Thank you, Mr. Chair, for the opportunity to speak today.
We're here to speak to you about some initial concerns we have with the agreement and the potential impact on domestic short sea shipping. While we believe that CETA is good for Canada, aspects of its implementation have potentially unintended negative consequences for our part of the marine sector and consequently the resilience of the Canadian supply chain.
Our main concern is associated with the concept of maritime feeder services with European vessels and the impact it could have on Canadian domestic short sea shipping. We are seeking support for our industry through this committee to ensure that Canada maintains a predictable operating environment for its domestic shipping. We are all seeking a very robust trading environment, and our industry has a uniquely Canadian capacity that could be unknowingly marginalized, depending on the conditions, and more importantly, the implementation details of the trade agreement. In order to understand the concern, I will speak briefly to our industry and then more about maritime feeder services.
Our association is quite old; it was established in 1903. It represents companies operating and owning Canadian ships, employing Canadian mariners, paying Canadian taxes, and operating in the unique and demanding Canadian waterways that are part of a larger short sea shipping industry on the Great Lakes, the St. Lawrence waterway, the St. Lawrence River, eastern Canada, and the Arctic. It has an economic impact on this region of $35 billion annually. We represent the lion's share of the Canadian domestic fleet operating in that area, but have also reached out to other non-members to discuss our messages to you today.
We're operating 86 vessels consisting mainly of bulkers, self-unloaders, general cargo ships, and liquid bulk tankers. Indeed, for most Arctic communities, our vessels are the only way in which to attain affordable and reliable goods and items necessary for survival, everything from food to fuel to even houses. Our fleet carried 50 million tonnes of cargo last year, including iron ore, coal, grain, aggregates, and general cargo. Over 70% of the cross-lake traffic in the Great Lakes between the U.S. and Canada was done by our fleet, indicating that there's a heavy demand by both American and Canadian shippers.
Our membership does what is called short sea shipping, which is the transportation of cargo between ports in Canada, largely on inland waterways and coastal waters. These are generally short runs of a duration of hours and days, not weeks and months as in the case of global shipping. Our fleet is unique and built for Canadian waters, and we only trade in these waters. Our mariners have an incredible amount of experience and training. Our fleet is a unique Canadian capacity, and industry and government have built it together through sound policy and investment.
Many countries seek a stable, sovereign, commercial fleet to ensure they have a reliable source of transportation, which is key to economic growth and the safety of the overall transportation network. Growing and replacing this capacity of human capital, infrastructure, and process takes time, and if lost, would not be replaced, leaving Canadian and American shippers potentially vulnerable to the variances of foreign market pressures, putting more trucks on the roads, and pushing the rail system capacity.
Our member companies are making major investments in technology and capacity, and present a solution to sustainable and green transportation. Canadian ships on Canadian trades are 24% more fuel efficient than rail, and over 500% more fuel efficient than trucks. With the government's removal of a 25% import duty on new vessel construction, our member companies responded by investing over $700 million in world-class vessels. These are green and efficient vessels designed specifically to trade in our unique waters in Canada. Indeed, as an industry that is part of a larger global supply chain linking the North American economic heartland to the world, we anticipated that the capacity we are investing in would be well timed for growth.
We have built our business, our fleet, and our labour force on the predictability of the market. Currently, under the Canadian coasting regime, trading from Canadian port to Canadian port can be done only by Canadian registered vessels, unless there is no Canadian shipping capacity available at a reasonable value. This regime has worked relatively well, providing services to shippers when needed while growing the Canadian marine industry. Our government has been a partner in ensuring the reliability and safety of transportation and infrastructure.
I'll move on to maritime feeder services in general. As I mentioned, the essence of our concern is with regard to potential maritime feeder services.
Although the details are really not yet fully understood by our industry, Transport Canada officials have informed us that the maritime feeder services are part of the agreement. Although we look forward to seeing trade enhanced, and our role in the supply chain enhanced too, this decision represents a potential significant alteration in markets and introduces a high level of unpredictability into our industry, both for shippers, who are our customers, and shipowners alike.
As a Canadian flag fleet with only a short sea shipping market to trade in, we believe that our sensitivity is much higher than international fleets that can seek other markets globally. We are concerned that attempts to present this message to our government were difficult to place and not completely understood. It's quite a complex issue.
You might ask why we should not encourage foreign-crewed and foreign-owned vessels to move cargo between Canadian ports.
First, there is no assurance these vessels will continue to trade in Canadian waters in the long term. The current economic downturn in the global shipping industry encourages foreign shipowners to seek unique market opportunities, such as Canadian maritime feeder services. The Canadian domestic short sea shipping fleet cannot do the same. Consequently, when global trade picks up, there is little assurance that foreign vessels will remain active in maritime feeder services and they could seek opportunities that are more lucrative elsewhere globally. Such an unpredictable situation, if encouraged by the agreement, could marginalize the domestic capability.
Second, foreign crews do not necessarily have the long-term experience and training required to navigate in some of the most sensitive ecosystems in the world: our waters. Piloting a ship in coastal and inland waters, often during severe weather, is incredibly demanding and requires the utmost understanding of not only navigation and ship manoeuvring, but also a myriad of regulations designed to protect our waters and coastlines.
Third, our mode of transportation is the greenest and safest form of transportation in existence. One ship has the same capacity as 301 railcars or 963 trucks, and consequently, has the lowest emissions of greenhouse gases. Likewise, the Canadian marine industry's safety record is second to none because both the government and the industry have made a long-term and sustainable investment in training, regulation, and innovation.
In conclusion, we strongly believe the government should consider the potential long-term consequences of permitting unrestricted access to traditional domestic marine trades. Canada's successful economy is dependent on predictable and safe marine transportation, and it will continue to play a key role in the supply chain in Canada and globally.
The agreement could be a windfall for our industry, and hopefully it will respect our role in the domestic and global supply chain. Indeed, we would like to see our government use the agreement and other policies as mechanisms to grow Canadian short sea shipping.
Thank you again, Mr. Chair, for the opportunity to speak.