A coalition of Canadian agricultural groups are calling on Ottawa to fix the shipping container shortage it says is hurting both businesses and consumers.
Members of the Coalition to Fix the Container Crunch are requesting the government immediately open an investigation under section 49 of the Canada Transportation Act to investigate pressing supply chain disruptions and determine all major contributions. It also wants the government to name a supply chain commissioner to lead an industry-government task force to bring together stakeholders to identify immediate solutions to address supply chain disruptions.
In a statement Tuesday, the coalition said Canada’s rising cost of living and doing business is directly linked to the challenges being faced by domestic shipper industries.
“The devastating washouts in British Columbia have underscored the importance of Canada’s supply chain. Well before the flooding, containerized supply chains were failing, with rates and service conditions becoming a significant obstacle in the movement of goods to and from Canada,” the group said. “It is unfortunate that Canada is now becoming known for weaker supply chains than other exporters we compete against.”
According to the coalition, the average price to ship a standard container has risen from $1,461 at the beginning of 2020 to $11,109 in September of this year. Part of the reason it said, is shipping companies are paying a premium for containers to be sent to Asia empty – rather than waiting for the containers to be loaded with Canadian goods – due to a surge in consumer demand for Asian goods.
The group contends Ottawa must play an active role in providing the rules and oversight to ensure the behavior of shipping lines does not adversely impact the efficiency and effectiveness of the entire transportation logistics system.
The Coalition to Fix the Container Crunch includes the Canadian Federation of Agriculture, the Western Canadian Wheat Growers, Pulse Canada and Grain Growers of Canada among others.
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