The main ports on the west coast of Canada have been closed, including the largest container port in Vancouver and Prince Rupert port, due to a labor strike on Monday.

The International Longshore and Warehouse Union Ship & Dock Foreman Local 514 has been on strike since Monday morning, leading to an immediate cessation of container and cargo work. According to the Greater Vancouver Board of Trade, trade worth $800 million flows through the west coast ports daily.

Approximately 20% of American trade reaches the Canadian ports of Vancouver and Prince Rupert, where strikes erupted after union leadership and industry representatives failed to reach an agreement before the cooling-off period ended. The contract for ILWU Local 514 expired on March 31, 2023, with 96% of union members voting in favor of the strike in September.

Eric Baier, CEO of the Chemical Distribution Alliance, stated that the closure of the Vancouver and Prince Rupert ports is also expected to have a significant impact on many chemical importers, especially for companies that use Canadian Pacific Railway and Canadian National Railway from these ports to ship goods to the Midwest.

This strike follows a recent strike that is still affecting the second-largest port in the country, the Port of Montreal, with Prince Rupert being the third-largest port in Canada.

Montreal handles 40% of the total container traffic on the east coast. Two terminals were closed since Thursday when the Canadian Union of Public Employees (CUPE) Local 375 announced the strike.

The United States is Canada’s largest trading partner. Containers carrying shoes, clothing, auto parts, chemicals, and lumber are among the top products entering Vancouver port and using Canadian rail or trucking to enter the United States.

According to the U.S. Department of Transportation, cross-border rail trade between Canada and the United States made up 14% of the total bilateral trade of $382.4 billion in the first half of the year. Nearly $572 million in container trade flows daily to the United States from Canada, according to U.S. Census Bureau data.

Work disruptions at the Vancouver ports have a significant impact on imported goods headed to markets in the western United States, according to Gina Santoro, senior director of intelligence solutions at Everstream Analytics, who said, "Vancouver is a critical entry point for perishable food items such as dairy products, produce, seafood, and manufactured goods like automotive parts."