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Canadian News

Tentative Deal Reached in Canadian Port Strike

The workers’ union and employer came to an agreement minutes before the federal mediator’s settlement deadline. Now, officials will be working to clear the backlog resulting from the 13-day stoppage.

A nearly two-week port strike on Canada’s West Coast appears to be over.

Federal mediators gave the International Longshore & Warehouse Union (ILWU) and British Columbia Maritime Employers Association (BCMEA) until 10:30 a.m. PT on Thursday, July 13, to come to a settlement. The parties announced they had reached a tentative agreement just 10 minutes before the deadline.

cargo port in Canada

A cargo terminal at the Port of Prince Rupert, BC. A backlog at more than 30 locations could take several weeks to clear.

“We thank the Union and the Employer for their commitment to the collective bargaining process,” wrote Labour Minister Seamus O’Regan in a statement, “and federal mediators for their instrumental role in supporting the parties in their negotiations and proposing the successful settlement.”

The four-year deal, which has not yet been ratified by either side or made public, will allow work to start again at more than 30 ports in British Columbia, including Vancouver (the country’s largest) and Prince Rupert. Goods have been stuck on ships since workers walked off the job on July 1.

“The BCMEA recognizes and regrets the significant impact this labour disruption has had on the economy, businesses, workers, customers and, ultimately, all Canadians,” said the BCMEA in a statement. “We must collectively work together to not only restore cargo operations as quickly and safely as possible, but to also rebuild the reputation of Canada’s largest gateway and ensure supply chain stability and resilience for the future.”

At the moment, 63,000 shipping containers with billions of dollars’ worth of goods are sitting on vessels waiting to be unloaded at ports in British Columbia, according to the Greater Vancouver Board of Trade. Other ships headed for U.S. ports instead.

Still, clearing the backlog after nearly two weeks will require time; the Railway Association of Canada estimates that it will take an extra three to five days for each day of the strike, which amounts to 39 to 66 days to return to normal operations and efficiencies. Among the most impacted cargo types are lumber and wood products; oil and petroleum products; non-metallic minerals such as crushed stone, sand, stone, clay and glass products; and chemicals such as those that go into paints, coatings and acids.

“The scale of this disruption has been significant,” continued O’Regan in his statement. “The extent of it has shown just how important the relationship between industry and labour is to our national interest. Our supply chains and our economy depend on it. We do not want to be back here again.”

Distributors in the promotional products industry in Canada said they had yet to feel any real impact. However, suppliers were already preparing for alternative shipping routes if needed and were concerned about a significant flow of shipments scheduled to come in ahead of the busy fourth quarter.

Max Baer, president of Justincase (asi/63698), said he’s anticipating at least three to four weeks before the ports are back to normal operations. “Any storage, demurrage, detention, chassis rental fees and additional handling will be the importer’s responsibility to pay,” he said. “So, we’re going to feel the effects of this strike big time.”

While Tierney Culmer, owner of Culmer Pen Company (asi/47848), said she has more “breathing room” now that a tentative agreement has been reached, the backlog may still compel her to have shipments rerouted from Prince Rupert in British Columbia to Montreal. That alone adds at least 10 days to the sailing time, she said, plus the smaller port at Montreal means it takes longer to unload and transfer goods onto rail for transport inland.

“My next shipment isn’t scheduled to leave for a few weeks,” Culmer said. “We’ll monitor backlogs and make a last-minute decision when the cargo is ready.”