coastal trading

Mr. Davies participated as a Senior Consultant in a study led by Michael Kieran of Kieran Management Advisory Services for the Canadian Merchant Service Guild on potential impacts of recommendations of the Canadian Transportation Act Review (CTAR) panel for changes to the Coasting Trade Act. The Coasting Trade Act reserves the carriage of Canadian domestic marine cargo to Canadian vessels and crews. The CTAR final report recommended phasing out of these restrictions, which would allow foreign vessels and crews to carry Canadian domestic cargo. The scope of the study included an assessment of impacts on Canadian jobs, wages and tax revenues; marine training institutes; and the national capacity to maintain a robust marine industry.

The Canadian Merchant Service represents the majority of ships’ officers and pilots in the Canadian maritime industry, and provides a voice for the interests of Canadian Ships’ Officers with 3,800 members, of which there are 1,900 deck officers and 1,200 engineer officers. The objectives of the Guild are to promote the social, economic, cultural, educational and material interests of its members.

The study found that the proposed changes to the Coasting Trade Act would result in the loss of 6,523 Coasting Trade (Freight Only) jobs, with a loss in wages of $472 million and tax revenue of $97 million. Indirect impacts would add $274 million to wage losses and $51 million to tax losses, bringing total losses to approximately 12,000 jobs, $746 million in wages and $148 million in tax revenue.

The results of the study were submitted to the federal Minister of Transport in November 2016. The CMSG submission to the Minister is available on their website.