Article by Rick Walker, Vice President, TradeInsights, LCB, CCS

A strike by dockworkers in British Columbia, Canada continued into a third day on Monday, with impacts that could result in potential cost increases for businesses relying on the ports.

As around 7400 dock workers representing the International Longshore and Warehouse Union (ILWU) continue with the third day of their strike, thereby impacting the two key gateways of international trade – Port of Vancouver and Port of Prince Rupert, the maritime industry prepares for a yet another domino effect all the way up to Asia and to the US, impacting majorly the automobile, container, breakbulk and project cargo business sectors.

“The strike could have a significant impact on the ports of Vancouver and Prince Rupert, which are crucial gateways for Canada’s foreign trade, especially with Asia. These ports handle a substantial portion of Canada’s imports and exports. The disruption caused by the strike can lead to delays, congestion, and inefficiencies in the movement of cargo, affecting various industries and businesses that rely on the smooth functioning of the supply chain.” Christian Roeloffs, Co-founder and CEO of Container xChange.

The British Columbia Maritime Employers Association (BCMEA), representing 49 private sector waterfront employers and operators in British Columbia, was notified of the strike last week by the International Longshore and Warehouse Union (ILWU) Canada as collective bargaining negotiations between the two sides have reached an impasse.

The strike, which started July 1, comes on the heels of an expired ILWU Canada Longshore Local collective agreement with the BCMEA. The two sides have been unable to reach an agreement since the expiration of the previous agreements on March 31, 2023.

The negotiations involve two coastwide collective agreements, one with the Longshore Locals and another with Local 514 Ship & Dock Foremen, representing over 7,400 longshore workers and foremen at Canada’s West Coast ports.

Talks between the two parties “temporarily” paused on Sunday evening, and were set to resume on Monday, ILWU Canada said in a statement.
We will continue to monitor the situation and provide updates as necessary.

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.