Mixed plastic waste and pyrolysis oil

LONDON (ICIS)– European imports of Russian gas hinge on US or Russian decisions whether to allow payments for deliveries, a sanctions specialist told ICIS. Alexander Kolyandr, a non-resident senior fellow at the Center for European Policy Analysis (CEPA) and former strategist at Credit Suisse London, said there are two options for European buyers such as Hungary and Slovakia to pay for  gas after Russian state-owned Gazprombank was sanctioned by the US Treasury on November 21. One option would be for the US to include Gazprombank on a general license on energy transactions,  which is regularly updated by the US Treasury and currently includes 12 entities allowed to handle energy-related transactions. Gazprombank, which was sanctioned by the Treasury on November 21, is not on the list but could be included if the US is persuaded of the need to do so. The other option would be for European buyers who continue to offtake Russian gas such as Slovakia’s SPP or Hungary’s MVM CEEnergy Zrt. to pay for the gas to any of the other state banks included on the licence. Nevertheless, he said, Russian officials may refuse to accept this because under a scheme introduced by the Kremlin in 2022, European buyers can only pay for their Russian imports via Gazprombank Luxembourg. Under the arrangement, buyers of Russian gas are required to open accounts in foreign currency and in rubles with Gazprombank. Importers would pay in a foreign currency and Gazprombank would sell it on the Moscow Exchange and credit the buyers’ accounts with rubles. If the US fail to include Gazprombank on the general licence, Russian authorities would be forced to allow European buyers to pay via other banks, which would be "humiliating" for the Russian president Vladimir Putin, Kolyandr said. “Nevertheless, the remaining buyers are all Russian allies, which means Russia could grant some flexibility,” he said. The sanctions include a wind-down period for transactions involving Gazprombank until 20 December 2024 and for those related to the Sakhalin-2 oil and gas project in Russia's Far East until 28 June 2025. Nevertheless, if Gazprombank is included on the general licence on energy transactions, transactions – including payments to or from Gazprombank – could continue as usual but only in relation to energy deals, Kolyandr said. A source close to Slovakia’s SPP said the company was monitoring the situation and confirmed that much will depend on "how Gazprom handles the situation." Traders told ICIS on Friday that the news about US treasury sanctions on Gazprombank kept prices volatile on the final session of the week. One trader said, “it should be possible to pay Gazprom via other banks than Gazprombank” but that “the impact is not really clear yet”. Another trader said, “it is making people nervous.” TTF front-month prices tested €49.5/MWh in the early morning but retreated later in the afternoon, dropping below €47.5/MWh. Additional reporting by Amun Lie

22-Nov-2024

– 4 LNG terminals expected – 10 gas power plants proposed – Robust growth market for LNG SINGAPORE (ICIS) –The Philippines is considered a robust growth point of LNG demand in Asia. It has a population of 115.8 million, densely concentrated around major city clusters that also drive the country's fast economic growth and industrialization. Natural gas plays a significant role in the Philippines' economy, especially in the energy sector, followed by industrial and transportation – 98% of Philippines’ gas supply goes to the power sector. Natural gas-fired power generation accounts for around 21% of the total energy mix in the Philippines. ICIS estimates the Philippines' power demand will grow at a rate around 6.7%. The primary source of natural gas supply in the Philippines has been the Malampaya Gas Field, which accounts for more than 99% of domestic production. Operational since October 2001, the offshore gas field has been declining from 2022 and is estimated to be depleted by early 2027. Consequently, imported LNG has emerged as an option to fuel the country's energy transition, backfilling the domestic supply gap and fulfilling fast-rising gas demand. Philippines began to import LNG in 2023 and received 17 cargoes for 2024 by the time of this article. ICIS Foresight expects the country’s LNG imports for 2024 to reach 1.17 million tonnes, twice as much its 2023 imports. Currently Philippines has two LNG receiving terminals. The first LNG project, Philippines LNG (PHLNG) operated by Singapore's AG&P, uses the ADNOC's Ish as a storage unit and onshore regasification equipment to supply gas to San Miguel Global Power’s 1,278 MW Ilijan CCPP (combined cycle power plant). The second terminal, Batangas FSRU (floating storage and regasification unit) owned by utility First Gen uses the BW Batangas and fires four nearby power plants. The country has four upcoming LNG terminals that will come online through 2025-2026, adding a total regasification capacity of 10.72mpta. The government envisions another 3.98mpta LNG capacity to meet supply requirement by 2050. Construction for more gas power plants are also on the way. As of March 2023, Luzon alone has 10 gas to power project proposals, which will add 10.2GW electricity generation capacity accumulatively. (Yuanda Wang in Shanghai contributed to this article)

