Breaking news: Rail strike could begin as early as August 22 following CIRB ruling on essential services — UPDATED Aug. 14

Lucas Lee Featured, News, Uncategorized

Update, August 14, 2024

In anticipation of a possible work stoppage, Canada’s two national railways have issued the following notices.

Canadian National (CN) railway:

  • CN has embargoed all Rail Security Sensitive Materials (RSSM), Poison Inhalation Hazard (PIH), Toxic Inhalation Hazard (TIH), and other time-sensitive commodities coming into Canada from the USA, effective August 12.
  • An additional embargo on these commodities from within Canada will take effect on August 15.
  • CN will restrict ingates for all temperature-controlled Intermodal traffic and Intermodal Hazmat traffic across its network starting August 15.
  • An embargo on all Intermodal interchange traffic from the US coming to Canada will take effect on August 16.
  • Get the latest information on embargos at the CN’s Bargaining Updates page.

Canadian Pacific Kansas City (CPKC):

A formal lockout notice has been given to the union (TCRC). Should an agreement not be reached, the CPKC rail network will shut down at just past midnight Eastern Time on August 22. Additionally, CPKC has already begun embargoes on freight classified as toxic or poisonous inhalation hazards. Please find the latest information on CPKC’s update page.

Posted August 9, 2024: The Canadian Industrial Relations Board (CIRB) ruled today that a work stoppage at Canada’s two national railways would not cause an immediate threat to public health and safety, clearing the way for a possible strike as early as August 22. 

“Today, the Canada Industrial Relations Board ruled that no activities need to be maintained in the event of a strike or lockout at CN or CPKC,” Labor Minister Steven MacKinnon said in a statement. “The CIRB has also imposed a 13-day cooling off period before a strike or lockout can occur.”

Canadian National and Canadian Pacific Kansas City responded to the announcement by saying they would lock out members of the Teamsters Canada Rail Conference if a settlement or an agreement to participate in binding arbitration could not be reached. 

In its own statement, the union said, “Workers’ right to strike had been temporarily suspended pending today’s decision by the CIRB. This effectively robbed the union of leverage. Absent the threat of a work stoppage, neither company had been willing to compromise or show any flexibility in their demands.”

The union said it would provide a 72-hour advance notice of a strike action, as required, if no contract agreement is reached.

Labour Minister Steven MacKinnon released a statement saying that both sides in the work dispute have a responsibility to all Canadians to come to the negotiation table and work constructively toward a settlement. 


Businesses across the supply chain in Canada are now having to prepare with more urgency for the possibility of significant disruptions should a work stoppage begin. As a leading forward-thinking organization, Canaan Group continues to discuss with customers how to begin planning for cargo re-diversion, alternative planning, and cargo risk mitigation. Contact us today at sales@canaangroup.ca for support.

Strategic Analysis: Container shipping industry navigating capacity challenges worldwide 

Lucas Lee Featured, News, Uncategorized

The global container shipping industry continues to face a significant imbalance between supply and demand, despite the recent injection of considerable vessel capacity. Maritime analysts, including Greg Knowler of the Journal of Commerce, report that the strong demand for vessels along Asia’s export trade lanes is absorbing this capacity, leading to unseasonably high volume and longer voyages exacerbated by southern Africa route deviations and port congestion.

As of mid-2024, ocean carriers have introduced nearly 1.6 million TEUs of capacity. However, this has scarcely mitigated the supply/demand discrepancies on critical routes like Asia-Europe and the trans-Pacific. Congestion currently seen at the Port of Singapore, one of the most efficient ports in the world, is a clear indication of the imbalance of demand and supply.

Moreover, major carriers are preparing for general rate increases (GRIs) and peak season surcharges (PSSs) by July 1, which could push Asia-North Europe/North America spot rates close to $10,000 per FEU, a significant increase over current levels. This scenario underscores tight market conditions and the upward pressure on freight rates.  Compounding the challenge is an equipment shortage due to the imbalance between the import and export rates.

