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A critical trade route in Canada is shuttered following a labor dispute involving more than 700 unionized dockworkers at ports across British Columbia (Bloomberg).

What’s going on: The BC Maritime Employers Association “said it made ‘the difficult decision to lock out forepersons’ and other [International Longshore and Warehouse Union Local 514] members as of 4:30 p.m. Pacific time [Monday], until further notice.” 

• The BCMEA said Wednesday there had been “no engagement” with the union or federal mediators since Monday (CBC).
• The move came after members of the International Longshore and Warehouse Union Local 514 issued a strike notice earlier Monday over a labor dispute.

Why it’s important: The shutdown disrupts approximately $576 million a day in trade, according to the Greater Vancouver Board of Trade, and is affecting shipments of everything from automobiles and forestry to steel and potash fertilizer, of which Canada is the world’s leading producer, according to CBC. 

• It’s particularly trying for shippers as time runs short before the holiday season, and it compounds some existing port challenges for Canada. The country’s second-largest point of entry, the Port of Montreal, remains partially closed following strikes by workers last month (CBC).

The potential economic impact: A port strike in British Columbia last year reduced Canada’s gross domestic product by the U.S. equivalent of about $527 million to $708 million, Bloomberg reports. 

What we’re doing: The NAM has been closely tracking the situation on both coasts of Canada to determine the potential effect on manufacturing in the U.S.

• “We’ve been speaking to manufacturers and our Canadian partners to assess the impacts of these closures,” said NAM Director of Transportation, Infrastructure and Labor Policy Max Hyman. “It’s important that both sides negotiate in good faith to reach a resolution and protect manufacturing supply chains.”