“What (this) is really saying is that in the next 10 years, our industry is going to grow,” Bill Beisal, transportation co-ordinator for Alberta Milk, said at the organization’s recent fall producer meeting in Lethbridge.

The number of producers has decreased from 843 to 470 in 2023-24, routes have increased from 126 to 175, receiving bays have decreased from 24 to 12 and B-trains went from zero in 2002 to nine in 2023 and a dozen in the last couple of years.

WHY IT MATTERS: Transportation efficiencies are needed for cost savings in Western Canada’s dairy sector.

Beisal said there are 65 milk trucks on the road every day in Alberta, and two million litres of milk are moved every week between provinces.

“I will admit, at times we have to pay more, because logistically, we can’t do it the way that we want to do it, real efficient,” he said.

“When I talk about moving your milk out of province, we’ve got all these loads lined up, and it goes out and hauling companies are lining up their drivers. The days we can stop on a dime and turn everything around like we could 20 years ago are over, but we can still do that once in a while. But the hauling companies really don’t like it because they lose drivers,” said Beisal.

The transportation committees of the western Canadian milk groups meet every Thursday, projecting movement from six months to a year in advance. Each province has its own body, but they have to be on the same page for transportation efficiencies.

Interprovincial milk movement has increased from 33 million litres in 2016-17 to 127 million litres in 2024-25.

“We have a pretty good idea of what we’re going to do and how we’re going to do it,” he said.

“As each week comes up, orders can change easily by one million, two million.”

For example, the week before Alberta Milk’s fall meeting saw an 800,000 litre increase in the Western Milk Pool.

Unfortunately, at times there is the need to “dump” milk for a variety of reasons: milk production exceeding quotas in supply management, market fluctuations for demand such as the COVID-19 pandemic in 2020, supply chain disruptions and the perishable nature of milk. All of these are factored into transportation costs.

“Why does Alberta dump all the milk? I know that’s a swear word here, but there’s a process,” Beisal said.

“Why would we keep moving milk all the way to Manitoba out of Alberta? Why then would we have Manitoba dispose of whole milk? If we have to dispose of whole milk, let’s not move it. Let’s not spend that transportation money. Let’s dispose of it where it’s the most economical. We hate that, but that’s the absolute last thing that happens with your milk, when we have no home for it.”

The western provinces cost share and pool provincial and interprovincial transportation costs.

Alberta and British Columbia each pay 35 per cent of transportation costs and Saskatchewan and Manitoba pay roughly 17 and 13 per cent.

He said it costs approximately $1 million a month to export milk out of Alberta using a transportation rate formula that takes into account hours and kilometres involved.

Alberta and Manitoba have multiple haulers (12 to 13) that deliver to multiple plants. Saskatchewan has one hauler and one plant, while B.C. has one hauler to deliver to multiple smaller plants.

“A lot of that is to give the industry, not only just the producers, but processors as well, the confidence that we can cost share … we can do this together. It’s just going to take a little bit of work,” said Beisal.

The opening of Dairy Innovation West this year in central Alberta is expected to be a game changer for milk transportation.

Raw milk volumes are projected to increase from 43 million litres in July 2026 to 321 million in 2030, which is expected to bring logistical cost savings.

Beisal said Alberta Milk’s success has forced it to pivot in the last 10 years as production grew by 30 per cent.

“Now we’re starting to deal with more and more constraints — time constraints, volume constraints, equipment constraints, a lot of things in your transportation system that needs some improvement.

“We need to find out how to make it better. We’re looking at policy. We’re going to talk with with the processors. We’re going to see how is there anything that they have for us? What can we do for them? What can the haulers do to make this a better network and asset optimization. How can we do that less expensive?”

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“The Port of Thunder Bay’s 2025 shipping season is off to a solid start,” the port authority said in a news release.

While the port’s tally of 1.3 million metric tonnes of cargo is down nine per cent from 2024, that year was the best on record in more than 25 years. This year’s cargo shipments to April 30 were 11 per cent higher than the five-year average.

Cargos to April 30 included:

• 1,096,924 tonnes of grain (average is 994,666)
• 140,396 tonnes of potash (average is 76,763)
• 26,074 tonnes of coal (average is 44,302)

To April 30, 59 vessels had come through the port, up from an average of 51. In 2024, 62 vessels came through the port between the beginning of the season and April 30.

