Canadian ports are losing relative importance in global maritime trade as shipping connectivity and vessel capacity increasingly shift toward Asia, according to a new Bank of Canada analysis.
The analysis found that between 2016 and 2023, Canada’s major ports became less directly connected to international shipping networks, reducing their role as global trade hubs and increasing dependence on foreign logistics centres.
Researchers highlighted that the growing size of container vessels is partly reshaping global trade routes. While ultra-large container ships can now carry more than 20,000 containers, Canadian ports generally accommodate vessels carrying around 15,000 containers at most.
As a result, many imports arriving from Asia are increasingly routed through major U.S. hubs such as Los Angeles before continuing to Canada by rail or truck, adding complexity and vulnerability to supply chains.
The study also showed a significant decline in shipping capacity moving through Canadian ports. Total deadweight tonnage fell from 167 million metric tonnes in 2016 to 119 million metric tonnes in 2023, representing a 28% decline in maritime trade capacity.
At the same time, Asian ports strengthened their dominance within global shipping networks. Eight of the world’s ten most-connected ports in 2023 were located in East Asia, up from six in 2016.
The Bank of Canada warned that reduced connectivity could leave Canada more exposed to global supply chain disruptions, longer transit times and higher logistics costs, potentially increasing the cost of doing business across the economy.
Source:
Source: Bank of Canada analysis — Canada’s shifting position in global maritime trade. Readers can access the full original analysis and supporting data here
