Bank of Canada Warns 74% Port Connectivity Drop Raises Supply Chain Risk
Updated
Updated · IndexBox, Inc. · May 25
Bank of Canada Warns 74% Port Connectivity Drop Raises Supply Chain Risk
2 articles · Updated · IndexBox, Inc. · May 25
A Bank of Canada study found the five largest Canadian ports lost 74% of their distinct international shipping destinations between 2016 and 2023, leaving shippers more exposed to disruptions and higher costs.
The central bank said global networks have shifted toward fewer, larger container ships that increasingly call at U.S. West Coast hubs instead of Canadian ports, reducing Canada's relative centrality and carrying capacity.
Southern California's scale illustrates the gap: over the past 12 months Los Angeles logged 410 calls from ships above 11,000 TEUs and Long Beach 308, versus 143 at Vancouver.
That means many Southeast Asia imports bound for Canada are first processed through Los Angeles, then moved north by rail or truck, adding inland transport costs as Ottawa seeks to diversify trade beyond the United States.
Governor Tiff Macklem told a Senate committee Canada needs more transportation infrastructure investment, noting Southern California ports can handle much larger vessels than Canadian ports.
As Asian ports dominate global trade, can Canada's billions buy back its lost maritime influence?
With U.S. tariffs sending ships north, will Canadian port inefficiency squander this golden opportunity?
Is Canada's new $25B fund a supply chain savior or a debt-fueled political gamble?
The Decline of North American Port Connectivity (2016–2023): Economic Impacts and Strategies for Recovery
Overview
Between 2016 and 2023, North America saw a significant decline in port connectivity and direct shipping capacity, with shipping services shifting toward Asia and other growing maritime hubs. Canada, for example, lost 11 trading partners, resulting in a loss of over 6 million metric tons of shipping capacity, while gaining 18 new partners only added about 3 million metric tons—insufficient to offset the loss. This net reduction highlights a weakening of direct maritime links and overall capacity, underscoring the urgent need for investment and modernization to restore North America's competitive position in global trade.