VANCOUVER PORT THRIVING
U. S. labour strife provides a boost
A lengthy labour dispute at U. S. West Coast ports was resolved months ago but its effects are still being felt at Port Metro Vancouver, which is predicting a permanent increase in cargo as a result of the strife.
Canada’s largest port moved 70.3 million metric tonnes of cargo in the first half of the year, up 1.5 per cent from a year earlier. This is slower than the 3.6 per cent growth seen in the first half of 2014 due to lower volumes of metals and minerals, coal and petroleum products.
However, container volumes jumped eight per cent due in part to U. S.- destined cargo that was diverted to Vancouver in order to avoid backlogged American ports, then shipped into the U. S. via rail.
The U. S. labour conflict, which resulted in chronic delays through the fall and winter, left major shippers scrambling to find an alternate way to get their goods to market and gave an advantage to those who already used the ports in Vancouver or Prince Rupert, B. C., said Robin Silvester, president and CEO of Port Metro Vancouver.
“Those who didn’t were left scrambling when things started to go sour in the U. S.,” Silvester said.
For planning purposes, Port Metro Vancouver assumes that approximately 15 per cent of its container business is destined for the U. S., but that number is currently closer to 25 per cent and Silvester suspects 20 per cent may be a more accurate assumption going forward.
Watching volumes at Port Metro Vancouver, which handles onefifth of Canadian trade, is also a good way to get a read on the health of the struggling Chinese economy. This was reflected most dramatically in falling volumes of commodities like minerals, thermal coal and crude petroleum.
However, this was offset by increased volumes of fertilizers, wheat, auto parts and vehicles.
On the export side, Silvester said the weaker dollar is boosting demand for Canadian grain and potash.