According to news reports, the commission’s findings allege
that Canadian ports on the West Coast are deliberately luring cargo business
away from American West Coast ports. Canadian officials deny the allegations.
In either case, the US Federal Maritime Commission report
has now been sent to Congress to consider such fines as a possible $140 per
container levy on cargo entering the US after passing through Canadian West
Coast ports.
Another possible fine may include another type of tax. For
example, some US Senators have noted that the US Harbor Maintenance Tax is not
collected at border crossings when cargo enters the US on trains from Canada
after arriving in North America via Canadian ports. This tax is levied in part
to cover the cost of dredging port channels on the US West Coast ports.
However, dredging is not necessary in Canada’s Prince Rupert port or Vancouver
port. Canada instead charges importers a
user fee that goes toward port maintenance.
The ports of Los Angeles and Long Beach combined control 72%
of the West Coast container market. However, the two ports are facing
competition up and down the coast from Seattle and Tacoma in the US to Mexico’s
port of Lazaro Cardenas to the Canadian ports of Vancouver and Prince Rupert. Not
to mention the US East Coast ports are likely to be a competitive threat
particularly as the enlarged Panama Canal is scheduled for completion in 2014. All
of these ports have made significant improvement in infrastructure within the
ports themselves as well as rail and road improvements to connect to the US
interior. It is also likely with the intermodal hub network that rail and
trucking companies have established have also greatly benefited many ports on
both coasts.
Hopefully a reasonable solution will result between the US
and Canada. Instead of possible protectionist measures, perhaps competition is
good and will drive additional efficiencies and lower costs for shippers on
both coasts.
To read the government report, click here.
To read the government report, click here.
US West Coast
Ports
For the Port of Los Angeles, total TEUs increased 8.75% over
June 2011. Total imports for June were up 6% compared to June 2011 while
exports increased 6.92%. 2012 YTD TEUs up 6.45%.
The Port of Long Beach reported a slight increase of 0.20%
in June TEUs. Both imports and exports increased 3.47% and 5.58% respectively.
The Port of Tacoma reported June TEUs increased 9.9% over
June 2011 due to higher import TEUs. YTD TEUs are up 1.3% with imports up 13.4%
and exports up 2.0%.
Canada’s West
Coast Ports
Port of Prince Rupert's June TEUs increased 52.6% from June
2011. Imports are up 51.9% and exports are up 53.4% for the same period.
Year–to–date, total TEUs are up 79.3%. Imports are up 74.2%
and exports are up 86.5%.
For the Port of Vancouver, June TEUs declined 0.8% compared
to June 2011. Imports increased 8.9% but exports declined 10.3%.
Source: Ti's Dashboard
