Some Richmond businesses are starting to feel the knock-on effect of job action by union and nonunion truckers serving Vancouver's ports.
With trucks idle for the past week, operations at port facilities processing container shipments for import and export have been severely curtailed.
That has manufacturing firms such as Viva Pharmaceuticals concerned their products and business reputation are being compromised as the strike drags on.
Plus, it has provided logistical headaches for cargo forwarders such as Maple Freight Partnership which is trying to find alternate routes to get shipments delivered to Lower Mainland clients.
Last week, around 400 unionized truckers joined the 1,000 or so nonunionized truckers who walked off the job in February.
That's left container loads of raw materials from Asia that Viva uses in its tablet and softgel products sitting dockside. And that's made for some anxious customers around the globe who are waiting to take delivery of
"This (strike) is potentially very damaging to the reputation of our company, because if our customers even just think of trying another supplier other than us in the interim, we could end up losing that business," said Jason Ko, president and CEO of Viva Pharmaceuticals. "Clients may opt for a producer in the U.S., where they do not have as many labour disruptions and have many more ports they can ship from."
While many of the company's clients have about a two-month supply on hand, Viva has had to resort to dispatching products by air - a much more costly method - to ensure stock does not run out.
"We do have contingency for a month, maybe two, but since this is an open-ended strike, it is making us all very anxious," Ko said.
No decisions have been made to cut the 170 or so workforce at the Viking Place plant.
"Some others in the business have done that, but we have not gone down that path, yet," Ko said.
Meanwhile at Maple Freight Partnership, the business of coordinating pick up and delivery of containers may be down by about 60 to 75 per cent, but the remaining trickle of goods leaving the ports is keeping the firm's 20 staffers busy, said Matthew Wong, Maple Freight's business development executive.
Part of the task now is finding alternate delivery routes.
One is sending containers, destined for clients in the Lower Mainland, via rail to Edmonton, then back to Vancouver by truck.
The roundabout trips are costing four to five times the normal $350 to $450 delivery charge-a bill being passed onto clients who are, for now, willing to pay it, Wong said.
"Based on the value of what a full container's goods are worth, it's an extra charge clients are seeing as the cost of doing business in the short-term," said Wong, adding containers are generally packed with goods valued from $50,000 on up.
Brian Williams, chair of the Richmond Chamber of Commerce, said he is concerned with the strike's impact on the local economy.
"The estimated disruption of up to $885 million in trucking cargo each week is distressing to the local and national economies, which depend on the port to be a powerful economic driver and reliable gateway," Williams said. "The long-term fear is business will begin exporting from competing U.S. ports and may not return. Though we recognize the complicated issues at play, we hope all parties can come to a negotiated agreement quickly."
At the heart of the strike are issues relating to pay, including the truckers' wages and the amount of unpaid time they spend waiting for cargo at container terminals.
