West coast port strike in Canada disrupts global supply chain

The British Columbia Maritime Employers Association has locked out more than 700 supervisors at ports throughout British Columbia. At the same time, a strike at the Port of Montreal, the biggest port in eastern Canada, continues to cause problems. The strike has already led to partial closures, affecting 40% of the port’s container traffic. Shipping delays could quickly add up, potentially disrupting important international shipments and creating significant economic challenges for global businesses and consumers.

The West Coast ports are essential, managing about $576 million in daily trade and serving as a key part of North America’s ports, railroads, and trucking network. However, a long-lasting strike could seriously disrupt this system, causing problems across the supply chain. Just last month, a three-day strike involving over 47,000 dockworkers impacted 36 U.S. ports. Even though the strike was short, it left ships waiting to unload their cargo, and the delays are expected to affect local and international supply chains, as in China and the United States, for weeks. The North American supply chain is recovering from the recent strike on the U.S. East and Gulf Coast ports.

During the U.S. port strike in October, shipping companies had to get creative to keep goods moving. Companies like Maersk and Hapag-Lloyd added extra fees for cargo passing through affected terminals to manage the disruptions. To avoid delays, some ships were rerouted to different ports, which increased travel time and costs but helped ensure customers weren’t left waiting. Another strategy was switching from ocean freight to air cargo when possible, as it’s a faster way to deliver goods, even though it can be more expensive. These methods showed how businesses adapt to challenges in the shipping industry.

With cargo operations already slowed, important international shipments are at risk, which could lead to major economic losses in various industries. The growing shipping backlogs and bottlenecks could increase transportation costs and even force shutdowns of factories and mills that rely on shipping to move their products. It’s not just the big companies that will face problems. Small and medium-sized businesses are likely to suffer the most because they don’t have as much flexibility in their contracts as larger companies. This makes them more vulnerable to higher costs and delays when shipping schedules are disrupted. For distributors working with several retailers, even a short delay could prevent them from meeting their contracts, which might result in fines or penalties.

Canada’s West Coast port strike is causing significant delays for China, disrupting the export of goods to Canada. This could lead to backups at Chinese ports and possible economic losses for Chinese businesses that rely on the Canadian market, especially those that export large amounts of manufactured goods. If the delays worsen, it could also raise consumer prices in China if products become harder to get. If the strike continues, it could impact ocean freight rates for shipments from Asia to North America. Freight rates are currently stable, but prolonged disruptions could drive prices up.  

Inventory optimization strategies help protect businesses from supply chain disruptions by setting the right stock levels for important parts and products. Companies can better predict customer needs and position inventory closer to customers using advanced tools and AI-driven demand forecasting. This way, even if main distribution channels are affected, businesses can still fulfill orders quickly. By taking steps forward to soften the impact of these strikes, businesses will be able to help protect their interests and also contribute to a more secure supply chain ecosystem.