SCACLI E-News

Labour Peace Secured with B.C. Port Workers; Truckers Still Negotiating

2009-03-12T16:00:00.000-07:00

(Canadian Transportation & Logistics)

Labour peace has been achieved between the B.C. Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Local 514, after a tentative agreement reached last month was signed by both parties.

“Representatives from the BCMEA and ILWU Local 514 met (on Friday), confirming their respective memberships have ratified the collective agreement in effect between April 01, 2007 and March 31, 2010,” said Greg Vurdela, vice-president marketing and information services, BCMEA.

The 450 ship and dock foremen with ILWU have been without a contract since March 31, 2007. There has been no comment by ILWU Local 514 during the negotiation process, or since the ratification vote. According to BCMEA, the main issue has been the cost of the contract.

However, labour peace has not yet been fully realized at Vancouver ports. Unionized truckers who haul freight at the Port of Vancouver have been without a contract since December 31, 2008, and negotiations have not been smooth. Read more here.

Shipping Industry Left With an Empty Feeling

2009-03-11T21:10:00.000-07:00

(Chris Sorensen — Toronto Star)

Companies struggle as cargo transport demand sinks so soon after a remarkable boom period

After years straining to keep pace with rising demand, the global shipping industry is suddenly facing a new problem: finding places to park empty planes, trains and ships.

From railroad boxcars to giant container ships, the global economic downturn has forced transportation companies to shrink capacity in response to declining demand for raw materials and manufactured goods.

In Canada, both of the country’s major railways are being affected by fewer shipments of everything from iron ore to automobiles. […]

Eivind Kolding, the CEO of Maersk Line, the world’s largest container shipper with 15 per cent of the global market, predicted yesterday that the container business would take longer to recover from the economic downturn than other sectors precisely because of the surplus of new ships that will soon be plying the seas.

“More likely than not we will see all liner companies in red (ink) territory in 2009,” Kolding said in an interview with Reuters. “Most likely, some liner companies will have to cease business if freight rates do not come up.” Read more here.

Transpacific Carriers to Revise Surcharges

2009-03-11T14:31:00.000-07:00

(Journal of Commerce Online – Peter T. Leach)

TSA to use new bunker adjustment factor formula in next contracts

The 14 container lines that belong to the Transpacific Stabilization Agreement will begin the transition to a new formula for calculating their bunker adjustment factor under their 2009-10 service contracts starting May 1 or afterwards, the TSA announced March 10.

The carriers say the new formula, which was developed by the TSA members as a group, will make the way they calculate bunker fuel charges more transparent and stabilize the cost impacts to customers. The new formula, they say, distinguishes between West Coast and East Coast sailings; reduces volatility through quarterly adjustment; and addresses the changes to vessel size, speed and fuel consumption that have been made in recent years.

“Vessel and operating characteristics have changed in the seven years since TSA last modified its bunker formula,” TSA chairman Ronald D. Widdows said in a statement. “In the current environment of price volatility, members saw an opportunity to improve the accuracy of their fuel cost calculations, while also accommodating shippers’ calls for greater transparency in how the charge is developed.”

TSA began working on the new formula in the late summer of 2008, as bunker fuel prices had hit a peak level of $767 per metric ton – a 260% increase since the beginning of 2007. Prices have since fallen dramatically, but are expected to see continued volatility over time. Read more here.

A New Route to Finding Backhauls

2009-03-10T17:28:00.001-07:00

(DC Velocity)

New “Empty Miles Service” matches empty trailers with backhaul loads

Load-matching services that bring empty trailers and backhaul loads together typically are the province of transportation brokers and online freight exchanges. Soon there will be some new players in the game: the Voluntary Interindustry Commerce Solutions Association (VICS), GS1 Canada, and GS1 US. (VICS is best known for its collaborative forecasting, planning, and replenishment standards. The GS1 organization oversees global standards for identification of goods and locations for electronic commerce.)

Retailers, consumer goods manufacturers, and motor carriers have been testing the new Empty Miles Service using real shipment data, and they say it’s ready to roll. VICS members can sign up for $1,600 annually; non-members pay $1,850. Pricing the service per year rather than by shipment or by mile will encourage more companies to use it, the organizers say. The service is available in both the United States and Canada.

GS1 has developed a calculator that measures the program’s financial benefits as well as the reduction in carbon dioxide emissions that will result from eliminating empty hauls. For more information, go to http://www.emptymiles.org/.

