CN and CPKC Potential Strike [Update]

Trade Update • August 14, 2024

eamsters Canada Rail Conference (TCRC) representing more than 9,300 Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) railway workers warned last week that lockouts on August 22, 2024 are imminent unless new contracts with their employees can be secured.

CIRB Ruling

The warning was a result of the Canada Industrial Relations Board (CIRB) ruling that a work stoppage would pose no “serious danger” to public health or safety, opening the gate to a full-fledged strike or lockout. If either occurs, employees at CN or CPKC would not be compelled to continue hauling goods, including key commodities such as chlorine for water and propane for care centres.

Prepare for Disruptions

A strike of this nature would severely disrupt the transportation of goods, particularly affecting the transition of imports from oceanic arrivals to rail terminals. The movement of freight between rail junctions and seaports is also likely to be hindered. Key commodities such as grain, potash, and coal would face significant delivery delay.

Shipping Alternatives

Businesses expecting to ship goods by train around August 22 should check if their shipments might be affected by the impending strike and seek alternative land transportation options with their freight handlers.

Moreover, importers need to prepare for potential demurrage fees due to the storage of their goods at Canadian marine terminals, should the labor dispute lead to delays.

For questions or concerns about if your products are affected please contact us.