• Your Trusted Shipping Agent Partner in West Coast Canada.
  • Call Us Today! (24 Hours): 604.687.3733

Longshoremen And Employers Reach Tentative Deal

Photo of The Lonshoreman’s Noon by John George Brown

After several weeks of on again off again work stoppages and union strike notices declared then rescinded which created uncertainty and frustration across the industry, we now seem to be on the verge of a negotiated labour settlement for Western Canadian ports.

On July 30, the International Longshore and Warehouse Union Canada (ILWU Canada) and the BC Maritime Employers Association (BCMEA) announced they had reached a tentative, negotiated collective agreement. The ILWU membership is now expected to have their official vote for the contract offer on August 3 and August 4.

Full details of the agreement are yet to be released but it is expected to be a four year deal.

A little over two weeks ago, on July 13, the ILWU negotiators had endorsed a similar offer that appeared to have ended the 15 day strike, but in a surprising turn the 70-member leadership caucus subsequently reviewed and rejected the proposed deal.

Confusion ensued as the ILWU walked back out on strike only for the Canadian Industrial Relations Board to order them back to work the following day for failing to deliver a fresh 72 hour strike notice after tentatively agreeing to the deal. The union promptly issued the new strike notice, only to rescind it several hours later. A general vote was then announced for July 27, at which time the proposal was rejected by the membership.

Finally, under the looming threat of government mandated binding arbitration, the latest agreement was reached three days later on July 30.

The final sticking point that created this uncertainty over the last week was reported to have been the wording in the provision that “normal” maintenance work on terminal equipment would continue to be done by ILWU union members. The ILWU caucus reportedly felt the use of “normal” was too vague and would eventually lead to terminals using outside contractors resulting in the loss of ILWU maintenance jobs.

Lets just hope there are no more last minute surprises.

Time line of events:

Feb 16 – Negotiations begin between the ILWU and the BCMEA
Mar 31 – The existing collective agreement between the BCMEA and the ILWU expires.
Jun 05 – The ILWU’s negotiating committee authorizes a strike vote to be conducted on June 9 and 10.
Jun 12 – The ILWU says members voted 99.24 per cent in favour of supporting strike action if necessary.
Jun 28 – The ILWU serves 72-hour strike notice.
Jul 01 – Strike commences at B.C. ports, shutting down operations at most of the province’s marine terminals.
Jul 11 – Canadian government asks a mediator to draft terms for a potential settlement agreement.
Jul 13 – The BCMEA announces a tentative, four-year agreement has been reached with the ILWU. Port operations resume.
Jul 18 – The ILWU announces its leadership caucus voted down the mediator’s terms, and workers are back on strike. Picket lines resume
Jul 19 – The Canada Industrial Relations Board rules the ILWU’s move to strike on July 18 was unlawful because no 72-hour notice was provided.
Jul 19 – The ILWU issues a new 72-hour notice to strike and rescinds the notice hours later.
Jul 20 – The ILWU’s leadership announces it is recommending the agreement and it will be put to a vote.
Jul 28 – ILWU members vote on the agreement.
Jul 28 – ILWU announces that its members have voted to reject the agreement.
Jul 30 – The ILWU and the BCMEA release a joint statement announcing they have reached a new tentative agreement, with leaders of both sides recommending ratification to their members. The industrial relations board orders that the union vote no later than Aug. 4

Railways Publish Annual Grain Service Reports

 

On July 31 and August 1 respectively, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) railways released their annual Grain Service Outlook Reports for the crop year 2023-2024.

These reports are an extension to the Canadian government’s mandate from 2014 that set out the minimum volumes of grain that have to be moved by CN and CP (now CPKC) to port each week. In addition to this, both railways are required to issue annual reports that provide an assessment of their plans and capabilities to transport grain for the upcoming crop year.

This year’s report is a first for the CPKC since their recent merger in April. CP’s acquisition of KCS has created the first transnational railway that provides a single-line connection between Canada, the U.S. and Mexico. This rail network enables Canada’s grain shippers to access markets across North America, including new markets in Mexico, and enhanced routing options for shipping Canadian grain and grain products overseas. Additionally, CPKC has completed its more than $500 million investment to purchase 5,900 new higher-capacity grain hopper cars.

Some of the highlights from the CN plan include updates on some of their ongoing initiatives; the delivery of 750 new high-efficiency grain hopper cars in 2024, the expansion of CN’s locomotive modernization program to upgrade older Direct Current locomotives to the newer, more powerful and reliable Alternating Current technology, and a new Precision Dispatch System to help optimize train movement across the network.

