Labor Disputes Stall Traffic at Canada's Three Largest Ports

The impacts from work stoppages at Canada's busiest shipping hubs could soon be felt across North America, threatening the $800 million worth of trade that flows through the country's West Coast ports each day. 

On November 4, the British Columbia Maritime Employers Association (BCMEA) imposed a lockout against more than 700 foremen at the Ports of Vancouver and Prince Rupert, on the same day the foremen had scheduled a walkout. The collective bargaining agreement between the BCMEA and the local union expired in March 2023, leading to more than a year of failed talks over proposed wage increases. With dockworkers at two terminals at the Port of Montreal already having gone on strike on October 31, that means shipping traffic is now stalled at all three of Canada's largest ports by import volume.

According to Everstream Analytics senior manager of intelligence solutions Jena Santoro, the Port of Vancouver is a critical entry point for perishable food items and automotive components moved by rail and truck into the U.S. A coalition of Canada's fertilizer manufacturers and distributors also warns that shutdowns at the country's West Coast ports will cost their industry nearly $10 million a day in lost sales revenue. The two terminals shut down at the Port of Montreal — Canada's largest East Coast port — handle roughly 40% of the hub's container traffic, and account for more than $90 million worth of trade each day, according to the Montreal Port Authority.

In total, the Greater Vancouver Board of Trade estimates that more than $600,000 million worth of trade and counting has been disrupted in just the first 18 hours of the West Coast work stoppage. If the situation drags on, Santoro says, vessel diversions away from Canada's shipping hubs could lead to backlogs at U.S. West Coast ports in Seattle, Oakland, and even Los Angeles.