Canada’s port labor negotiations on hold; $19 billion in trade stranded

After a fourth day of talks, the British Columbia Maritime Employers Association told CNBC that talks with the Canadian Terminals Division of the International Terminals and Warehouses Federation are currently on hold pending further discussions with federal mediators.

“Assuming Canada’s ILWU is ready to come up with a reasonable proposal, BCMEA is still ready to come back to the negotiating table immediately. We want a fair and balanced agreement so that ports can open and cargo can start moving as soon as possible.” “

Canada’s ILWU “appears to have consolidated its position” rather than committing to a fair deal, the BCMEA said on Monday.

Canadian Labor Minister Seamus O’Regan called on both sides to return to the negotiating table.

In a statement, the ILWU said the BCMEA “has vandalism“Progress in outsourcing maintenance work.

The government has increased the minimum wage by 7 per cent due to the high cost of living, according to a statement from ILWU Canada.

“There will be attention to the transport sector, where employers have received their fair share of profits and their employees have been able to share in similar growth in a manner that the government has deemed justified,” the report said.

Western Canadian ports have not serviced any ships since June 30 due to the strike. This has led to a backlog in trade, with a total of 29 ports on Canada’s west coast at a standstill.

Included in the labor conflict are the Ports of Vancouver and Prince Rupert, which together handle and ship nearly 20 percent of U.S. trade. Products processed through these ports include critical auto parts such as brakes and other automotive and manufacturing components, holiday items and consumer goods.

Charlotte Cook, senior trade analyst at VesselsValue, told CNBC: “Strike action in the Ports of Vancouver and Prince Rupert could have a significant impact on transpacific cargo flows, which typically accept an average of 34 containers. ship or 289,700 TEU (container).) capacity per month.”

The total value of the 289,700 containers drifting from the ports of Vancouver and Prince Rupert came to $19 billion, based on a value of $65,225 per container and Canadian customs data.

Cook warned that vessel transits and turnaround times are expected to increase due to strikes and congestion outside of Vancouver, one of Canada’s major container ports.

The delays Cook described are similar to those experienced by logistics managers and shippers during the COVID-19 pandemic. Delays create congestion that slows trade processing and incurs late fees, which are paid by shippers and often passed on to consumers.

The strike, which began on Saturday, also affected the railways serving the closed ports. Three Class I railways operate at these ports: China, Canadian Pacific Airlinesand BNSF, a subsidiary of Berkshire Hathaway.

Logistics companies such as ITS Logistics are shifting extra trucking capacity to rail terminals in Chicago and Detroit to get out containers before a surge in container volumes after deals are struck and ships can unload.

ILWU Canada said they hoped the BCMEA would not “hide behind” the threat of “back-to-work legislation” so they wouldn’t have to negotiate.

Asked by CNBC about calls for government intervention, the Labor secretary’s office said they are encouraging both parties to negotiate in mediation.