A series of labor disputes have brought operations to a halt at some of Canada’s busiest ports, including major ports in British Columbia and the Port of Montreal, just one month after the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, shut down U.S. East Coast and Gulf Coast ports in a three-day strike.

On Monday, November 4, the BC Maritime Employers Association (BCMEA) locked out over 700 unionized foremen and other members of the International Longshore and Warehouse Union (ILWU) Local 514 starting at 4:30 p.m. PST. The disruptions mark the latest escalation of labor disputes between port employers and unionized workers, adding even more uncertainty and operational challenges for businesses gearing for the busy holiday season. Read on for Flexport’s breakdown—what we know, and our advice for Flexport customers.

British Columbia Port Lockout: What’s Happening?

The BCMEA described the lockout as a "defensive" action in response to the union’s 72-hour strike notice of limited job action starting at 8 a.m. PST on Monday, November 4. In a statement, the employers association said the lockout decision was made to "facilitate a safe and orderly wind-down of operations.” The statement also mentioned the employers’ final offer to the union, including a 19.2% salary increase over the next four years, as well as an average signing bonus of $21,000.

The prolonged dispute over a labor deal involved the use of automation at ports, as well as benefits, wage increases, and welfare improvements, following the expiration of the contract on March 31, 2023.

“Federal mediators are on site, ready to assist the parties,” said Canadian Labour Minister Steven MacKinnon on X on November 2. “It is the responsibility of the parties to reach an agreement.” However, no active negotiations are currently underway.

The Port of Vancouver and the Port of Prince Rupert, Canada’s largest and third-largest ports, respectively, handle about 20% of U.S. trade. According to the Greater Vancouver Board of Trade, $800 million Canadian dollars (about $576 million USD) in trade flows through Canadian West Coast ports every day. In July of last year, a 13-day strike at the Port of Vancouver and the Port of Prince Rupert caused significant disruptions to an estimated $4.32 billion’s worth of goods at those two ports, with U.S.-bound freight taking three months to return to normal movement.

Port of Montreal Strike: What’s Happening?

Concurrently, on the East Coast at the Port of Montreal, Canada’s second-largest port, labor disputes escalated as nearly 1,200 dockworkers represented by the Port of Montreal Longshoremen’s Union, CUPE Local 375, walked off the job at 11 a.m. ET on October 31. In response, the Maritime Employers Association (MEA) announced it would suspend the salary guarantee for all non-working longshore workers, except for those in the bulk sector and essential services, effective November 5 at 7:00 a.m. ET.

Since October 10, members of the Syndicat des débardeurs du port de Montréal have also refused to work overtime shifts. Dockworkers have been without a collective agreement since December 31, 2023, with key issues under negotiation including salaries and scheduling practices that the union claimed “have negative impacts on work-life balance.”

With no end date in sight, the strike will continue to affect the port’s two Termont-operated terminals, which account for approximately 40% of the port's container traffic. The specific terminals affected by the strike are the Viau and Maisonneuve terminals.

Impact on U.S.-Canada Trade Flows and Different Modes of Transport

According to data from the U.S. Department of Transportation, total freight flows between the U.S. and Canada reached $773.9 billion across all modes of transportation in 2023. Trucking accounted for the largest share at 56%, totaling $435.7 billion, while rail came in second at 15%, with $113.9 billion.

“This might create bottlenecks and congestion also down to the U.S. ports closest to the Canadian border if vessels become diverted,” said Lars Jensen, CEO and Partner at Vespucci Maritime, in a LinkedIn post on November 5.

With another potential ILA strike looming in the U.S. on January 15, 2025, the ILA has shown its support for Canadian ILA port workers as part of the fight against automation. According to the ILA’s statement, the plans to install optical character recognition (OCR) machinery in terminals in Montreal—which would enable the automatic reading of container numbers from cranes, as well as from top-end and reach stackers—could cause “significant reduction of ILA 1657 checkers” and "result in [ILA] losing at least half of their membership to technology.”

“From a broader perspective, this is likely one of the elements which will make the negotiations difficult related to an agreement on the U.S. East Coast leading up to January 15th,” Jensen noted.

Flexport is closely monitoring the evolving situation and its impact on various modes of transport across North America. Here’s what we’re seeing so far:

• Cargo Diversions: Most cargo will not be diverted to the Canadian East Coast as Montreal terminals are also facing strike action impacting 40% of inbound volumes. We may see vessels shift around their port of destination string stops to prioritize U.S. West Coast ports first to try and wait out the BC lockout.
• Trucking/Drayage: The trucking community on the Canadian West Coast is bracing for high levels of congestion based on imminent vessel bunching, chassis shortages, and terminal pickup and empty return appointment availability. West Coast market conditions will be contingent upon how clogged the railroads get, and how many importers begin to shift new bookings for transloading and trucking to the East Coast. With all British Columbia ports closed, transloading is not a viable option due to the lack of availability to pick up containers at this time.
• Rail: CN has suspended all international intermodal capacity at their inland terminals, including CSX & NS interchange traffic from Ohio Valley, on Monday, November 4 for exports destined for Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks, according to an official notice. If the strike continues over a prolonged period, we will likely see more actions.

We will continue to update this live blog with news and updates. Reach out to your Flexport team if you would like to understand the latest impact on your shipments. Our team of experts is here to help you navigate the uncertainty and mitigate the potential impact of delays and additional cost exposure.