22-Nov-2024

SINGAPORE (ICIS)–Singapore's GDP growth is projected to slow to 1-3% in 2025, as overall economic growth in its key trading partners is anticipated to ease slightly from 2024 levels, official estimates showed on Friday. 2024 GDP growth forecast raised to "around 3.5%" Global economic uncertainties have increased Singapore's Q3 petrochemical exports grew by 8.5% year on year In particular, the US economy is expected to slow due to easing labor market conditions, although investment growth will provide some support, the Ministry of Trade and Industry (MTI) said in a statement. In contrast, the eurozone will likely see a pickup in growth, driven by stronger consumption and investment recovery amid accommodative monetary policy. In Asia, China's GDP growth will moderate due to weaker exports from announced tariff hikes, but domestic consumption will cushion the slowdown as consumer sentiment improves and the property market stabilizes. Meanwhile, key Southeast Asian economies will experience steady growth, fueled by the upswing in global electronics demand. GLOBAL GROWTH RISKS WIDEN "Global economic uncertainties have increased, including uncertainty over the policies of the incoming US administration, with the risks tilted to the downside," the MTI said. Intensifying geopolitical conflicts and trade tensions could increase oil prices, production costs, and policy uncertainty, ultimately weakening global investment, trade, and growth, the ministry warned. Moreover, disruptions to the global disinflation process may lead to tighter financial conditions, desynchronized monetary policies, and exposed financial vulnerabilities, it added. Singapore's non-oil domestic exports (NODX) are projected to grow 1.0-3.0% in 2025, following a modest expansion of around 1.0% in 2024, a separate statement by trade promotion agency Enterprise Singapore said on Friday. "While the external environment is generally supportive of growth, uncertainties in the global economy such as a more challenging and competitive trade environment could weigh on global trade and growth," it said. 2024 GROWTH UPGRADEDFor 2024, the country's economic growth forecast for 2024 was raised to around 3.5%, above the range of its previous prediction of 2-3%, the MTI said. Singapore's stronger-than-expected economic showing in the first nine months and updated assessments of global and domestic economic conditions drove the upward revision in the GDP forecast. For the first three quarters of the year, GDP growth averaged 3.8% year on year. Singapore's economy grew 5.4% year on year in the third quarter of this year, up from the advanced estimates of 4.1%. In terms of trade, Singapore's petrochemical exports grew by 8.5% year on year in the third quarter, slowing from the 14.9% expansion in the preceding three months. Singapore's NODX grew by 9.2% year on year on year in the third quarter, swinging from the 6.5% contraction in the preceding three months. Singapore serves as a major petrochemical manufacturer and exporter in southeast Asia, with its Jurong Island hub hosting over 100 international chemical companies, including ExxonMobil and Shell. Focus article by Nurluqman Suratman

