Jason Card, Senior Director of Communications of the Chamber of Marine Commerce, has issued a statement urging the federal government to include marine shipping in its proposed subsidy that presently just involves the rail mode for supporting Canada’s steel and lumber industries hit by the heavy Trump Administration sectoral tariffs.
As part of a series of measures last November, the federal government indicated it will provide funding to Canadian National and Canadian Pacific Kansas City Railways to enable a 50% reduction in freight rates for interprovincial shipments of Canadian steel and lumber, starting in spring 2026.
“To be clear, the Chamber of Marine Commerce (CMC) is very supportive of initiatives aimed at helping the steel industry at this difficult time, as steel producers are included in the companies that make up our membership,” said Mr. Card.
“With that said, marine shipping was not included within this proposed subsidy, and CMC member feedback has indicated this omission has already caused dangerous competitive imbalance for our industry.”
As an example, Mr. Card referred to “hundreds of thousands of tonnes of finished steel moved annually from Sault Ste Marie to Valleyfield Quebec by the marine mode via specialized vessels.
“Member feedback tells us the proposed subsidy is sufficiently favoring rail that it is putting at risk:
- tens of millions of dollars in vessel costs incurred by McKeil Marine to provide bespoke vessels for the service, and
- thousands of cumulative working hours through the direct and indirect employment of personnel at the Port of Valleyfield.”
Mr. Card pointed out that Section 5 of the Canada Transportation Act states Canada’s transportation system should make the best use of all modes at the lowest total cost, and that public intervention should not unduly favor one mode or diminish the inherent advantages of another.
“Clearly, this policy is not being followed,” Mr. Card affirmed.
And in conclusion, he declared: “Outreach to the Federal Government to date has not provided clarity about timelines or details for the implementation of this initiative. We only know that implementation happens in the spring, which could be in just a few weeks. Our ask is to correct this subsidy proposal so that an action that was intended to do good does not inadvertently create harm. The way to do that is to include marine shipping. Given the Federal Government wishes to encourage internal trade between provinces, including marine shipping just makes sense, and our members stand ready to assist in that endeavor.”
Issue raised in Parliament
Meanwhile, in a related development last Friday during Question Period in the House of Commons, Bloc Québecois MP Claude DeBellefeuille for Salaberry, Soulanges and Huntingdon, struck out at the prospect of “unfair competition between rail and maritime” and called on Ottawa to add a maritime dimension to the program.
In response, Melanie Joly, Minister of Industry, suggested she would look into the matter with the Minister of Transport “to find a solution.”
(Photo of Jason Card)