Vancouver’s $100 billion port expansion looms

Dana Hare News

After a turbulent year including weeks of labour disputes, there’s good news coming out of the port of Vancouver.

Recently ranked second-last in efficiency out of 348 container ports worldwide, Vancouver has an ambitious plan to increase port capacity by 50% by 2030. A variety of infrastructure improvements will contribute to increased capacity and efficiency, including the Roberts Bank Terminal 2 Project, and roughly $1 billion in pending road and highway improvements. Combined, these initiatives will increase loading and unloading capacity and reduce delays related to trucking.

The Vancouver Port Authority claims that these investments will result in over 17,000 high-paying jobs and $100 billion in additional annual trade activity.

Vancouver’s position as the shipping gateway to the Asia-Pacific region makes it one of the world’s most strategically important ports. These ambitious improvements will only increase its importance as a hub for international commerce.

Curious how port expansion might affect your business? Talk to Canaan Group to learn more about this exciting development.

Declining Chinese imports to US: What it means for you

Dana Hare News

Over the past 5 years, America has sought to reduce its reliance on Chinese imports for a variety of reasons. US policies and regulations aimed at reducing Chinese imports have proven effective. In tandem with China’s ongoing recovery from COVID related supply issues, the result is a sharp decline in direct Chinese imports to America. In fact, 2023’s share of US imports from China is the lowest it’s been since 2006 at just 14.6%.

This number doesn’t tell the whole story. As China’s direct imports to America decline, its imports to other countries have increased. Important US trading partners like Mexico and Vietnam have both seen their share of Chinese imports increase significantly. American imports of Mexican and Vietnamese goods have increased proportionally over the past five years to fill the gaps left by China.

The result is a more complex international trade network. Increased export capacity in Mexico is somewhat contingent on increased import trade with China. China’s economic influence on America has shifted from direct to indirect, but it matters as much as ever.

Canaan Group remains at the forefront, actively fostering partnerships globally including Mexico and Vietnam. We stand ready to assist companies in adapting their supply chains to navigate these evolving dynamics, ensuring a seamless transition and continued business success.

What to expect during peak air freight season

Dana Hare News

In August, air freight rates remained relatively stable. The Baltic Air Freight Index (BAI00) dropped by 1.8% for the week ending August 28. Southern China experienced a contrasting trend. Robust e-commerce activity drove a 2.2% rise in outbound Hong Kong rates (BAI30) and a 4% increase in Shanghai’s air cargo rates (BAI80).

However, rate fluctuations were evident in other regions. Frankfurt (BAI20) and London (BAI40) declined as outbound Chicago (BAI50) experienced a significant 14.1% month-on-month drop.

This mixed data has led to differing industry opinions. Some anticipate rate increases in the upcoming peak season while others express concerns about weak demand and overcapacity.

As we enter the final quarter of Q4, it’s important to look ahead. What are your air freight needs over the next three months? If you have questions or concerns about rates and availability, consult with us today. We can help you interpret the trends and secure the shipping resources you need… before it’s too late.

Ro/Ro Vs. Container Shipping for Vehicles

Dana Hare Resources

How do cars from Europe and Asia come to North America?

On a ship, of course! Many vehicles get shipped via ocean freight on what we call a Ro/Ro vessel. Ro/Ro vessels are “Roll on, Roll off” ships designed specifically for transporting wheeled vehicles. These vessels feature ramps, specialized securing mechanisms, and other features to accommodate large-scale vehicle transport.

Large companies like Toyota, Mercedes, and BMW may move hundreds or even thousands of cars each month via ocean freight, dealing directly with Ro/Ro carriers. What about smaller vehicle shipments? For many shipments, securing a spot on a Ro/Ro vessel isn’t feasible. As a result, there’s been an increase in shipping cars via container.

Canaan Group specializes in vehicle importing and exporting via container shipment. If you’re looking to ship a vehicle internationally, get in touch with our team for expert support.

Shipping Industry Consolidation? HMM Sales Process Initiated

Dana Hare Featured, News

Hyundai Shipping Line (HMM) is poised to initiate sales discussions at a potential price point of $3.9 billion.

Ocean freight rates have seen sustained decline over the past nine months.

In response, some freight companies have pursued mergers and acquisitions (M&A) to maintain their market presence.

