Cargo traffic at Port of Vancouver declines nearly 6%

Cargo traffic at the Port of Vancouver fell 5.9 per cent in the first half of the year as a result of the weaker loonie, a tepid global economy and the shift of some cargo back to U.S. ports following a lengthy labour disruption last year.

“The slight decrease in cargo volumes in the first half of 2016 is expected, given the record year we experienced in 2015 and the softening global economy,” said Robin Silvester, CEO of the Vancouver Fraser Port Authority.

“The long-term outlook for Canadian trade is one of growth, and the port will be ready to handle increased volumes through Canada’s West Coast.”

Some of the most dramatic volume declines were in fertilizers, down 15.8 per cent year over year, and coal, down 14.5 per cent.

Both commodities have been hit by a drop-off in demand from key Asian markets.

The long-term outlook for Canadian trade is one of growth, and the port will be ready to handle increased volumes ...

Crude petroleum exports, meanwhile, plunged 53.3 per cent as a result of the fall in global oil prices.

Volumes of machinery, vehicles and construction materials fell 11.7 per cent due to a slowdown of industrial activity in Western Canada and the weaker Canadian dollar, which made imports more expensive.

Trade in consumer and related goods also shrunk, falling 7.5 per cent as a result of weaker purchasing power due to the lower loonie.

Total container traffic fell 6.5 per cent as some cargo shifted back to the United States.

A lengthy and unpredictable labour dispute at U.S. West Coast ports last year resulted in some shippers diverting their traffic to Canada.

One bright spot for the Port of Vancouver was grain, where a 41.8-per-cent jump in barley volumes and a 40.1-per-cent increase in canola led the sector to an overall increase of 2.6 per cent.

The port said that the overall decline in cargo is expected to be temporary and volumes will recover along with the global economy.

A recent report from U.K.-based Ocean Shipping Consultants forecast that the Port of Vancouver will experience annual growth of four per cent in container traffic between 2016 and 2030. As a result, the port expects it will need additional terminal capacity by the mid-2020s.