Vancouver port traffic dips in 2022, hinting at economic slowdown to come

Vancouver –

Cargo volumes at Canada’s largest port fell by three per cent final yr as the worldwide financial system started to indicate indicators of a slowdown.

The Vancouver Fraser Port Authority stated Monday that grain and fertilizer exports surged within the second half of 2022, however the beneficial properties weren’t sufficient to offset a sputtering begin to the yr attributable to a weak 2021 harvest and lingering provide chain issues.

After greater than a yr of rising container visitors, imports additionally fell by 4 per cent amid softer client demand and overstocked inventories, stated port authority CEO Robin Silvester in a telephone interview.

Despite the lower, he confused that extra capability is “desperately needed” as a consequence of rising commerce and inhabitants forecasts. A brand new container terminal that might enhance that capability by almost 50 per cent, dubbed the Roberts Bank Terminal 2 Project, obtained federal cupboard approval final month however nonetheless requires numerous permits to proceed.

“A decline in container volumes that started around December is providing much-needed relief from the surge volumes the port experienced throughout 2021 and much of 2022,” Silvester stated in a launch.

“However, the underlying story hasn’t changed, with the Port of Vancouver handling its second-highest annual volume of containers on record in 2022.”

Cruises have been one space to come back roaring again after a two-year hiatus, with a document 307 vessels dropping anchor within the metropolis – although the variety of passengers nonetheless fell 24 per cent beneath 2019 ranges.

The wave of cruise ships exhibits no indicators of ebbing, Silvester stated. Meanwhile a bumper crop in 2022 together with sharply decreased grain provide out Russia and Belarus – fallout from the previous’s invasion of Ukraine – level to elevated grain shipments this yr.

But container visitors in Canada has continued to drop off as Canadians tighten budgets amid larger rates of interest.

In March, container volumes throughout the nation dropped almost 12 per cent yr over yr, in accordance with the National Bank of Canada.

“It does seem we still have softer consumer spending. And we’re certainly also hearing about congestion in the supply chain with full warehouses in the main population areas around Toronto and Montreal, stock not clearing through the system as quickly as normal,” Silvester stated from his waterfront workplace in downtown Vancouver.

This report by The Canadian Press was first revealed May 1, 2023.