Cargo Sealing Guidelines for PIP Members

2009-03-06T15:58:00.001-08:00

(CBSA)

This document provides guidelines for Partners in Protection (PIP) members on the use of high-security mechanical seals on containers and trailers for imported, exported and in-transit cargo. This document should be used in conjunction with the Security Profile as it applies to the applicable industry sector, shipment or conveyance.

• Scope • Background • Terms and Definitions • Seal Authentication • Supply Chain and Business Partners • PIP Member Responsibilities • LTL, LCL and P & D • Seal Application and Control • Failure to Meet/Maintain PIP Seal Requirements

U.S. Railroads and Customers Gird for Price War

2009-03-05T15:56:00.000-08:00

(Reuters – Nick Carey)

The new U.S. Congress promises a fresh battle between major railroads and their customers over freight prices, which the railroads warn could lead to new regulations, reduce their capital expenditures and hurt their stock prices.

Some customer lobby groups argue – as they have for years – that the rails charge too much, and say oversight from regulator the Surface Transportation Board (STB) is too weak. “The railroads have unrestrained monopoly pricing power and the STB protects the rails’ interests instead of their customers,” said Bob Szabo, executive director of customer lobby group Consumers United for Rail Equity (CURE).

Groups like CURE have promoted two bills – one introduced in January and one in the pipeline – they say will result in fairer pricing. And this new Congress may succeed in passing the bills, where Congress has failed in the past. “This composition of this Congress provides our best chance in years of getting these bills passed,” Szabo said.

The railroads, on the other hand, say they have raised prices to lay new track, and their shareholders demand a sufficient return on investment. And they warn the legislation promoted by customer groups would force them to cut those investments. Read the complete article here.

IATA Highlights Three Priorities for Managing Cargo in Crisis

2009-03-03T15:54:00.000-08:00

(eyefortransport)

IATA has called on the cargo supply chain to battle the current air cargo crisis by improving security, delivering a better product and boosting efficiency.

The industry is in crisis, with cargo demand having dropped a shocking 22.6% in December and another 23.2% in January, says Giovanni Bisignani, IATA’s director general & CEO.

Air cargo represents about 10% of industry revenues. As 35% of the value of goods traded internationally is transported by air, air cargo is a barometer of global economic health. Thus the continued decline in cargo markets is a clear sign that the bottom of this economic crisis has yet to be reached.

In December 2008, IATA forecast that 2009 freight volumes would fall 5%. This, combined with a decrease in yields, would result in a 9% drop in freight revenues to US$54 billion. However, that forecast was optimistic, given the fall in demand that followed.

Air Cargo Industry in “Global Crisis”

2009-03-02T19:21:00.000-08:00

(Transport Intelligence)

Two newly-published sets of air transport industry indicators confirm that the slump in worldwide demand for air cargo capacity towards the end of last year has continued into 2009.

The International Air Transport Association (IATA) revealed that what it called an “alarming collapse” in cargo markets during December 2008 had worsened in January this year, with a 23.2% year-on-year demand drop. That compared with a 22.6% fall in December. January was the eighth consecutive month of contraction for IATA freight traffic.

“Alarm bells are ringing everywhere. Every region’s carriers are reporting big drops in cargo… The industry is in a global crisis and we have not yet seen the bottom,” said Giovanni Bisignani, IATA’s Director General and CEO.

European carriers saw output fall by 23% whilst North American carriers recorded a 19.3% drop. However, Asia Pacific carriers, representing 43% of the market, led the cargo decline with a 28.1% year-on-year drop.

China Approves Logistics Stimulus Plan

2009-02-27T15:49:00.000-08:00

(Lloyd’s List – Sandra Tsui)

China’s State Council has passed a plan to boost growth in the logistics industry which forms part of the country’s stimulus package for 10 selected industries that also covers shipbuilding. Specific policies are to be hammered out by the related government departments while the domestic logistics community expects to see a tax cut.

Liu Tienan, vice chairman of the country’s top planning body, the National Development and Reform Commission, explained on Friday that logistics was included in the national stimulus scheme because it has close relations to the competitiveness of the other nine selected sectors.

The State Council, the country’s cabinet, said it would work on nine key areas in order to boost growth in the logistics industry. The nine areas are the construction of transportation facilities, logistics parks, urban delivery, bulk commodities and agriculture products logistics, interaction between manufacturers and the logistics sector, promotion of logistics standard, public information platform, technology and emergency logistics.

