Contract negotiations at the Port of Montreal have hit an impasse, prompting a 21-day “cooling off” period that could result in a strike on January 4, 2024. Shippers, concerned about disruptions, are urging government intervention following the recent Port of Vancouver strike. In late October, Local 375 requested the Federal Mediation and Conciliation Service to intervene in talks with the Maritime Employers Association (MEA) for a new four-year collective bargaining agreement. The process recently concluded, but the management side has not yet submitted its wage offer. 

Union representative Murray criticized the MEA’s ocean carrier and marine terminal members for not participating in the contract talks, accusing port employers of not taking negotiations seriously. The end of the federal government’s oversight triggered the 21-day “cooling off” period under Canadian law, allowing the union to call a strike as early as January 4, following a 72-hour notice to employers. 

During a legislative session discussing the impact of the Port of Vancouver’s 13-day strike, concerns were raised about potential disruptions in Montreal. The Greater Vancouver Board of Trade highlighted a C$10.7 billion commerce loss due to the strike, while exporters lost business to non-Canadian rivals. Shippers at the Port of Montreal are already seeking more reliable routes, leading to a significant decline in traffic. 

The Montreal Port Authority reported a 12% decline in cumulative container volume in 2023 compared to the previous year. Industry leaders, including Bruce Rodgers of the Canadian International Freight Forwarders Association, urged government intervention to prevent prolonged disruptions, suggesting to legally define port operations as “essential services.” However, union representative Murray argued that the 72-hour strike notice allows ships to find alternative ports, emphasizing that during past events, longshore work was not deemed an “essential service” due to the absence of imminent danger to the population. 

For information about whether your shipment is affected, please contact the Canaan Group Sales team.

Shipping giants including MSC, CMA CGM, A.P. Moller-Maersk and Hapag-Lloyd have halted their vessels from entering the southern entrance of the Red Sea following attacks on their ships this past weekend. Avoiding the Red Sea means avoiding the Suez Canal leaving navigating around the Cape of Good Hope the next best option. This inevitably adds costs and delays in global trade with costs being passed to import/export-based businesses in the form of a general rate increase and/or additional fees. See the image below for information about the change in routing and the increase in shipping time.  

Maersk’s decision came after a near-miss incident involving the Maersk Gibraltar on Thursday, December 14^th, 2023, and another attack on a container vessel on Friday, December 15^th, 2023. The companies instructed their ships in the area to pause their journeys due to heightened security concerns. Recent attacks on commercial vessels in the southern Red Sea and Gulf of Aden have raised alarm, prompting concerns for the safety of seafarers.  

Ship operators face increased risks as Iran-backed Houthi forces in Yemen target commercial ships in response to the ongoing conflict between Israel and Hamas.  Some companies like ZIM have already opted to reroute their ships around the Cape of Good Hope to avoid Houthi aggression. Both companies OOCL and COSCO have stopped accepting Israeli cargo in response to the risk. The shift in the region’s security situation has prompted a change in shipping routes, with the Red Sea being a crucial waterway that links Europe and Asia. Currently, 12% of global trade passes through the Red Sea.  

The International Chamber of Shipping urged influential nations to intervene and prevent further attacks. At least eight ships have been attacked in recent weeks in the Bab el-Mandeb Strait, prompting calls for a multinational naval force to protect commercial vessels in the region. 

 For information about whether your shipment is affected, please contact the Canaan Group Sales team. 

The Vietnamese government is invested in becoming a “factory of the world”, integrating manufacturing and logistics to serve the ASEAN region.

The Association of Southeast Asian Nations (ASEAN) is a trade bloc with a population of nearly 700 million people. ASEAN’s rising middle class and significant economic development over the past decade make it an appealing trade partner for the West.

As Vietnam pours $150 billion into a range of logistics upgrades, they hope to usurp Singapore as the region’s top shipment gateway. Vietnam boasts the highest level of internet connectivity in the region, not to mention a business-friendly legislative environment.

Vietnam’s message to Canadian companies is clear: ASEAN is open for business, and Vietnam is the best gateway through which to trade.

Want to learn more about Vietnam’s logistics transformation? Talk to our sales team to learn more about doing business in the ASEAN region.

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.