Canada’s Port of Vancouver—which links Canada and Asia—has ranked among the least efficient ports in the world, according to a new report by The World Bank and S&P Global.
- The report ranks the world’s ports based on performance metrics, including how quickly goods are moved on and off the massive ships that power global trade.
The port’s shortcomings became a severe problem during the pandemic. In 2021, the surge in demand for goods from Asia spiked West Coast port traffic (as a faster alternative to the East Coast). Combined with reduced freight capacity and labour shortages, this led to severe congestion, made worse by wildfires and flooding.
- To try and avoid product shortages seen during the holidays last year, companies are now placing larger orders even earlier, Gene Seroka, executive director of the Port of LA told The Wall Street Journal.
Yes, but: Vancouver Fraser Port Authority’s CEO said the issues are here to stay unless a proposed expansion is approved. He added that the port could run out of container capacity in as soon as five years, which would add to supply chain issues.
Why it matters: Bottlenecks at Canada’s largest port directly impact your wallet. The upcoming surge in imports (ahead of back to school and the holidays) will likely add to existing logistical challenges, further reducing the supply of goods and driving up prices.
What’s next: As the port enters its ninth year of waiting for environmental approval to expand, it plans to deploy $1 billion to build capacity and streamline operations.