The authority also proposed to improve the logistics of energy, minerals, automobiles, farm products and medicine, as well as to speed up international and custom bonded logistics.

Detailed regulations and specific policies will be drafted by relevant government departments based on the broad plan. Read more here.

Economic Gloom Continues in January Traffic: IATA

2009-02-27T15:47:00.000-08:00

(IATA)

The International Air Transport Association (IATA) announced international scheduled traffic results for January showing a deepening year-on-year demand slump.

International passenger demand fell by 5.6% in January 2009 compared to the same month in 2008. It is also a full percentage point worse than the 4.6% year-on-year drop recorded in December. The January fall in demand is the fifth consecutive month of contraction.

The 5.6% drop in passenger demand outpaced capacity cuts of 2.0% driving the load factor to 72.8% - 2.8% below what was recorded for January 2008.

The alarming collapse in cargo markets in December (-22.6%) worsened in January 2009 with a 23.2% year-on-year demand drop. This is the eighth consecutive month of contraction for freight traffic.

“Alarm bells are ringing everywhere. Every region’s carriers are reporting big drops in cargo. And, aside from the Middle East carriers, passenger demand is falling in all regions. The industry is in a global crisis and we have not yet seen the bottom,” said Giovanni Bisignani, IATA’s Director General and CEO.

• Asia Pacific carriers, representing 43% of the market, led the cargo decline with a 28.1% year-on-year drop. This was followed closely by the other major market players: European carriers (-23.0%) and North American carriers (-19.3%).

• While this may appear to be relatively stabilised compared to the precipitous December drop, it is too soon to call a bottom in the air freight market. Manufacturers are still shedding inventory and cutting production which is expected to lead to further falls in freight volumes.

“The only good news is that fuel prices remain well below last year’s level. But the drop in demand is much more harmful. The industry is shrinking with revenues expected to fall by US$35 billion to US$500 billion, delivering a loss of US$2.5 billion this year,” said Bisignani. View full January traffic results here.

IBM Releases 2009 Chief Supply Chain Officer Study: Volatile Times Demand Pervasive Visibility and Flexibility

2009-02-25T11:15:00.000-08:00

(CNN Money)

IBM’s Global Supply Chain study, based on face-to-face interviews with nearly 400 supply chain executives in 25 countries, reveals that 70% say their number one challenge is overwhelming and fragmented data, as well as a lack of ability to make sense out of the information. However fixing this “visibility” problem is low on action plans because it is costly, difficult, silos are worse than ever and respondents say they are just too busy.

Supply chain leaders understand the threat of information blind spots, but they are only cautiously optimistic that they are taking steps to use their valuable information for real competitive advantage. Just 16% indicated that they are effective at integration and visibility of information across the supply chain with external partners.

The study shows the greatest opportunity for these executives are smart devices and integrated ERP systems that capture real time visibility: forecasts/orders, schedules/commitments, pipeline inventory, and shipment lifecycle status. Automating real-time detection with smart devices increases flexibility, speed and accuracy to promote better decision-making.

The Global Supply Chain study, titled The Smarter Supply Chain of the Future, was developed by IBM Global Business Services’ Supply Chain Management Practice in conjunction with the IBM Institute for Business Value, which develops fact-based strategic insights for senior business executives. Supply chain executives in 29 industries participated in structured interviews and candidly talked about their most serious challenges. Read more here.

Slowdown Puts a Hold on Rupert Expansion

2009-02-24T18:14:00.000-08:00

(Cargonews Asia – Ian Putzger)

As container volumes slide in the Pacific Northwest ports, expansion plans for the container port at Prince Rupert have been pushed back 18 months.

Don Krusel, president and chief executive officer of the Port Rupert Port Authority, confirmed that phase 2 of the port’s development has been delayed until late 2010. Originally, work on the US$523.37 million project was scheduled to commence in the middle of this year.

Krusel’s comments came after allegations that the project was stalled due to tight finances. According to a press report, the port authority would not be able to raise $161 million – its share of the project – under the present credit crunch, due to its limited cash flow and borrowing limits imposed by the federal government. Krusel attributed the decision to postpone the development to the recent decline in traffic. Read more here.

More Container Shipping Lines Announce Rate Increases

2009-02-23T18:31:00.000-08:00

(Transport Intelligence)

APL and CMA CGM are set to join the growing ranks of global container shipping lines seeking to push up their rates over the next few months, particularly in the Europe-Asia trade.

This month has already seen several major lines announce such plans, including Germany’s Hapag-Lloyd and Danish global operator Maersk Line.

