Canadian fertilizer market braces for port strike in British Columbia from Nov. 4

The Canadian fertilizer was bracing for a port worker strike in British Columbia to begin Nov. 4, with market participants and local companies saying Nov. 1 that they expected sulfur and potash markets would be heavily affected as ship loading and unloading halts.

The BC Maritime Employers Association said in a public notice Oct. 31 that a labor strike by the International Longshore and Warehouse Union Ship & Dock Foremen, or ILWU, Local 514 would begin at 8 am local time Nov. 4 and would disrupt Canadian ports, including Vancouver and others in British Columbia, for 72 hours.

This disruption is expected to impact the fertilizer trade and other industries relying on terminals at Vancouver, the country's largest port.

“There will be no sulfur handling operations in the port-rail unloading and vessel loading during this strike situation,” a sulfur supplier in the area said.

However, the employers association said it would keep its latest offer on the table, adding that it was willing to rescind the lockout notice if the union withdraws its strike notice, it said.

The fertilizer market source in Vancouver expected the federal government would step in to "either avoid a disruption or make sure it is not prolonged."

'Potash will be heavily impacted'

Fertilizer Canada Communications Director Kayla FitzPatrick estimated that “potash will be heavily impacted” if there is a disruption at the West Coast ports.

“The ports move over 21,000 mt of potash a day to overseas customers, and a shutdown will cost the industry $9.7 million daily in lost sales revenue,” the spokesperson told S&P Global Commodity Insights in an email.

The industry association representing Canadian producers said it has been “calling on the government to amend the Canada Labour Code … to ensure the continuous movement of fertilizer products at ports during labor disputes,” while also asking for both parties to come to a resolution to avoid a disruption.

Platts, part of S&P Global Commodity Insights, assessed sulfur prices for Vancouver FOB at $122/mt Oct 31, with Vancouver potash FOB SMOP spot prices at $208-$256/mt and FOB GMOP at $240-$278/mt Oct. 29.

Strike will not affect grain, cruise ships

The BCMEA said the Nov. 4 strike would not affect longshoring operations on grain vessels or cruise operations. The Port of Vancouver administration confirmed the same and added that operations at the Westshore coal terminal were also expected to continue.

The Port of Vancouver, home to 29 major terminals that move bulk, containers, breakbulk and automobiles cargoes plus passengers, is expecting disruptions, the administration said in a press release Nov 1.

As there is currently limited anchorage capacity at the port “due to elevated seasonal demand in the bulk sector, as grain exports are in their peak period,” the administration is working closely with authorities to “manage vessel traffic impacted by the labor disruption, the port’s anchorage availability and expected inclement weather,” it said.

The Port of Vancouver handles about $300 billion annually in trade and moves almost as much cargo by volume as Canada’s next five largest ports combined, according to the port's latest Economic Impact Study from August.

The union did not respond to a request for comment by the time of publication.

The labor conflict involves BCMEA member companies and 730 forepersons represented by ILWU Local 514, who have been negotiating since the expiration of the collective agreement in March 2023.

On Oct. 30, employers provided a final offer, which the workers' representatives rejected. The strike action will have repercussions across British Columbia's waterfront operations, "and strike activity can easily escalate, including a complete withdrawal of labor without notice,” the employers association added.

“Should it be required, this coastwide lockout will shut down all cargo operations” of involved companies across the province, the BCMEA said in its notice Oct. 31.