Inside Track: Building the Infrastructure for Clean Energy — The Challenge of Lithium Batteries

Lucas Lee Featured, News, Uncategorized

The complexity of innovation

As a freight forwarder that interacts with multiple industry sectors on a daily basis, we at Canaan see both the opportunity and challenges of the move toward clean energy.

The opportunities are broadly understood, with clean energy solutions often benefiting economies, the environment, and local businesses that are hoping to serve growing demand.

For those of us in logistics, the challenge we often see is that supply-chain structures and processes aren’t always able to keep up with innovation.

Whether it’s with safety regulations, or classification, or the know-how of handling and moving new machinery or parts, each jurisdiction has to work through a range of details. Once those details are determined, there’s then the additional challenge of dealing with other jurisdictions that may have very different guidelines in place.

Case Study: Lithium Batteries

A case in point is with the transport of lithium batteries, used in electric vehicles and numerous devices. While the movement of batteries might seem straightforward, it’s anything but. Treated as dangerous goods, lithium batteries are subject to many regulations and with those regulations a lot of documentation. Countries like China are regularly amending their requirements, and as a result, some shippers easily fall behind in their understanding of what documentation is required by which countries, resulting in the possibility of delays.

Adding to this complexity is the vast difference between the handling of new and used batteries. Though, according to industry experts, many used batteries still have much more life to them and should be re-used in order to reach clean energy and zero-waste goals, some jurisdictions and companies are wary of safety hazards and so the paperwork required can become a deterrent for those wanting to buy or sell used batteries between countries.

Canaan’s Expertise

Recently, we’ve taken on the challenge of managing the import of lithium batteries for one of our key customers.

The first step – securing the necessary paperwork – is not simple; we work closely with overseas vendors who may not always be familiar with the documentation requirements. In many cases, language barriers add an extra layer of complexity to the process.

Next: ensuring compliance. Compliance doesn’t just stop with us, as we need to guarantee that our third-party vendors can safely handle the cargo as well.

Packaging plays a pivotal role in this process. Lithium batteries require specific labeling and careful handling, so being attentive to detail is critical. Unfortunately, last year saw a number of accidents at some ports due to misdeclared or improperly packaged shipments. We have to get this right not just for our clients but for the safety and smooth operation of everything along the supply chain.

At Canaan, we have experts in place who understand both the big picture and the details of shipping dangerous goods, such as batteries. We help our clients strategize and then accompany the client and the shipment around each hurdle.

If you have questions about the opportunities and challenges of the clean energy sector, we’d be glad to chat with you.

Three Preparation Tips

Here are three tips that will help you prepare for the process of shipping lithium batteries:

1. Make sure you have updated information about the requirements in all the jurisdictions your shipment will travel through — the point of origin, the destination, and every potential stop in between. Don’t assume the requirements are the same — they often aren’t.

2. Different carriers have different readiness for handling dangerous goods. Working with a freight forwarder, such as Canaan, that is in constant communication with carriers, can help you find the carrier that will provide the best chance of a smooth delivery.

3. Don’t expect an expedited shipment. Items classified as dangerous goods often require planning and documentation preparation. Plan ahead by making sure you’ve given yourself enough time to absorb the unexpected.

Need more information or have more questions? Reach out to us today! sales@canaangroup.ca

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. 

Inside Track: How Canaan Group uses emerging technologies to optimize operations for our clients

Lucas Lee Featured, News, Uncategorized

Though we are in the business of moving physical items from point to point, a crucial factor in logistics is less tangible: managing and optimizing information. This is where emerging technologies can provide a competitive advantage, creating efficiencies in decision-making that then translate into efficiencies in real-world movement along the supply chain. 

Canaan’s platforms, in particular, provide these benefits to our clients: 

Integration into a single system: Having all your information in one place allows you to prioritize tasks and stay on top of all the variables along various routes, whether that be customer restrictions, service windows, or rest stops. 

Global visibility: Knowing where a vehicle, vessel, or package is at any given time is valuable information not just for managing expectations for customers, but for evaluating the effectiveness of your processes so that you can make adjustments and decisions on future shipments. 

Canaan’s platform provides vessel tracking service, which leverages data received from several container vessel tracking providers who use different tracking technologies, including AI. Furthermore, our platform offers flexibility to customers who prefer customizing analytical dashboards, and monitoring air, ocean, and road milestone events.

If you are struggling to obtain or manage information which is critical to improving your operations, we’d be keen to help assess your situation and offer solutions that utilize technologies that have been vetted and chosen for your specific context. Reach out today at sales@canaangroup.ca

News Round Up for November 2024

Lucas Lee Featured, News, Uncategorized

Here are the industry developments we were following over the past month. 