On the strategic front, the container shipping market’s highly fragmented nature complicates demand forecasting and capacity management. Many beneficial cargo owners (BCOs) and non-vessel operating common carriers (NVOs) struggle with precise demand planning, often leaving them scrambling in periods of tight supply. To address these challenges, shippers are advised to integrate their business planning more closely with sales and operations planning (S&OP) processes, which can help anticipate changes and adjust volumes more effectively. Moreover, shippers should avoid overbooking and maintain reliable communication with carriers to ensure better flexibility and meet customer obligations.

While the industry grapples with these challenges, both carriers and shippers must navigate a landscape marked by high demand, limited capacity, and escalating rates. How long will these conditions last? There is no consensus. Some analysts say that this will continue until the end of 2024, while others believe this systematic problem will be cyclical depending on a variety of factors such as geopolitical issues, war, and continual disruptions.  To mitigate these challenges, please contact our sales team at sales@canangroup.ca for more information. 

Breaking Point at Port of Montreal: Implications for Global Trade

Rowena Lo Featured, News, Uncategorized

Negotiations to renew the collective bargaining agreement for the Port of Montreal longshore workers, which expired on December 31, 2023, are at an impasse.

The Maritime Employers’ Association (MEA) put forward what it called its ultimate settlement offer on April 17, which was subsequently rejected by the union (CUPE 375, representing more than 1200 members) as it allegedly regressed workers’ conditions. Of the 90% of members who voted, 99.54% refused the offer, indicating a profound dissatisfaction with the MEA’s stance.

Union president Martin Lapierre criticized the MEA and the maritime company representatives on its board for their apparent provocation tactics and legal confrontations aimed at undermining the union. The union had hoped that the new president of the Montreal Port Authority (MPA) would facilitate labor relationships; instead, the MPA has complicated negotiations, challenging a recent decision by the Canada Labour Relations Board on essential services.

Amidst this tension, the union remains committed to reaching an agreement, having offered 19 potential negotiation dates through the end of May, which the MEA has not yet confirmed.

For customers and stakeholders of the Port of Montreal, this deadlock suggests potential disruptions in shipments and operations. As the negotiations continue without resolution, businesses relying on this major transport hub might experience delays and increased logistical challenges. The situation underscores the importance of monitoring developments closely, as the outcome of these negotiations could significantly impact regional shipping and supply chains.  Please contact sales@canangroup.ca for more details in how to mitigate and circumvent using the Port of Montreal until this resolved. 

Rail disruption update: Services restored under order from federal labour board, while unions prepare appeal

Lucas Lee Featured, News, Uncategorized

As of Monday morning, August 26, 2024, railways for CN and CPKC are operational again, following a decision by the Canada Industrial Relations Board (CIRB) made on the weekend. 

The labour dispute, however, is far from over, with the Teamsters Canada Rail Conference set to appeal the ruling in court. 

The work stoppage at both national railways began last Thursday, with more than 9,000 railway workers locked out, affecting both national freight lines and commuter lines in the Toronto, Montreal, and Vancouver areas. 

We will continue to provide updates as this complex situation unfolds. If you need support navigating the uncertainty, please reach out.

August 23 Update:

Rail service at Canadian National Railway (CN) has been temporarily restored following an intervention from the federal government. However, the Teamsters union has issued a 72-hour strike notice, meaning rail workers could put up picket lines again barring a breakthrough in negotiations or a government order. 

As of Friday morning, the work stoppage at Canadian Pacific Kansas City (CPKC) is continuing, pending an order from the Canadian Industrial Relations Board (CIRB). 

We will continue to provide updates as the situation unfolds. If you need support navigating this complex situation, please reach out.

Original post: Rail Network Shutdown in Canada: Current Status and Alternative Solutions.

On August 22nd, 2024, the country’s largest railways—Canadian National (CN) and Canadian Pacific Kansas City (CPKC)—formally locked out union rail employees, resulting in a complete shutdown of the rail network across Canada.

Discussions with industry leaders, including contacts within CP and CN, suggest that this shutdown could potentially last up to two weeks, as negotiations between the parties remain at a standstill. While we hope for a quicker resolution, Canaan Group stands ready to assist our customers with urgent cargo needs during this challenging time.

