Container throughput at the Canadian seaport stood at 1.4 million TEUs during the first six months of the year, a 6.5 percent decrease from the record setting throughput seen in the same 2015 period, according to recent data from the port authority.
Total cargo volumes at the Port of Vancouver in Western Canada for the first half of 2016 fell 5.9 percent to 66.0 million metric tons compared with the same 2015 period, according to the port authority’s 2016 mid-year statistics report.
Volumes at the Canadian seaport slipped across all major commodity categories with the exception of grain, where increases in barley (up 41.8 percent) and canola (up 40.1 percent) contributed to 4.8 percent growth in the sector. Supported by a strong harvests and overseas demand, the Port of Vancouver handled record Canadian bulk grain exports in both 2014 and 2015.
The Vancouver Fraser Port Authority attributed the overall decline to a softened global economy, a weakened Canadian dollar, and a shift in container cargo back to United States ports following last year’s labor dispute between longshoreman and their employers.
“Despite the short-term slow down, forecasts show that long-term growth in trade will continue to bolster the Canadian economy,” the port authority said.
Container throughput stood at 1.4 million TEUs during the first six months of the year, a 6.5 percent decrease from the record setting throughput seen in the same 2015 period.
The port authority noted last year’s record levels were due primarily to a temporary surge of cargo caused by shippers diverting cargo away from United States West Coast ports to avoid severe congestion issues during the contentious contract negotiations. Compared with the first six months of 2014, volumes at the Port of Vancouver were up 1.3 percent in the first half of 2016.
In the bulk sector, breakbulk cargo volumes dropped 11 percent from the first half of 2015 due to decreases in forest products (down 8.7 percent), construction and materials (down 32.5 percent) and miscellaneous goods (down 12.8 percent). Dry bulk cargo volumes fell 6.1 percent year-over-year to 41.6 million tons, while liquid bulk throughput slipped 0.4 percent compared with first half 2015 as falling crude oil prices continue to put pressure on volumes.
Auto volumes remained relatively flat at 211,613 units for the first six months of the year, a 0.3 percent decline from first half 2015.
Volumes of machinery, vehicle, and construction materials at the port dropped 11.7 percent year-over-year during the first half of 2016. The port authority attributed the decline primarily to reduced investment caused by a slowdown of industrial activity in western Canada, and a weak Canadian dollar.
“The slight decrease in cargo volumes in the first half of 2016 is expected, given the record year we experienced in 2015 and the softening global economy,” Vancouver Fraser Port Authority President and CEO Robin Silvester said of the results. “The long-term outlook for Canadian trade is one of growth, and the port will be ready to handle increased volumes through Canada’s west coast.”
“Shippers continue to express confidence in the Port of Vancouver, and we continue to see significant investment projects moving forward in the gateway” added Silvester. “We wish to thank all our many customers and terminals for working with us to provide an efficient and reliable supply chain and to plan for the future.”
Vancouver Fraser Port Authority said that in addition to ongoing improvements at existing terminals, it has proposed to build a new terminal at Roberts Bank. That project is currently under review by an independent panel appointed by the Federal Minister of Environment and Climate Change, the port authority said.
Port of Vancouver volumes decline in first half 2016