22-Nov-2024

CARTAGENA, Colombia (ICIS)–Mexico’s nearshoring trend will continue, even with the prospect of changes with the incoming US Trump administration as the US and Mexico economies are growing more and more interconnected, said the head of Evonik’s Mexico business. “Mexico is the 14th largest global economy, and an economy geared for exports – not only to North America but other regions,” said Martin Toscano, president of Evonik Mexico, at the Latin American Petrochemical and Chemical Association (APLA) Annual Meeting. Mexico is the 9th largest exporter globally and becoming one step closer to the 3rd largest auto parts manufacturer. It is also the leading business partner to the US, he pointed out. Currently over 80% of Mexico’s exports are to the US, totaling $455 billion in 2023. The US now imports more from Mexico than from China. The US in turn exported $324 billion of goods to Mexico, he noted. Key Mexico exports to the US include transport equipment (including autos and parts), medical and scientific instruments, electronics, machinery, and rubber and plastic. TRUMP IMPACT ON NEARSHORING “Trump 47 (referring to the upcoming 47th US President) is not going to be that different from 45 (last Trump administration). US and Mexico interests go beyond rhetoric,” said Toscano. “No region is an island – they rely on net inflows. The world is too interconnected to just switch off. Economies depend on exports but also imports,” he added, pointing out that the US is unlikely to reshore everything. Nearshoring is natural for Mexico because of its proximity to the US and the USMCA (US-Mexico-Canada Agreement) free trade agreement (FTA). But nearshoring is also distributed across Latin America, with other countries such as Brazil and Argentina ready to play greater roles, he pointed out. US President-Elect Trump has threatened companies – both in the US and abroad – that move production to Mexico to export to the US, with tariffs. However, the US holds over 40% of total foreign direct investment (FDI) in Mexico, making it a major stakeholder in Mexico exports, he noted. “The US has a very important role… but there is also a significant European presence. There is a continuing diversification of the investment base,” said Toscano. Mexico also has FTAs with 23 countries – the 7th most of any country in the world – with access to over 60% of global GDP. This as well as increasing government investment in infrastructure and a growing middle class make it an attractive market for investment, he pointed out. “All this investment in Mexico has generated greater well-being – better jobs and income. This means people start consuming more for basic needs – food, protein, personal care products, cleaning products and household items,” said Toscano. The executive also sees a boost for US economy with the incoming Trump administration. “Simplifying regulations can be good. It can turn to a negotiation point when USMCA sunsets [in 2026]. This can make Mexico adopt certain [simplified] regulatory elements,” said Toscano. “With the Trump administration, Mexico has to take some topics seriously. Nearshoring is a window of opportunity, and if we don’t know how to do it, we will lose,” he added. RULES OF ORIGIN, DEAL-BASED WORLD At the APLA Annua Meeting, former head of Argentina’s central bank and current director of the Asia School of Business, Martin Redrado, said Mexico should be prepared for the US being much stricter on its “rules of origin”. Under the USMCA rules of origin, exporters must show that a product has a certain minimum percentage of components from the region (US, Mexico, Canada) to avoid import duties. Redrado said Latin American countries should now follow a transactional policy as we move from a “rule-based world to deal-based world”. This requires a transactional approach to negotiations. The 44th APLA annual meeting takes place 18-21 November in Cartagena, Colombia. Focus article by Joseph Chang Thumbnail shows the flag of Mexico. Image by Shutterstock.

