Another Flighted Spongy Moth Complex (FSMC) season is upon us and the Canadian Food Inspection Agency (CFIA) are advising that following significant outbreaks of the FSMC in regulated regions during the 2025 season, data indicated that population levels  could potentially reach outbreak levels again in 2026

Vessels calling at ports in parts of Far East Russia, Northern China, Korea, and Japan during specified risk periods are reminded of the continued requirement to obtain valid pre-departure FSMC certification and to arrive in North American ports free of all life stages of the pest.

Given the serious environmental and trade implications of a potential introduction, authorities in Canada and the United States are requesting heightened vigilance, including thorough self-inspections, timely submission of two-year port-of-call histories, and close coordination with recognized certification bodies. Non-compliance or detection upon arrival may result in delays, re-routing, or other operational impacts.

You can review the attached CFIA-USDA to see all the FSMC requirements for the 2026 season.

Trigon Pacific Terminals handled 10.4 million metric tonnes of Canadian bulk cargo in 2025, accounting for 40% of all exports through the Port of Prince Rupert and marking a 14% year-on-year increase. The terminal remains a key gateway for coal, petroleum coke and LPG, while advancing major diversification projects aligned with Canada’s export growth strategy. Trigon reached final investment decision on its $750 million LPG export project in June 2025 and continues construction of its second berth, expected to be completed in early 2026. Japan and South Korea were the primary export destinations, alongside China, India and parts of Europe.

Source: Chamber of Shipping

Parrish & Heimbecker Ltd. (P&H) announced in late December 2025 that it had entered into a binding agreement to purchase GrainsConnect Canada (GCC) for approximately $150 million. The deal will see P&H acquire four high-capacity Prairie grain elevators as well as GCC’s 50% stake in Fraser Grain Terminal (FGT) in the Port of Vancouver.

The terminal, which was previously owned under a 50/50 partnership between P&H and GCC, will now fully belong to Parrish & Heimbecker.  FGT exports up to four million tonnes of wheat, oilseeds and pulses per year. It can handle and discharge 120 rail cars at any one time and has 70,000 tonnes of storage.

GrainsConnect, a 50/50 joint venture between Australia’s GrainCorp and Japan’s Zen-Noh Grain Corporation was established in 2015, one of several grain companies that entered or expanded their presence in Western Canada following the end of the Canadian Wheat Board’s monopoly in 2012.

The company opened the aforementioned four high-throughput, loop-track elevators at Maymont and Reford in Saskatchewan, as well as Huxley and Vegreville in Alberta between 2017 and 2019. The 35,000-tonne facilities are each equipped with 134-car rail loops. The facilities will add to P&H’s infrastructure which already boasts 30 grain elevators and a total grain storage of 23.4M bushels across Canada.

Late in January the Pacific Pilotage Authority (PPA) announced its revised service charges that will take effect from April 1, 2026. These increases align with the PPA’s projections from 2025, which included the now confirmed 3% rise to the hourly pilot rate and on the base unit fee.

The increases were based on the Consumer Price Index and scheduled contract renewals with the British Columbia Coast Pilots (BCCP). The previous service agreement between the BCCP and the PPA expired on December 31, 2025. There has not yet been any official word on a new contract, but given this confirmation of rising fees for 2026, an announcement should be expected soon.

Please see here for the official announcement with lots of details.

Western Canadian farmers are facing dim prospects on price outlooks for most major crops as they plan and plant for the upcoming growing season, with prices for most principal field crops (with the exception of soybeans and mustard seed) expected to be lower than last year’s crop season, continuing a two year downward trend.

In December 2025, Statistics Canada reported a record-high production of 107 million tonnes of principal field crops for the 2025–2026 season, a 7% increase over the previous record and 16% above the previous five-year average. This was driven primarily by favorable weather conditions and timely precipitation in Western Canada leading to significant yield improvements, despite lower planted areas for certain crops.

This bumper harvest will however see carry-out stocks (year ending inventories) on all principal field crops rise an estimated 67%. This significant increase, along with a projected 3% decline in exports, is expected to lead to continued price declines for key commodities like canola, flaxseed, and lentils. Canola currently sits about $150 per tonne below its five-year average. Meanwhile fertilizer and input costs have not fallen proportionately, putting a cost-price squeeze on farmers.

Key numbers from the Statistics Canada 2025-2026 report:

• Wheat: Total production reached a record 40.0 million tonnes (+11.2%), surpassing the previous 2013 record. This included 29.3 million tonnes of spring wheat and 7.1 million tonnes of durum.
• Canola: Production rose to 20.0–21.8 million tonnes, driven by record-high yields of 44.7 bushels per acre in the Prairies.
• Barley & Oats: Barley production rose 19.4% to 9.7 million tonnes, while oats increased 16.7% to 3.9 million tonnes.
• Pulses: Lentil production hit a record 3.4 million tonnes (+38.3%), and peas reached 3.9 million tonnes (+31.3%).

Average and expected crop prices:

Please see here for the full report

Canada and China have reached a preliminary agreement to remove all tariffs on Canadian canola meal and peas, with reduced tariffs of 15% expected to follow on canola seed.

The changes are set to take effect by March 1 and will reverse last year’s imposition of 100% Chinese tariffs that sharply curtailed trade. The deal is a major boost for Canadian farmers, exporters and processors, particularly in Saskatchewan, which produces about 55% of Canada’s canola. Industry groups say the agreement comes at a critical time ahead of the 2026 growing season, after severe price declines and lost market access. In return, Canada will significantly lower tariffs on Chinese electric vehicles under a broader bilateral trade understanding.

Canadian exports of canola and canola products to China were valued at approximately $5 billion in 2024. For 2025, export value to China were expected to plummet to less than half that amount. China is a vital market for Canadian canola, typically ranking as the largest importer of Canadian canola see and the second-largest for canola meal.

China has also traditionally been Canada’s largest market for peas, with Canadian exports of $3.7 billion from 2019 to 2024.

Some highlights of the latest deal include:

Agri-food market access:

• Canola seed tariffs will fall to approximately 15% by March 1, 2026
• Anti-discrimination tariffs lifted on canola meal, lobsters, crabs, and peas until the end of 2026.
• These changes could unlock nearly $3 billion in new export opportunities.

Electric Vehicle Imports:

• Canada will allow up to 49,000 Chinese EVs at a 6.1% tariff.
•  Supports domestic EV manufacturing and joint ventures with trusted partners.
• Expected that over 50% of imported EVs will be under $35,000 within five years.