[Freight Weekly] BREAKING: Canadian Rail Stoppage

Port of LA power outages

Author

Boxy
August 22, 2024

🛑Canadian rail giants have shuttered operations due to labor talks failing🛑

In a blow to North American trade right before the peak season of the holidays, Canadian rail giants CN and CPKC have announced rail stoppage along their lines due to the ongoing labor dispute between the companies and the rail conference of Teamsters Canada. The world of freight is reeling. Details:

  • Canadian National (CN) and Canadian Pacific Kansas City (CPKC), the two major Class I carriers in Canada, announced the work stoppage.

  • Importers and exporters are left with little or no options as a shutdown in Canada risks the delay of ocean shipments, cross-border crossings via truck, and spiking freight costs and dwell times as port cargo surges.

  • Trucking industry groups across Canada, including the British Columbia Trucking Association, say they cannot meet domestic needs to keep critical supplies and daily goods flowing between the US and Canada.

  • Dave Earl, CEO of the trucking association, told Supply Chain Dive via Trucking Dive, “There is no possibility trucking can fill the gap of any [labor] disruption on railways…[This] will create significant disruption.”

  • The stoppage isn’t a strike. The rail companies said the 9,000 Teamster Canada Rail Conference members can’t work. This will also harm trade.

  • Being that the US and Canadian economies are highly integrated, U.S. Department of Transportation data indicates that bilateral trade between the two countries that is fed through rail transport is valued at $382.4 bil.

  • West Coast ports in British Columbia, Washington state, Oregon, and, of course, California, are worried about spillover. Scott Shannon, the vice president for Canada ops for C.H. Robinson, based in Minnesota, told Freight Waves, “Both railroads simultaneously being out of commission would paralyze the ports and put [a lot of] instant pressure on trucking.”

  • Canadian PM Justin Trudeau said, “It is something that has an impact right across the country, from workers to businesses to farmers to consumers. ... That’s why we are on this,” referring to labor mediation.

  • US Amb. to Canada, David Cohen, said the State Dept. is concerned.

Bottom line: The bottom line is that trade between the United States and Canada is about to undergo a bind in trade. As the peak season approaches, there is due time for cargo spillage at major ports along the Pacific coast. Hopefully, Trudeau government-backed mediation and intercession will resolve the crisis quickly.

COMMENTARY: Who to blame for the railway labour dispute? Ottawa, but not why you think - The Globe and Mail by Bruce Curran

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