November 5, 2024 - Coal flows at Westshore Terminals in British Columbia, Canada, remained unaffected by strike activity in the region by the International Longshore and Warehouse Union, the Westshore Terminals operations department told S&P Global Commodity Insights on Nov. 4

Coal ships were continuing to load and depart from Westshore on schedule, the terminal said. Westshore Terminals and ILWU Local 514 agreed on a six-year contract in December 2023 that expires on Jan. 31, 2028, according to a company filing.

"Westshore has their own ILWU contract that is not impacted by this situation," Global Coal Sales Group President Steven Read said in an email to Commodity Insights on Nov. 4. "Our BNSF trains go direct into Westshore and we expect all operations to continue as normal."

The ILWU local 514 had on Oct. 31 called for a 72-hour strike notice of limited job action to start at 8 am Pacific on Nov. 4, which prompted the BC Maritime Employers Association to lock out all ILWU members at affected terminals starting 4:30 local time the same day, it announced midday Nov. 4.

The largest coal loading facility on the west coast of the Americas, Westshore Terminals shipped 27.7 million mt of coal in 2023, with Japan and South Korea as the primary destinations receiving 13.4 million mt and 7.3 million mt, respectively.

Global Coal Sales Group sells and transports coal from Signal Peak Energy's mine in Roundup, Montana, to Westshore Terminals in Roberts Bank, British Columbia, according to the Montana Department of Commerce.

"We are working closely with the industry to optimize anchorage utilization to ensure port fluidity by prioritizing anchorage assignments to terminals that remain operational," the Port of Vancouver said on Nov. 1.

Westshore Terminals told Commodity Insights that it was not clear if ships from strike-impacted terminals in the area would be diverted there.

"That's up to the other terminals," the terminal said. "We'd have to figure that out at the time."

The terminal also declined to comment on whether diverted marine traffic could impact the normal pace of its coal shipments.

In addition to Westshore Terminals, a second but smaller coal terminal in British Columbia -- Trigon Terminals -- also appeared likely to continue coal shipments without interruption. Like Westshore Terminals, Trigon Terminals already has a collective agreement in place with the ILWU, Canadian newspaper The Globe and Mail reported on Nov. 4.

Formerly Ridley Terminals, Trigon Terminals' aggregate thermal and metallurgical coal exports were 7.3 million mt in 2023, according to Prince Rupert Port Authority data.

The Prince Rupert Port Authority did not immediately respond to a request for comment.

Platts, part of Commodity Insights, assessed FOB West Coast North America 5,750 kcal/kg NAR coal prices down 40 cents from the previous session at $99/mt on Nov. 4. The assessment was based on the Platts NEAT price at $114.78/mt, minus $15.80/mt shipping from Roberts Bank, British Columbia, to Japan. The FOB West Coast North America coal price has been rangebound between $99/mt and $99.85/mt over the past seven sessions.