Will a port strike in Western Canada have a positive or negative impact on the U.S. market?
Likely, a strike will not have much of an impact on U.S. markets. Over 41 million metric tons of Canadian agricultural crops and products were exported in 2018 with 65 percent exported through Western Canada Ports. Even if a strike is called, Canada’s Labor Code deems grain to be an essential service and longshoremen will be required to load and ship grain.
Source: Canadian Grain Commission
The International Longshore and Warehouse Union Canada (ILWU) voted overwhelmingly (98 percent) to strike against the B.C. Maritime Employers Association (BCMEA). The ILWU members’ vote means a strike can be called in the next 60 days, with 72 hours’ notice to BCMEA member companies. In July 2017, the U.S. International Longshore and Warehouse Union signed a three-year extension with the Pacific Maritime Association. According to Business in Vancouver, long-term labor agreements between ILWU-represented port workers and maritime employers in the U.S. have put competitive pressure on the Port of Vancouver to remain open.
Alan Barrett
Director of Research and Consulting
Higby Barrett LLC
Alan Barrett is the Director of Research and Consulting for HIgby Barrett LLC. He is an accomplished commodity economist with more than 25 years of experience in futures and cash markets with a focus on cotton, commodity projects, non-traditional agricultural products, transportation and supply chain studies. Alan spent six years as a commodity futures broker. His expertise encompasses feasibility studies of oilseed crushing plants (soybean canola, and cottonseed), grain elevators, export elevators, shuttle elevators, grain container operations, flourmills and other processing facilities. Alan also has conducted transportation supply chain studies for grains, oilseeds, fertilizer, coal, natural gas, crude oil, and petroleum products. Alan has considerable experience in non-traditional agricultural products such as coal, coke, natural gas, chemicals, hydraulic fracturing fluid, hydraulic fracturing proppants, glycerin, fertilizer, micronutrients, salt, limestone, cement, iron ore, pig iron, and steel, especially feed ingredients. Mr. Barrett has a BS and MS in Agricultural Economics from the University of Tennessee.
