Canada’s largest railway company says the ongoing workers’ strike at ports in British Columbia could increase costs and inflict economic damage that could take months to correct.
Business
B.C. ports strike could inflict damage that takes months to correct, warns Canada’s biggest railway
Canadian National Railway Co. said the labour disruption could result in increased shipping and consumer costs.
“A labour disruption can create significant impacts on shippers’ decisions to use Canada’s ports,” spokesperson Jonathan Abecassis said in a statement. “Given the integrated nature of ports and rail corridors, a work stoppage can create disruptions that take weeks or even months to correct.”
Other businesses and groups echoed similar sentiments. The Retail Council of Canada (RCC) said supply-chain specialists are working to find alternative transportation to ensure that goods reach stores. It also warned that any delays caused by the strike could increase consumer prices since shipping companies charge for the time goods are on ships, trains, trucks or in container terminals.
The retail council said many imported consumer goods enter Canada through B.C. ports, so any impact could be “North America-wide,” especially since companies will have to spend money to arrange alternative transportation methods.
The Canadian Federation of Independent Business (CFIB) said strike-related delays could prove to be more costly for small businesses and come when the economy is still reeling from high inflation.
“Some businesses may lose inventory if perishable goods are not unloaded and brought to market quickly, which would lead to considerable loss of revenue,” Jasmin Guénette, CFIB’s vice-president of national affairs, said in a statement. “Contracts are also at risk if goods are not delivered or received on time.”
Robin Guy, vice-president of government relations at the Canadian Chamber of Commerce, said the ports in Western Canada handle more than $800-million worth of cargo every day, ranging from agri-foods and potash to critical minerals, and construction materials to household necessities.
The Canadian Federation of Agriculture (CFA), a group that represents about 190,000 farm families, said that the longer the strike lasts, the worse the impacts will be for farmers as vessels delayed in port charge demurrage fees and other penalties that are passed down to the farmer.
“Farmers aren’t paid until their products reach export markets, and these ports are the only effective manner that many farmers can get their products to those markets,” said Matt Houston, a CFA spokesman.
Canada’s largest mining group, the Mining Association of Canada, said that the shutdown of the ports has put Canada’s reputation as a trusted producer of minerals in question.
Businesses have urged the government to provide incentives to ensure negotiations between the port’s workers and employers continue.
But statements by both the union and BCMEA signal there has been a breakdown in discussions.
The ILWU said the employers’ association was not willing to engage in any “meaningful way on substantive issues,” and urged it to get back to the table to “achieve a fair and reasonable” agreement.
“We hope the BCMEA is not using its vast resources and connections to vilify the union and scare the public with tales of economic disaster,” ILWU president Rob Ashton said in a statement on July 3. “We hope the association can rise to the occasion and engage in meaningful talks with the union and get a deal done.”
A joint statement last week by federal ministers Seamus O’Regan and Omar Alghabra urged the two parties to get back on the bargaining table.
“The best deals are made at the bargaining table,” the government said. “That is our focus here.”
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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
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Yuri Kageyama is on X:
The Canadian Press. All rights reserved.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
Companies in this story: (TSX:SHOP)
The Canadian Press. All rights reserved.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
Companies in this story: (TSX:REI.UN)
The Canadian Press. All rights reserved.
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