It’s raising cost concerns for businesses and consumers, but the congestion that has plagued major maritime trade lanes since mid-2020 is providing opportunities for Canada to leverage two key geographic advantages: its neighbour is the world’s largest economic engine and its West Coast is closer than that neighbour to the world’s emerging economic superpower.
The trick, as always for Canada, is to seize the day and use that leverage now.
That requires a game plan with national vision that crosses political party lines and is executed swiftly, precisely and efficiently.
When was the last time that happened in Canada?
The ongoing congestion at West Coast U.S. ports in general and Los Angeles-Long Beach in particular is already diverting cargo from some major shipping lines north to Vancouver and Prince Rupert. Analysts see that congestion extending well into 2022 and perhaps on into 2023 as shipping delays recently reached 30 days on some China-Europe routes and 22 days on China West Coast-U.S. routes.
Both major B.C. ports are serviced by good transcontinental rail service to North America’s East Coast and the American Midwest heartland.
They also have less port congestion than their U.S. counterparts, and ocean carriers avoid costly U.S. harbour maintenance fees when they load and unload in Canadian ports.
But infrastructure and human resources challenges outside Canada’s ports need addressing now if more major shipping lines are to make temporary diversions north permanent.
The country needs more container-handling capacity, more warehouse space, more inland container terminals and transloading hubs, a more efficient trucking system and better last-mile delivery.
Canada also needs a workforce willing to do the legwork required to compete globally in the goods movement game. Delivering on any of those pressing needs today remains doubtful in an economy burdened by minor-league political vision, mounting public debt and widespread job vacancies and labour shortages.
