What an Importer Should Know About Labor Action in Canada

There is simply no denying that this year has been a fractious one when it comes to labor action in Canada. In 2024, over six major strikes, lockouts, negotiations, and disputes across the country have left importers struggling to find logistical solutions.  

At times, it felt that just as one labor dispute was winding down, another one was just starting up, and one might be tempted to think that after a year of labor action in the supply chain, it must finally be slowing down and we will only be left with the usual holiday rush. To that, it is worth pointing out that, at the time of writing, the Port of Vancouver has just entered the first days of an indeterminately long lock-out, so if the currently unfolding present is any indicator of the future, this pattern seems poised to continue. 

With labor action across the country still going strong, it’s worth sharpening your knowledge about how these kinds of events can affect imports and exports, as well as the importance of a solid logistics plan for when these disruptions occur. After all, it’s a supply chain, and knowing how to be prepared when it shakes can be the difference between a slight stumble and a fall.  

How does a Strike Affect the Supply Chain? 

The most important thing to understand when discussing a strike or any other supply chain disruption is that these events do not occur in a vacuum, and a disruption in one link is inevitably going to have an effect on the others. Continuing with the ongoing effects of the port strike, it may be tempting to think that the only role the ports play in the supply chain is the delay of ocean freight shipments, but that couldn’t be further from the truth. They are nexus points for overland transportation, including trains and trucks, so when one shuts down, the impact is felt in a wide range of places.

For example, the first thing businesses are going to try to do when the port shuts down is to find other nearby ports; when they do, those ports will quickly become nearly as overfull and over-taxed as the shutdown port and, in turn, the regular rail and carrier freight services that normally are spread across two ports are forced to converge on one, often on irregular routes, increasing their demand. 

There’s not a lot that can be done about this as a business, but understanding that in the world of logistics, nothing is just what it is can be important for future planning. In our ongoing example, overseas shipments are going to be backlogged, but there’s a good chance that the same is true of trucks and trains, and we need to plan accordingly.

Umbrellas in a Hurricane

Another tempting thought to have is that disruptions at the port won’t affect your business at all due to the nature of your business or distance from the source of that disruption. After all, not all operating businesses in Canada are importers - many different organizations are far removed from the labor actions at the port or the rail yard. But, what you must remain aware of is that the screws that are used in whatever product you make locally could very easily be manufactured overseas, and while you may not see the immediate complications posed by the current action, the manufacturer of your goods might, which could cause significant challenges for you in the long run. Supply chain complications of this kind can have far-reaching effects, and staying abreast of them, even when it doesn’t seem like it’s going to involve you, is vital. 

Even for small businesses, these challenges can be exponentially more damaging as larger companies can spend capital to remain flexible in the face of these changes, even potentially commanding different transport types altogether to avoid the port. The price for variable forms of transportation can go up significantly in moments like this, and small businesses could find themselves boxed out of options. 

The point here is that supply chain strikes can affect businesses in surprising ways, and diligence is due even if you think that you might be out of range of its worse effects. 

What Can You Do?

The country’s logistics network and the businesses it serves are interconnected in ways that are often unexpected in their breadth and depth, but that’s not always bad news in situations like this. A shipping container that is at the bottom of a stack at the port right now might be stuck for the next month, but businesses that plan ahead and keep their eyes on the news as it develops - maybe by keeping an eye on our Trade News Updates - can have a host of options available to them, if they know where to look.

Here are a few tactics you can employ to help endure the situation better. 

1. Work with your Freight Manager. 

• With the help of a skilled freight forwarder, like the one waiting to help you at PCB Freight Management, you can find ways to move forward and solutions for future problems. Even sourcing alternative options like switching to air freight is a valid possibility that can be facilitated through the skills and network of a trained freight manager. 

As a word of warning, there is not always much that can be done about the situation at the ports, but when it comes to finding transportation solutions to help you move through this in the best possible shape, a freight forwarder will be your best bet to adapt, adjust, and even thrive in less than ideal circumstances. 

2. Work Proactively

• There are two areas where a proactive approach will serve you well. The first way is by helping you contending with goods shipping in the near future. Finding alternative routes and solutions for future shipments while doing what you can to manage the ones already at the ports or railyards is the largest challenge associated with this kind of complication. There may not be much you can do for metaphorical and often literal ships already in the water, but working to find an alternative for future shipments will keep your goods moving relatively unscathed.

The second area where a proactive approach can pay off is to maintain awareness that this kind of lockout can happen at any time. Building and then taking advantage of an adaptable and robust supply chain, with the help of a freight forwarder, can leave you in a great position when supply chain workers decide to hit the picket line.

3. Have Patience. 

• With our example of the ongoing BC port strike, the reality is that it could go on for quite some time, and even if it doesn’t last, when it comes to your livelihood, any amount of time might feel like an eternity. Any disruption has the capacity to become a complicated and frustrating time in Canadian business, and nothing less than the keen understanding that everyone involved is doing the best they can will get you through it in one piece. 

This is not the first or last time this will happen, and patience and understanding will be your greatest allies in the weeks to come. Understand that we are all, in some cases literally, now in the same boat.

With these steps, you’ll be in good shape to weather any supply chain disruption that might come your way. For more information about how you can best contend with currently ongoing labor action or get a plan in place for when the next lockout or walkout begins, contact PCB Freight Management today. We can help you stay agile no matter what the news of the day has in store for it.
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