8 MARINE TRANSPORTATION

FREIGHT TRANSPORTATION

Marine freight traffic totalled 340 million tonnes⁴ in 2001, a 2.4 per cent decrease from 2000. Domestic flows⁵ accounted for about one sixth of this (53.2 million tonnes), 2.3 per cent less than in 2000 (54.5 million tonnes). Of these domestic flows, Canadian-flag vessels carried an overwhelming 95.4 per cent (50.8 million tonnes).

In 2001, Canada-U.S. traffic totalled 108.0 million tonnes, a 0.6 per cent decrease over 2000. Of this, Canadian-flag vessels accounted for just over half, at 50.3 per cent, for a total of 54.3 million tonnes. "Other" international (deep-sea or overseas) traffic⁶ decreased by 4.0 per cent in 2001 to 179 million tonnes. Canadian-flag vessels carried only 0.1 per cent of this traffic.

Table 8-15 shows Canada's marine traffic statistics, by sector, for the years 2000 and 2001. Addendum Table A8-13 covers the same information from 1986 to 2001.

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

Table 8-16 shows the share of Canadian waterborne trade carried by Canadian-flag vessels in 2001.

Source: Statistics Canada and Transport Canada

Domestic Marine Freight Traffic

Coasting Trade Activity for 2002

The transportation of passengers and cargos, as well as marine-related activities in Canadian waters, is normally restricted to Canadian-registered duty-paid ships. This also applies to the exploration and exploitation of non-living natural resources in Canada's continental shelf. However, when no Canadian ship is available or capable of providing a particular service, foreign-registered ships can apply to Canada Customs and Revenue Agency (CCRA) for licences to enter Canada's coasting trade.

In 2002, CCRA received 82 applications for a coasting trade licence, down from the 100 in 2001. The Canadian Transportation Agency denied four of these applications and rescinded one as the result of an objection raised by a stakeholder. The United States was the predominant foreign flag, with 19 requests.

Not all approved requests result in the applicant following through in obtaining a licence. The highest area of requests continued to be for vessels for use in offshore oil and gas exploration and production. In 2002, there were 16 tanker requests, eight for seismic vessels and eight for drill ships and rigs. As offshore activity shifts from exploration to production, the requirement for large-capacity shuttle tankers is increasing. The request for a licence may involve the use of several tankers for a number of voyages over a twelve-month period.

Table 8-17 shows the actual tonnage and percentage of total domestic cargo tonnage carried by foreign-registered vessels in 2000 and 2001. Table A8-14 in the Addendum gives this same information over a longer time period.

1 Significant increase of "Crude Petroleum Oils" shipments from Grand Bank (Hibernia) and Port Hawkesbury.
Source: Transport Canada, from data supplied by Statistics Canada

Being both loaded and unloaded at Canadian ports, domestic cargo is handled twice within the Canadian port system. Domestic cargo fell by 2.4 per cent to 106.4 million tonnes in 2001. Decreased shipments of pulpwood, logs and bolts, iron ore, stone, sand and gravel offset a significant increase in shipments of crude petroleum, fuel oil, wheat, and coal.

Table 8-18 shows flows of domestic marine traffic by region in 2001.

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

Most domestic traffic passes through the Great Lakes-St. Lawrence Seaway system. In 2001, the ports serving the Seaway handled 55.7 million tonnes (loadings and unloadings), or 52 per cent of the total domestic tonnage. Pacific region ports handled 28.3 million tonnes, or 26.6 per cent of the total. Pacific ports handled 5.0 million tonnes less domestic cargo in 2001 than in 2000, 99.8 per cent of which originated and terminated within that region. Atlantic region ports handled 22.5 million tonnes of domestic cargo in 2001, or 3.4 per cent less than in 2000.

In 2001, the primary commodities handled in the domestic trade across Canada were:

• pulpwood and chips (13.5 million tonnes, down 11.5 per cent from 2000)
• stone, limestone, sand and gravel (14.1 million tonnes, down 4.6 per cent)
• iron ore and concentrates (12.5 million tonnes, down 4.4 per cent)
• logs and bolts (5.7 million tones, down 30.7 per cent)
• crude petroleum (11.1 million tonnes, up 13.9 per cent);
• fuel oil (8.8 million tonnes, up 7.6 per cent)
• wheat (8.4 million tonnes, up 2.5 per cent)

Together, these commodities represent more than two thirds (71 per cent) of all domestic tonnage handled at Canadian ports in 2001.

International Marine Freight Traffic

Canadian ports handled 286.6 million tonnes of international cargo in 2001, down 2.4 per cent from 2000. Of that total, 60.8 per cent was export-oriented (including in-transit and re-export traffic). Japan, China, South Korea, the United Kingdom and other western European nations accounted for more than 60 per cent of Canada's total international marine traffic (exports and imports) in 2001.