Marine Terminal Updates

  • Operational Status: Marine terminals remain open; however, some vessels are experiencing delays in receiving export cargo.
  • Vessel Diversions: Certain vessels are considering bypassing ports in Vancouver, Prince Rupert, Montreal, and Halifax.
  • Import Containers: Available for pickup, though special reservations may be required.
  • Export Containers: Receiving is limited due to a shortage of empty equipment and early return dates (ERD) for vessels.

Alternate Shipping Options

  • Air Freight: Less-than-container load (LCL) cargo is being redirected to air freight.
  • Import Containers: Containers discharged in Canada remain available for pickup. Containers discharged in the U.S. will need to be trucked to Canada and cleared through customs.
  • Export Containers: While marine terminals remain open, export containers can still be received on a limited basis. However, as congestion builds, these containers may need to be rerouted to U.S. ports, including Tacoma, Seattle, and New York, for export.
  • Refrigerated Cargo: Urgent refrigerated shipments can be expedited via truck to the U.S. These shipments will require a T1 bond to avoid customs delays.

For more information or assistance, please contact your Canaan Group representative at sales@canaangroup.ca or info@canaangroup.ca.

Main rail line through Jasper open, after disruptions caused by wildfire

Lucas Lee Featured, News, Uncategorized

Canadian National Railway has re-opened its main line through Jasper, Alberta, after suspending services due to the wildfires that have ravaged the region. Parks Canada has estimated that 30 percent of Jasper’s structures were damaged by last week’s wildfire. 

CN’s main line runs through Jasper National Park before it continues west to ports in Vancouver and Prince Rupert, B.C., and east to the rest of Canada. The route handles more than 40 trains a day.

The company first suspended rail service through Jasper on Tuesday, July 23, and again on Wednesday after a brief attempt to restart services. The line was fully re-opened on Friday, following inspections.

“After inspecting its infrastructure on Thursday afternoon, CN collaborated with the Unified Incident Command center to revise and implement its operational plan allowing goods to safely resume movements Friday morning through Jasper,” CN spokeswoman Ashley Michnowski said. “CN remains in regular contact with unified command and all parties involved and monitoring weather and fire movements.”

Though shipment by rail through Jasper has resumed, passenger train operations remain suspended. 

For any questions or issues on your shipments into and out of Canada, please contact your customer service representative at Canaan (604) 873-1666 ext.3.

Logistics industry in Canada braces for two possible work stoppages in August

Lucas Lee Featured, News, Uncategorized

Businesses in Canada are preparing for disruptions in shipments this summer as two ongoing labour disputes in the logistics industry seem to be headed toward work stoppages in August. 

In the dispute between CN and CPKC railways and rail workers, the Canadian Industrial Relations Board (CIRB) has indicated that it will provide a decision on the safety implications of a work stoppage by August 9. A strike could be a possibility within 72 hours of the ruling, with the union, representing close to 10,000 workers, already authorizing a work stoppage. 

At the port, the BCMEA and ILWU Local 514 will resume their hearing with the CIRB from August 6 to 9, 2024, to address the legality of the Union’s manning proposal with DP World (Canada) Inc. The union plans to hold a strike vote that will be completed by August 9 following a ruling by the CIRB on July 7 that a previous strike vote and notice were illegal.

Negotiations between the union and the BCMEA have been ongoing for over a year, culminating in a meditation effort that has failed to produce an agreement. 

We will continue to provide updates on our website and in our newsletter as these situations unfold. If you have questions about how these work stoppages might affect your operations, please contact us at sales@canangroup.ca.

Dwell times trending lower as transit times continue return to pre-pandemic levels

Lucas Lee Featured, News, Uncategorized

Despite a 12% increase in cargo from Asia to North America in 2024, dwell times at most major North American ports have stayed very low, indicating minimal congestion along the supply chain. Port managers have indicated optimism that terminals are well-prepared for the upcoming peak season.

In Vancouver, laden imports in June increased 13% year over year, yet rail average rail container dwell time dropped to 4.6 days, from 6.5 days in May. Likewise, dwell times for containers leaving Los Angeles-Long Beach marine terminals by rail fell to 4.73 days in June from 6.44 days in May.

