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MAFF and the West Coast of Canada

Recently, a paper entitled Japanese Wheat Import Arrangements – Overview produced by GrainGrowers Ltd. hit our desk. The premise of which surmised the “Japanese wheat import rules, regulations and processes” and reviewed the tendering/importing arrangements of the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF). The details of this publication prompted us to provide some further details into the specific requirements that MAFF has on Japanese bulk shipments originating from the West Coast of Canada. First and foremost, it would be beneficial to read the subject publication which can be found here.

Canada is responsible for approximately 32% of all Japanese bulk wheat imports with the majority commodities either being Canadian Western Red Spring or Canada Western Amber Durum. These contracts always come with a tolerance of +/- 3% which is a requirement of MAFF. While it is no issue for the majority of the Port of Vancouver terminals to hit an exact quantity, the agent must be sure to inform all parties that there is no room for error outside of this contact without large penalties.

Japan is also unique in its import requirements in that they require additional pre-hold inspections and load supervision. On the West Coast of Canada, these obligations are carried out by a 3rd party company – Overseas Merchandise Inspection Company LTD. (OMIC). Agents work closely with OMIC to keep them up to date on the vessel inspection, berthing and loading schedule.  On arrival, an OMIC surveyor will attend with the rest of the inspection party (including CFIA) and inspect the holds that are scheduled to hold wheat cargo as per the Master’s proposed stowage plan.

Their standards are similar to those of the CFIA and it is not often that a hold will fail by only 1 of the 2 parties. Additionally, an agent must take caution to direct the crew efficiently as both OMIC and the CFIA will need personnel to assist with inspections and to clean trouble areas if necessary. Sometimes this can be a juggling act as crew can be limited after a long journey at sea. It is also important to coordinate load supervision for vessels loading more than 1 cargo as an OMIC surveyor will need to be onsite for the wheat portion only. Often times the terminal may not know what cargo will be loading at an exact point in time.

In conclusion, MAFF shipments offer their own unique challenges and requirements. It is important for the agent to make note when the +/- 3% tolerance appears on a wheat contract in order to properly prepare the additional obligations that accompany these shipments. Extra care is needed to ensure the surveyors and crew are on the same page as to the extra conditions that come with MAFF.

History on the Port of Vancouver

Vancouver’s long history of exporting bulk goods can be traced back to the latter half of the 19th century. Lumber exports ruled supreme during this time as sawmills began popping up on both the North and South shores of Vancouver Harbour. Exports increased significantly with the development of the transcontinental railway and later on the opening of the Panama Canal. Low freight rates in the early 20th century resulted in Vancouver becoming a more feasible shipping hub to Europe and Asia for various commodities including grain. The Port of Vancouver eventually thrived large in part due to the abolished differential rates placed on goods travelling through the Rocky Mountains by rail. With this hurdle out of the way, the quantity of goods exiting the country from the West Coast greatly increased.

The Vancouver Harbour Commissioners was established by the Government of Canada in 1913. The role of the newly founded board was to “administer the infrastructure of the Port of Vancouver. The Commissioners had the power to regulate navigation in the port and operation of port facilities.” Furthermore, under their oversight was the development of port infrastructure including “Ballantyne Pier, Lapointe Pier, the Canadian government grain terminal and elevators” (visit the City of Vancouver Archives for more details). It was around this time that the 1st grain terminal in Vancouver was built and helped to propel the city to the 2nd largest port in the country (behind Montreal).

Grain really entered the picture in the 1920s and 1930s. In addition to the success of the Panama Canal the “enlargment of the market for Canadian grain in the Orient aided Vancouver. On the Prairies there was a westward and northward expansion of wheat cultivation, placing more of the output in a favourable position for rail transport to Vancouver” according to an article titled The Development of Canada’s Five Leading National Ports. In 1936 the Vancouver Harbour Commissioners was replaced by the National Harbours Board. The Board took over responsibilities as the “administrative body that controlled the business and service operations in major Canadian ports in the years 1936 to 1983 and was also responsible for coordination and determination of policy, and planning and engineering of capital works.” During this period Vancouver surpassed Montreal as the leading port in Canada and the production/export of other bulk commodities (i.e. sulphur, coal, potash) increased.

The National Harbours Board was replaced by the Canada Ports Corporation in 1983 which was eventually phased out by the Canada Marine Act. The Act which was adapted in 1998, largely influenced the port regulation system currently in place allowing for individual bodies to govern specific ports. In Vancouver, this role is the responsibility of the Vancouver Fraser Port Authority.

The Rise of Wood Pellets in Canada

Wood pellets are comprised of industrial residues from various wood product manufacturing processes. After compression, a binder is added to form a useful biomass fuel. The densification of wood is not a new process in Canada with the 1st patent issued in 1880. According to this House of Commons Journal, this patent “described a process in which sawdust or other wood residues were heated to 150 degrees faranheit and compacted to the ‘density of bituminous coal’ with a steam hammer.” This operation of densification has since branched into several forms including pelleting and cubing among others.

Canada’s growth in wood pellet production grew substantially throughout the 20th century especially along the West Coast due to increased exporting capabilities and a growing global demand. Additionally, continued growth in other forestry industries coupled with Canada’s large-scale certified forested land meant no shortage of materials. Indeed, during this time period the global acknowledgement of the benefits of wood pellets were recognized. According to Pinnacle Renewable Energy, advantages of the pelleting process include –

  • low moisture content which renders an improved BTU and storage/handling capabilities
  • reduced environmental/health liabilities (i.e. toxic emissions)
  • recycling of would-be wasted material

British Columbia hosts 2 wood pellet exporting terminals along the Coast including: Westview Terminal in the Port of Prince Rupert and Fibreco Terminal in the Port of Vancouver. These two terminals combined exported 2,268,412,393 KGM in 2018 to multiple Asian and European countries. Most notable of these trade partners are the United Kingdom, Japan, United States and South Korea. Of the 2,651,1440 KGM exported from Canada in 2018, British Columbia accounts for approximately 86% of the total.