ALERT:

August 23rd, 2024

Trade Alert: Canadian Rail Strike

Over the past nine months, Canadian rail workers have been negotiating for better pay, benefits, and working conditions. Despite these efforts, they have yet to reach an agreement, leading to a strike among the Teamsters Union. This union represents employees of two major railway companies: Canadian National Railway Co. (CN) and Canadian Pacific Kansas City (CPKC).

On Thursday, August 22, CN and CPKC locked out over 9,000 employees due to the ongoing failed negotiations. This action halted nearly all rail freight in Canada. On the same day, Canada's Labor Minister, Steve MacKinnon, directed the Canada Industrial Relations Board to intervene and order a "final binding arbitration", so that railways resume operations. As a result, picket lines are being dismantled, and CN and CPKC employees are expected to return to work today (though there is now word that the labor minister's work order is being contested by CPKC workers).  The situation is continuing to be monitored closely. 

This strike could significantly impact North American trade and the Canadian economy. Delays and disruptions to supply chains are anticipated and will persist until a successful negotiation is reached. The primary trade lanes being affected by these strikes include intermodal lanes moving from Vancouver and Prince Rupert BC to the upper Midwest and Chicago.  Any prolonged work-stoppages will result in shifting of inbound freight to the U.S. western gateways of Seattle-Tacoma and Los Angeles-Long Beach which would likely result in further congestion and delays at these already-busy ports.

As always, do not hesitate to contact your Rogers & Brown representative or email us at Sales@rogers-brown.com with any questions or concerns. We will keep you updated as we receive new information. 

Thank you,

Rogers & Brown Team