The world’s leading ports are investing, automating and modernizing. If Canada fails to do the same, we risk falling even further behind in the global race for trade and investment. Photo by Handout/PSA Halifax

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Canadians have long viewed their country as a trading nation. With a small domestic market and abundant natural resources, Canada’s economic health relies on its capacity to move goods through international markets. When goods do move efficiently across borders, Canadians benefit through greater investment and higher wages.

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Amid growing trade tensions with the United States, Ottawa is looking to diversify our exports and reduce our reliance on a single market. But that effort is frustrated by Canada’s inefficient ports, which, despite their importance, have fallen behind their international counterparts, undermining Canadian competitiveness.

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This should be of grave concern to governments, producers and consumers alike. Close to $400 million of goods pass through the port of Montreal daily, and over $800 million leave the port of Vancouver. When these ports get bogged down, the consequences ripple across the economy.

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The World Bank ranks 405 ports of all sizes around the world, based on how efficiently they handle cargos and ships. This includes the time ships spend in port and overall operational performance. Among Canadian ports, in 2024 only Halifax made the top 100. Canada’s largest trade gateways performed far worse: Montreal ranked 344th,  Vancouver 389th. Prince Rupert, a critical gateway to Asian markets, also ranked near the bottom, at 362nd.

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Such low rankings should be setting off alarm bells. Our claim to being a trading nation is unconvincing when we tolerate ports that rank among the least efficient in the industrialized world.

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Port productivity matters. It directly affects shipping costs, delivery times and the reliability of supply chains. At the Port of Vancouver, containers reportedly sat in terminals for four to seven days during peak congestion periods in 2025. When containers remain stuck at port, importers and exporters face higher storage costs, which are ultimately reflected in higher prices for consumers.

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Why are we lagging behind? While many of the world’s leading ports have modernized and embraced automation, Canada’s have failed to keep up. Singapore’s Tuas Port, the world’s first fully automated port, ranked 29th globally and handled 40.9 million containers a year. Canada, meanwhile, remains stuck in recurring labour disputes and political hesitation over the issue of modernization.

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Over the past several years, ports in Montreal, Vancouver and Halifax have experienced strikes, lockouts and other disruptions. In 2023, labour disputes at the ports of Vancouver and Montreal affected more than $1.2 billion worth of goods daily. Logistics companies value reliability. Instead, Canadian ports have been providing uncertainty. If we don’t change course, investment will continue to shift elsewhere.

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Policy-makers regularly speak about the need to diversify trade and strengthen Canada’s economic resilience. Yet, instead of encouraging greater flexibility, Ottawa is moving in the opposite direction. Bill C-58, which came into force in 2025, prohibits federally regulated employers from using replacement workers during legal strikes or lockouts. Business groups warned that this legislation could worsen Canada’s already weak productivity performance and damage the country’s international reputation as a reliable trading partner.