For timely updates on current events, changes in policies and standards, and opportunities for collaboration, please follow us on LinkedIn!

Labour disputes at multiple Canadian ports

With brief work stoppages in BC and Quebec and the threat of drawn out disruptions, we followed the labour disputes closely. 

Strike notice issued by union 

Employers respond with lock out, leading to brief work stoppage

Federal government intervenes to end work stoppage and send disputes to binding arbitration

Resumption of work at the ports

Canaan at Agri-Trade Equipment Expo in Red Deer

Grateful for the conversations we had at the 40th Anniversary of this Expo, which serves Canadian farmers, equipment manufacturers, and other core participants in the agricultural industry. Here are some key themes we were engaging with.

Import Control System 2 (ICS2) Nearing Full Implementation

This system applies to all shipments bound for the EU, Northern Ireland, Norway, and Switzerland. We’ve been following this implementation closely to ensure our clients avoid container rollover and have their paperwork in order. 

Q3 Report via the Journal of Commerce

Shipping volumes reach record highs, in large part due to continuing tensions in the Middle East.

Federal government intervenes in port disputes in BC and Quebec, ordering return to work and binding arbitration

Lucas Lee Featured, News, Uncategorized

Update, November 14, 2024: Operations have resumed at B.C. ports, following intervention from the government in the ongoing labour dispute. The employers and the union have been ordered back to the bargaining table for binding arbitration, however it is expected that the union will challenge the government mandate. If you have questions about how this ongoing situation might affect your operations, please get in touch. sales@canaangroup.ca

Original post, November 12:

The federal government has intervened in the ongoing labour stoppages at BC and Quebec ports, ordering a return to work and sending the disputes to binding arbitration. 

The move, announced by Labour Minister Steven MacKinnon at a press conference, follows recent failed attempts to make progress at the respective bargaining tables of the two disputes. 

“I have directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties to settle their collective agreements by imposing final and binding arbitration,” MacKinnon said.

Workers at container terminals across B.C. have been locked out since Nov. 4. 

The union representing roughly 1,200 dockworkers at the Port of Montreal rejected an offer from the Maritime Employers Association (MEA) on Sunday; the MEA responded by locking out workers on Sunday evening. 

If you need support navigating the ongoing uncertainty as these labour disputes search for resolution, please reach out. We’re keen to provide solutions to safeguard your logistics operations. Email us at sales@canaangroup.ca

BC Ports shut down as BCMEA locks out union workers following strike notice

Lucas Lee Featured, News, Uncategorized

As of 4:30 p.m., Monday, November 4, 2024, employers have locked out more than 700 workers of ILWU Local 514, following a strike notice issued by the union. BC ports have been shut down indefinitely. No negotiations are happening at the moment to resolve a labour dispute that has been ongoing for more than a year.

Have your operations been disrupted due to this work stoppage? Contact us today for support at sales@canaangroup.ca

UPDATE: Port strike ends on U.S. East and Gulf Coasts after dockworkers and operators reach tentative agreement on wage increase

Lucas Lee Featured, News, Uncategorized

North American economies seem to have been spared significant damage, with International Longshoremen’s Associations (ILA) members returning to work after a strike that brought major ports on the U.S. East and Gulf Coasts to a standstill for three days. The ILA and their employers have reached a tentative agreement that will increase wages for dockworkers by 62% and extend the current contract to January 15, allowing more time to reach agreement on remaining issues while keeping the ports operational.

Original post, September 25, 2024:

Major Ports on the U.S. East Coast and Gulf Coast preparing for first work union strike in nearly 50 years

The unresolved contract negotiations between the International Longshoremen’s Associations (ILA) and the United States Maritime Alliance (USMX) is reaching its September 30 deadline, raising the likelihood of a major disruption to the flow of goods to and from North America beginning in October. 

The ILA is North America’s largest union for maritime workers, representing 85,000 members, and a strike would shut down a total of 36 ports, including five of the busiest on the continent.  

The White House has already stated that it would not invoke the Taft-Hartley Act to force a return to work and has stressed the importance of reaching a deal through negotiations. 

Shippers that rely on these ports have been encouraged for many months to consider alternative shipping routes, as carriers and terminal operators are already beginning to slow operations at the affected ports to avoid a pileup of containers. Even if an agreement is reached before a strike, or shortly after a work stoppage begins, a quick return to normal operations is not likely, with a day of port congestion resulting in roughly a week of delay for the arrival of shipments. 