Dwell times are a helpful indicator of capacity throughout the shipping industry, and most importantly, of the reliability of published transit times. The COVID pandemic normalized congestion at the ports, with containers often stuck at the port for multiple weeks, awaiting the next leg of their journey via trucks or rail. When capacity at terminals is over 90%, further inefficiencies are created and delivery times become uncertain. 

Though indicators currently point to a generally stable environment, the possibility of a longshoremen strike along the U.S. East Coast in the coming weeks may put emphasis and strain on the western ports, increasing congestion. Businesses have been advised to plan for a work stoppage, redirecting shipments to ports not directly affected by the labour dispute. Please contact us at sales@canangroup.ca for support in navigating this situation.

Surprising rejection by France’s Senate raises concerns about Canada-EU Trade Agreement

Lucas Lee Featured, News, Uncategorized

Provisionally in effect since 2017, CETA, Canada’s Comprehensive Economic and Trade Agreement with the European Union, was surprisingly rejected by France’s upper chamber in a recent vote, raising questions about the reliability of free-trade agreements amidst political volatility. 

From 2017 to 2023, since CETA has been in effect, trade between Canada and the EU has increased by 51%, with French exports to Canada raising 33%. Despite these gains, critics of CETA point to the impact of global free trade on local producers, particularly farmers, and on the emission of greenhouse gas emissions. 

CETA’s implementation since 2017 has been provisional, as full implementation requires ratification by all 27 EU countries. To this point, 17 countries have ratified the agreement.

The result of this vote in the French Senate does not guarantee that France will ultimately reject ratification. The National Assembly, which approved CETA in 2019, could still move to override the Senate.

Through one of Canaan’s subsidiaries, Tradesuccess ®, we are here to help companies looking to promote and facilitate trade outside of Canada. Please contact one of our sales people for more information.

As rapid rise in Trans-Pacific spot rates slows, global air cargo market speeds toward “hot Q4”

Lucas Lee Featured, News, Uncategorized

Analysts are looking for indications of a “normalization phase” in spot rates, carrier profits, and port activity in the second half of 2024, following a surge in trans-Pacific shipping volume in the first half of the year. Total U.S. containerized imports grew by an average of 23% in the first quarter, but slowed to an average 5.8% in April and May, according to the Journal of Commerce. 

Meanwhile, the global air cargo market has seen double-digit growth in rates for the sixth straight month, suggesting that a peak season surcharge may need to be implemented in response to increased demand in a “hot Q4,” according to analysts at Xeneta.

The shipping volume surge in the first-half of the year may be a result of logistics considerations, including importers preparing for a possible work stoppage along the American East Coast in the fall. 

For those looking to ship by air in the coming months, Niall van de Wouw, chief airfreight officer at Xeneta, warns that prices could be high. 

“In 2023, the market did not anticipate the demand we saw. This year, it does. Shippers with capacity agreements in place will be better prepared, but if they go above the agreed upon threshold, they will face paying market rates. On the short-term spot market, this could mean a 50 percent increases in rates above what we see now, once the market really heats up,” said van de Wouw.

“Asset holders will be strategizing; how much capacity they are going to keep behind to sell at a premium when this happens. If you were in an airline’s shoes, you’d make sure you had a good chunk of capacity to sell at the premium likely to be paid on the short-term market.”

If you need support in optimizing your operations and budget in light of changing market conditions, we’d be keen to help. Please contact us at air@canaangroup.ca

Longshore foremen union in B.C. now in position to strike after rejection of “final offer” from employer

Lucas Lee Featured, News, Uncategorized

Last week, B.C.’s longshore foremen rejected the “final offer” from the BC Maritime Employers Association (BCMEA), with 99% of the members of ILWU Local 514 agreeing that the proposal did not adequately address their concerns. The union is now in a legal strike position.

At issue is the employer’s unilateral introduction of automation in the loading and unloading of cargo containers at Rail Intermodal Yard at the Port of Vancouver. Local 514 President Frank Morena said that while BCMEA’s constituent employer, Dubai Ports World, negotiated a manning agreement with ILWU Local 500, they refused to do so with Local 514.

Negotiations between the union and the BCMEA have been ongoing for over a year, culminating in a meditation effort that has failed to produce an agreement. Hearings are scheduled in early July for the Canada Industrial Relations Board to review the parties’ grievances.

