BMI View: The narrowing of Canada's current account deficit will continue over the coming years, aided by sharp exchange rate depreciation and improving economic conditions in the US. Lower oil prices will curtail export growth in 2015, which will hold back the country's shipping industry somewhat, but manufactured goods exports will increasingly pick up the slack, ensuring a secular decline of the current account shortfall.
Based purely on annual growth, rather than total tonnage handled, the shipping industry's outperformer in 2015 is set to be the Port o f Montreal (5.62% year-on-year gains) in tonnage terms and the Port of Prince Rupert in box terms (an impressive 16.24% increase).
Headline Industry Data
Port Metro Vancouver tonnage throughput is forecast to grow 2.00% in 2015. We project throughput to reach 142.42mn tonnes by the end of 2015.
Port Metro Vancouver container throughput is forecast to increase by 5.20% to reach 3.06mn twenty-foot equivalent units (TEUs) in 2015.
Port of Montreal tonnage throughput is forecast to increase by 5.62% to reach 32.16mn tonnes in 2015.
Port of Montreal box throughput is forecast to grow by 4.40% to reach 1.49mn TEUs.
Key Industry Trends
BC Ports Look To Benefit From West Coast Port Congestion - British Columbia ports, such as the port of Prince Rupert in Canada, could benefit from ongoing port congestion at the US West Coast ports. A prolonged labour dispute between the Pacific Maritime Association and the International Longshore and Warehouse Union, which has been ongoing since mid-May 2014, as well as structural and resource issues related to accommodating larger container ships have resulted in severe bottlenecks at the ports of Los Angeles and Long Beach. The protracted negotiations and delay in resolving the congestion issue have forced global cargo logistics companies to look for alternative routes to deliver their goods.
Government Announces Port Of Montreal Upgrade - The Canadian government has...