Trade entering North America through key ports on Canada’s West Coast is facing increased uncertainty after dock workers rejected a tentative labor deal on Friday. This rejection has resulted in a delay of at least two months for trade destined for U.S. chemical companies, retailers, and manufacturers due to 14 days of strikes.

Rob Ashton, president of the International Longshoremen and Warehouse Union of Canada, has called for the employers to return to the negotiating table and reach a mutually beneficial agreement.

The British Columbia Maritime Employers Association (BCMEA) did not respond to the union’s request. BCMEA expressed disappointment over the rejection of the four-year tentative agreement and is awaiting direction from the Canadian government.

Canadian Minister of Labor Seamus O’Reagan has acknowledged the need for stability in British Columbia ports after the strikes but has not provided specific information on next steps.

The proposed deal, presented by the senior federal mediator, included a four-year wage increase, a signing bonus, and an increase in retirement payout. The BCMEA argued that longshore wages have already increased by 40% over the past 13 years, exceeding inflation rates.

The timing of this strike has created hurdles during peak season for retailers awaiting holiday items. At the height of the strike, $12 billion worth of freight was stranded on the water, with some trade being diverted to U.S. West Coast ports.

Various industries are experiencing disruptions, with delays in product delivery and decreased rail traffic from Canada to the U.S. due to the strikes. The American Apparel and Footwear Association estimated that the first strike would cause 6 to 8 weeks of supply chain disruption.

Railroad companies are also facing negative financial impacts due to the labor unrest. Canadian Pacific Kansas City railroad estimates an $80 million revenue loss, but plans to recover those losses in the third and fourth quarter. Canadian National Railway announced additional trains to expedite container clearing.

The Railway Association of Canada predicts that network and supply chain recovery will take three to five days for every day the strike lasted. With delays estimated at 39 to 66 days after the first strike, the on-again, off-again strike has further prolonged congestion removal.

Chemical distributors and manufacturers in the U.S. are particularly affected, with millions of dollars worth of chemicals stranded. The strike has disrupted the supply of chemicals used in various products, including cleaning agents, detergents, and personal care items.

The ongoing strike has left logistics managers and the trade industry in turmoil, as they struggle to make decisions on ocean and rail transport during peak shipping season. The fear of cargo being stuck or diverted due to labor tensions has already led to a decline in trade moving through U.S. West Coast ports.

Alan Baer, CEO of a trucking company, emphasizes that once supply chains have been altered, not all businesses will simply return, leading to long-term consequences.