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COS Weekly News - Friday, 01 May 2026

COS Weekly News - Friday, 01 May 2026

‍‍COS Weekly News - Friday, 01 May 2026


‍In the news...

Canadian durum faces mixed competition as Argentina emerges
Bowen Island considers fee for ferry traffic management
Shell to acquire ARC Resources in $16.4 billion deal
Port of Quebec gains initial approval for container operations
Canada reviews labour laws to reduce port disruption risk
Canada launches $25b Sovereign Wealth Fund
Court challenge targets B.C. approval of Ksi Lisims pipeline
CCG trains students in SAR on Georgian Bay
Port of New York’s empty container fee may miss the real problem
U.S. announces $774m investment in port infrastructure
Port of Everett secures $11.25m grant to upgrade Pier 3
U.S. court upholds FMC ruling on unreasonable detention charges
FMC warns of action against IMO emissions rules
IMO urges protection of navigation rights in Strait of Hormuz
Fuel surcharges drive up Trans-Pacific contract costs
U.S. pushes back on IMO Carbon pricing plan
01 May - CCGS Donjek

‍Local News

Canadian durum faces mixed competition as Argentina emerges

Canadian durum growers may face new competition in Europe as Argentina ships rare export volumes, but reduced pressure in North Africa as Mexico’s output falls. An Argentine Panamax cargo signals opportunistic exports driven by a strong wheat crop and competitive pricing, though quality concerns and limited acreage suggest shipments will remain sporadic. Meanwhile, Mexico’s production is sharply below historical levels due to poor growing conditions, keeping it a net importer rather than exporter. While Argentina’s re-entry could challenge Canadian sales into Italy, weaker Mexican supply has supported Canada’s position in markets like Algeria, though improved local harvests there may temper import demand.

Bowen Island considers fee for ferry traffic management

Bowen Island Municipality is considering a $150,000 annual fee on BC Ferries to cover the growing cost of managing vehicle congestion and safety issues at its Snug Cove terminal. With no dedicated staging infrastructure or on-site ferry staff, the municipality has been funding traffic control, road maintenance, and enforcement measures, including hiring marshals to manage long vehicle queues. Officials say the fee would recover operational costs and fund future infrastructure, while BC Ferries has indicated it is reviewing the proposal and its potential impact on service and fares.

Shell to acquire ARC Resources in $16.4 billion deal

Shell plc has agreed to acquire ARC Resources in a $16.4 billion deal, largely paid in shares, marking its largest acquisition since BG in 2016. The deal will boost Shell’s production by about 370,000 barrels of oil equivalent per day and add roughly 2 billion barrels of reserves, with ARC’s assets complementing Shell’s existing Canadian operations linked to LNG Canada. Shell said the transaction will deliver annual cost savings and strengthen cash flow without altering its investment plans, while also supporting higher long-term production growth targets.

Port of Quebec gains initial approval for container operations

Canada Border Services Agency has granted preliminary authorization for the Port of Quebec to handle international containers, allowing operator QSL to advance plans for a new terminal. The approval marks a key step toward full certification, with requirements including inspection facilities and a formal business case before operations can begin. The move supports the federal government’s broader strategy under Mark Carney to diversify trade beyond the US. QSL is now planning a 200,000-TEU facility at Beauport, positioning Quebec City as a potential new container hub along the St. Lawrence River.

‍Government News

Canada reviews labour laws to reduce port disruption risk

The government of Mark Carney has launched a long-awaited review of federal labour laws to reduce the risk of supply chain disruptions at ports, ahead of upcoming West Coast longshore negotiations. The move follows recent strikes and lockouts that diverted cargo to U.S. ports and raised concerns about Canada’s reliability as a trading partner. Proposals, including recommendations from Vincent Ready, aim to maintain the right to strike while strengthening mediation and improving bargaining structures. With Parliament now positioned to act, the initiative reflects a broader push to stabilize transport networks and support Canada’s efforts to diversify exports and expand port capacity.

Canada launches $25b Sovereign Wealth Fund

The Government of Canada has announced the Canada Strong Fund, a new $25 billion sovereign wealth fund aimed at investing in large-scale nation-building projects and strengthening economic independence. Led by Prime Minister Mark Carney, the fund will partner with private and international investors to support sectors such as energy, critical minerals, agriculture, and infrastructure. Returns will be reinvested to grow the fund over time, while a planned retail investment option will allow Canadians to directly participate in and benefit from these investments. The initiative is part of a broader strategy to diversify trade, secure supply chains, and build a more resilient national economy.

Court challenge targets B.C. approval of Ksi Lisims pipeline

A Gitxsan hereditary chief and environmental groups are challenging British Columbia’s decision to deem a proposed 750-kilometre natural gas pipeline “substantially started,” a ruling that preserved its environmental approval and kept the Ksi Lisims LNG project viable. The case before the Supreme Court of British Columbia argues the threshold was not properly met and raises concerns over consultation and impacts on Indigenous territory, while the province, the Nisga'a Nation, and project proponents maintain requirements were satisfied. The outcome could significantly affect the future of the pipeline and associated LNG development, which remains pending a final investment decision.

CCG trains students in SAR on Georgian Bay

The Canadian Coast Guard has launched its annual Inshore Rescue Boat (IRB) training program in Parry Sound, where post-secondary students are being trained in search-and-rescue operations from April 24 to May 11. Around 40 students each summer learn critical skills such as boat handling, emergency response, and coordinated rescue efforts alongside local agencies. Upon completion, trainees are deployed to IRB stations across the Great Lakes to support operations during the busy summer season.