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That is the backdrop for this week’s S&P Global TPM container shipping and supply chain conference in Long Beach, California, an annual event that marks the start of container shipping contract negotiating season.

Attendees this year include industry heavyweights like container carriers MSC, Maersk and Hapag-Lloyd, marquee customers including Walmart, and major logistics firms including DSV and DHL.

Why it matters: Canadian agricultural goods are shipped all around the world, and Canada is at a freight disadvantage in many markets compared to some competitors

These companies will be grappling with the ripple effects of increased protectionism, which could reduce international trade while weakening the negotiating position of massive container ship owners that have drawn robust profits and for years held the upper hand in pricing.

Trump has already slapped an additional 10 per cent tariff on goods from China, the world’s largest exporter, and has proposed million-dollar port entry fees for Chinese-built ships.

As early as Tuesday, the U.S. could impose 25 per cent tariffs on familiar goods like avocados and tequila from Mexico, and beef, lumber and oil from Canada.

Trump has threatened to levy an additional 10 per cent tariff on Chinese goods. His administration also plans new or higher tariffs on steel and aluminum and has floated 25 per cent duties on products from the European Union.

“Unprecedented uncertainty is all around,” said Peter Sand, chief analyst at transportation pricing platform Xeneta.

The world’s biggest importer’s shift away from free trade hits as global supply chains are managing higher costs from global warming-fueled severe weather and routing ships away from the Suez Canal to avoid attacks by Iran-backed Houthi militants in support of Palestinians in Gaza.

U.S. container imports of everything from plastic toys to machine parts have surged, in part due to early purchases to avoid tariffs. But trade experts warn that a pullback is likely once new import taxes kick in, targeted nations retaliate, and inflation-weary shoppers absorb the brunt of tariff-related cost increases – something that could pressure shipping demand and prices.

The Drewry World Container Index’s spot rate for a 40-foot container was (US) $2,629 as of Thursday, 75 per cent below the pandemic peak of $10,377 in September 2021 and lowest since May 2024.

“The geopolitical landscape has of course become more complex which could lead to wild swings for freight rates in either direction, but our base case is for a moderation throughout 2025,” Jefferies analysts said in a recent note.

In another move that has set off alarms around the globe, the U.S. Trade Representative on Feb. 21 proposed hefty fees on Chinese-built vessels entering U.S. ports under a union-supported plan to spur U.S. shipbuilding.

Under the proposal, a vessel owned by Chinese maritime transport operators including state-owned COSCO would pay a port entrance fee of up to $1 million per vessel. The fee for other operators using Chinese-built ships could top out at $1.5 million.

The change could benefit Taiwanese and South Korean liner operators. Still, experts warn it will have a major impact on container carriers and could translate into steeper consumer prices for goods from toys and clothing to food and fuel.

“The economic burden on U.S. exporters and importers will be huge,” container shipping expert Lars Jensen said on LinkedIn.

“The actions taken by the U.S. administration over the past four weeks are unprecedented in scope and scale.”

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“The project to modernize Piers 16 and 17 will make a significant contribution to the resilience of the Canadian supply chain for these primary sectors of activity,” said Port of Trois-Rivières president and CEO Gaétan Boivin in a news release.

The federal government will contribute up to $87.1 million to the project. Total investment in the project is $312 million, the Port of Trois-Rivières a separate statement.

The port plans to refurbish Pier 17 and build a new Pier 16. This will include new wharves and terminals and redevelopment of traffic lanes. Grain buyer G3 Canada and aluminum firm Alcoa will install new loading and unloading equipment, the port said.

The changes will reduce port congestion and improve the flow of cargo traffic, the government said.

Trois-Rivières sits between Montreal and Quebec City on the St. Lawrence River and handles approximately 250 ships and 3.3 million tonnes of grain, aluminum, steel, and other products like wind towers and cacao beans, the port’s website said.

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If the Canadian Union of Public Employees Local 375 does not accept the offer by Sunday at 8:00 p.m. “only essential services and activities unrelated to longshoring will continue at the Port of Montréal from 9 p.m. on Sunday,” the Maritime Employers Association said in a statement on Thursday.

So far, two terminals operated by Termont, representing about 40 per cent of Montreal’s container traffic and 15 per cent of total port volume, have been shut down by the union’s strike, which began on Oct. 31.