20-Nov-2024

HOUSTON (ICIS)–Recently released data from the 2024 Ellen MacArthur Foundation (EMF) Global Commitment report shows brands continue to make progress against their sustainability goals, albeit at a much slower pace than required. The Global Commitment was initiated in 2018, where both private and public entities joined as signatories, agreeing to work towards several packaging sustainability goals including virgin plastic reduction, increased use of post-consumer recycled (PCR) content, elimination of problematic packaging, increased design for circularity among packaging portfolios and increased application of reuse models across packaging and products. Of the 140 signatories who contributed to the most recent report, 91 are packaged goods companies, packaging producers, or retailers, who account for roughly 20% of the world's plastic packaging. While these unified goals have demonstrated a positive model for collaboration and voluntary action, this latest report underscores the necessity of additional global policy to unify all packaging players towards a circular economy. At present, signatories are largely outperforming the remaining 80% of the market when it comes to positive sustainable actions. As with all complex problems, it requires multiple solutions. As stated in the report, "Regulation will not solve everything, given the highly complex nature of plastic and packaging waste. Voluntary business action will continue to play a crucial role in innovating, showing what’s possible, and creating demand for solutions". According to the 2023 packaging volume data, the weighted average of PCR content has increased to 14% from 12% in 2022. This is still far from the weighted average goal of 26% across the signatories by 2025. In total, these efforts amount to over 2.5 million metric tons of PCR having been produced and used in packaging in 2023, up from roughly 2.3 million metric tons in 2023. This is in comparison to the potential demand for over 4 million metric tons of PCR if signatories were to reach their goals based on 2023 total plastic volumes. Looking at the past several years of progress, PCR growth has seen steady 2% increases year on year, though unfortunately this pace is far behind what is needed to reach the ambitious 2025 deadline. At this pace, signatories would collectively reach their goals in 2029, which feels particularly poignant as many individual companies have shifted their timelines from 2025 to 2030 amid growing bottom line pressure and lack of progress. The report confirms as much, transparently stating that many signatories are likely to miss key 2025 targets. That being said, progress is varied among players, with some much closer or already having surpassed initial PCR goals. Per the report, cosmetic sector signatories lead with 31% PCR use on average in 2023, while food sector signatories are only at 10% on average. This could be due to the mixed regulation across the globe regarding food contact approval, as well as the different margin implications between food packaging and other consumer goods items. Even if companies do miss their goals, EMF notes that the Global Commitment has fundamentally transformed data reporting and industry definition practices, a success in itself. According to the report, 45% of signatories now utilize third-party data verification measures which further support data transparency and accountability. When looking at the progress across the other main goals of the Global Commitment, virgin plastic volumes have decreased as companies make targeted efforts to reduce their footprint, though this can also be attributed lower product volumes being produced and sold in the midst of a weak macroeconomic environment as well as carry over destocking from 2023. Unfortunately, only 32% of signatories with a virgin plastic reduction target have either achieved or are on track to meet their target. Bear in mind, these reports publish at a delay and thus actions towards progress in 2024 have largely already taken place, or in some unfortunate cases, have not. This comes as the United Nations Environment Assembly (UNEA) wraps up the fifth and last Intergovernmental Negotiation Committee (INC-5) at the end of the month, with the hopes of having a global treaty on plastic pollution by the end of the year. It remains to be seen how signatories will pursue a final push towards these goals in 2025, amid an uncertain regulatory and economic global environment. Additional reporting by Corbin Olson

19-Nov-2024

CARTAGENA, Colombia (ICIS)–Latin America stands at a crucial turning point as global economic and political dynamics shift, with significant opportunities in energy, food security and technological advancement, an economist said on Tuesday. Martin Redrado, director at the Buenos Aires-based Fundacion Capital, said Latin America is uniquely positioned to benefit from changing global trade patterns, particularly as the world moves from a rules-based system to a more transactional approach. The economist was speaking to delegates at the annual meeting of the Latin American Petrochemical and Chemical Association (APLA). Mexico has emerged as a primary beneficiary of nearshoring initiatives, while South American nations including Colombia, Brazil, Argentina and Chile are increasingly attracting international attention. The region's energy sector is projected to play a vital role in global security, with forecasts indicating Latin America will produce 11 million barrels of oil daily by 2030, representing 25% of global production, said Redrado. Brazil is expected to double its offshore pre-salt oil production, while Argentina's Vaca Muerta development promises significant gas production potential. The economist said regarding food security, Latin America's position appeared equally strong, with the region already controlling half of global corn exports and 60% of soybean exports, with Brazil leading as a major meat exporter. “Latin American will have a central role to play in food security. Today the world has 8 billion inhabitants, and it is estimated that by 2030 around 2.3 billion of those 8 billion will become middle class,” said Redrado. “The middle class consumes more protein, and clearly Latin American, with half of the total corn exports in the world and 60% of soybean exports, is well placed to cater for that demand.” Technological integration, particularly artificial intelligence, is reshaping traditional industries, said Redrado, noting AI applications in agricultural soil analysis, weather forecasting, and pest control are enhancing productivity. Similar advances, he concluded are being made in energy sector efficiency and construction monitoring. INFRASTRUCTURE STILL BEHINDHowever, infrastructure remains a significant challenge, and Redrado said Latin America must improve both physical and digital connectivity, including enhanced petrochemical infrastructure and better regional integration. The push for private sector participation in infrastructure development is growing, with negotiations ongoing for increased US involvement under the Trump administration. Summing up, Redrado said that as global tensions persist in Europe and the Middle East, Latin America's relative stability and strategic distance from these conflicts, combined with existing free trade agreements with the US, position the region favorably for sustainable economic growth and development. The 44th APLA annual meeting takes place 18-21 November in Cartagena, Colombia. Front page picture source: Shutterstock

