Businesses today operate in an environment where Canadian ports are currently experiencing significant congestion and operational disruptions, largely driven by severe winter weather, rail bottlenecks, and fluctuating vessel schedules.
These challenges are impacting port operations across the country, with notable effects at key locations such as Vancouver, Halifax, Montreal, and Saint John. These disruptions are affecting both domestic supply chains and international shipping routes.
Rail disruptions are a primary cause of these delays. Both Canadian Pacific Kansas City (CPKC) and Canadian National (CN) have implemented operating restrictions in response to winter conditions.
These include shorter train lengths and speed reductions, which are extending cargo transit times by up to two weeks. Approximately 25% of vessels calling at Vancouver are waiting for berths, with some ships experiencing delays of over 16 days.
Additionally, the reshuffling of global shipping alliances and inconsistent estimated times of arrival (ETAs) have complicated berth planning at the port.
On the East Coast, the Port of Halifax is also facing delays. Harsh North Atlantic weather conditions are contributing to significant vessel delays, with many arriving off schedule. Rail dwell times have reached an average of 18 days, and some containers are waiting as long as 30 days for clearance due to high ground counts and labor shortages.
Efforts are being made by PSA Atlantic Hub and CN to increase rail productivity, but the situation continues to present significant challenges. Productivity is also affected by operational issues such as limited crane availability and IT system disruptions.
Montreal is experiencing some disruptions, though it is operating more steadily compared to Vancouver and Halifax. Winter navigation restrictions have caused delays, and rail dwell times have reached 5.1 days. Additionally, inconsistent railcar availability is expected to delay recovery by 7 to 10 days.
Other Canadian ports, including Saint John, are also experiencing delays due to equipment issues such as gantry crane failures and IT system disruptions. However, terminal utilization at Saint John has stabilized at 89%.
The ongoing delays and congestion at Canadian ports are having notable effects on logistics operations. Extended transit times are resulting in delays for both inbound and outbound shipments. At major ports like Vancouver and Halifax, delays can reach up to 30 days for outbound containers, with inbound shipments also facing substantial delays.
The disruptions are leading to increased costs, including demurrage, storage, and other congestion-related fees. Importers and exporters should be prepared for:
- Longer transit times: Increased wait times for shipments are becoming common, particularly at major ports.
- Higher costs: Demurrage, storage, and other related charges are expected to rise due to extended delays.
- Logistics adjustments: Shippers may need to modify their routing plans and explore alternative logistics solutions to minimize the impact of delays.
Facing these challenges, proactive planning and communication with logistics partners are essential. We can offer help and support in finding flexible routing and alternative logistics solutions to mitigate any disruptions.
Source: 1UP Cargo & Freightwaves |