We will continue to provide updates as the situation unfolds. If you have questions about how a work stoppage might affect your operations, please contact us at sales@canangroup.ca.

UPDATE: Strike reauthorized amid stalled negotiations with CN and CPKC railroads

Lucas Lee Featured, News, Uncategorized

July 2 update:

Close to 10,000 workers at CN and CPKC have voted to reauthorize strikes at both companies, if negotiated settlements cannot be reached. Overall, workers voted 98.6% to reauthorize a strike, with an 89.5% turnout.

Original post, June 28:

Teamsters Canada Rail Conference, representing 9,000 CN and CPKC workers, is holding a second vote to authorize a work stoppage as the dispute over wages continues. The vote began June 14 and ends June 29.

The union voted in favour of strike in May, but a possible work stoppage was delayed when the Canada Industrial Relations Board (CIRB) began its review to determine possible public safety repercussions of a strike.

Should the second vote authorize a strike, a work stoppage could begin 72 hours following the CIRB ruling. The earliest a strike could occur is mid-July, according to the CPKC.

As indicated by the involvement of the CIRB, any work stoppage could be highly disruptive to many industries in Canada, as the railroads are an essential part of shipment logistics. Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations through the uncertainty of these negotiations and during a strike.

Demand for shipment by air increasing for tech, perishables and other valuables

Lucas Lee Featured, News, Uncategorized

According to WorldACD Market Data, the overall market for air cargo is up 12% year on year, led by a 13% increase in the General Cargo classification that includes perishables, tech, and valuables. E-commerce and disruptions in the container shipping industry are driving the increased consideration of air cargo for imports and exports.

“One factor for this is the strong growth since the start of last autumn in cross-border e-commerce traffic, which often flies in bulk as general cargo rather than within a special product category, as well as the conversion of seafreight to air cargo and sea-air resulting from disruptions since last November to container shipping due to the attacks on vessels in the Red Sea,” WorldACD said.

Within our own services at Canaan Group, we have seen an increase in exports of perishables through Vancouver International Airport and the necessity of considering air cargo options into and out of Canada when devising logistics solutions for clients. To better understand how this trend affects your operations, please contact us at sales@canangroup.ca.

US trade groups increase pressure on Biden administration, as ILA-USMX talks stall

Lucas Lee Featured, News, Uncategorized

As posted here in April, the threat of the first strike along the US East and Gulf Coasts since 1997 still exists as negotiations continue between the International Longshoremen’s Association (ILA) and carriers. With the expiry of the current contract now just three months away, efforts to reach a new agreement have stalled. The Biden administration has been petitioned by around 160 state and federal trade associations, representing manufacturers, retailers, farmers, among other businesses, to bring the parties back to the table.

The current contract is set to expire on September 30, with the ILA already indicating, last November, that union members would not work beyond that date should there be no agreement on a new deal.

“One of the key priorities for the administration has been supply chain resiliency and addressing ongoing supply chain challenges,” the letter from the trade associations stated. “We continue to see maritime supply chain challenges from the ongoing Houthi attacks on vessels transiting the Red Sea. This has led to other supply chain issues: congestion and lack of equipment at overseas ports, carrier capacity issues as they continue to divert vessels away from the Red Sea, and increased freight rates. With all these existing challenges, the last thing the supply chain, companies and employees—all of which rely on the movement of goods, both imports and exports, through our East Coast and Gulf Coast ports—need is a strike or other disruptions because of an ongoing labor negotiation. As this administration has seen, even the threat of a strike or disruption can have a negative impact on the supply chain.”

The Biden administration played a key role in negotiations with the International Longshore and Warehouse Union (ILWU) in 2023. Amid a highly-charged competition for the White House in 2024, electoral politics could have an out-sized role in how the Biden administration engages the dispute.

With transit time for shipments from Asia to the East Coast at 60 days, decisions to divert shipments to avoid a possible strike would have to be made before July 15. Please contact sales@canangroup.ca to get support on how best to plan for potential disruptions caused by work stoppages.

