Vancouver Port Bottlenecks Ease, But Cargo Still Stuck for Days
The worst of Canada’s supply chain bottlenecks may be over as port congestion and freight delivery times are starting to improve. According to a recent report by Desjardins Economic Studies, the backlog at the Port of Vancouver is slowly decreasing. However, there is still a significant amount of cargo stuck in transit, causing delays and increased costs for shippers.
Port Congestion and Freight Delivery Times
The Port of Vancouver is one of Canada’s busiest ports, handling over 140 million tonnes of cargo each year. The port has been experiencing congestion issues due to a combination of factors, including labor disputes, equipment shortages, and increased demand for container space. The average dwell time at the port, which is the amount of time it takes for containers to be taken off ships and moved onto trucks or trains, has been increasing steadily over the past few months.
Temporary Solutions Implemented
In an effort to alleviate some of the pressure on the system, CN Railway has set up temporary additional capacity in both Montreal and Toronto. According to a spokesperson for CN, this will allow them to expedite shipments and get more cargo moving through the system.
Call for Further Action
Despite these efforts, many industry stakeholders believe that more needs to be done to address the supply chain issues plaguing Canada. The Canadian International Freight Forwarders Association (CIFAA) has joined with other industry groups to call on Transport Canada to take a closer look at where pressures can be taken off the system.
"We asked if other temporary inland yards, terminals, or another hub such as Winnipeg could take some pressure off?" said Kuzeljevich, executive director of CIFAA. "More, however, can be done to alleviate the congestion at the Port of Vancouver, as assets and infrastructure are not being upgraded."
National Supply Chain Task Force
In January, Transport Minister Omar Alghabra announced the creation of a National Supply Chain Task Force, which is tasked with developing both short- and long-term actions to strengthen the efficiency and resiliency of Canada’s transportation infrastructure. The task force will meet with industry stakeholders to develop recommendations for addressing congestion reduction in critical infrastructures.
"We are working closely with Transport Canada to advance this work," said Kuzeljevich. "It just takes too long to market new projects."
The Way Forward
As the supply chain continues to face challenges, it is clear that a multifaceted approach will be needed to address the issues at hand. The creation of the National Supply Chain Task Force is a positive step towards addressing these challenges and developing solutions for the future.
Key Takeaways:
- Port congestion and freight delivery times are slowly improving
- CN Railway has implemented temporary additional capacity in Montreal and Toronto
- Industry stakeholders believe more needs to be done to address supply chain issues
- The National Supply Chain Task Force is working with industry groups to develop recommendations for addressing congestion reduction
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