Business groups are expressing concern about the broad effects of another round of labor disruptions in the transportation sector as Canada faces closures at its two largest ports.

Canadian Manufacturers & Exporters President and CEO Dennis Darby said the two work stoppages in Vancouver and Montreal come at a difficult time as businesses face a year-end crisis while election results Americans have increased the need to be seen as a reliable trading partner.

“We are in a very difficult situation,” he said Monday.

The closures come after operations on Canada’s two major railways were halted in August until the government intervened, while ports in British Columbia and the St. Lawrence Seaway were disrupted last year, leading Darby to say that the country needs a new approach to the sector.

“We just can’t keep repeating this because it puts you at a disadvantage.”

He said the incoming U.S. administration will focus on the United States first and look for partners to help boost its economy, so Canada needs to be especially aware of the broader implications of disruptions like this.

Between $400 million and $800 million a day of goods are not moving because of the strikes, creating risks throughout the economy, Darby said. Last year’s 13-day port strike in British Columbia, for example, markedly reduced GDP growth, he said.

READ MORE: Dockworkers union accuses BC Maritime Employers Association of ending talks early

The disruptions will have more immediate effects on manufacturers who rely on critical parts arriving in Canada, he said, while consumers will feel it if it is prolonged.

The Canadian Chamber of Commerce estimates the total value of affected assets is even higher: more than $1 billion a day, said Pascal Chan, senior director of transportation, infrastructure and construction. He added that the closures of the two ports also damaged the country’s reputation.

“With simultaneous disruptions at our largest ports on the East and West Coast, we are effectively announcing to the world that Canada is closed to the public,” he said in a statement.

Chan called on the government to intervene and end the disputes.

Labor Minister Steven MacKinnon said last week that both sets of negotiations were progressing at an insufficient pace, while on Monday he urged all involved to reach an agreement.

“The parties must understand the urgency of the situation and do the work necessary to reach an agreement. “Canadians are counting on them.”

The Maritime Employers Association laid off dockworkers on Sunday night after unionized workers voted almost unanimously to reject a contract offer presented last week.

The Port of Montreal said essential services will continue, with liquid bulk terminals and the grain terminal remaining open.

READ MORE: Employers block dockworkers in Montreal after contract offer rejected

The closure in Montreal comes after a separate labor dispute halted container cargo shipping at British Columbia ports last Monday.

Negotiations in British Columbia resumed on Saturday, but talks quickly broke down without progress, the British Columbia Maritime Employers Association said.

Because grain shipments are not affected by the strikes, there is less political pressure to intervene, said Barry Prentice, director of the Transportation Institute at the University of Manitoba.

But the closures, part of a series of disruptions, could affect longer-term investment decisions, he said.

“If you have a reputation for being unreliable, then it’s not good for people who want to think about investing in this country or doing business with this country.”

Port of Montreal CEO Julie Gascon warned that the closure will have “catastrophic” consequences if it is allowed to continue, and that shippers will move away from Montreal in favor of American ports.

“What is at stake is our reputation,” he said.

This report by The Canadian Press was first published Nov. 11, 2024.