By Alice McFarlane

Potash fertilizer among the hardest-hit commodities at B.C. ports lockout

Nov 5, 2024 | 9:48 AM

The BC Maritime Employers Association said its lockout of more than 700 unionized workers that has shut down ports across the province would not affect grain or cruise operations.

However, the potash fertilizer industry says it will be severely impacted by the work stoppage and Fertilizer Canada is urging the government to legislate changes that would oblige service provisions to continue during strike or lockout in longshoring.

President and CEO of Fertilizer Canada Karen Proud said fertilizer is essential to food security and the stoppage will have a devastating impact on Canada’s potash industry.

“Our overseas customers depend on us to deliver this crucial input. If we cannot supply them with Canadian-produced fertilizer, they will look to other countries, such as Russia and Belarus, who operate with far fewer environmental, safety and ethical protections,” Proud said. “The time to act is now. We need the government to step up and strengthen our supply chains.”

West Coast ports handle over 21,000 Mt of potash daily for export to global markets, and each day of a shutdown will result in up to $9.7 million in lost sales revenue.

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Potash production facilities have limited on-site storage that can quickly reach capacity. If potash can’t move through the supply chain, it could lead to curtailments. Fertilizer Canada said the 2023 West Coast ports labour disruption cost the fertilizer industry an estimated $126 million, took 13 days to resolve and led to the curtailment of a potash mine and cancellations on sales offers from international customers due to the instability. In the months following the disruption, Canada lost significant market share to Russia in key markets such as Indonesia and Malaysia.

Fertilizer Canada is calling on the federal government to amend the Canada Labour Code section 87.7 to ensure the continuous movement of fertilizer products at ports during labour disputes. Polling shows that eight out of 10 Canadians support the uninterrupted shipment of products vital to domestic and global food security during work stoppages.

This stoppage is compounded by ongoing labour disruptions at the Port of Montreal, underscoring the urgent need for long-term solutions to stabilize Canada’s supply chains. Over the past six years, supply chain disruptions have cost the fertilizer industry nearly $1 billion in estimated lost sales revenue.

Canada is the world’s largest producer of potash, responsible for close to 40 per cent of global production, and exporting 95 per cent of it to over 75 countries. As a highly export-driven industry, Canadian fertilizer relies on port access to serve major international markets.

The employers’ group says its decision to impose the lockout came after the International Longshore and Warehouse Union Local 514 commenced “industry-wide strike activity” at employers’ terminals.

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alice.mcfarlane@pattisonmedia.com

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