been affected by the strikes, with some vessels idling at anchor outside of port jurisdiction due to congestion and capacity limitations.
Prince Rupert Port, meanwhile, has reported low yard utilization at around 63%, with low import ground counts and an average dwell time of approximately 1.8 days. Yet, this has provided little relief as shippers scramble to manage logistics amid limited capacity and prolonged negotiations between employers and dockworkers.
Montreal’s Reduced Capacity and Nationwide Implications
On Canada’s eastern front, the Montreal Port Authority has experienced disruptions. Since October 31, operations at Termont’s two container terminals have halted, impacting approximately 40% of the port’s volume. Negotiations remain stalled, and with no resolution in sight, freight forwarders are left without access to one of the region’s key logistical hubs. The ongoing dispute has left the Canadian freight industry in a difficult position. Ms. Kuzeljevich expressed that “freight will have to be diverted to functioning ports in Canada and the U.S.,” yet even this comes with challenges as demand surges at alternative facilities.
Re-Routing to U.S. Ports: A Contingency with Limitations
For many forwarders, the only viable solution is to redirect shipments to functioning ports, often across the border in the United States. While re-routing provides a stopgap, the solution is far from perfect. U.S. ports are already dealing with high demand, and the threat of renewed labor strikes on the East and Gulf Coasts in January casts additional uncertainty over these options. This means navigating an increasingly congested and unpredictable logistics environment for shippers and forwarders.
With major U.S. ports, such as those on the East Coast and Gulf Coast, facing potential labor disruptions, the ripple effect of Canada’s strikes is expected to place additional strain on North American logistics. This environment necessitates agile strategies and proactive planning to avoid costly delays and service interruptions.
How Edward J. Zarach & Associates Can Assist
Edward J. Zarach & Associates understands the complexities of freight forwarding during logistical disruption. Our experienced team has the resources and knowledge to re-route shipments efficiently and ensure clients receive the best possible outcomes amid ongoing challenges. We offer expert guidance on navigating alternative routes, securing capacity at U.S. ports, and managing customs clearance for cross-border shipments. With our comprehensive approach, Zarach provides a reliable partner for importers and exporters who need responsive, adaptive solutions.
The strikes at Canadian ports have created a challenging environment for freight forwarders, leaving them limited options and increased pressure to secure alternative solutions. As negotiations remain at a standstill, and with the looming threat of U.S. port disruptions, Canadian shippers and forwarders must adapt to ensure their supply chains remain resilient.
Edward J. Zarach & Associates supports businesses through these turbulent times, offering strategic, flexible logistics solutions to keep goods moving despite the uncertainties. Need help navigating supply chain disruptions? Contact Edward J. Zarach & Associates today to learn how we can manage your freight efficiently, even during major logistical challenges.