Canadian ports brace for potential strain as U.S. dockworker strike halts major ocean shipping routes
Container traffic bound for the East and Gulf Coast ports of the United States is now flowing into the Port of Halifax, with more shipments expected in the coming days.
As per Financial Post, this shift follows a strike by dockworkers at over 30 US ports from Texas to Maine, which began on Tuesday and has disrupted around half of the country's ocean shipping.
Paul MacIsaac, senior vice-president at the Port of Halifax, confirmed that several container ships have already been diverted to the port, with more likely to arrive soon. “Our interest is in keeping the supply chain fluid and ensuring that our regular customers are not impacted,” MacIsaac stated.
While some cargo arriving in Halifax will be sent by rail to the US, particularly to the New York area, the majority of containers will remain dockside until the US strike ends. Once operations resume, those containers will be picked up by ships and delivered to their intended US destinations.
The Port of Halifax’s two terminals are currently operating at 40 percent capacity, but MacIsaac noted that this could change quickly. “The port works in a fluid manner,” he explained.
“The boxes come, they are delivered, they sit on the docks usually two or three days, and they’re evacuated by rail and by truck. It won’t take long to utilize that additional capacity.”
Despite the ability to help temporarily, Halifax's capacity is limited. The port can manage around 600,000 containers annually, a fraction of the four million containers handled by the Port of New York each year.
MacIsaac highlighted that while Halifax can provide short-term relief, it cannot sustain this level of additional traffic for an extended period.
“We’re hopeful that the situation in the US ports corrects itself sooner rather than later, because what’s really most important to us is we want to make sure our regular services are not impacted in any way and cargo moving continues to do so with the efficiency and reliability we’re known for,” he said.
Meanwhile, in Montreal, dockworkers have initiated a three-day strike over wages and automation, closing two of the port’s seven terminals. This has halted vessel, truck, and rail traffic, leading to a growing backlog of containers.
For now, Canadian consumers are unlikely to feel any immediate effects from the port shutdowns, according to Sylvain Charlebois, Director of Dalhousie University’s Agri-Food Analytics Lab.
He explained that grocery stores and large retailers have overstocked in preparation for such disruptions. However, Charlebois warned that the situation could become more severe if the strikes continue for several weeks.
He pointed out that companies like Amazon and Walmart might prioritize the larger and more profitable US market, potentially leading to shortages in Canada.
“Eventually the US port situation could be a problem for Canadians,” Charlebois cautioned.