Shippers should also begin to anticipate additional fees from carriers and demurrage charges. Hapag-Lloyd has already posted a Work Disruption Surcharge, effective October 18, 2024, of 1,000 USD per TEU.

We will continue to monitor the situation, including lag times at ports on the U.S. West Coast and in Canada and Mexico caused by an influx of diverted cargo. If you have any questions, please reach out to us sales@canaangroup.ca.

New CBSA policy: “Established business relationship” required for incoming air cargo

Lucas Lee Featured, News, Uncategorized

In response to recent incidents of air cargo packages causing fires at European logistics hubs, both Canada Border Services Agency (CBSA) and the U.S. Transportation Security Administration (TSA) have implemented new emergency measures for cargo originating from Europe and Central Asia. 

In summary, the new measures require that any air cargo coming into Canada, originating from Europe and the Commonwealth of Independent States (CIS), must demonstrate an “established business relationship” between the shipper and a regulated agent (such as a freight forwarder) or air carrier. Cargo that does not meet this requirement will not be allowed into Canada nor be permitted to transit through the United States.

Exceptions are made for small items (less than 16 ounces, or 453.6 grams), mail, and diplomatic and government shipments. 


This is an ongoing situation, with the global shipping industry taking extraordinary caution with the possibility that other incendiary devices may still be in circulation. Please contact sales@canaangroup.ca for more details and check our website and newsletter for ongoing updates about these security measures.

Negotiations continue for Local 514 and maritime employers as CIRB concludes hearing

Lucas Lee Featured, News, Uncategorized

Despite securing a strike mandate from its members, the International Longshore and Warehouse Union (ILWU) Local 514 has not issued a strike notice as both sides in the labour dispute express a desire to reach an agreement. 

The Canada Industrial Relations Board (CIRB) has concluded its hearing on the ILWU’s pay and manning proposal, which the British Columbia Maritime Employers Association (BCMEA) has challenged as illegal and in bad faith. 
We will update this post with the CIRB ruling and any movement in negotiations — stayed tuned! Reach out to sales@canaangroup.ca to create a plan for maintaining your operations during potential work stoppages in the logistics industry.

Warehouse staffing and equipment efficiency allowing ports in South California to handle volume surges with ease

Lucas Lee Featured, News, Uncategorized

Despite record import volumes, the ports of Los Angeles and Long Beach are operating with minimal congestion in large part due to fully staffed warehouses. This is in contrast to COVID pandemic conditions, during which warehouse staff shortages created a bottleneck for the logistics industry in the region. 

In addition to a stabilization of staffing, more access to near-dock “surge yards” are providing temporary storage for containers, allowing more space at the terminal and preventing a bunching up of vessels in the harbour.

Shippers watching upcoming US and Canadian elections closely, with trade policies in the balance

Lucas Lee Featured, News, Uncategorized

As both the U.S.A. and Canada undergo contentious races for their respective highest governmental offices, many industries are rightly considering how best to prepare for potential changes to policies, both internal and global. 

The shipping industry, in particular, has been keeping track of discussions around trade, with goods imported from China at the forefront of campaign rhetoric regarding international economic relations. 

Recently, the Biden administration finalized its plan to raise tariffs on a range of goods coming from China, adopting hikes that it proposed in May. Product categories include electric vehicles, semiconductors, and critical minerals. Though the first of these tariff hikes are set to go into effect this month, other increases are not until 2025 and 2026 when a new administration will be in the White House. 

With the U.S. election just a few weeks away, polls point to a close contest. Should Vice President Kamala Harris win, it is not certain that she would maintain all of the policies set in place by the current administration, of which she is a part. Former President Trump has viewed tariffs as a punitive measure against China and spoken of significant increases. 

Signs point to Canada following in the same direction with regard to tariffs, with similar concerns being raised among Canadian businesses about the impact of goods imported from countries with significantly lower production and manufacturing costs. With Prime Minister Justin Trudeau struggling to maintain support for his government, amidst widespread discontentment with raising living costs, trade policies could become an increasingly significant area of debate and change in the coming year, with the Canadian federal election currently scheduled for October 2025. 


Immediately following Biden’s announcement about tariffs, freight rates began to creep downward. Was this correlated, coincidental, or related to other issues such as the possibility of a major work disruption at East Coast and Gulf Coast ports? A clearer answer might emerge in time, but the time to strategize is now. Canaan has a trade department, TradeSuccess ™, that is ready to help you prepare for ongoing success in an uncertain political environment. Please contact rezza@canaangroup.ca to schedule a conversation today.

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.

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.

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.