Potential Rail Work Stoppage Looms
Canada’s two largest railroads, Canadian Pacific Kansas City (CPKC) and Canadian National (CN), are bracing for a potential lockout or strike by Teamsters Canada next week, a move that threatens to cripple cross-border trade with the U.S. Both railroads have started halting shipments, particularly hazardous materials and refrigerated goods, as they prepare for a potential shutdown. This disruption could severely impact industries reliant on rail transport, including automotive, chemicals, forestry, and agriculture—especially as the harvest season approaches.
CPKC and CN, which collectively handle 40,000 carloads daily, are integral to the North American supply chain. The impact of a prolonged stoppage could ripple across the economy, with $1 billion in daily freight at stake. While the trucking industry may mitigate some of the disruptions, its capacity to fully replace rail shipments is limited. This situation mirrors the near-strike in the U.S. rail industry two years ago, where similar issues around crew scheduling, safety, and worker fatigue led to significant tension. Despite ongoing negotiations, the outlook remains uncertain.
With TLC’s expertise in logistics and contingency planning, we are here to support your business through potential supply chain disruptions. Contact us today to explore alternative transport solutions and ensure your freight keeps moving.
Click Here to read on.