19-Nov-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 15 November. Europe PET hit by multiple factors pulling market in different directions Polyethylene terephthalate (PET) sources in Europe are faced with a plethora of circumstances trying to shape the market, which in the end may result in a degree of stability. Crude markets face substantial 2025 surplus as China demand falters – IEA Global crude supply growth is likely to outstrip demand by over a million barrels/day in 2025, the International Energy Agency (IEA) said on Thursday, with the “marked” slowdown in China consumption the main drag on consumption this year. INSIGHT: European cracker shutdowns could open market to US ethylene exports European ethylene producers could be planning more cracker shutdowns, with the lost capacity being replaced by imports from the US. Shell wins appeal in Dutch emissions caseThe Netherlands court ruling mandating that Shell cut its total carbon emissions by 45% by 2030 has been thrown out, the oil and gas major said on Tuesday. Europe PE, PP adapt value proposition in face of evolving market European polyethylene (PE) and polypropylene (PP) are evolving as the world they occupy steadily changes.

18-Nov-2024

SINGAPORE (ICIS)–South Korean refiner S-Oil's new petrochemical complex in Ulsan is now 42% complete as of end-October and is on track for completion in 2026. Shaheen accounts for about 87% of full-year 2024 capex Project progress slightly ahead of schedule S-Oil swung to Q3 net loss on poor refining, petrochemical margins Construction of the $7bn project called Shaheen – Arabic word for falcon – at the Onsan Industrial Complex of Ulsan City started in March 2023. Its mechanical completion is targeted by the first half of 2026. Total capital expenditure (capex) for the Shaheen project is projected at W2,716 billion ($1.95 billion) in 2024, up 85% year on year, and accounts for about 87% of S-Oil's overall capex this year. The company’s full-year capex at W3,136 billion, which includes costs of upgrade and maintenance works as well as marketing-related expenses, represents a 54% increase from 2023 levels. The Shaheen project will have a 1.8m tonne/year mixed-feed cracking facility; an 880,000 tonne/year linear low density polyethylene (LLDPE) unit; and a 440,000 tonne/year high density polyethylene (HDPE) plant. The site will have a thermal crude-to-chemical (TC2C) facility, which will convert crude directly into petrochemical feedstocks such as liquefied petroleum gas (LPG) and naphtha, and the cracker is expected to recycle waste heat for power generation in the refinery. Saudi Aramco, the world’s biggest crude exporter, owns more than 63% of S-Oil. The project update was included in S-Oil’s presentation slides on its Q3 financial results released on 4 November. The company swung to a Q3 net loss of W206 billion amid a sharp decline in refining and petrochemical earnings. in South Korean won (W) billion Q3 2024 Q3 2023 % Change Jan-Sept 2024 Jan-Sept 2023 % Change Revenue 8,841 9,000 -1.8 27,720 25,897 7.0 Operating income -415 859 200 1,411 -85.8 Net income -206 545 -61 788 The petrochemicals unit of S-OIL posted an operating income of W5.0 billion in the third quarter, an 89% year-on-year drop. Paraxylene (PX) and benzene markets weakened in Q3 due to increased supply amid reduced gasoline blending demand and restarts of production facilities after turnarounds. The company's PX spread to naphtha weakened to $271/tonne in Q3 from $425/tonne in the same period last year, while the benzene-naphtha spread rose to $315/tonne from $251/tonne in the same period a year earlier. In the downstream olefin market, polypropylene (PP) was bearish in the third quarter due to "abundant regional supply amid weak downstream demand". The refining unit posted an operating loss of W573.7 billion in the third quarter, swinging from the W666.2 billion profit in the same period a year earlier. The loss in the refining segment was mostly due to the one-off impact from the decline in oil prices and foreign exchange rates. On market conditions, the company said that the supply-demand environment and margins for refiners in Asia is expected to "gradually improve due to reduced operating rate from low margin condition and heavier maintenances year over year, amid continued stockpiling if winter heating oil". For Q4, the company expected the PX and benzene markets to be supported by fresh demand from new downstream capacities while gasoline demand stays slow. For downstream olefin markets, S-Oil said that PP and propylene oxide (PO) markets may show modest recovery "depending on the impact of China's economic stimulus measures amid ongoing capacity additions". Focus article by Nurluqman Suratman ($1 = W1,395)