If the operators’ offer is not accepted, all longshoring at the port would be locked out, the association said.

The association said its pay offer represented a “cumulative increase” of over 20 per cent over six years.

A CUPE spokesperson said on Friday “an offer has been made and the union is looking at it.”

West Coast ports, including Canada’s largest port of Vancouver, have been mostly shut down since Monday due to a labor dispute, impacting exports of canola oil and forest products. Bulk grain exports are not affected.

The British Columbia Maritime Employers Association said in a statement on Thursday evening that it is scheduled to meet with International Longshore and Warehouse Union Local 514 representatives with the assistance of the Federal Mediation and Conciliation Service on Saturday afternoon.

Federal Labor Minister Steven MacKinnon has said both sides have a responsibility to reach an agreement. On Thursday, he criticized the lack of apparent progress at both ports.

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The stoppage, which started on Monday, involves limited strike action by the longshore foremen and a full lockout of Local 514 of the International Longshore and Warehouse Union by the B.C. Maritime Employers Association.

While bulk grain shipments are exempt from the British Columbia action, canola oil and forestry products are not covered by that federal labor code provision and are not being loaded onto ships at Pacific ports.

Based on the market price of canola oil, each day without shipments represents C$4 million in lost revenue, said Chris Vervaet, the executive director of the Canadian Oilseed Processors Association, which says it represents about 95 per cent of Canada’s canola and soybean crush capacity.

“We really implore the government to get involved and really help both sides to a resolution.”

Federal Labor Minister Steven MacKinnon has said both sides have a responsibility to reach an agreement. On Thursday he criticized the lack of apparent progress between the union and employers as well as a smaller shutdown affecting some container traffic at the Port of Montreal.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” said MacKinnon in a post on social media platform X.

Vervaet said Canada exports about one million metric tons of canola oil through the Port of Vancouver yearly.

Canada is the world’s top exporter of the oilseed, and canola oil is the most valuable part of the crop.

The Forest Products Association of Canada also called for federal government intervention.

Wood, pulp, paper and byproduct shipments by the organization’s members make up about 17 per cent of Vancouver’s container exports and 14 per cent of Montreal’s.

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The strike affects two terminals operated by Termont, which handle about 40 per cent of the port’s container traffic but only about 15 per cent of the port’s overall volumes.

In a statement, the Maritime Employers Association called on federal Labour Minister Steven MacKinnon to intervene to bring parties back to the negotiating table.

“The uncertainty caused by this long delay and the recurrence of labor disputes are affecting the Quebec and Canadian economies, and Canada’s reputation as a reliable and resilient trading partner,” said the Maritime Employers Association when the strike commenced on Thursday.

Commodities like Western Canadian pulse crops are significant users of the terminals.

The union has said that it has focused actions on Termont because of employer-specific complaints.

“Termont is targeted because it is the only company at the Port of Montreal to modify schedules in a punitive way,” Canadian Union of Public Employees 375, which represents the longshore workers, said on Oct. 28.

Federal Labour Minister Steven MacKinnon said the federal government remained willing to help with mediation.

“Parties must find a process leading to a negotiated agreement as quickly as possible. Federal mediators and Minister MacKinnon remain available to assist them, and we continue to monitor the situation closely,” MacKinnon said in a statement.

The employer’s association previously asked for federal intervention.

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“I conveyed Ukraine’s interest in further developing cooperation between Ukraine and Türkiye, especially in defense area,” Sybiha wrote on the social platform X.

“I also underscored the importance of ensuring freedom of navigation in the Black Sea. We also discussed ways to a comprehensive, just, and lasting peace.”

Sybiha had earlier called for support to stop intensified Russian strikes on Ukrainian Black Sea port infrastructure, in comments made while on a visit to Turkey on Monday.

He said such strikes in recent weeks had damaged four civilian vessels.

Turkey has offered to act as an intermediary to end the more than 2-1/2-year old war sparked by the Kremlin’s invasion of Ukraine and has endeavoured to maintain good ties with both Moscow and Kyiv.

“We see benefit in once again discussing initiatives that could serve peace, like the Black Sea grain initiative,” Turkish Foreign Minister Hakan Fidan said, referring to the deal Turkey helped broker to allow Black Sea exports from Ukraine’s ports.

“I discussed this with my counterpart as well, we admire Ukraine’s positive stance on this.”

