On September 14, the Vancouver Mission to Seafarers will be holding their annual Cycling for Seafarers event to raise money for the welfare of seafarers in the Port of Vancouver, This charitable organziation provides spiritual guidance and wellness for crew-members in addition to hospitality, connectivity, transportation and a “home away from home”.

Seafarers work an extremely difficult job, often in poor and hazardous conditions. They live and work far away from home and months removed from their families. They are a vital and essential workforce in today’s world. Please take some time to consider their sacrifices which often go overlooked despite their integral role in keeping the world’s economy moving.

If you would like to help our make a contribution, you can find more information here.

The Panama Canal Authority (ACP) has increased the maximum draft and daily transits for its expanded neopanamax locks in response to improved water levels. Effective immediately, the maximum draft is now 14.94 meters (49.0 feet), up from previous limits, and daily transits have been raised to 35, up from 34. This adjustment is a step towards normalizing operations after last year’s severe drought. Water levels in Gatun Lake have risen to 85 feet, higher than last year’s levels and the recent five-year average. The ACP aims to reach 36 daily transits by September and will continue to adjust draft limits based on water levels.

Source BC Chamber of Shipping

On August 2, DP World Fraser Surrey announced that the draft restriction for vessels calling Fraser Grain Terminal has now returned to the standard controlling draft of 11.5 metres. The spring freshet had largely restricted vessels outbound from FGT to an 11m draft through June and an 11.2m draft through July of this year. Barring any extreme weather events, the controlling draft for FGT should remain at 11.5m until late spring, 2025.

Now for some good news!

The forecast for this year’s crop continues to look good with analysts predicting near record production for Western Canadian farmers, with impressive yields reported across major grain-growing regions. Industry analysts have highlighted significant improvements expected for this crop year, particularly in spring and durum wheat.

Based on Statistic Canada’s latest acreage estimates and average abandonment, durum yields are estimated to reach 44 bushels (bu.) per acre, which would be an 18 bu. improvement over last year. This would translate into a crop of 7.4 million tonnes and would be the second largest in the past 10 years, ranking behind the 2016 crop.

Spring wheat yields are forecast at a record 57 bushels per acre, up 10 bu. from last year and driving production to 27.8 million tonnes (a 3.4 million tonne improvement over last year).

While the overall outlook for canola remains positive, concerns remain about potential impacts from recent conditions with some of the late-seeded plantings. Overall canola yields are anticipated to reach 42 bushels per acre and a crop of 20.6 million tonnes, which would be an improvement of 5 bu. and approximately 2.3 million tonnes from last year.

Barley yields are forecast at 74 bushels per acre, up 12.6 bu. from last year. Production is estimated at 8.1 million tonnes.

Now let’s just hope all this grain doesn’t have to wait too long for a ride to the port.

You can check out all the latest grain numbers from Statistic Canada here.

The International Longshore and Warehouse Union Local 514 (ILWU 514) has confirmed that an industry-wide strike vote is underway after its last strike notice, issued only to DP World Canada, was deemed by the Canada Industrial Relations Board (CIRB) as not bargaining in good faith.

Local 514 had previously issued a 72-hour strike notice against the employer in July but before the strike could take affect, the CIRB determined the union had not bargained in good faith and directed them to take back its original notice.

The union leadership, which represents 730 foremen in BC, has also signaled their intentions to seek a judicial review of the CIRB decision that determined the union can’t bargain with DP World alone, saying it doesn’t believe the board is correctly interpreting the law. A spokesperson for Local 514 stated that the union has “no interest in an industry-wide dispute as a result of just one employer that won’t bargain” on an issue critical to its members.

The main issue between ILWU 514 and DP World Canada centres on compensation for increased automation at DP’s container terminals.

On Aug 9, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) issued lockout notices to the Teamsters Canada Rail Conference (TCRC) effective August 22, if a negotiated settlement or binding arbitration cannot be reached in that time. This potential lockout of the TCRC, representing approximately 9,300 engineers, conductors, yard workers and rail traffic controllers across the two railways, would fully cease operations on both of Canada’s trans-continental railways and bring a halt to the movement of goods across the country.

The lockout notice followed the ruling earlier in the day by the Canada Industrial Relations Board (CIRB) that found public health and safety will not be compromised in the event of a full-scale disruption to the rail services across the country. The CIRB a;sp ordered a 13-day cooling-off period as part of their decision, thus the earliest possible commencement of a strike or lockout would be 0001 hours on August 22.

The railways had resumed separate contract talks with TCRC representatives on August 7, following a meeting with Canadian Ministers of Transport and Labour. The talks were held with the assistance of federal officials however both sides reported no progress was made in these discussions.

Subsequent to the CIRB decision, CN Rail also made a formal request to the federal government to order binding arbitration on both sides given the ongoing lack of progress in negotiations. This move was also supported by CPKC. The Minister of Labour has yet to make a decision on this request.

CN Rail have made 4 separate offers to the TCRC this year which they have stated, “included points on wages, rest, and labour availability while remaining fully compliant with the government-mandated rules overseeing duty and rest periods.”
CPKC Rail have made 2 offers the union this year which, per their website, would offer “significant benefits for our employees and fully comply with new regulatory requirements for rest. They do not in any way compromise safety.”

For their part, after the CIRB’s decision came down, the TCRC announced they would provide a 72-hour advance notice of strike action, as required if no contract agreement is reached. The union voted overwhelmingly in favour (approximately 97.8%) of a strike mandate earlier this year. Their stated key issues remain safety and rest periods along with the parameters of the proposed mandated work periods and employee relocation.

While Canada has had rail strikes in the past, never before have we seen labour negotiations and the potential for work stoppages occur for both railroads at the same time. Previous rail labour disruptions occurred separately with shippers able to divert commodities to the working rail road instead. Rail service continued, but at a much slower pace.

A full-scale shutdown of Canada’s national railways would have immediate and severe consequences for Canadian shippers. An approximate $380 billion worth in goods are shipped on Canada’s railways every year, including an estimated 75% of Canadian fertilizer and close to 85% of our agricultural products.

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.