18-Nov-2024

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US were largely stable this week but exporters are being urged to book outgoing shipments 4-6 weeks in advance as labor issues between union dock workers and US Gulf and East Coast ports stalled. For US companies working to export excess volumes to balance year-end inventories, those shipments need to be going out this week. For importers, rates from Asia to the US West Coast fell by 2% and are down by almost 3% over the past two weeks, according to supply chain advisors Drewry and as shown in the following chart. The chart also shows rates from Asia to New York were largely stable, down by 0.20% and by 0.36% over the past two weeks. Global average rates held steady at around $3,440/FEU (40-foot equivalent unit), as shown in the following chart. With the breakdown in negotiations between the US Maritime Alliance (USMX), representing the ports, and the International Longshoremen’s Association (ILA), representing the dock workers, and with the expectation of significant tariff increases under the administration of President-elect Donald Trump, analysts expect a surge of imports over the last few weeks of the year. The National Retail Federation (NRF) has revised its forecast for the rest of the year on the developments. Ports have not yet reported October’s numbers, but the NRF/Hackett Associates Global Port Tracker projected the month at 2.13 million TEU (20-foot equivalent units), up 3.7% year on year. November is forecast at 2.15 million TEU, up 13.6% year on year, and December at 1.99 million TEU, up 6.1%. That would bring 2024 to 25.3 million TEU, up 13.6% from 2023. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. CANADA PORT LABOR ISSUES The Port of Montreal will resume operations on Saturday, 16 November, at 07:00 local time, following labor disruptions that started on 31 October and a subsequent lockout of about 1,200 dock workers. The Port of Vancouver and other Canadian west coast ports resumed operations on Thursday after a strike and lockout of about 730 foremen who supervise more than 7,000 dock workers that began on 4 November. The Port of Vancouver is Canada’s largest port by far. More than Canadian dollar (C$) 22 million ($15.7 million) of chemistry and plastic products was traded through Vancouver and other west coast ports each day in 2023, for a total of C$8 billion for the year, according to the Chemistry Industry Association of Canada (CIAC). LIQUID CHEM TANKER RATES STABLE US chemical tanker spot rates were overall steady this week for most trade lanes, while vessel demand continues to remain soft for various routes. One exception is rates from the USG to the Mediterranean, which surged as interest to this region remains steady. There was an uptick on cargoes from various regions to Montreal as shippers work to deliver and pick up material before the ice season closes for winter transit and soon will require ice class vessels. The US Gulf to ARA remains soft and solid for contractual cargoes and as CPP tonnage continues to participate in the chemical sector. If it persists it could continue to pressure to the market even further. Similarly, that situation exists for volumes on the USG to the Caribbean and South America trade lanes. From the USG to these regions, space among regular carriers remains available, due to a lack of interest. However, for the USG to Asia spot volumes continue to be weak as there seems to be plenty of prompt space available. Mainly parcels of monoethylene glycols (MEG), ethanol and methanol to this region seems to have provided any support to the weak market. Additionally, ethanol, glycols and caustic soda were seen in the market in various directions. Bunker prices remain stable mainly due to the continued the volatility in energy prices week on week. PANAMA CANAL MAINTENANCE The West Lane of Miraflores Locks will be out of service due to concrete maintenance on the West Southend approach wall for about 48 hours from early on 23 November until late on 24 November, according to the Panama Canal Authority (PCA). The number of slots available to super and regular vessels will be reduced because of the maintenance. Once the maintenance is complete, the 20 slots for supers and the six slots for regular vessels will be reinstated for booking dates beginning 25 November, the PCA said. As of September, the PCA has 36 slots per day after limiting transits late in 2023 because of a severe drought in the region. With additional reporting by Kevin Callahan and Stefan Baumgarten

