Potential Strike of Canadian Rail Workers on May 22

Trade Update • May 7, 2024

n May 1st, 2024, a substantial number of employees at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) voted to support a potential strike. Following this, the union and the railway companies will undergo a compulsory 21-day federal mediation period. Should negotiations fail, approximately 9,900 workers might commence a strike starting May 22, 2024.

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 delays.

Shipment Alternatives

Businesses expecting to ship goods by train around May 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.

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