The Port of Vancouver had a record-breaking year

The Port of Vancouver: It’s huge, it’s salty, it’s not very efficient, and it can teach us a thing or two about the state of Canada’s economy. 

What happened: A record volume of cargo moved through the Port of Vancouver last year, with ships carrying 150.4 million tonnes of stuff. The port saw elevated levels of shipments for really heavy things, like commodities and vehicles (some of which were maaaybe stolen). 

• Record oil output and relatively strong canola and wheat crops bolstered export numbers, while auto sales surged 11.8% year over year, the largest annual jump since 1997.

• The Vancouver Fraser Port Authority CEO predicted it could be in for another record year in 2024 as the crisis in the Red Sea diverts more cargo ships to Canada’s West Coast.

Yes, but: Despite the record, the total number of containers passing through its gates last year was actually down 12%. Canadian shoppers — as you surely know — cut spending, leading to overstocked retailers cancelling orders and a huge drop in shipments of goods.

• The number of shipments was also negatively impacted by the 13-day B.C. port workers' strike, which caused a backlog of 63,000 containers across the province.

Why it matters: Nearly as much cargo moves through the Port of Vancouver as the next five largest Canadian ports combined, making it a mirror for how the broader consumer economy is doing — which is to say that per capita consumer spending and GDP continue to tumble. 

Bottom line: Consumer confidence levels — though slowly on the up-and-up — are within spitting distance of their second-lowest reading ever, which they had hit in November.—QH