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.

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.

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.

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. 

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.

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.

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.

The largest terminal at the Port of Long Beach closed today (Monday), caused by dock workers rallying for better pay. Similar disruptions happened at the Port of Oakland on Friday. However, all terminals at the Port of Los Angeles and the Port of Oakland remain open today.

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.