Thank you, Chair and committee members, for taking the time to hear from us today.
My name is Chris Given and I'm the director of government relations for the Seafarers' International Union of Canada. The SIU represents thousands of Canadian and permanent-resident seafarers working on board all types of Canadian-flagged vessels operating from coast to coast to coast.
We're very pleased to be with you today to speak to the state of Canada's supply chain.
The domestic marine shipping sector and Canadian seafarers play a critical role in supporting and maintaining Canada's supply chains. In the St. Lawrence Seaway and the Great Lakes alone, Canadian vessels deliver more than 230 million metric tons of cargo, worth over $100 billion annually. These vessels deliver cargo such as iron ore, road salt, petroleum products, stone and cement, and agricultural products for domestic and overseas consumption. North American farmers, steel producers, construction firms, food manufacturers, power generators and Canadian households all depend on marine shipping.
The COVID-19 pandemic has had significant impacts on mariners throughout the world. Through the pandemic, seafarers engaged in international trade have endured great hardship, as thousands of workers were stuck on board vessels for up to 20 months and denied shore leave and access to medical care in many countries. Although the domestic workforce was spared some of the more terrible conditions endured by international seafarers, the situation has not been easy.
When we speak about “building back better”, we must ensure that present and future plans respect workers' rights and enshrine workers' health and safety. We're proud to say, as an industry, that domestic marine shipping has continued without any major stoppages throughout the pandemic. Industry and labour have done well to work together to ensure that vessels continue to operate and deliver for Canadians.
Of significant importance to the domestic shipping industry—both labour and ship owners—are the regulations of the Coasting Trade Act, which dictate that all domestic transportation of goods and passengers must be done on Canadian-flagged vessels using Canadian crews. The COVID-19 pandemic has largely drawn attention to the fact that having a dedicated domestic fleet of vessels and a capable and well-trained workforce is critical to maintaining our supply chain security. This segment of the industry, known as cabotage, has largely been spared from the supply chain backlogs and setbacks experienced in the international shipping sector. This is something that has been seen throughout the world during the pandemic, and many countries are refocusing efforts to ensure that they have sufficient capacity for domestically owned and operated fleets to be able to transport goods and passengers.
As the committee examines solutions to make the supply chain more resilient, we strongly advocate that cabotage and the domestic shipping sector can play a vital role in alleviating some of the congestion issues that become increasingly problematic. For example, short-sea shipping—moving goods via ships over short distances—can act as a complementary segment to road and rail. While large international vessels deposit containerized goods in major coastwise ports, very few of these containers are moved further inland or through the seaway via smaller vessels or tug and barge. There are opportunities there to capitalize on one of the most underutilized supply chain infrastructures in Canada: the seaway system itself.
As one seaway-sized vessel is capable of carrying the same cargo load as approximately 300 railcars, or almost 1,000 trucks, the use of Canadian vessels to alleviate container congestion is a safe and sustainable alternative. This has already been done successfully in the Arctic, where numerous Canadian shipping companies operate the annual Arctic sealift, providing a once-per-season delivery of critical goods, much of it containerized, to communities throughout Canada's Arctic regions.
In addition to addressing the need for resiliency, marine shipping can help Canada meet its needs to reduce harmful emissions and address sustainability issues in the supply chain. Domestic shipowners have invested over $4 billion over the last decade to refurbish and build new domestic vessels that use the latest engine and fuel technologies, giving marine shipping the ability to boast the lowest emissions per tonne moved by mode of transportation.
As indicated in the very recently released 2030 emissions reduction plan, the Government of Canada also plans to focus on the use of ammonia as another marine fuel alternative. This can only further improve emissions reductions in this sector.
In summary, Canada boasts some of the most technologically advanced and lowest-emission vessels in the world. They are owned and operated by well-established Canadian shipping companies willing to invest in additional tonnage and capacity. They are crewed by Canadian and permanent-resident seafarers, who are among the best trained and most knowledgeable mariners in the world, with continued access to leading training providers at Canada's marine schools and training facilities.
As part of the committee's work, we encourage you to look at ways to strengthen this segment of the supply chain and take this opportunity to increase jobs and investment in the domestic shipping sector using Canadian-flagged vessels and Canadian workers.
Thank you very much for the opportunity to speak to you today. I look forward to your questions later.