Now, APL, a unit of Singapore-based global shipping, logistics and marine terminals group Neptune Orient Lines (NOL), has reported that it intends to implement rate increases in both the eastbound and westbound Asia-Europe container trades over the next few weeks.

“Eastbound, for traffic from Europe to Asia, effective March 15, the quantum of the increase will be up to US$175 per container for paper and scrap commodities and $100 per container for all other commodities,” stated APL. “The quantum of the freight rate increase sought on containers shipped from Asia to Europe on the westbound leg is $250 per TEU, with implementation effective April 1. Read more here (subscription required)

Tentative Deal Averts Strike at B.C. Ports

2009-02-17T15:30:00.000-08:00

(CBC News)

About 450 B.C. dock workers have reached a tentative deal with an association representing about 67 port employers, averting a potentially crippling strike at the ports in Vancouver and Prince Rupert.

Local 514 of the International Longshore Warehouse Union reached a tentative agreement Friday with the British Columbia Maritime Employers Association, but the details won’t be released until members on both sides have time to see the deal.

If both sides approve it, the deal would avert a strike that would threaten to halt cargo traffic through B.C. There have been fears that as many as 5,000 other workers involved in port operations would walk off the job to show their support if the union went on strike.

Local 514 workers have been without a contract since March 2007, and had set a strike date of January 2, but continued to work while negotiations were underway.

The main issues on the table were reportedly pension payments and working conditions.

Containership Surplus Could Persist for Years

2009-02-17T14:32:00.000-08:00

(American Shipper)

Information service AXS-Alphaliner said there are now 392 containerships with 1.1 million TEUs idle, and warns “this figure raises the specter of overcapacity hanging for years.”

Based on the current order book, modest scrapping of ships with aggregate capacity of 160,000 TEUs per year, and growth in containerized trade of 2.5% this year, AXS-Alphaliner said even with average annual growth of 15% in containerized trade in years 2010-2012, demand would not come into equilibrium with supply until the beginning of 2013. If growth is only 10%, the equilibrium point is pushed out until early 2014.

AXS-Alphaliner says “a rebound of Chinese exports after the Lunar New Year failed to materialize,” and said Chinese exports in the first quarter of 2009 are expected to be 15% to 20% lower than in the first quarter of 2008. On Monday, COSCO Pacific said its terminals in China handled 3.1 million TEUs in January, 4.7% fewer containers at its Chinese terminals in January 2008. Worldwide, COSCO Pacific, which also has terminals in Singapore, Antwerp and the Suez Canal, handled 3.2 million TEUs, 5% fewer than in 2008. Read more here

New Ti Confidence Index Reveals Strongest and Weakest Logistics Markets

2009-02-17T14:20:00.000-08:00

(Transport Intelligence)

Transport Intelligence (Ti) is today announcing the results of its first Global Logistics Business Confidence Index for February 2009, providing an insight into the health of the industry, now and over the short to medium term. This unique monthly survey comprises over 500 respondents from around the world representing all sectors, segments and geographic regions. It is designed to provide an indication of the strength of the industry and a valuable tool in assessing when the industry will come out of recession.

Perhaps a little surprisingly, the Index showed that overall, despite the general economic gloom, respondents are still confident about the present state of the industry. The Index for industry confidence stands at 6.4. Any result above 0 is positive, with a maximum of 100 and a minimum of -100.

However when asked to describe their confidence in the economic prospects over the next 3 months, compared to the previous 3 months, the index falls dramatically into negative territory: -29.6. It then recovers slightly over a 12 month period, respondents overall believing there will be a small rebound in confidence to -26.5.

Drilling down deeper into the results of the survey from a geographical perspective, China was rated by respondents as the strongest market with an index of 34.4. However this confidence quickly drops away, with the 3 month index falling to -28.1 and in 12 months down to -31.3.

Respondents responsible for logistics across the North American region had the least confidence about the market’s present state (-8.62) whilst respondents based in India were the most positive of all geographies about their market’s prospects over both a 3 month and 12 month timescale.

The most positive sector of the logistics industry was ‘Intermodal’ with a present confidence rating of 24.3. Unsurprisingly given the state of the markets, ‘Road freight/trucking’ and ‘Express’ were the least positive with other below average sectors being ‘Sea Freight Forwarding’ and ‘Shipping’. All sectors fell into negative ratings over 3 months and 12 months.