The top 10 carriers command 85% of the global shipping container market. The top 7 control over 78%, while the top 4 control 58%. As the COVID-19 pandemic demonstrated, supply and demand imbalances can substantially impact prices. This potential merger raises questions about a resurgence of such dynamics in the freight industry. Will further consolidation of an already consolidated industry cause increased prices?

Canaan maintains collaborations with all top 10 carriers, along with smaller carriers, including those operating in the Intra Asia/Europe routes. Whatever the future holds for the ocean freight industry, we’re ready to help you get the most competitive price available.

Saudi Arabia’s Big Logistics Transformation

Dana Hare Featured, News

Since the earliest days of human civilization, the region we call the Middle East has served as an important bridge between East and West. Saudi Crown Prince Mohammed bin Salman’s recently unveiled plan to turn Saudi Arabia into a logistics hub by 2030 will continue this legacy.

The plan is to build 59 logistics centres, covering 100 million square meters. The objective is to diversify the Saudi economy by acting as a trade connector between Asia, Europe, and Africa.

This development will affect trade worldwide. The initiative will open up new opportunities for North American businesses. It will enhance supply line resilience and minimize trade disruption. Canaan is proud to partner with Saudi Arabia through the Kanoo Group of companies.

No News from ILWU Canada (Labour Update #5)

coracle Featured, News

Vancouver and Prince Rupert, BC
We called ILWU Canada this morning, and they say there is no news. 

ILWU workers are required to issue 72-hour strike notice, before they go on strike. Today is the earliest they could issue strike notice. ILWU members have already voted in favour of a strike, back on June 10th.

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West Coast Ports Labour Update – Wed, June 14

coracle News

Vancouver and Prince Rupert, BC
All indications point to a dockworkers strike starting Saturday, June 24th. If these ports temporarily shut down from the strike, inbound cargo would probably be redirected to the U.S. West Coast ports, which would add to the congestion. The current challenge is that the U.S. West Coast ports have their own labour disruptions to deal with. 

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West Coast Ports Labour Update – Tues, June 13

coracle News

We have gotten a lot of questions about the labour disputes at the West Coast ports, both in the United States and in Canada. Our team will be sending regular email updates on the latest news on the labour situation, so you can make the most informed decisions for your business.

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How could Spain’s Drought impact Container Shipping Logistics?

coracle News

The Spanish government has approved a €2.2bn plan to aid farmers and consumers in dealing with an ongoing drought worsened by the record-breaking dry and hot April. The measures, unprecedented according to the government, involve allocating €1.4bn for water management and availability, and €784m to support farmers and prevent food shortages.

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Choosing the Right Digital Partner: A Cautionary Tale of project44

coracle News, Resources

Over the last few years, there as been a lot of hype about digitization in the logistics industry. But there are large risks involved with this process. The most important decision is selecting the right digital partner. If the digital partner runs into financial trouble, all the work you put into adopting the platform into your business could go to waste.

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Trans-Pacific Ocean Freight Rates Stabilize

coracle News

Ocean freight rates seem to have found a floor, but there are no meaningful increases expected until demand becomes stronger again. In April, ocean carriers implemented a series of ad hoc cuts to trans-Pacific vessels to boost spot rates. In May, they have turned to a more regular pattern of changing weekly services into biweekly services.

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21-Day Cooling Off Period starts for West Coast dockworker negotiations

coracle News

The earliest that West Coast dockworkers could strike or be locked out is June 24. The federal government’s conciliation process with the BC Maritime Employers Association (BCMEA) and the International Longshore & Warehouse Union Canada (ILWU) is complete, and no deal has been reached yet. As of May 31, both sides enter a 21-day cooling off period, which ends on June 21, when both sides acquire the right to strike or lockout. Both parties agreed that no 72-hour strike or lockout notice will be filed before June 21, making June 24 the earliest date for a strike or lockout to begin.

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B.C.’s Trade Diversification Strategy: Driving Growth for Canadian Businesses in New Markets

coracle News, Resources

In response to the increasing interest among Canadian companies to diversify their market presence beyond the United States and China, local governments are stepping up to support these businesses. One such example is B.C.’s Trade Diversification Strategy, which focuses on bolstering export development and investment attraction by capitalizing on British Columbia’s competitive advantages. The strategy targets new markets such as Mexico, Taiwan, and Vietnam, while also expanding in key existing markets.

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