Posted on October 8, 2025
Traffic at the Port of Vancouver, Canada’s gateway to China, is dwarfing that at the major East Coast ports these days, but Montreal and Halifax port officials see a path to closing the gap even with the federal government’s increased emphasis on Asian trade.
Vancouver annually handles the equivalent of 3.5 million incoming 20-foot shipping containers (TEUs), which is seven times the roughly 500,000 TEUs coming into Halifax and more than twice Montreal’s total of 1.5 million TEUs.
Vancouver’s edge largely comes from its relative proximity to Asia and that area’s need for raw materials, a trend that is behind a proposed project to significantly expand the port so that it can handle the annual export of 4.5 million tonnes of potash.
But Vespucci Maritime chief executive Lars Jensen said the balance may be tilting east as trade routes evolve.
“Over time, you can’t separate the Canadian East Coast from the broader North American East Coast trends,” he said.
Jensen said there’s been a gradual shift of import volumes eastward and there have been spikes in rerouting when West Coast ports face disruptions, such as potential strikes.
He points to the Panama Canal expansion about 10 years ago as a turning point: larger vessels that could only serve North America via the West Coast can now use all‑water routes to the East Coast, closing the gap in terms of cost between the two coasts.
Jensen said transit via the East Coast is still slower for now, but the unit cost on large vessels is lower. For some destinations, especially inland markets such as Chicago, using an East Coast port combined with rail may become more attractive despite the longer sea voyage, partly because environmental costs favour moving goods on larger ships and shorter inland hauls.
PSA Halifax, which operates two terminals in the city, is preparing for this shift. Jonathan Chia, head of commercial and corporate affairs at PSA Halifax, said the port has a few advantages, starting with water depth.
“Halifax is the only Canadian East Coast terminal equipped for ships larger than 18,000 TEUs,” he said.
The port has already acquired bigger cranes and invested in yard equipment to support the larger vessels that are expected to “cascade down” the trade lanes.
But disruptions along the Suez Canal — a key shipping route — have been a problem for the port because the ongoing Middle East conflict means larger vessels normally destined for Halifax are being delayed and, in some cases, rerouted to Vancouver. Chia’s eager to see the route fully reopen again.
“We are trying to prepare ourselves for if and when that happens,” he said. “When cargo starts flowing through the Suez via the East Coast, we’ll be ready to take it on.”
Two major shipping services already operate ships of about 16,000 TEUs going into Halifax. But handling larger vessels, Chia said, is only part of the story. Equally important is getting containers inland to places such as Montreal, Toronto and the United States Midwest.
To that end, Halifax currently has two terminals with a combined capacity of about 1.4 million TEUs, but the port said it can handle an extra 300,000 TEUs bound for inland markets if additional rail capacity is brought online.
Halifax had its largest year‑over‑year volume jump in more than a decade in 2022 by handling over 600,000 TEUs. This year, projections are for around 530,000 to 550,000 TEUs. Canadian National Railway Co. currently runs one daily train linking Halifax to Montreal and Toronto, but has the capacity to add more depending on demand.
A tug boat positions a laker against the dock in the Port of Montreal.
Montreal’s port leadership said it serves a different market than Vancouver since its core strength is in trans‑Atlantic trade. It’s a major gateway for trade between Canada and Europe — handling approximately 80 per cent of the total cargo between Canada and Italy, for example — especially inland routes to Quebec and Ontario, strong manufacturing regions.
“We’re unique; we’re close to 66 per cent of the Canadian population, which is Quebec and Ontario,” Julien Baudry, chief of staff at the Port of Montreal Authority, said. “We’re also near 35 per cent of the country’s manufacturing capacity, between Montreal and the (Greater Toronto Area).”
Although Montreal’s berth and inland constraints keep vessel sizes smaller than those at Halifax or Vancouver, port officials say consistent schedules and shorter inland transport still offer many shippers significant advantages.
“We don’t consider that we compete with the West Coast,” Baudry said. “We serve markets as corridors. For example, anything that belongs to the trade between Europe and Canada, the Port of Montreal is by far the biggest trade route.”
Montreal is currently operating at about 72 per cent capacity, with room to grow before facing efficiency losses.
Larger West Coast ports focus on mega-vessels carrying 20,000-plus TEUs, but Montreal is taking a different approach.
“Montreal offers a direct, efficient route,” Baudry said. “Ships arrive fully unloaded and are fully loaded again within three days.”
He said Montreal’s strength lies in reliability, low congestion and reduced emissions, which are especially valuable to European shippers.
“We’re moving in the direction of quality, not just quantity,” he said.
Cargo volumes are recovering post-pandemic and companies are returning after recent labour disruptions, but Montreal isn’t standing still. Its major expansion project, Contrecœur Terminal, is expected to add more than a million TEUs of capacity.
-
Montreal port faces bigger problem than $2.3 billion expansion can solve, says maritime expert
-
Canada eyes Arctic Ocean port to ship gas, commodities to Europe
“If you need more capacity, you can’t wait until it’s urgent. It’s a four-year job,” Baudry said. “We’re preparing for the future now.”
The port has weathered two strikes in the past four years, which prompted some shippers to divert to the U.S. or other Canadian ports.
“But now they want to come back,” Baudry said. “They want to use a Canadian port; it creates less friction compared to the U.S.”
The friction south of the border includes labour issues, shifting tariffs and threats of six- and seven-figure docking fees for non-U.S. vessels.
The U.S. Trade Representative is imposing fees on Chinese-built, -owned or -operated container ships as of Oct. 14. Those include US$18 per net ton, or US$120 for each container unloaded (whichever is higher) from a Chinese-built vessel.
