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Key Canadian ports are set to reopen after a labor dispute, but disruptions to US imports via these ports could persist for months
The container shipping ports of Vancouver and Prince Rupert in British Columbia, Canada, are set to reopen after a 13-day closure due to a labor strike, the British Columbia Maritime Employers Association (BCMEA) announced. The closure resulted from a standoff between the BCMEA and port labor, which has now been resolved with a tentative four-year labor deal, yet to be ratified. Although the reopening promises a resumption of services, the strike's impact on US imports via these Canadian gateways is expected to linger for weeks or even months. The strike resulted in a near-total shutdown of containerized rail movements from these ports, severely disrupting US imports. While the strike had less of an impact on the US due to the smaller contribution of these ports to total US imports, the lingering effects are unavoidable.
Source: FreightWaves
The strike is over.
— Seamus O'Regan Jr (@SeamusORegan) July 13, 2023
The BCMEA and the ILWU have accepted the Terms of Settlement from federal mediators. The parties have reached a tentative agreement.
Statement from Minister Alghabra & me: pic.twitter.com/bCzlQiGsZR
Now if only the other transportation union battles could be resolved shortly too. UPS, Yellow, Teamsters - what do you say? https://t.co/wkfjO7cKhD
— Benjamin Gordon 🇺🇦🚚✈️ (@benjaminhgordon) July 13, 2023
The looming US East Coast port strike could disrupt 550,000 TEUs weekly, prompting shippers to turn to Canadian ports as a potential alternative.
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