Strike update Canada

Starting November 4, 2024, strikes have broken out in the ports on Canada’s west coast in British Columbia, including Vancouver, the country’s largest port. The strike follows a protracted labor dispute between the International Longshore and Warehouse Union (ILWU) and the BC Maritime Employers Association (BCMEA). After the collective bargaining agreement expired earlier this year, the BCMEA recently presented a new contract offer. The union rejected this offer, leading to the current escalation and the BCMEA’s imposition of a lockout. This situation is causing significant delays, particularly for container cargo. Bulk goods such as grain are unaffected. These disruptions may lead to shortages and longer delivery times for our customers.

Current situation in North American ports

• Canada: The lockout of members of the International Longshore and Warehouse Union (ILWU) in Vancouver and Prince Rupert by the British Columbia Maritime Employers Association (BCMEA) continues. This has led to severe congestion, hindering the flow of goods through these critical hubs. Although operations such as bulk handling continue, the movement of containers and other goods has been delayed, causing difficulties for importers and exporters.
• United States: At the same time, labor negotiations at various U.S. ports are proceeding with difficulty. Temporary work stoppages are affecting both the West Coast and the East Coast. Although temporary agreements have been reached in certain areas, ongoing conflicts continue to increase the risk of further disruptions. This is particularly noticeable during peak shipping seasons.

Impact on trade and supply chains

1. Freight delays: Strikes and lockouts are causing delays in the processing of containerized shipments, resulting in longer wait times for both inbound and outbound shipments. These delays can affect your supply chain, potentially impacting inventory levels and delivery times.
2. Stock shortages and delayed order fulfillment: Due to extended transit times, some sectors may experience stock shortages. This disruption may affect timely order fulfillment.
3. Cost adjustments: Increasing congestion and potential rerouting of routes may cause transportation costs to vary. We monitor these developments closely to help you understand and be prepared for the financial impact.

Featured Actions

To limit the potential impact on your business, we recommend taking the following proactive steps:

• Contact your account manager: Our team at Neele-Vat is fully aware of the current situation and is ready to give you tailored advice. We recommend that you contact your account manager to discuss alternative routes and any adjustments to your logistics strategy.
• Plan inventory adjustments: With the possibility of longer transit times, adjusting inventory levels can help reduce the risk of shortages. By factoring in longer delivery times, you are better prepared to deal with any delays.
• Consider alternative ports and transportation methods: Diverting shipments to less affected ports or exploring alternative transportation options may provide some relief from current congestion. Our logistics team can support you in exploring these options to find the most viable solutions.

Commitment of Neele-Vat

We understand the challenges these disruptions pose to your operations. At Neele-Vat, our priority remains providing reliable logistics support through flexible and pragmatic solutions. We continue to closely monitor labor disputes and lockouts at North American ports and will provide you with updates as new information becomes available.