Twin port shutdowns risk more damage to Canadian economy: business groups
Barry Prentice of the University of Manitoba Transport Institute warned that prolonged unreliability could deter future business investments.
Business groups in Canada are expressing significant concerns over the ongoing labour disruptions in the transport sector, particularly the shutdowns at the country’s two largest ports—Montreal and Vancouver.
Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, highlighted the tough timing of these disruptions, as businesses face a year-end crunch and increasing pressure to maintain Canada's reputation as a reliable trading partner, especially with the U.S. election results intensifying competition.
The shutdowns have led to between $400 million and $800 million per day in lost goods movement, with the Canadian Chamber of Commerce estimating that the total value of goods disrupted could exceed $1 billion daily.
The impact on manufacturers relying on critical parts, as well as potential long-term consequences on Canada’s reputation as a trading partner, is becoming more evident.
The strikes come after previous disruptions, including the 2023 B.C. port strike and stoppages involving Canadian railways.
These interruptions have raised questions about Canada’s ability to maintain stable trade operations. Pascal Chan from the Canadian Chamber of Commerce warned that these shutdowns effectively signal to the world that "Canada is closed for business," urging government intervention to end the disputes.
Labour Minister Steven MacKinnon acknowledged the insufficient progress in negotiations and emphasized the urgent need for all parties to come to an agreement.
Meanwhile, the Maritime Employers Association locked out longshore workers at the Port of Montreal after a contract offer was rejected, exacerbating the situation.
While essential services continue at some Montreal terminals, including liquid bulk and grain terminals, the broader impacts of these ongoing disruptions could damage Canada’s longer-term investment attractiveness.
Barry Prentice of the University of Manitoba Transport Institute warned that prolonged unreliability could deter future business investments.
Port of Montreal CEO Julie Gascon warned of "catastrophic" consequences if the shutdown continues, stressing that businesses could increasingly turn to U.S. ports instead, further harming the country’s reputation in global trade.
