Freight costs have surged significantly as transport networks have faced disruptions, according to a Department of Foreign Affairs report. Blacklock's Reporter says while the document, titled State Of Trade 2024: Supply Chains, did not specifically mention the 2023 strike by the Longshore & Warehouse Union in British Columbia, it highlighted "many vulnerable choke points" within international supply chains.“Supply chains can be disrupted by people either intentionally or unintentionally,” the report stated. “International supply chains have many vulnerable choke points.”Pacific ports, which handle 6% of Canada’s international trade, experienced severe delays. “Port delays seen globally were particularly acute on the West Coast of Canada and the United States with the ports of Vancouver, Prince Rupert, Seattle, Los Angeles, and Long Beach all seeing large increases in transit times,” the report noted.The report included figures from the Department of Transport, showing that the average end-to-end container transit time from Shanghai through the Port of Vancouver to Chicago increased from 25.4 days in 2019 to 29.1 days in 2020 and 33.8 days in 2021. This rise in transit time contributed to increased shipping costs. “This pressure on maritime shipping was also seen in escalating container shipping prices,” the report explained.“The price of maritime container shipping rose 385% or more than fourfold from November 2020 to September 2021,” the department reported. “Delays at ports mean that goods must wait on ships longer, which causes prices to increase but also reduces availability of shipping, leading to the rapid shipping rate increase seen during the COVID-19 pandemic.”The report also highlighted a 21% increase in rail freight charges and a 36% increase in trucking freight charges over a two-year period.Previously, the transport department estimated net economic losses of “between $750 million to $1 billion” from the 13-day strike by the Longshore & Warehouse Union last July. This dispute led Labour Minister Seamus O’Regan to appoint an Industrial Inquiry Commission into West Coast ports on April 22.Vincent Ready, a retired federal arbitrator, is leading the Inquiry, with a final report due by May 1, 2025, to determine if “there may be voluntary collective bargaining dispute resolution processes” to prevent future shutdowns.In testimony before the Commons trade committee on December 12, the Canadian Chamber of Commerce urged the cabinet to grant itself new powers to curb port strikes. “What we really need to do is make sure the Minister of Labour has the tools he needs to be able to solve these things, and I’ll say solve them before a strike or lockout,” testified Robin Guy, vice-president.Liberal MP Mona Fortier (Ottawa-Vanier) asked, “Are there any solutions we should put forward?” Guy responded, “We are looking for really the ability to force a deal or hold them to the table in advance of a work stoppage.”