15-Nov-2024

TORONTO (ICIS)–The Port of Vancouver and other Canadian West Coast ports will resume operations on 14 November, 16:30 local time, after a strike and lockout of about 730 foremen who supervise more than 7,000 dock workers that began on 4 November. The Canada Industrial Relations Board (CIRB) has issued an interim order to employers and union to resume operations and continue working until the board makes a final determination on Tuesday’s government directions, officials said. The government directed the CIRB to order the resumption of all operations at the West Coast ports and at the Port of Montreal, and to settle pending labor disputes through binding arbitration. The CIRB has scheduled a hearing for 18 November to hear from employers and unions on certain questions that were raised with respect to the government’s intervention. The British Columbia Maritime Employers Association (BCMEA), which represents West Coast port employers, said it would work with labor union International Longshore and Warehouse Union (ILWU) and others to safely and efficiently resume operations at the ports. The Port of Vancouver, which is Canada’s largest port by far, confirmed that it was preparing for the resumption of operations. Timelines would be terminal specific, with container terminals expected to restart operations early Friday, 15 November, it said. More than Canadian dollar (C$) 22 million ($15.7 million) of chemistry and plastic products was traded through Vancouver and other West Coast ports each day in 2023, for a total of C$8 billion for the year, according to the Chemistry Industry Association of Canada. MONTREAL At the Port of Montreal, where labor disruptions started on 31 October and employers locked out about 1,200 dock workers on 10 November, the Maritime Employers Association (MEA) said it would take the necessary steps to ensure that port activities resume as quickly as possible. The MEA has not yet received an order from the CIRB but expects to receive it later on Thursday or on Friday, a spokesperson told ICIS. "As soon as we receive said order, we could be operational within 12-24 hours", the spokesperson said. The Port of Montreal, for its part, said that cargo handling activities would gradually resume over the coming days. However, it would take several weeks to clear terminal backlogs and fully restore supply chains, it added. Container operations were still affected by the labor disruption on Thursday, according to information on the website of Termont, which operates two of the port's four container terminals. The unions representing the port workers in Montreal and the West Coast ports said they would challenge the government intervention in court as the intervention violated workers' rights to strike and to negotiate better wages. Earlier, another labor union, Teamsters Canada Rail Conference (TCRC), filed a court challenge against the government's move in August to intervene and end a freight rail labor dispute. That case has not yet been decided. Meanwhile, at US East Coast ports a strike has been paused until 15 January. ($1=C$1.4) Thumbnail photo source: Port of Vancouver

14-Nov-2024