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Surging Demand and Rising Costs Up Ahead

Rowena Lo Events, Featured, News

Canaan Group has been monitoring Asia/North America and Asia/Europe trade conditions resembling those during the pandemic’s peak. While demand surges between 10-20% year-on-year across the entire customer base, certain unique factors have arisen that have reduced sailing capacity, equipment availability, and increased prices specifically for shipments coming out of Asia.

Among the major factors driving increased rates are the Houthi rebel attacks at the Red Sea which incentivize cargo vessels to avoid the Suez Canal and instead, navigate around the tip of Africa at the Cape of Good Hope. The diversion lengthens voyage times by no less than a week and creates imbalanced and unexpected concentrations of container equipment around the globe thereby creating a shortage of available equipment.  China is now in an equipment deficit situation.

The month of May has traditionally been a peak season with expected peak season surcharges and GRIs but with the sustained capacity demand and blank sailing programs, and the short-term outlook for the full year is bleak. FAK and spot facilities for most shipping lines remain closed until June or later causing booking challenges for customers who are willing to pay the escalated rates quotes by carriers. Despite the desire to pay-to-play of many importers, carriers are retracting rates shortly after issuance and replacing them with higher levels.

With carriers increasingly being required to adhere to various carbon taxes and emissions trading systems (ETS) imposed on from various nations, the expensive and prohibitive shipping situation is not expected to improve until Chinese Golden Week in October.

For more information on shifting global trade patterns and logistics strategies, please contact your sales team at sales@canaangroup.ca

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Canadian Border Services Workers Vote to Strike

Rowena Lo Uncategorized

The Border Services (FB) bargaining unit, represented by the Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU), has voted in favor of a strike and legally could strike as early as June 6th. Despite this, 90% of frontline Border Services Officers, deemed essential workers, will continue their duties, ensuring the border remains open and safe. The CBSA is prepared to handle potential disruptions, though the potential strike by the Border Services (FB) bargaining unit could cause significant delays in customs clearance for both ocean and air cargo, leading to congestion at ports and airports.

This may result in longer turnaround times, disrupted schedules, and increased operational costs. Businesses should prepare for potential delays by enhancing communication with logistics partners and implementing contingency plans to maintain supply chain continuity.

For more information during the disruptions, contact the Canaan Group sales team at sales@canaangroup.ca.

Rail strike update: Work stoppage possibility on hold as CIRB reviews implications for essential goods

Rowena Lo Featured, News, Uncategorized

The Canada Industrial Relations Board (CIRB) has been asked to review the implications for essential commodities of a potential strike among unionized railway workers. A work stoppage could have started as early as May 22, but the CIRB process delays the earliest starting date to July 15 and creates new uncertainties around disruptions to both freight traffic and commuter services. 

A work stoppage can only begin following a decision from the board and 72 hours notice from the union. 

The Canadian Pacific Kansas City (CPKC) offered to enter binding arbitration with the union, the Teamsters Canada Rail Conference (TCRC), to avoid a strike, but the union declined. CPKC has also suggested that an agreement be reached with the TCRC about which services should be maintained during work stoppage.

“We believe this would eliminate the need for the CIRB referral process and bring much needed clarity regarding the timing of any potential strike or lockout,” the railway said. “If no maintenance of services agreement is reached, based on precedent, it is unlikely the parties will be in a position to initiate a legal strike or lockout within the next 60 days.”

The CPKC and TCRC will resume meeting on May 17, 2024, in an attempt to move negotiations forward. At issue is the proposal of the railways (CPKC and Canada National) to shift train crews from the traditional mileage-based pay to hourly pay.

Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations through the uncertainty of these negotiations.


With possibility of strike beginning May 22, railways, union workers, shipping companies, and Canadian government considering all options

Rowena Lo Featured, News, Uncategorized

Thousands of unionized workers at both of Canada’s major railways — Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) — have voted overwhelmingly in favour of a strike, which could begin as soon as May 22. This comes after months of negotiations over rest periods reached an impasse, following the expiry of the previous contract at the end of 2023.

A strike would cause significant disruptions to grain, potash, and coal exports, in particular, which rely on railways for transport across Canada. Concerned about the economic implications of a work stoppage, federal Labour Minister Seamus O’Regan has asked the Canada Industrial Relations Board to look at whether the strike might have safety implications, such as the supply of fuel to hospitals. The strike cannot start until the board makes its decision, with the Teamsters union confirming that they would comply with any order from the board.

