Western Canada port workers strike | Solar driving up silver demand | US chicken companies face price-fixing claims

In today's Portfolio Intelligence Daily:

• Western Canada port workers strike
• Solar driving up silver demand
• US chicken companies face price-fixing claims

Each day we spotlight under the radar investment themes and idiosyncratic risks, often involving emerging markets, supply chain issues, ESG risks, and the impact of regulatory changes.

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Western Canada port workers strike

On Saturday morning, port workers from the International Longshore and Warehouse Union (ILWU) went on strike, impacting Canada's west coast ports, including Vancouver and Prince Rupert, the nation's first and third-largest container ports.

• The strike involves some 7,400 workers of 49 waterfront employers, including DP World.
• The main issues are higher wages, protection for workers against automation and restricting the use of non-union labour at port-related operations.
• Business groups have called for government intervention, warning that the strike would have dire repercussions for the Canadian economy, but ILWU Canada president Rob Ashton said the Canadian government should not interfere, arguing that there would "never be peace on the waterfront" if a labour contract was imposed by Ottawa.
• CN Rail declared embargoes effective 1 July for traffic to ports affected by the labour stoppage.
• The Vancouver and Prince Rupert ports are critical shipping points for containers, and the automotive, agriculture, energy, and forestry industries.?

"It affects so many different industries. Those containers have everything that we see around us ... it's not like it's just one type of commodity or two types of commodity. These are literally every single thing you see around you." — Aaron Sandhar, general manager of Sandhar Trucking

Select timeline

• June 3, 2023 | Canada's west coast ports hit by strike as labour contract talks fail (The Loadstar)
• June 3, 2023 |? | Western Canada dock workers to resume talks Monday as strike enters third day (Reuters)
• June 2, 2023 | 'We're here 'til the end': B.C. port workers strike enters second day (CTV News Vancouver)

Tags: #strike #labor #canada #shipping #ports

Solar driving up silver demand

The increasing demand for silver in solar panels due to changes in solar cell technologies is putting a strain on the global supply of the metal

• As newer solar cell technologies become more efficient, they require more silver, which is increasing demand for the metal.
• Solar is still a fairly small part of overall silver demand, but it is growing and forecasted to make up 14% of consumption this year, up from around 5% in 2014.
• Much of the growth in solar silver demand is coming from China, which is on track to install more panels this year than the entire total in the US.
• Silver supply was flat last year as demand rose by nearly 20% as miners are reluctant to commit to large new projects with lower margins in silver compared with other precious.
• Chinese solar companies, including Longi Green Energy Technology Co, are actively exploring using cheaper alternatives like electroplated copper, with mixed results.?

Select timeline

• July 2, 2023 | The World’s Appetite for Solar Panels Is Squeezing Silver Supply (Bloomberg)
• May 3, 2023 | New method allows for recovery of 100% of the silver in thin-film solar cells (Mining.com)
• January 4,, 2023 | The 'Elon Musk Effect' Has Also Reached Silver | investing.com (Investing.com)

Tags: #silver #mining #solar #tesla #longi ?

US chicken companies face price-fixing claims

A federal judge has ordered major chicken producers Pilgrim's Pride, Sanderson Farms, and Tyson Foods to face a price-fixing lawsuit.

• The lawsuit alleges that the companies conspired to inflate broiler chicken prices by reducing supply.
• The judge, Thomas Durkin, noted that the companies had exchanged sensitive production data with each other, which is not typically done by competitors.
• The companies have previously settled claims with some of the plaintiffs, including a $221.5 million settlement announced by Tyson.

Select timeline

• July 1, 2023 | US chicken producers ordered to face price-fixing claims By Reuters (Investing.com)
• June 30, 2023 | US chicken producers ordered to face price-fixing claims (MarketScreener)
• April 6,, 2023 | Big Chicken settles $35 million lawsuit in fowl price fixing scheme (MyNorthwest.com)

Tags: #chicken #pilgrimspride #sanderson #tysonfoods #poulryindustry

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