‍US News

Port of New York’s empty container fee may miss the real problem

The revised empty container fee at the Port of New York and New Jersey is unlikely to ease congestion because costs are absorbed by carriers and passed through pricing rather than changing behaviour. Recent bottlenecks show that the burden instead falls on truckers and cargo owners when return locations are full. While the policy tightens rules, it lacks the leverage to influence operational decisions. A more effective approach would require accountability mechanisms that track container control and target the party directing movements. Some argue the Federal Maritime Commission could play a role in implementing such a system.

U.S. announces $774m investment in port infrastructure

The Maritime Administration has announced $774 million in funding for 37 port projects under its Port Infrastructure Development Program, aimed at boosting capacity, efficiency, and supply chain resilience across U.S. seaports, Great Lakes, and inland waterways. The investments will support upgrades such as rail tunnel expansions, improved cargo screening technology, new terminal construction, and climate-resilient dock infrastructure. Officials say the funding will strengthen economic competitiveness, enhance national security, and reduce costs for shippers and consumers, reflecting broader efforts by the US Department of Transportation to modernize critical trade infrastructure.

Port of Everett secures $11.25m grant to upgrade Pier 3

The U.S. Department of Transportation Maritime Administration has awarded an $11.25 million grant to the Port of Everett under the Port Infrastructure Development Program (PIDP) to strengthen and modernize Pier 3 at its international seaport. The project will enhance cargo-handling capacity, improve safety, and allow for a broader range of freight operations by reinforcing structural elements and restoring load capacity. Funding will support the full scope of work, including engineering, permitting, and construction, extending the life of the 1973-built pier.

U.S. court upholds FMC ruling on unreasonable detention charges

The United States Court of Appeals for the District of Columbia Circuit has upheld a decision by the Federal Maritime Commission (FMC) against Evergreen Marine, reinforcing that container detention fees must support freight movement rather than penalize delays beyond a shipper’s control. The court agreed that charges imposed during a Port of Savannah closure were unreasonable under the Shipping Act, emphasizing that fees must promote “freight fluidity” and serve a legitimate operational purpose, even where contractual terms exist.

FMC warns of action against IMO emissions rules

Federal Maritime Commission Chairman Laura DiBella has reiterated strong U.S. opposition to the International Maritime Organization’s proposed net-zero framework, warning the agency could use its enforcement powers to counter measures that increase costs for U.S. shippers. Speaking ahead of the IMO’s Marine Environment Protection Committee meeting, she argued the framework would impose high costs on the industry and ultimately consumers, while signalling the FMC could take actions such as fines or restricting foreign-flag vessels if the rules are adopted.

‍International News

IMO urges protection of navigation rights in Strait of Hormuz

International Maritime Organization Secretary-General Arsenio Dominguez has called on UN member states to uphold freedom of navigation and reject any tolls or restrictions on international straits, stressing that such waterways must remain open under international law. Speaking at the UN Security Council, he warned that imposing fees or limiting transit would undermine global shipping stability and set a dangerous precedent. Dominguez also highlighted that around 2,000 vessels and 20,000 seafarers remain stranded in the Persian Gulf, with the IMO developing an evacuation plan using established routing systems.

Fuel surcharges drive up Trans-Pacific contract costs

Midsize U.S. importers are finalizing 2026–27 trans-Pacific shipping contracts at base rates similar to last year, around $1,650 to $1,950 per FEU to the West Coast, but are facing significant increases in overall costs due to higher fuel surcharges. Driven by elevated oil prices linked to Middle East disruptions and the Strait of Hormuz situation, carriers are adding bunker surcharges of up to $400 per container, pushing total freight rates above $2,000 per FEU. Shippers are pushing back on more frequent adjustments and unclear timelines for these surcharges, while carriers argue the rising fuel and inland transport costs must be passed through.

U.S. pushes back on IMO Carbon pricing plan

The Federal Maritime Commission is stepping up opposition to the International Maritime Organization’s proposed Net Zero Framework (NZF), with Chairman Laura DiBella urging countries to consider alternatives during MEPC 84 talks in London. The NZF, strongly backed by the EU, would introduce global carbon pricing for shipping through emissions standards and penalties, but the U.S. warns it could raise costs across supply chains and impact up to 97% of the global fleet. Washington is encouraging a less disruptive approach to emissions reduction and signalled it may use regulatory powers to counter any adverse impacts on U.S. trade.

‍Upcoming Events

‍May 7: Plimsoll Club Golf Tournament, Surrey, BC

May 12/14: Mari-Tech Conference 2026, Victoria, BC
May 13/15: Nautical Institute - Future of Arctic Shipping, Victoria, BC

May 28/30: 26th BC Towboat Conference, Whistler, BC

June 23 – Pacific Pilotage Authority Annual Public Meeting, Vancouver, BC

‍Ship of the Week

01 May - CCGS Donjek


Halifax Shipyard has launched the future CCGS Donjek, the first Arctic and Offshore Patrol Ship (AOPS) built for the Canadian Coast Guard, marking a key milestone under Canada’s National Shipbuilding Strategy. The 104.7-metre vessel was floated out in Bedford Basin and will now undergo final outfitting, sea trials, and delivery later this year, while work continues on a second ship, CCGS Sermilik. Designed for fisheries enforcement, search and rescue, icebreaking, and Arctic operations, the Coast Guard AOPS builds on the Harry DeWolf-class program delivered to the Royal Canadian Navy, supporting enhanced operational capability and fleet renewal alongside broader shipbuilding initiatives, including the upcoming River-class Destroyer program.


‍shippingmatters.ca
info@shippingmatters.ca

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