Exports could take a hit as Vancouver grain terminals workers strike

While producers could feel the pinch of a strike at the Port of Vancouver’s grain terminals within a week, the markets won’t feel much of a hit unless the strike continues for three or four weeks, analysts said.

“It’s going to back up trains that are going into Vancouver. It’s going to really slow down things that are happening in the country,” said Mark Hemmes, president of Quorum Corporation in an interview today.

“You can’t deliver grain, you don’t have cash flow.”

Workers at the six main grain terminals located in the Port of Vancouver went on strike Tuesday morning, a move that could disrupt exports of canola and other crops, government and industry officials said.

At least two grain terminals are unaffected according to a post yesterday from the Shipping Federation of Canada. Grain may also be shipped through Prince Rupert or Thunder Bay, said Hemmes. However, as Vancouver handles 70 to 75 per cent of grain movement out of Canada, that won’t be much consolation.

Jack Scoville, an analyst with the Price Futures Group in Chicago, said the strike could result in some additional canola and wheat going through U.S. ports.

“For the Canadians, it should interrupt their canola and wheat shipments off the West Coast. And that could force canola and wheat down here (into the U.S.). So that could be a little negative to prices,” he said.

Jerry Gidel, analyst with Midland Research said while much of Canada’s agricultural exports move through Vancouver to Asia, the strike likely would not have a big market impact unless it continued for three to four weeks.

Earlier today, federal Labour Minister Steven MacKinnon said on X the union representing the grain terminal workers and the Vancouver Terminal Elevators Association had agreed to resume talks alongside federal negotiators.

“We’re highly motivated to get a deal done,” said Wade Sobkowich, executive director of the Western Grain Elevators Association, of which the six terminals are members. “We’re in a peak period.”

The Grain Workers Union Local 333 in a post on Facebook yesterday said it was on stand-by to “sit down and reach a fair and equitable collective agreement.”

Source: Grain News