Conference/Non-conference Market Shares

Non-conference traffic has grown consistently in recent years, both in absolute terms and as a percentage of total liner traffic. It did, however, decrease to 17.4 million tonnes in 2001, while conference traffic remained relatively constant compared with 2000. Non-conference operators still moved more than 60 per cent of the total liner traffic. If non-conference U.S. origin/destination transshipped traffic is taken into account, the non-conference share becomes even more dominant.⁷

Table 8-19 compares the conference and non-conference shares of Canadian liner trade between 2000 and 2001. Table A8-15 in the Addendum shows data from 1994.

Source: Transport Canada, International Database; Statistics Canada

As in past years, in terms of the type of cargo carried, conference operators tended to concentrate almost exclusively on containerized traffic: 10.1 million of the 10.3 million tonnes of the cargo they carried was in containers. Non-conference traffic is also increasingly characterized by a large percentage of cargo in containers (77 per cent in 2001) but includes general cargo and neobulk traffic as well.

The breakdown of liner traffic by foreign region of origin/destination is also useful to illustrate the relative shares of conference and non-conference operators on different routes. Table 8-20 compares conference and non-conference liner traffic by region for 2001. The decrease in liner traffic in 2001 affected most trading regions but most significantly the Other America and Europe routes.

Note: – means Nil.
Other America = North America plus Greenland and Saint Pierre and Miquelon.

Source: Transport Canada, International Database; Statistics Canada

Canada-U.S. Freight Traffic

Canada's marine traffic to and from the United States reached 107.8 million tonnes in 2001, down slightly from 2000. Imports (unloadings to U.S. destinations)⁸ grew by 5.0 per cent in 2001, while exports (loadings) decreased by 4.4 per cent.

Table 8-21 shows Canada's maritime trade with the United States in 2000 and 2001. Addendum Table A8-16 shows trade with the United States since 1986.

Source: Statistics Canada, Cat. 54-205; Transport Canada

In 2001, loadings at Canadian ports destined to the United States totalled 61.9 million tonnes. Seven commodities accounted for 80 per cent of this volume: crude petroleum (11.0 million tonnes), stone, limestone, sand and gravel (9.3 million tonnes), gasoline (7.7 million tonnes), fuel oil (6.5 million tonnes), gypsum (6 million tonnes), iron ore (5 million tonnes) and salt (4.3 million tonnes).

From 2000 to 2001, there were some significant changes in the volumes of major commodities exported to the United States. Gasoline exports jumped by 62.9 per cent, while fuel oil and salt exports increased by 20.1 and 24.8 per cent, respectively. In contrast, iron ore exports decreased by 47.8 per cent, while crude petroleum and gypsum exports decreased by 11.6 per cent and 10.6 per cent, respectively.

There were two main flow corridors in 2001: the Canadian Atlantic to the U.S. Atlantic route, and the Canadian Great Lakes to the U.S. Great Lakes route. The Atlantic route carried 33.6 million tonnes, or 54 per cent of total loadings to the United States, while the Great Lakes route carried 14.0 million tonnes, or 23 per cent of total loadings. These two routes accounted for 77 per cent of Canada's commodities traffic volumes shipped to the United States using marine transport services.

In 2001, imports of U.S. marine shipments to Canada increased by 5.0 per cent from 43.8 million tonnes in 2000 to 46.0 million tonnes. Seven commodities accounted for more than 80 per cent of this volume: coal (22 million tonnes), iron ore (4.5 million tonnes), fuel oil (2.6 million tonnes), stone, limestone, sand and gravel (3.0 million tonnes), inorganic chemicals (2.7 million tonnes), other petroleum products (2.2 million tonnes) and soybeans (1.3 million tonnes).

As was the case with exports, there were some significant differences at the commodity level in the volumes of marine imports from the United States between 2000 and 2001. Imports of coal and fuel oil were up 10.1 and 80.2 per cent, respectively, while shipments of iron ore and stone, limestone, sand and gravel dropped by 29.7 and 11.2 per cent, respectively.

More than 75 per cent of the total volume of all marine imports from the United States originated at ports on the Great Lakes. Ports along the U.S. Atlantic and the Gulf of Mexico accounted for 17.8 per cent, and U.S. Pacific ports made up the remaining 6.7 per cent.

Table 8-22 shows traffic flows from Canadian to U.S. ports in 2001, while Table 8-23 shows traffic flows from U.S. to Canadian ports.

Source: Statistics Canada, Cat. 54-205; Transport Canada

Source: Statistics Canada, Cat. 54-205; Transport Canada

Overseas Freight Traffic

Canada's marine trade with overseas countries (excluding the United States) totalled 179 million tonnes in 2001, a four per cent decrease from 2000. More of this volume moved as exports than imports. Approximately 63 per cent of overseas exports were loaded at West Coast ports, while 90 per cent of overseas imports were unloaded at East Coast ports.