For the full reports, see here: CN Rail & CPKC

Canadian Government Moves to Modernize Grain Act

Photo courtesy of The Official Handbook of Present Conditions and Recent Progress

Canada’s Agriculture Minister, Marie-Claude Bibeau, intends to introduce legislation to modernize the Canada Grain Act by the end of 2023.The proposed changes aim to reflect current practices in the buying, selling, delivery, and handling of grain. The legislation is expected to address the problem of duplicate grain inspection fees, which currently burden grain producers. Overseas customers often demand third-party inspections both at the time of loading in Canada and offloading in their own countries. As a result, an estimated 70% of grain leaving Canadian ports is double-inspected, leading to unnecessary costs of approximately $60 million annually for growers. The Wheat Growers Association advocates for a system similar to the U.S. where third parties provide inspection services and the government’s role is reduced to oversight. Concerns have been raised about the impact on trade with China and Japan if Canada shifts to a third-party inspection system, but the association points out that these countries regularly purchase grain from the U.S., which employs such a system

Courtesy of Chamber of Shipping

Wolverine Terminals Bringing Bunkering to Prince Rupert

Photo courtesy of Wolverine Terminals

A first-of-its-kind bunker delivery service is coming to the Port of Prince Rupert. The service will enable vessels to take large volumes of bunkers alongside all of the port’s major terminals and in the inner anchorages.

Prince Rupert remains one of the few major global ports that does not offer refueling services for cargo vessels. Instead, vessels needing bunkers must deviate to the Port of Vancouver or further south, somewhere along the US West Coast.

The project, from Wolverine Terminals ULC, includes the construction of a specific use marine berth and specially designed rail and bunker delivery barges. The bunkers will be sourced from refineries in Western Canada and railed to Prince Rupert on an established rail network.

Wolverine will use the existing Aquatrain Terminal in Prince Rupert to receive the rail cars which will then be loaded on to their purpose-built rail barge. From there, the rail barge is towed approximately 400 metres to their new marine berth to meet up with the delivery barge. The fuel is then transferred from the rail to the distribution barge for delivery to vessels alongside or at anchorage.

Wolverine are currently targeting late 2023 to have the operation up and running.

Some key highlights of the project:

Bunker Barge
• Barge Storage Capacity: 10 heated, segregated tanks totaling: approximately 4500 MT (31kb), Installed Mass Flow Meters

• Est Pump Rates: LSMGO: 200mt/hr, VLSFO: 600mt/hr

The fuel distribution barge will have a capacity of approximately 4,500 metric tonnes and measure approximately 78 metres in length. The barge will be equipped with a deck mounted container with spill response equipment for rapid deployment. The fuel distribution barge will be a modern double-hulled vessel. Motorized engines will be designed to best industry standards to minimize noise and air emissions. The fuel tanks will meet the requirements set out in the International Convention for the Prevention of Pollution from Ships (MARPOL), as well as Transport Canada regulations.

Rail Barge – Floating Storage
• Barge Storage Capacity: 12 heated segregated tanks totaling: ~12,500 MT (90kb). Installed Mass Flow Meters
• Products: LSMGO, VLFSO, capability to blend to customer specs

The barge is 142m in length and will be able to accommodate up to 24 rail tank cars on deck. The barge has a double hull with spill prevention under each rail car. Additionally, there will be a peripheral coaming surrounding the entire deck. There will also be spill response equipment on board, as well as a floating containment boom surrounding the barge. The rail barge also has the capability to blend multiple commodities to specification by use of 12 segregated tanks and a precise blending skid.

Distances from Wolverine’s marine berth to approved delivery locations:
1. DP World Container Port: 1.9km
2. Drax Wood Pellet Terminal: 0.4km
3. Prince Rupert Grain: 8km
4. AltaGas LPG/Trigon Coal: 9km
5. Inner Anchorages: 0.5km – 8km

Statistics courtesy of Wolverine Terminals

Colley West Shipping Turns 30!

                                                                                                                                                                                             
On June 16, Colley West Shipping celebrated it’s 30th Anniversary with a party to mark three decades as Vancouver’s premier shipping agency.

We would like to thank all those people that were able to attend to help us celebrate and all those that have supported us over the years.

We look forward to continuing to provide you with efficient and quality port services for many years to come.