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B次元官网网址業tB次元官网网址檚 like Lego bricksB次元官网网址: Shippers and consumers feel effects of overflowing ports

Vessels waiting twice as long to dock at the Port of Vancouver as they did one year ago
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Cargo containers and ships at the Port of Metro Vancouver are seen in an aerial view in Vancouver on April 9, 2022. Ports and warehouses overflow even as cargo decreases, hitting shippers and consumers. THE CANADIAN PRESS/Darryl Dyck

Bob Ballantyne broke a cord on his blinds in early July, and his repairman in Ottawa still hasnB次元官网网址檛 been able to replace the snapped part.

B次元官网网址淗e says, B次元官网网址榊ou know, supply chain issues. I canB次元官网网址檛 get the string that I need to fix it.B次元官网网址橞次元官网网址

Ballantyne isnB次元官网网址檛 alone. The pandemic sent shockwaves through the global supply chain and the backlogs are mounting even as freight volumes fall in North America this year.

The delays stem from several choke points along the chain, including backed-up warehouses, staff shortages and rail capacity. Ultimately the longer wait times, and extra costs, are being passed along to consumers.

In the first half of 2022, container volumes at the Port of Vancouver dropped seven per cent from the same period a year earlier. But containers sat on its docks for nearly six days on average, almost twice as long as in 2019 and a 41 per cent increase from 2021.

That B次元官网网址渄well timeB次元官网网址 rose higher in July, to more than six and a half days. Meanwhile cargo vessels sat at anchor for 9.6 days on average before docking at the countryB次元官网网址檚 largest port as a result of the buildups last month, more than twice as long as they waited last year.

B次元官网网址淚tB次元官网网址檚 like Lego bricks,B次元官网网址 said Robert Lewis-Manning, president of the B.C. Chamber of Shipping, of shipping containers. B次元官网网址淭heyB次元官网网址檙e piled up and thereB次元官网网址檚 just no more place to put them.B次元官网网址

In Montreal, CanadaB次元官网网址檚 second-largest port, containers wait four times longer than the 2019 average, and vessel turnaround is similarly well above both 2019 levels and those from a year ago.

A lack of storage space in distribution hubs on the fringes of Toronto, Montreal and Vancouver is one reason.

B次元官网网址淲arehouses in Ontario and Quebec are largely full,B次元官网网址 said Lewis-Manning. B次元官网网址淭he problem is, thereB次元官网网址檚 something behind it that canB次元官网网址檛 get through to where it needs to go. And maybe it is a critical part for a manufacturing operation.

B次元官网网址淯ltimately the consumer will pay the price for that,B次元官网网址 he said.

Storage fees, contract extension penalties and B次元官网网址渄emurrageB次元官网网址 fees B次元官网网址 issued by a shipping line when freight exceeds the time allotted at a terminal B次元官网网址 eventually show up in the retail price tag, on top of higher freight rates and overtime wages for those working on the backlogs.

Ironically, the delays brought on by full warehouses are partly the result of importersB次元官网网址 response to previous supply-chain disruptions.

B次元官网网址淲hen people anticipate a shortage or capacity constraint, they overcorrect. And that actually amplifies the challenge,B次元官网网址 Peter Xotta, head of operations at the Vancouver Fraser Port Authority, said, citing what he called a B次元官网网址渂ull-whip effect.B次元官网网址

B次元官网网址淚f the goods show up two months later than when theyB次元官网网址檙e anticipated, you might be missing that window for these barbecues, for parasols, for garden furniture that you were looking for in June,B次元官网网址 said Daniel Dagenais, vice-president of operations at the Port of Montreal.

Once the sales window is over for these seasonal products, they either need to be physically stored until the following year or heavily discounted.

Canadian Tire Corp. Ltd. said earlier this month that its merchandise levels shot up 18 per from a year earlier, which means it has less flexibility for storing off-season items.

Shippers and marine carrier operators see rail as a critical bottleneck.

Grain volumes were down last year due to a drought, but rail companies B次元官网网址渟till had problems,B次元官网网址 said John Corey, president of the Freight Management Association of Canada.

The grain yield B次元官网网址 often the biggest source of commodity revenues for Canadian National Railway Co. and Canadian Pacific Railway Ltd. B次元官网网址 is expected to return to the historical average this year, raising questions about what other shipments might be sidelined to accommodate the larger harvest.

B次元官网网址淭he amount of rail capacity that there is with various rail lines, that really is whatB次元官网网址檚 making a big impact,B次元官网网址 said Xotta.

Stakeholders from wheat and canola exporters to lumber producers are worried, as demand for Canadian grain, potash and coal surges due to shortages caused by the Russian invasion of Ukraine.

B次元官网网址淎ll those Asian imports that are coming in by container and the largely bulk exports that are headed to Asia B次元官网网址 are all competing for that same rail service,B次元官网网址 Lewis-Manning said.

B次元官网网址淚 think weB次元官网网址檙e going to see a real mess on the West Coast.B次元官网网址

A dire dearth of truck drivers marks another snarl in the chain. The sector saw record vacancies in the first quarter, with 25,560 unfilled driver positions between January and March, according to Trucking HR Canada.

And spillover from heavily backlogged American ports such as Los Angeles and nearby Long Beach further adds to port congestion, while labour shortages at warehouses also gum up the cargo flow.

B次元官网网址淵ou get to a point where one more drop and you start to overflow. And we have started to overflow,B次元官网网址 said Chris Hall, CEO of the Shipping Federation of Canada.

CanadaB次元官网网址檚 two main rail lines have been pouring money into network upgrades and new railcars while scrambling to hire workers after laying off thousands in the first year of the pandemic.

CN and CP hope to hire more than 3,800 workers this year, including some 1,850 already on board since Dec. 31. But the labour market B次元官网网址 especially for train conductors and engineers B次元官网网址 is tighter than itB次元官网网址檚 been in decades and it takes up to nine months to train some crews.

CN spokesman Jonathan Abecassis said the railway has set up temporary storage capacity in Montreal and Toronto, as the Vancouver port did in February. And CP Rail CEO Keith Creel assured analysts on a call last month the company is flexible: B次元官网网址淲e have capacity. WeB次元官网网址檙e not holding any freight at West Coast ports or East Coast ports to pace into our inland terminals.B次元官网网址

ThatB次元官网网址檚 cold comfort for Ballantyne, still waiting for a repair to his blinds. The last he heard, the component might be replaced by next month. But there are no guarantees.

B次元官网网址擟hristopher Reynolds, The Canadian Press





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