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Major North American ports to hold a major strike starting July 1, 2023, which may affect the global supply chain

On 28 June 2023, the Canadian branch of the International Terminal and Warehouse Union (ILWU Canada) issued a 72 hour strike notice to the British Columbia Marine Employers Association (BCMEA) announcing the start of the strike at 8 a.m. on 1 July 2023. This strike will affect approximately 7,400 terminals and 49 employers and operators in more than 30 ports in British Columbia, including Canada’s busiest port of Vancouver.

In a statement, the trade union noted that outsourcing, port automation and cost of living were key issues of controversy. They stressed that during the outbreak, coastal workersined the operation of the province and the country, and that their people went to work when Canadians were told to take refuge in the area. They worked in difficult and dangerous conditions to ensure that the community and all Canadians had the necessary supplies and personal protective equipment to fight against the new coronavirus.

Canadian Federal Labour Minister Seamus O'Regan and Transport Minister Omar Alghabra stated in a joint declaration that they support the collective bargaining process and urge both parties to reach an agreement at the negotiating table. The Maritime Employers Association said in a statement that since negotiations began in March, it has "sincerely put forward multiple proposals and positions with the aim of making progress and achieving a fair deal at the negotiating table."

If the negotiations fail, in addition to taking a comprehensive strike action to disrupt port operations, the trade unions have several other options and they may disrupt the operation of a port, or they will not be able to send enough workforce for a shipment.” Transport economist Philip Davies said it was a tactical and strategic game. British Columbia Governor David Eby said he was very concerned about the potential impact of the strike on the port. He said that during the epidemic, due to inflation and supply chain issues, the cost of British Columbia continued to rise and the strike could increase the cost, which was unbearable for residents.

In recent years, China’s automotive exports have been steadily improving, and exports jumped second in the world in 2022 as a new driving force for foreign trade. However, this strike could have a significant impact on global supply chains, including China’s export companies. Therefore, relevant export companies need to closely monitor the progress of this strike and timely adjust export strategies to deal with possible supply chain disruptions. At the same time, companies should also actively look for other export markets to reduce dependence on the North American market and improve their own resistance to risk.

Overall, the strike could have a significant impact on the global supply chain, but also provide an opportunity for Chinese export companies to test and enhance their risk resistance.

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