Table 8-24 shows Canada's maritime overseas trade in 2000 and 2001. Addendum Table A8-17, shows overseas trade since 1986.

Source: Statistics Canada, Cat. 54-205; Transport Canada

In 2001, 112.5 million tonnes of cargo were loaded at Canadian ports to be shipped to non-U.S. countries, 8.6 per cent less than in 2000. The major commodities shipped from Canada included coal (27.6 million tonnes), iron ore (17.6 million tonnes), wheat (15.2 million tonnes), containerized freight (13.0 million tonnes), woodpulp (6.7 million tonnes), sulphur (5.3 million tonnes) and potash (3.9 million tonnes). Slightly more than 10 per cent of this traffic was containerized.

Coal, iron ore, wheat, wood pulp, potash and sulphur shipments showed significant decline in 2001 from 2000. Iron ore shipments decreased 12.9 per cent, coal by 8.7 per cent and wheat by nine per cent. Fuel oil shipments, however, increased by 69 per cent.

In 2001, three fifths of Canada's total marine exports to overseas destinations were loaded at ports in western Canada. The ports along the St. Lawrence Seaway handled most of the loading for ports in eastern Canada. Western ports dominated the tonnage shipped on the Asia and Oceania trade routes with 88 per cent, while the eastern ports handled 73 per cent of the tonnage shipped to Europe.

In terms of imports, Canadian ports unloaded 66.3 million tonnes of marine shipments from overseas origins in 2001, 6.7 per cent more than in 2000. Imports of crude petroleum⁹ totalled 32 million tonnes, or 48 per cent of all marine traffic unloaded from offshore origins. Other major commodities unloaded included containerized freight (10.1 million tonnes), coal (3.0 million tonnes), inorganic chemicals (3.1 million tones), alumina and bauxite (5.5 million tonnes), iron and steel (2.1 million tonnes) and fuel oil (1.9 million tonnes). About 15 per cent of this inbound traffic was containerized.

In addition, more than 89 per cent of overseas shipments were unloaded at ports in eastern Canada. Overseas cargo originated mainly from Europe, the Middle East and Africa.

Table 8-25 shows Canada's marine traffic to overseas destinations, while Table 8-26 shows Canada's marine traffic from overseas markets in 2001.

Note: Table may not add up due to rounding.

Source: Statistics Canada, Cat. 54-205; Transport Canada

Note: Table may not add up due to rounding.

Source: Statistics Canada, Cat. 54-205; Transport Canada

Marine Trade

According to international trade data, the value of Canadian international marine trade in 2001 was in the order of $98.3 billion (excluding shipments via U.S. ports). This was 4.1 per cent lower than in 2000. Marine exports were valued at $44.6 billion and imports at $53.8 billion. The value of exports decreased by 4.7 per cent, notably with decreased cargoes outbound to Western Europe (United Kingdom, Germany, Belgium and Italy) and Asia (Japan, China, South Korea and Taiwan). The value of imports also decreased by 3.6 per cent.

Table 8-27 shows the value of the marine share of Canada's international trade in 2001.

1 Including domestic exports and re-exports

Source: Statistics Canada, Cat. 65-202 and 65-203; Special tabulations

Marine traffic with the United States was valued at $13.1 billion in 2001, driven by exports of $9.6 billion. This value, however, represented only 2.3 per cent of total Canada-U.S. trade. The bulk of the traffic was handled by surface transport modes, such as trucking and rail.

In 2001, the Canadian marine trade with overseas countries (excluding the United States) was valued at $85.2 billion, with exports estimated at $35 billion and imports at $50.2 billion. In terms of value, marine transport accounted for 48 per cent of all overseas trade and was the dominant mode for shipping overseas freight.

The major areas of exports/imports are Asia, Western Europe and the United States. The principal commodities exported to foreign countries (including the United States) were forest products ($8.6 billion), gasoline/aviation fuel ($4.5 billion) and wheat ($3.4 billion). Imports consisted of crude petroleum (10.6 billion), automobile vehicles ($7.6 billion), manufactured/miscellaneous goods ($6.9 billion) and machinery ($4.2 billion). For the major countries and principal commodities exported/imported by value, see Addendum Table A8-18.

7 It is important to note that the data in the tables are not adjusted for U.S. transshipments moving through Canadian ports. Much of this traffic moves on conference vessels but at non-conference rates. The route most likely affected by these transshipments is the one between Europe and Canada. Montreal estimates that approximately 50 per cent of its liner traffic originates in or is destined for the United States. In addition, Halifax is handling growing amounts of U.S. Midwest traffic. This would, of course, affect the balance between conference/non-conference traffic further in favour of the independent operators.Back to text

8 Including in-transit and transshipment cargo. Back to text

9 Including transshipments of North Sea Crude petroleum. Back to text

Major Events in 2002

Infrastructure

Industry Structure

Passenger Transportation

Freight Transportation