The delays currently experienced by consumers when purchasing a new vehicle are caused by several issues. On the one hand, there are parts supply issues and delays caused by plant shutdowns during the COVID-19 pandemic. There is also another factor that we tend to forget: delays in ports. Indeed, as far as the Canadian auto industry is concerned, the Port of Vancouver would be largely responsible for the problem.
An extremely complex problem
In interview with Automotive NewsDon Romano, CEO of Hyundai Canada, explained how the Port of Vancouver crisis can create serious headaches for company officials.
“It’s a very sad situation, but we have to be very efficient in our approach to vehicle delivery. As soon as a boat has just deposited its cargo of vehicles, another cargo arrives from South Korea; so the cars have to be moved quickly, otherwise you end up with serious congestion problems at the port,” he says.
He adds that the manufacturer has started to take other routes to bring its vehicles into the country, such as borrowing from American ports. The vehicles then cross the border by train. According to Mr. Romano, this diversion strategy is anything but simple, but it avoids leaving vehicles lying around the port while another ship is en route.
As of June 2023, a cargo vessel carrying approximately 4,000 Hyundai brand vehicles was waiting at the Port of Vancouver, while another vessel carrying as many was en route from Asia. According Hyundai Canada, 89% of the models sold in Canada come from South Korea. The remaining examples are built in the United States.
But what causes these delays?
Asked by Automotive News On this crisis, Mr. Dan Emerson, Vice-President of Operations of Wallenius Wilhelmsen Logistics, the company that was chosen for the activities of the federal port, explained that the delays are caused by a combination of problems.
On the one hand, there is a very high volume in the delivery of new vehicles, caused by a considerable drop during the pandemic. He says, “All dealerships across the country are trying to fill their inventory at the same time, so we get a lot of calls for ships with very large cargo volumes. »
Then there is this problem of shortage of wagons which prevents the delivery by train of such a large quantity of vehicles outside the port.
However, our sources inform us that Port Vancouver was already experiencing serious infrastructure problems even before this whole crisis began. According to Andrew Wynn-Williams, the divisional vice-president of British Columbia, the port contains several choke points for the railway tracks. It is also the victim of a flagrant lack of storage space due to its geographic location. “We are trying to find solutions, but it will not be resolved overnight,” he added.
Conclusion
I understand Port of Vancouver authorities feel overwhelmed by a growing demand for vehicle orders from foreign countries, but in fact, fewer new vehicles are being built in the world.
According to the most recent assessment of parts supply problems, 1.3 million new vehicles have not been built since the beginning of the year. Industry analysts predict that by the end of 2023, there will be a shortage of 2.8 million new vehicles on the planet.
However, the number of vehicles entering the Port of Vancouver is actually less than before. The problem is the port’s inability to properly handle sudden high-volume shipments. It is therefore in the interest of the port, with the help of the government, to find solutions to overcome these infrastructure problems.
