A combination of back to back labour stoppages (Railway strike followed by Longshore Local 514 lock-out) have created a major backlog of vessels destined for the Port of Vancouver. In addition, we have been suffering with an unusually large amount of rainfall, which has slowed down the loading of grain and fertilizer vessels.

Currently all local anchorages in English Bay, Nanaimo, and the Southern Gulf Islands are effectively full.

The Harbour Master’s office is doing their best to keep Port operations fluid, but the congestion has resulted in some vessels having to drift outside the Pilotage area to await either a berth or an opening anchorage. We hereby warn all parties that there could be situations in the coming days or weeks that your vessels may not be able to arrive and tender – therefore plans should be made for Near Time Arrival or virtual NOR tendering.

In addition, we are about to experience another extreme weather event this evening November 19th and lasting until morning 20th. It has been deemed a Bomb Cyclone by the meterological people and will cause strong outflow winds and some heavy rain. Some departing ships have been begging for an anchor for shelter until the storm passes.

We have let all vessels under our agency control know about this evening’s storm in an effort to make sure they are prepared in case they find themselves in an anchor-drag situation. We are aware that the Pacific Pilotage Authority and the BC Coast Pilots are on standby this evening to assist as best possible to attend vessels that have dragged anchor.

Also in the near term and due to the anchor congestion, the Harbour Master’s office has made it clear that they will be prioritizing anchor spots for vessels that are coming into the Port of Vancouver for Vancouver business. Vessels calling for bunkers only…or calling for fumigation of cargo loaded in Prince Rupert….or for any kind of non-cargo related operations will only be granted anchorage spots at the Port’s discretion. This is a grave departure from previous policy. Any operator or owner that is considering a visit to Vancouver for non-cargo reasons should be prepared for possible disappointment. We are hopeful that the situation can return to normal whereby our Port is open for any business in the near future when the congestion eases.

Late September saw Wolverine Terminals debut its bunkering services in the Port of Prince Rupert, by fueling the MV Belatlantic. Wolverine Terminals announced the start of commercial operations at its newly constructed state-of-the-art marine bunkering facility last week. This major milestone positions Wolverine Terminals as a key player in the Western Canadian marine logistics sector, providing innovative and environmentally responsible terminal services. Located in Prince Rupert, British Columbia, the facility is designed to support the growing demand for efficient fuel handling and storage solutions across Western Canada and North America. Wolverine Terminals offers transloading, marine fuel storage, and distribution services, significantly improving supply chain efficiency for fuel products such as marine-grade diesel and very low sulphur fuel oil (VLSFO).

Source: Chamber of Shipping

The Port of Vancouver has released its 2024 mid-year cargo statistics showing strong performances in container, auto, and liquid bulk sectors, leading to a record 62 million metric tonnes (MMT) of international trade, despite an overall slight decline in cargo volumes due to a 15% drop in domestic goods. Total trade volumes reached 75.5 MMT, showing less than a 1% decrease compared to the same period in 2023.

Dry bulk volumes decreased 6% in the first six months of 2024 compared to the same period last year, as last year’s record Canadian commodity export volumes eased due to lower Prairie crop yields, supply chain disruptions and lower global prices. This included grain decreasing 5%, coal decreasing 1% and fertilizer decreasing 10%. 

Here are some key statistics:

June 2024          June 2023     % of growth

• Overall cargo volumes declined 1% to 75.5 MMT, compared to the first half of 2023
• Container quantities increased 14% to 1.8 million twenty-foot equivalent units, or TEU. Import quantities (inbound laden) increased 19% to 930,300 TEU, while export quantities (outbound laden) increased 4% to 412,100 TEU. Empty container volumes increased 12% to 426,600 TEU.
• Bulk liquid tonnage up 43% to 7.0 MMT. Petroleum product volumes increased 53% to 5.8 MMT and canola oil volumes increased 42% to 0.4 MMT.
• Auto volumes increased 14%, reaching a record of 249,043 units
• Cruise passengers increased 13% to a record 554,546, while cruise ship visits were up 1% at 135
• Bulk dry cargo decreased 6% to 47.7 MMT, including coal down 1% to 21.1 MMT, grain down 5% to 14.1 MMT and fertilizer down 10% to 5.8 MMT
• Breakbulk cargo decreased 14% to 8.0 MMT. Forest products volumes decreased by 21% to 4.7 MMT, while metals increased by 1% to 0.7 MMT

Their full statistical report can be seen here.

Transport Canada has finally begun their national trial, running from September 2024 to September 2025, to assess the viability of remote inspections for vessels loading grain and concentrates in Canadian ports. It is intended to compare the effectiveness and efficiency of remote versus physical inspections to ensure compliance with the Cargo, Fumigation and Tackle Regulations (CFTR) and maintain safety standards. The trial, originally announced in 2022, will involve both remote and physical inspections by Transport Canada Port Wardens to directly compare the two methods.

Selected vessels will be contacted prior to their arrival in port and the Master will be requested to submit documentation, photos, or videos via their agent to facilitate the remote inspections. Compliance with Marine Safety Inspectors’ requests will streamline the process.

At the same time Transport Canada has introduced a new, simplified Grain Stability Calculation Form (82-0579B) for Type II (Bulker) vessels loading grain for export in Canada. Type II vessels, with approved grain stability booklets that meet the requirements of Articles 6.3.1 and 6.3.2 of the International Grain Code, must use this simplified form. The new form will now also correspond more closely with the U.S. National Bureau of Cargo’s form and will provide necessary data such as volumes, centres of volume, and heeling moments. Given some the oddities of the old Canadian forms in comparison to those of other nations, this will be welcome news for many Captains.

The fall season in Vancouver is marked annually by the browning of the leaves, the return of the rain and the Pacific Pilotage Authority’s (PPA) announcement of impending fee increases. And on September 27, the PPA released their latest Notice of Revised Charges that will take effect on January 1, 2025.

Per the PPA announcement, “To maintain financial self-sufficiency in this environment and meet its commitments, the Authority proposes an increase in the hourly and unit fee rates for 2024 of 2.5%.” This increase to fees is based on expected increases to posted rates of inflation and will be needed to cover the ensuing increases to both the PPA’s operating and fixed costs. The Authority’s contract with the BC Coast PIlots is directly linked to changes in the rate of inflation and is measured by the Consumer Price Index.

Over the past few years, we have seen pilotage costs here increase to the point that they are now about equal with tugs costs for the biggest expense on vessels port calls to Vancouver.

The deadline for stakeholders’ input to the proposed fee increases is Oct 27.

The PPA’s full notice can be seen here.

On October 7, the Grain Workers Union Local 333 ratified a new collective agreement with the Vancouver Terminal Elevators Association (VTEA), with approximately 67% of union members voting in favor. The strike, which began on September 24 when about 650 workers walked off the job, affected six terminals in Vancouver; Richardson, Cargill, Alliance Grain, G3, Cascadia and Pacific.

Fortunately both sides, with the help of a federal mediator, were able to come to a relatively swift agreement and a tentative deal was struck four days later, with grain workers returning to work on September 28. The new contract will run through to December 31, 2027 and will quell fears over significant export losses during the current Prairie harvest season. The Grain Growers of Canada had estimated $35 million in losses from each day the strike continued.

This deal, along with the longshoreman’s new contract last summer and the recent Canada Industrial Relations Board decision to impose binding arbitration on the Teamsters Rail Conference and both national railways, Canadian National and Canadian Pacific Kansas City will hopefully lead to period of tranquility for the Port of Vancouver.

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.