Port of Vancouver’s cargo volumes fall 5.9 per cent
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,” Robin Silvester, CEO of the Vancouver Fraser Port Authority, said in a statement.
“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.
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.