U.S. apparel trade group calls to recall Canadian Parliament as ports strike enters 10th day

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A picket line at the Neptune Terminal at the Port of Vancouver during a dockworkers’ strike in Vancouver, British Columbia, July 5, 2023.

Jimmy Jeong | Bloomberg | Getty Images

As a workers’ strike at West Coast Canadian ports enters its 10th day, trade associations both in the U.S. and Canada are warning the effect will inflate prices and cause weeks of delays in product arrivals.

Approximately $572 millionย in container trade arrives daily to the U.S. from Canada, according to a breakout of U.S. Census data. Between January 2022 and May 2023, total monthly U.S. goods imports from Canada ranged from $31 billion to nearly $41 billion. Top commodity imports for May included mineral fuels, vehicles and computer-related machinery.ย 

The U.S. and Canada have a historically strong trade relationship: Each country is the other’s top trading partner. Approximately 20% of U.S. trade arrives in the Canadian ports of Vancouver and Prince Rupert, where strikes broke out after union leadership and industry representatives walked away from the negotiating table. The Canadian Chamber of Commerce estimates $605 million in trade moves through one of those two ports daily.

It could take three to five days for every day the strike lasts for networks and supply chains to recover, according to an estimate from the Railway Association of Canada.

The volume of trade being disrupted by the ongoing strike has sparked supply chain concerns in the U.S.

Steve Lamar, CEO of the American Apparel and Footwear Association, told CNBC any disruption in supply chains, this strike included, poses both inflationary and inventory challenges.ย The biggest hurdle right now, he said, is accessing goods that are stuck on boats or being diverted to other ports.

“The strike is affecting everyone, either directly for those companies who use British Columbia as a major transit center or an e-commerce hub, or indirectly, as cargo is diverted to other ports,” Lamar said. “The Canadian government should use all its…

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