The results of Ti’s Global Logistics Business Confidence Index are available in full in Ti’s ‘Recession Watch’ reports which will be launched in February. Contact Joel Ray for more details (jray@transportintelligence.com).

Shipping Firms Cut Costs Amid Dampened Trade

2009-02-16T11:53:00.000-08:00

(Business World)

AS THE GLOBAL economic slump continues to weigh on trade, shipping lines have begun cutting costs by using their own cargo vessels, thus, saving on freight charges on common feeder ships, even if this tack adds travel time.

“Shipping lines and port operators now reduce operational costs which results in a reduction of scale, leading to a reconfiguration of the network navigation," Rafael Sapina, director of liner shipping and port operations in the port of Valencia in Spain, observed during the last day last Friday of the 5th Philippine Ports and Shipping conference at the Peninsula Manila Hotel in Makati City.

Jesus B. Sedano, Philippines country manager of Regional Container Lines, said that some shipping lines are now engaging in “substitute service” by using their own dedicated vessels, instead of faster common feeders. Read more here.

Container Origami

2009-02-12T09:43:00.000-08:00

(DC Velocity)

Folding containers could cut space needed to store empties by three-fourths

Prototypes of the SIMIIT Four Pack Folding Container, in development for more than three years, will soon be ready for inspection by marine certification authorities. According to the developers, the folding containers are watertight, and a hydraulic-powered base station can collapse the boxes to one-fourth their size in just a few minutes. Because four folded and stacked containers will take up the same amount of space as a single box does now, ocean carriers will be able to transport and store more empties in far less space. That will mean fewer vessel voyages and truck trips to reposition equipment, they say. A number of ocean carriers and freight forwarders reportedly have expressed interest in the foldable boxes.

Those towering piles of empty containers at shipping terminals around the world may eventually be cut down to size, and it won’t be because there are fewer of them. If a venture by a pair of engineering professors from the Indian Institute of Technology and a former banker succeeds, ocean carriers and equipment leasing companies will be able to fold up the big steel boxes for storage.

Articles about the containers and a video showing how the system works can be found at http://simpriinvestments.com.

Justified Rates

2009-02-09T16:22:00.000-08:00

(Traffic World Online – John Gallagher)

As LTL shippers take advantage of the best leverage over transportation rates they’ve had in decades, they’re finding their influence over how those rates are determined may have taken a hit.

The first arbitration proceeding carried out under the auspices of a revamped National Motor Freight Traffic Association – now operating without the benefit of antitrust immunity, which was eliminated by Surface Transportation Board in December 2007 – revealed that shippers might have to work harder to show why the classification of their products should or should not be changed.

Since 1956, the National Motor Freight Classification has served as the benchmark against which rates are determined, with carriers determining rates on a scale based on a product’s classification. And a classification change often leads to an increase or decrease in the corresponding base transportation rate.

“When they enjoyed antitrust immunity, the NMFTA had the burden of proving the reasonableness of a classification change – that’s out now,” said Fritz R. Kahn, who arbitrated the classification case.

“Effectively the burden has shifted to shippers to prove that the classification is not reasonable.”
The January 22 decision, which involved changing the classification of paint products, was mundane: non-hazardous paint products will keep the same classification, and those deemed to be hazardous will be rated one class higher. But with an estimated 60% of the paints transported now considered to be hazardous, upping the classification – and subsequently the rate which carriers would charge to move them – may not be a small consequence for the $20 billion paint industry. Read more here.

Customs Notice 09-001, New Carrier Export Penalty

2009-02-05T10:15:00.000-08:00

(Canada Border Services Agency)

Customs Notice 09-001 is available on the Canada Border Services Agency’s website (PDF file).

Idle Fleet Hits 800K TEUs

2009-02-04T10:33:00.000-08:00

(Journal of Commerce – Bruce Barnard)

Idled ocean container capacity has reached a record 800,000 TEUs with 303 ships at anchor as carriers cut or consolidate services on key east-west routes amid declining traffic and freight rates. The unemployed figure represents 6.5% of the world fleet, twice the 3.2% recorded in the depth of the 2002 bear market, according to AXS-Alphaliner, a Paris-based consultant.

The idled fleet has grown by 48 ships of 125,000 TEUs in the past two weeks and is set to increase as carriers further retrench operations, Alphaliner predicts. On October 25, 2008, there were just 70 ships of 150,000 TEUs without work.