Shipping companies are drawing up contingency plans, with exports possibly being rerouted through the U.S. to reach coastal ports. However, backlogs will be inevitable during a work stoppage, and an extended recovery would be needed should the strike not resolve in a few days. 


Please contact us at sales@canangroup.ca to explore how we can minimize disruption to your operations during a potential work stoppage.

BC Port

Negotiations continue between BC port employers and foreperson union, with some hope of avoiding disruption

Rowena Lo Featured, News, Uncategorized

The BC Maritime Employers Association (BCMEA) and Local 514 union representing forepersons are moving forward in their negotiations with the support of the Federal Mediation and Conciliation Service (FMCS). The union represents about 730 ship and dock forepersons. 

Following the baseline set by the agreement with Longshore workers, and patterns of negotiations, there has been optimism throughout the process that a work stoppage is avoidable, a relief to a logistics industry already feeling the pressures of a possible rail strike and labour dispute at the Port of Montreal. 

Last summer’s port strike, lasting 13 days, and involving over 7,400 workers, disrupted around $9 billion worth of trade, according to some estimates. 

Panama Canal recovery

Panama Canal on Course for Recovery with Increased East Coast Transits

Rowena Lo Featured, News

The Panama Canal is on track to increase the number of vessels passing through, signaling potential relief for East Coast shipping lanes as the dry season nears its end. After enduring the driest October in over seven decades, the Panama Canal Authority (ACP) has begun to see improvements, thanks to recent rainfall replenishing Gatun Lake—the canal’s primary water source. This development has allowed the ACP to add three extra slots for Panamax vessels, raising the daily reservations to 27.

Currently operating at 60% of its 2022 transit levels, the canal has witnessed a resurgence in traffic, especially for product tankers and container ships, which are now nearing 90% of typical activity. Despite this progress, the ACP remains cautious, noting that future plans depend heavily on continued favorable weather, though there is optimism for a full recovery by 2025.

The canal’s operations have been severely affected by El Niño, which has caused significant water evaporation from Gatun Lake. This situation has not only impeded maritime traffic but also stressed Panama’s water supply, as Gatun Lake also serves as a critical drinking water source for nearly half of the country’s population. This dual necessity places the canal at the heart of national issues, particularly with the upcoming presidential election where candidates are prioritizing water accessibility.

In response to these challenges, the ACP has proposed a $2 billion initiative to enhance the canal’s capacity. This project involves constructing a dam on the Indio River and a tunnel to direct water to Gatun Lake, potentially increasing daily transits by 11 to 15 ships. However, this proposal has faced opposition from local communities concerned about environmental impacts.

As Panama’s wet season approaches, there is further cause for optimism. The U.S. Climate Prediction Center anticipates a swift conclusion to El Niño, with a 60% chance of La Niña developing by August. This shift would likely bring cooler temperatures and more rainfall, boosting canal operations and hastening recovery efforts.

As the canal resumes higher operational levels, East Coast ports like Savannah, which heavily rely on the canal for traffic, may soon see reduced delays and a return to regular shipping transits. This adjustment could significantly benefit the Port of Savannah, which has expanded in anticipation of increased throughput facilitated by the canal’s operations.

Container ship navigates foggy conditions

Extreme Weather in Asia Affecting Vessel Transit Times

Rowena Lo Featured, News, Uncategorized

Bad weather at multiple ports across Asia has been disrupting departure schedules and resulting in congestion, with the worst-affected terminal, Shanghai East Container Terminal, causing delays of up to seven days.

In addition to fog affecting major Chinese ports, including Ningbo and Qingdao, torrential rain has caused problems at Port Klang, Malaysia, and in Singapore.

Carriers have issued advisories about these delays, which add to challenges to efficiency resulting from the need to divert vessels around southern Africa due to concerns about piracy in the Red Sea.

Canaan’s team monitors weather and safety concerns at ports and along shipping routes to provide our customers with the best solutions for vessel reliability. Please contact us sales@canangroup.ca to explore how we can minimize disruption to your operations.