The Black Sea grain initiative remained in force for about a year until Russia backed out of the accord in July 2023, saying provisions of the agreement were not being fulfilled.

— Reporting for Reuters by Yuliia Dysa and by Tuvan Gumrukcu

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Dozens of groups including the American Farm Bureau Federation, Renewable Fuels Association and American Chemistry Council said “the time has come for the U.S. government to intervene and ensure port operations do not stop” in order to prevent damage to U.S. agriculture and the economy.

Republican Senator Ted Cruz raised concerns about the impact of a work stoppage, saying the U.S. “teeters on the brink of the first union strike among East and Gulf Coast ports since 1977.” He cited a JPMorgan analysis that projected a port strike could cost the U.S. economy $5 billion daily.

Negotiations between the International Longshoremen’s Association union and the United States Maritime Alliance (USMX) employer group appear to be deadlocked over pay as the Sept. 30 contract expiration approaches.

The White House did not immediately comment on the letter.

“We are monitoring and assessing potential ways to address impacts to U.S. supply chains related to operations at our ports, if necessary,” White House spokesperson Robyn Patterson said Tuesday, adding officials encourage continued negotiations “toward an agreement that benefits all sides and prevents any disruption.”

President Joe Biden’s administration has said the president does not intend to invoke a federal law known as the Taft-Hartley Act to prevent a strike.

A threatened strike by 45,000 ILA-represented workers at three dozen affected ports, including New York and New Jersey, Houston and Savannah, Georgia, would send delays and costs cascading through U.S. supply chains.

Approximately 40 per cent of U.S. containerized agricultural exports move through East and Gulf Coast ports, the agriculture groups said.

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A strike would hit 36 ports that handle about one-half of U.S. ocean imports. That could affect availability of a range of goods from bananas to clothing to cars shipped via container, while creating weeks-long backlogs at ports. It could also stoke shipping cost increases that may be passed on to American voters already frustrated with housing and food inflation, according to logistics experts.

The International Longshoremen’s Association (ILA) union representing workers at 36 ports from Maine to Texas and the United States Maritime Alliance employer group appear to have hit an impasse over pay. The current six-year contract expires at midnight on Sept. 30.

A strike at all East Coast and Gulf of Mexico ports would be the first for the ILA since 1977.

The White House said it is not trying to help broker a deal, as it did last year during West Coast talks, and a Biden administration official has said the President would not use his federal powers to block a strike.

Ports in the negotiating group handled $37.8 billion (C$50.9 billion) worth of vehicle imports during the 12 months ended June 30, 2024, according to S&P Global Market Intelligence. The Port of Baltimore, Maryland, leads the nation in car shipments.

Auto parts are also a key import on the East Coast and Gulf of Mexico, with shipments from Europe more difficult to reroute than those from China, logistics experts said.

The ports also lead the U.S. in shipments of machinery, fabricated steel and precision instruments.

Three-quarters of the nation’s banana imports from countries like Guatemala and Ecuador land at ports on the East and Gulf Coasts, said Jason Miller, interim chair of Michigan State University’s department of supply chain management.

A strike also would affect container exports of soybeans, soybean meal and other products and would have a significant impact on chilled or frozen meat and eggs, said Mike Steenhoek, executive director of the Soy Transportation Coalition.

The $18-billion-a-year (C$24.2 billion) U.S. beef and pork export market and the $5.8 billion (C$7.8 billion) poultry and egg export sector relies on refrigerated containers that cannot sit idle for long.

About 45 per cent of all waterborne U.S. pork exports and 30 per cent of beef exports were shipped via East Coast and Gulf Coast ports in the first seven months of this year, said U.S. Meat Export Federation spokesperson Joe Schuele.

More than a quarter of all U.S. egg and egg product exports and around 70 per cent of all poultry meat exports are shipped from ports along the East and Gulf Coasts, according to Customs data and the USA Poultry & Egg Export Council.

Retailers account for roughly half of all container volumes. Many U.S. retailers already have rushed in shipments of year-end holiday goods.

Though the Gulf Coast ports of Houston and New Orleans are major oil and gas shipment hubs, those commodities would remain largely unaffected by a strike involving more labor-intensive container cargo. The same applies to coal exports from Norfolk, Virginia, experts said

—Reporting for Reuters by Lisa Baertlein in Los Angeles and Karl Plume in Chicago.

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