How a post-9/11 cargo screening rule means N.L. consumers may pay more, wait longer for goods

There are concerns that recent changes to the enforcement of international marine cargo screening rules will hurt Newfoundland and Labrador's economy — and siphon more cash out of the pocketbooks of people in the province.

"If you're getting a laptop that you're purchasing from overseas somewhere, it might be $1,000, and now with all these extra segment costs, it might be $1,200 for the consumer to buy," Chris Newhook, general manager at the Port of Argentia, told CBC News.

Containers coming from international ports into Canada have to be taken off ships and screened for radiation. That requirement is part of a suite of post-9/11 anti-terrorism measures aimed at bolstering security. (It doesn't apply to cargo from the U.S., which is pre-screened upon departure.)

There is no scanner to do that in Argentia, but that wasn't an issue for years — until a recent decision by the Canada Border Services Agency.

"Eimskip has been calling to Argentia since 1989 and they were not impacted by the introduction of this," Newhook said, referring to the international shipping firm.

"So whether it was smaller volumes or whether it was just an overall risk assessment, that was not introduced for the calls to Argentia."

But now it is. CBSA says cargo ships from international ports can't use Argentia as the first port of entry. 

Instead, they must go to a port with the scanning technology — usually Halifax, which is one of only five sites with the equipment in the country — before making their way back to Newfoundland.

Newhook said the decision "is going to be a significant thing for our local economy and our consumers and businesses," meaning extra travel time and added costs to be borne by shipping companies.

A Newfoundland seafood company says those extra costs are being passed down the line to them — and others.

"There are many companies in Newfoundland, in other parts of Canada, that are going to be impacted by this charge," said Alberto Wareham, president and CEO of Icewater Seafoods.

The company, based in Arnold's Cove, employs 200 people. Wareham says they operate the only fish processing plant on the continent with a year-round focus on North Atlantic cod, producing premium products for customers in Europe and North America.

He notes that they are importing about 100 containers of raw material to supplement their local supply of cod, and new charges linked to the decision are costing about $56,000.

Not only that, Wareham is concerned that the situation could lead international cargo carrier Eimskip to question the viability of its service in Argentia — something that could impact their export business, in addition to their import business.