Port Metro Vancouver (PMV) can’t afford another lengthy detour en route to a lasting container trucking controversy resolution.
Neither can any other local business that relies on imports or exports.
Canada’s largest port has an opportunity to grab a larger share of the multibillion-dollar container cargo trade between North America and the rest of the world.
But it can’t do that with weak links anywhere along its Asia-Pacific Gateway logistics chain.
The recent Federal Court decision agreeing with local truckers that elements of the new system of allocating licences to service the port’s container terminals are unfair rekindles uncertainty over the port’s container cargo-handling reliability.
Global container shipping companies don’t like uncertainty.
They’re already taking on water as container rates on major shipping routes continue to drop and vessel capacity rises. According to Alphaliner, a global shipping industry analytics company, seven of the 17 biggest international ocean carrier companies posted operating losses in 2014 as average margins in the sector remained a disappointing 2.7%.
Shipping lines are consequently seeking efficiencies on all fronts, including forming alliances with other carriers and using larger ships that carry more containers but make fewer stops at fewer ports.
Both tactics intensify pressure on port facilities.
Longer waiting times for bigger ships add up to higher operating costs for container carriers. Neither they nor ports can afford that revenue leakage.
In early April, Hapag-Lloyd, one of the world’s largest container shipping lines, ceased service to Portland because of ongoing labour disputes at that West Coast U.S. port.
There’s no doubt that the system of allocating trucker access to port container terminals needed overhauling, but institution of the revamped system has created new problems that threaten to further complicate port cargo movement.
PMV, truckers and container shipping terminals need to get the next fix right. Failure to do so will inflict lasting damage on B.C.’s economy now and far into the future.
