Willington Fruit Farm

Main Menu

  • Home
  • Outdoor market
  • Consumer demand
  • Food processing firm
  • Profit on produce
  • Wholesalers profit

Willington Fruit Farm

Header Banner

Willington Fruit Farm

  • Home
  • Outdoor market
  • Consumer demand
  • Food processing firm
  • Profit on produce
  • Wholesalers profit
Consumer demand
Home›Consumer demand›Supply chain grunts keeping you waiting? The Port of Montreal has a location

Supply chain grunts keeping you waiting? The Port of Montreal has a location

By Marsha A. Jones
April 22, 2022
0
0

Breadcrumb Links

  1. News
  2. PF Economy

Pent-up consumer demand after two years of supply chain disruptions has led to bottlenecks at major ports

Author of the article:

Bloomberg News

Stephen Wicary and Kevin Varley

Publication date :

April 22, 2022 • 58 minutes ago • 3 minute read • Join the conversation

A container ship is moored at the Port of Montreal.
A container ship is moored at the Port of Montreal. Photo by THE CANADIAN PRESS/Ryan Remiorz Files

Content of the article

The head of Canada’s second-largest port has a supply chain sales pitch that few of his peers in the global shipping industry can match: no wait times at sea for container traffic.

Advertisement 2

This ad has not loaded yet, but your article continues below.

Content of the article

Martin Imbleau, general manager of the Montreal Port Authority, said the ability to dock and load efficiently there attracts new customers, even if it means traveling the St. Lawrence River, 1,000 kilometers away. inland from the Atlantic Ocean.

“A longer route, in some cases, becomes preferable if it provides reliability,” Imbleau said in an interview.

Pent-up consumer demand after two years of supply chain disruptions has resulted in bottlenecks at major ports. Wait times at Montreal’s main competitor on the East Coast of North America, the ports of New York and New Jersey, soared to 4.75 days at the end of 2021, compared to an average of 1.6 days over the whole year.

Shipping patterns change accordingly. For example, China now accounts for more than a quarter of all Port of Montreal traffic, compared to almost nothing five years ago, Imbleau said. Much of this new traffic enters the Atlantic Ocean through the Panama Canal, stopping in Montreal on the way to Europe.

Advertisement 3

This ad has not loaded yet, but your article continues below.

Content of the article

The shipping and logistics industry is also reorganizing. Imbleau said he expects to see consolidation as shipping providers, aware that they are only as reliable as their weakest partner, try to take control of more stages in the supply chain. ‘supply. French giant CMA CGM SA’s purchase of an auto freight business this month is the latest example of this trend, Imbleau said.

A longer route, in some cases, becomes preferable if it ensures reliability

Martin Imbleau

Rising interest rates will increase borrowing costs for inventory and shipping activities, Imbleau said. This is on top of the premium manufacturers have paid to transport their goods during the pandemic.

“Export and import prices are still very, very high,” Imbleau said. The cost of sending a container from Montreal to Asia has doubled since the start of the pandemic, he said, while the cost of bringing one from the same region has roughly tripled. .

Advertisement 4

This ad has not loaded yet, but your article continues below.

Content of the article

Delays and disruptions are prompting manufacturers to keep more components on hand, a reversal of the just-in-time lean inventory model that crumbled in the early months of the pandemic.

That means “buying stock not three weeks, not three months, but six months in advance and storing it somewhere,” Imbleau said, adding that he expects shipping lines and ports to consider add warehouses or distribution centers to their facilities.

Financing may be more expensive for goods in storage than for goods in transit due to the risk that demand for the goods may weaken while they are in storage. “Not all financial institutions like to finance inventory,” he said. “So cash flow management for some players could be a concern next year.”

Advertisement 5

This ad has not loaded yet, but your article continues below.

Content of the article

  1. Metro Inc, Canada's third-largest grocer, says it feels

    ‘Too fast, too high’: Metro warns inflation could soon eat into profits

  2. The entrance to the World Trade Organization in Geneva.  Bank of Canada Governor Tiff Macklem says global trade is shifting from open to

    Russia’s invasion of Ukraine caused a rift in the world order that is likely irreparable: Tiff Macklem

  3. Dairy and egg prices have risen faster than they have since 1983.

    Soaring dairy prices drive biggest rise in food inflation in 13 years

In addition to China, Imbleau expects to see more traffic from Indonesia and India passing through its port. He also said that BRP Inc., the recreational products subsidiary of Montreal aerospace manufacturer Bombardier Inc., is doing more and more business with Vietnam.

Canada’s main gateway to Asia is on the Pacific coast in Vancouver. The Port of Vancouver handles more than three times the container traffic of Montreal, and wait times exceed a week.

Advertising 6

This ad has not loaded yet, but your article continues below.

Content of the article

Of course, New York remains an irresistible destination for so much freight. The Port of New York and New Jersey handled nearly seven times more container traffic in February than Montreal, despite long wait times.

“If you’re going to have a shipment and unload a cargo before continuing on to Europe, you want to maximize the potential consumers you can also ship to,” Bessma Momani, political economist and senior fellow at the Center for International Governance Innovation in Waterloo, Ontario, said by telephone. “You just can’t compare the roughly 40 million people in Canada to the nearly 400 million in the United States.

Yet Imbleau, a 49-year-old lawyer who joined the port as CEO in early 2021 after two decades as an energy industry executive, said: “We are perhaps a little more long, but certainly reliable – and no waiting time. whether in the St. Lawrence River, at the Port of Montreal. Nothing. There aren’t too many ports that can say that.

Bloomberg.com

Share this article on your social network

Advertisement

This ad has not loaded yet, but your article continues below.

Top Stories newsletter logo

Financial Post cover stories

Sign up to receive the best daily stories from the Financial Post, a division of Postmedia Network Inc.

By clicking the subscribe button, you consent to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario M4W 3L4 | 416-383-2300

Thank you for your registration!

A welcome email is on the way. If you don’t see it, please check your spam folder.

The next issue of Financial Post Top Stories will soon be in your inbox.

We encountered a problem during your registration. Try Again

comments

Postmedia is committed to maintaining a lively yet civil discussion forum and encourages all readers to share their views on our articles. Comments can take up to an hour to be moderated before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread you follow, or if a user follows you comments. See our Community Guidelines for more information and details on how to adjust your email settings.

Related posts:

  1. The global injection molding machine market is expected to
  2. Global Electronic Cigarette and Vapor Products Markets 2021-2025: Shifting Consumer Perception Towards Smoking Demand and Bloating Combustibles for Ashless and Smokeless Vaping Alternatives – ResearchAndMarkets.com
  3. Maximum central bank support marks new phase for global recovery
  4. cut 300 more unemployed people or hurt the economy

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021

Categories

  • Consumer demand
  • Food processing firm
  • Outdoor market
  • Profit on produce
  • Wholesalers profit

Recent Posts

  • Canada Goose predicts upbeat annual sales and profits on China recovery hopes
  • Why You Should Adopt Stinging Nettles
  • Can B Corp. reports first trimester
  • Vine Street Market in O’Fallon IL opens fourth season
  • Bankrupt Country: Fawad