UBC Sauder School of Business Comm 445 class had a good day yesterday. Alison from Norden and Sharlene from Colley West gave the soon-to-be grads a good lesson on a day in the life of a ship operator and a ship agent! This is a part of the local shipping industry’s ongoing initiative to recruit talent into our amazing business and to support diversity, equity, and inclusion. The class had many excellent and well-thought-out questions.

Along with the BC Chamber of Shipping’s recently named President Bonnie Gee, executives at the Vancouver Fraser Port Authority, and the multiple terminals in the Port of Vancouver now being run by women, we are seeing more and more examples of women making their mark in the traditionally male-dominated maritime industry. Thanks to Professor Maroney for supporting our efforts and allowing us to engage the class

March 1 marked the annual kick off to the touring season for the Flighted Spongy Moth Complex (the artist formerly known as Asian Gypsy Moth) across North America.

Vessel owners are reminded that any of their vessels that have been in a high risk port in Asia (all of Japan, Republic of Korea, and China, north of Shanghai) during the current or previous high risk periods (summer months) for FSMC will be required to provide an official inspection report (or phytosanitary certificate) from a government-certified inspection company prior to entry in Canadian waters. For a complete breakdown on applicable ports and their high risk periods please see here.

The high risk season for Western Canada runs through September 15 so get your tickets soon.

The Wolverine bunker facility in Prince Rupert is finally looking to commence operations in June of this year.

Wolverine’s bunker barge will have an overall capacity of 4,500 MT across ten heated and segregated tanks. They will be able to supply both VLSFO and LSMGO with pump rates of 600 MT and 200 MT per hour respectively and will be able to deliver alongside any of Prince Rupert’s terminals and inner harbour anchorages.

This will provide a much-needed option for ship owners to provide bunkers in Prince Rupert and avoid costly and time-consuming vessel deviations to Vancouver or US PNW ports to get their fuel.

For more information on Wolverine’s terminal setup and barge operations, please see here.

The Vancouver Fraser Port Authority released their 2023 cargo statistics on March 23 and the numbers were in the main, encouraging. Overall cargo volumes through the Port of Vancouver for last year increased 6%, with a record 150.4 million metric tonnes (MMT) moving through the port. Notably, bulk and containerized exports, auto imports and cruise all saw growth, including near-record grain exports, while container imports decreased.

Per the VFPA’s release, “Almost as much cargo moved through the Port of Vancouver in 2023 as moved through Canada’s next five largest ports combined, while the port handled North America’s most diversified range of cargo—including bulk, containers, breakbulk and automobiles, as well as overseeing cruise.”

Bulk exports were the big winner in 2023 with an overall increase of 13% from 2022, to record a record 91.5 MMT shipped. This included significant increases in grain, sulphur, coal, and petroleum product volumes.

The nine grain terminals within the Port of Vancouver exported 14.7 MMT of wheat to 38 different countries, a 52% year-over-year increase, while canola exports increased 36% to 7.0 MMT and specialty crops grew 30% to 4.0 MMT. Canadian grain export volumes increased sharply in 2023 after a bumper crop season which was preceded by a drought-affected season.

Key Statistics from the Vancouver Fraser Port Authority:

Overall cargo was a record 150.4 MMT, up 6% compared to 2022. The previous record cargo volume moved by Port of Vancouver terminals was 147.1 MMT in 2018. In 2022, port terminals handled 141.4 MMT.

Export volumes were up 12% year-over-year at a record 102.3 MMT, including bulk exports increasing by 13% to hit a record 91.5 MMT.

Dry bulk increased 11% to 99.8 MMT—led by increases in grain (39%), sulphur (11%) and coal (7%). Potash volumes were down 11% compared to 2022, at 8.9 MMT.

Liquid bulk increased 7% to 9.8 MMT, with petroleum products growing 12% while canola oil was down 7%.

Container volumes at the Port of Vancouver decreased 12% to 3.1 million twenty-foot equivalent units, or TEU. Imports (laden inbound) decreased 13% to 1.6 million TEU, while exports (laden outbound) increased 7% to 755,000 TEU.  Empty container volumes were down 24% at 770,000 TEU.

Cruise vessel calls increased 8% to 332, with a record 1.24 million passenger visits (up 53% compared to 2022).

Breakbulk volumes decreased 7% to 18.5 MMT, with foreign breakbulk down 25% to 2.0 MMT.

The Teamster Canada Rail Conference (TCRC), the union representing over 9,000 Canadian National (CN) and Canadian Pacific Kansas City (CPKC) engineers, conductors, and yard workers in Canada, has announced they will hold a strike vote from April 8 to May 1, as the union and management for both companies remain far apart on new contracts.

After being unable to reach agreements during initial talks last fall, federal mediators were brought in on March 1 to help with negotiations. Two of the key outstanding issues are CN and CPKC’s desire to move away from the traditional mileage-based pay system for train and engine crews and replace it with an hourly wage system and the establishment of predictable work schedules for train crew to align with Transport Canada’s Duty and Rest Period Rules introduced last year.

During this conciliation period over the next month, both sides are expected to continue meeting to try and reach a negotiated settlement. Combined, CN and CPKC own and operate over 75% of Canada’s rail network. Separate collective bargaining agreements between each respective company and the TCRC expired at the end of 2023.

After the challenges faced by our transportation and shipping industries of the past several years; the natural disasters in Western Canada, a global pandemic, and other labour disruptions, the last thing we need now is further labour unrest and uncertainty.

A strike of this size and nature, even if only for a short period, would likely cause significant disruptions to Canada’s recovering supply chain. And while grain cargo, previously deemed an essential service by the Federal government, would still continue to see movement on the rails, slower and fewer deliveries to the West Coast would be a certainty.

If the strike vote passes, the earliest potential date for a walkout or lockout on CN and CPKC in Canada is May 22, 2024.