5 November 2024Article
Canada West Coast Port Strike In Effect

Canada’s key West Coast ports have come to a standstill as International Longshore and Warehouse Union (ILWU) members commenced industrial action on November 4.

Canada’s key West Coast ports, including Vancouver and Prince Rupert, have come to a standstill as International Longshore and Warehouse Union (ILWU) members commenced industrial action on November 4 following months of unsuccessful negotiations.

This closure has severely disrupted container shipments and cargo traffic, impacting supply chains and causing delays across North America.The latest walkout follows similar labor action at Montreal's port, escalating tensions across Canada’s major ports.

With 20% of cargo volume from Canada’s West Coast ports intended for the US, the possible impact on these supply chains could be significant, affecting the flow of goods and forcing businesses reliant on timely imports to make adjustments. Additionally, the strike will likely lead to vessel diversions and increased volumes into already-busy US West Coast ports like Los Angeles, Long Beach, and Tacoma. All of which are already experiencing high demand due to recent US East Coast port strikes and continued concerns over whether an agreement will be reached by the Jan 15 deadline.

This increased volume into the US West Coast is likely to apply further pressure on backlogged rail services to inland ramp destinations, as most of the US bound cargo through Canadian West Coast ports will be intended for rail moves into the USA. The added pressure on US rail services, crucial for inland destinations, could extend supply disruptions, highlighting vulnerabilities in the North American logistics network and leaving smaller businesses in particular struggling to meet demand. Experts warn that backlogs and supply chain delays may persist in the aftermath when operations work to catch up.

At Woodland Group, we are working to ensure minimal impact on our customers’ supply chains during this time by seeking alternative routing options. However, please expect delays as a result of this action on anything bound for the Canadian or US West Coast.

If you have any questions on your North American supply chain, please contact your Woodland representative or reach out to our team here.

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