Though they view a planned free trade agreement with the European Union as generally positive for Canada, inland Canadian shipowners have expressed strong concern over the potential impact on maritime feeder services.
Robert Lewis-Manning – president of the CSA
“Aspects of its implementation have potentially unintended negative consequences for our part of the marine sector, and consequently the resilience of the Canadian supply chain,” Robert Lewis-Manning, president of the Canadian Shipowners Association (CSA), affirmed in a presentation to the Standing Committee on International Trade of the House of Commons. The Committee has invited various industries to comment on the future impact of the Canada-EU Comprehensive Economic and Trade Agreement (CETA) in principle announced last fall, with ratification hoped by 2015. Final details on outstanding issues are still being negotiated.
“Although the details are really not yet fully understood by our industry, Transport Canada officials have informed us that maritime feeder services are part of the agreement,” Lewis-Manning said, adding: “As a Canadian-flag fleet with only a shortsea shipping market to trade in, we believe that our sensitivity is much higher than international fleets that can seek other markets globally.”
He noted earlier that under the current Canadian coasting regime, trading from Canadian port to Canadian port can only be carried out by Canadian registered vessels “unless there is no Canadian shipping capacity available at a reasonable value. This regime has worked relatively well, providing services to shippers when needed while growing the Canadian marine industry.”
The 86 vessels in the CSA fleet carried 50 million metric tons of cargo in 2013, chiefly on the Great Lakes/St. Lawrence waterway.
Three Reasons for Concern Raised
Lewis-Manning gave three main reasons why foreign-owned and foreign-crewed vessels should not be encouraged to move cargo between Canadian ports.
“First, there is no assurance that these vessels will continue to trade in Canadian waters in the long term.
“The current economic downturn in the global shipping industry encourages foreign shipowners to seek unique market opportunities, such as Canadian maritime feeder services. The Canadian domestic shortsea shipping fleet cannot do the same. Consequently, when global trade picks up, there is little assurance that foreign vessels will remain active in maritime feeder services and they could seek opportunities that are more lucrative elsewhere globally. Such an unpredictable situation, if encouraged by the agreement (CETA), could marginalize the domestic capability.”
Secondly, Lewis-Manning suggested that foreign crews do not necessarily possess the special training and experience required to navigate in the region’s coastal and inland waters, often during severe weather.
Thirdly, he pointed out that “our mode of transportation is the greenest and safest form of transportation in existence.”
In concluding his presentation, Lewis-Manning said the CSA would like to see the government “use the agreement and other policies as mechanisms to grow Canadian shortsea shipping” – thereby providing a “windfall” for the domestic marine sector.
Following the CSA presentation, a Committee member referred to a Transport Canada message in January indicating that discussions within the CETA context have been held on eventual maritime feeder services for container cargo between the ports of Halifax and Montreal onboard EU-registered vessels. Replying to a question, Mr. Lewis-Manning remarked that “our members are not specifically working on that trade at the moment, but that’s not to say it won’t be a future opportunity.”
