A labor strike has shut down key ports on Canada’s West Coast, including Vancouver and Prince Rupert, impacting $800 million in daily trade flows. The International Longshore and Warehouse Union Ship & Dock Foreman Local 514 initiated the strike after failed negotiations, halting container movement through these major Canadian ports. About 20% of U.S. trade arrives via these ports, and disruptions are expected to impact imports to the U.S. significantly, with containers of perishable food, chemicals, and automotive parts affected. This strike adds to congestion at U.S. ports already dealing with East Coast diversions and ongoing logistical challenges.

If the Canadian West Coast trade gateway remains closed, carriers will likely reroute cargo to already strained U.S. ports, risking increased dwell times and potential bottlenecks at ports like Los Angeles, Long Beach, and Seattle. The holiday retail season is fast approaching, and these delays could affect supply chains across North America. Negotiations remain stalled, with automation as a key sticking point. Federal mediators are involved, but an agreement remains elusive.

As always, Shapiro will continue to monitor the situation and provide status updates as we receive them.