August 23, 2024

Update

Workers at The Canadian Pacific Kansas City railroad and the Canadian National Railway were locked out at 12:01 a.m. on Thursday after negotiations had failed to come to fruition. After less than 24 hours, The Canadian government ended the rail work stoppage and ordered all parties into binding arbitration.

Canadian Rail Freight - Disruption to impact logistics operations

See below a FAQ on the current situation relating to potential disruption to rail freight cargo in Canada. According to the most recent article in Reuters, "the railways transport about C$380 billion ($277 billion) worth of goods and commodities annually, and the impact of the rail stoppage is expected to be felt across North America."

Keep up to date and reach out to the Crane Worldwide Logistics team if we can provide support at this time, we have facilities available in Vancouver, Calgary and Toronto. 

Will there be a rail strike in Canada? 

Two rail companies, CN Rail and CPKC, are currently negotiating labor agreements with over 9,000 workers. The agreements have not been finalized yet. Potential strike action or a network shutdown could be imminent if discussions to not finalize an agreement. 

When will the rail strike commence and for how long? 

Action may start on Thursday 22nd August and last until all parties reach a resolution through mediation. This could potentially take between two to three weeks. 

What will be the impact on logistics operations in Canada? 

The impact of ceasing rail freight operations will be felt throughout Canada. The effects will be noticeable in Canada's logistics system and also in North America. This is because both railway companies transport goods to the United States and Mexico. 

Will the rail strike create supply chain disruption and for how long? 

Inevitably, we can expect supply chain operations to be heavily disrupted with the lack of rail freight services.  

Whilst trucking services and transloading capabilities can support in the short term, rail distribution is a vital component of the Canadian economy. The impact of the disruption will be dependent upon the time it takes for all parties to come to a resolution. 

The steamship lines have already stopped accepting bookings to inland Canadian ports like Toronto and booking into Montreal is currently a feasible option, but the longer the situation continues the expectation is that Montreal may become overwhelmed quickly. 

Other options could, at that point, be Halifax or potentially U.S. ports and trucking goods into Canada. 

How can Crane Worldwide Logistics Canada help? 

Crane Worldwide Logistics Canada has warehouse space available throughout Canada, in particular our warehouse in Vancouver can offer transload services that could be of use if the situation escalates. 

Crane Worldwide Logistics also has locations throughout the United States and fully owned domestic transportation services for trucking into Canada. 

Don't hesitate to reach out to our logistics experts in Canada.