Canada west coast ports resume operations after 13-day strike

TORONTO (ICIS)–The Vancouver, Prince Rupert and other Canadian west coast ports were resuming operations on Friday following the end of a 13-day strike.

The strike by more than 7,000 port workers ended Thursday (13 July) afternoon after a tentative deal was reached between the International Longshore and Warehouse Union (ILWU) Canada and the British Columbia Maritime Employers Association (BCMEA).

The Port of Vancouver confirmed that workers began to return to work as of 16:30 local time on Thursday.

The port will now apply a priority-based anchorage allocation system “to balance the needs of all business sectors and commodities to restore full port operations and fluidity,” it said.

As of Thursday afternoon there were four container vessels at anchor and 10 awaiting entry into the port’s jurisdiction, it said.

Vancouver, Canada’s largest port by far, is an important export hub for petrochemicals, fertilizers and other commodities.

Industry trade groups welcomed the end of the strike but said that the strike caused severe backlogs and that it could take weeks and even months before supply chains return to normal.

“The damage to manufacturing supply chains is significant, as production slowed in the lead up to the strike and will take even more time to get back up and running,” said trade group Canadian Manufacturers and Exporters (CME).

One day of a port shutdown is estimated to take up to a week to make up, “meaning it will take months for the sector to recover”, the group said.

In a CME survey, nearly two-thirds of responding manufacturers reported that the strike affected their operations, and another 28% said it was only a matter of time until they would experience problems, the group said.

Nine out of 10 affected manufacturers said the strike disrupted their supply of raw materials or components, while 70% reported that it negatively impacted their relationships with customers, hurting already fragile supply chains, CME said.

Costs to individual manufacturing businesses experiencing delays were reported to average Canadian dollar (C$) 207,000/day ($157,000/day), the group said.

In the chemicals industry, trade group Chemistry Industry Association of Canada (CIAC) had warned that companies would be forced to curtail production if the strike continued.

In the fertilizer sector, producer Nutrien said it had to curtail production at a potash mine in Saskatchewan province as the strike affected a potash export terminal at Vancouver.

($1 = C$1.32)

Thumbnail photo: Ships at Vancouver. Source: Shutterstock