The jobless fleet includes nine vessels of between 7,500 TEUs and 10,000 TEUs capacity, 34 ships of 5,000-7,500 TEUs and 57 of 3,000-5,000 TEUs. The feeder sector remains the most vulnerable with 85 ships of 1,000-2,000 TEUs lying at anchor. Read more here.

Carriers Assess Cleaning Container Charges

2009-02-02T14:59:00.000-08:00

(CIFFA e-Bulletin)

Recently CIFFA was advised that an ocean carrier terminal assessed container cleaning charges to a trucker on an empty import container. The fee for the cleaning in this instance amounted to $450.00. Evidence as to what prompted the cleaning requirement was pictures that showed little indication of anything to be removed from the container, however as the cleaning requirement was only identified upon the container being made available to another trucker for an export move (kudos to that trucker for exercising his due diligence in inspecting the box prior to accepting it) the additional terminal costs added to the cleaning cost significantly.

There is no question that it is a requirement that importers ensure that containers are clean upon return to the ocean carrier and in reality they are ultimately liable for any expenses assessed for cleaning the container should they fail to do so. Truckers are being held ransom for these charges even though they really have no legal tie between themselves and the contract of carriage representing the transportation between the carrier and the customer. They do however, as a result of the interchange agreements signed by them with the marine carrier, assume this responsibility, some apparently unknowingly.

What should be of greater concern is the fact that no container should be accepted by the terminal or receiving depot, unclean. In fact these containers should be refused by the terminal and the trucker instructed to return them to the importer for cleaning. One obvious reason for this would be if in fact the goods that had been contained in the container were in any way dangerous and were part of the problem, (leakage, spill etc.). The empty container would have or should have had any DG labels/placards removed so there would be no indication as to the nature of the goods that had been contained therein. We understand however that the delays this was creating influenced the decision to no longer perform this function upon return of the empty.

Canada-U.S. Surface Trade Clobbered in November

2009-01-30T13:31:00.000-08:00

(CEP News – Adam Button)

Data continues to show that firms slammed the brakes on international trade in November, resulting in a massive contraction in Canada-U.S. trade. The U.S. Bureau of Transportation Statistics said total Canada-U.S. surface trade was reported at US$37.785 billion, down 15.6% in November and -16.4% year-over-year.

Canadian goods shipped to the U.S. via surface methods decreased by 18.4% in November after contracting 4.8% in October and rising 0.4% September.

Surface freight does not account for marine shipping and air freight, but does include the vast majority of Canada-U.S. trade that is done by truck, rail and pipeline. The figures are not seasonally adjusted.

In current dollar terms, Canadian surface exports to the U.S. decreased 17.6% year-over-year in November, an extension of the -6.2% pace reported in October. Read more here.

Air Cargo Volumes Plummet in December 2008

2009-01-30T13:29:00.000-08:00

(eyefortransport)

According to IATA’s international scheduled traffic results, global international air cargo traffic for December dropped 22.6% year-on-year, and 4% for the full year.

“The 22.6% free fall in global cargo is unprecedented and shocking,” said IATA’s director general & CEO Giovanni Bisignani. “There is no clearer description of the slowdown in world trade. Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9%.

“2009 is shaping up to be one of the toughest years ever for international aviation,” said Bisignani. “The 22.6% drop in international cargo traffic in December puts us in uncharted territory and the bottom is nowhere in sight. Keep your seatbelts fastened and prepare for a bumpy ride and a hard landing.” The IATA report is available here.

Port Metro Vancouver 2008 Statistics Reflect Bright Spots Despite Worldwide Economic Conditions

2009-01-29T22:13:00.000-08:00

(The Canadian Press – Canada NewsWire)

2008 end-of-year cargo statistics released today by Port Metro Vancouver (PMV) illustrate that while unprecedented worldwide economic difficulties have had a significant effect on global trade, the Port has demonstrated stability and resiliency during this period.

While overall tonnage of 114,559,973 metric tonnes declined 10% compared to 2007, the auto and container sectors were stable, in contrast to other West Coast ports. Commodities such as coal, potash and petroleum products experienced moderate increases. In contrast, breakbulk, mineral and forest product volumes were significantly lower.

“Our Port’s statistics clearly reflect the interconnectedness of global trade,” said Captain Gordon Houston, President and CEO, Port Metro Vancouver. “We are certainly not immune to the effects of current economic conditions, but at the same time a number of factors, such as our high degree of diversification and focus on the Canadian market, have allowed Port volumes to remain relatively stable compared to many of the Port’s competitors.”