Significant supply chain disruption from Canada and the US as Canadian Rail Unions due to start strike
A massive work stoppage for the rail freight sector is due to begin in Canada on Thursday 22nd August. For the first time, Canada’s two main railway companies – Canadian National Railway and Canadian Pacific Kansas City – are on the verge of a simultaneous labour stoppage, significantly impacting both Canadian and international supply chains.
Canada’s labor minister will meet the country’s two main railway companies and the Teamsters union in Montreal on Tuesday and Calgary on Wednesday with hopes to avert a crippling rail transport stoppage. Talks between parties have been stalling since June.
If an agreement isn’t reached and strikes go ahead, containers and vessels will be diverted to US ports causing huge backlogs. A significant amount of volume into the US passes through the Canadian gateway ports of Vancouver, Prince Rupert, Montreal and St John into the Midwest.
It will lead to a surge in bookings to and from US ports, with associated congestion, lack of equipment and space issues and will contribute to wider knock-on effects of the global supply chain.
We will monitor the situation and provide our customers with the necessary updates. For more information, contact your Customer Relationship Manager today on 01375 856060 or email crmteam@ugroup.co.uk to discuss.
FOLLOW US
Unrivalled Ocean Freight
Award Winning Airfreight
Premium European Services
Unrivalled Ocean Freight
Award Winning Airfreight
Unrivalled Ocean Freight
DON’T MISS A THING
Subscribe now to receive our monthly market update straight into your inbox
Distribution warehouse design: optimise your logistics for success
Whether you are setting up a warehouse distribution centre from scratch or optimising an existing one, getting your distribution warehouse design right can lead to significant cost savings and smoother processes. A well-executed warehouse design not only improves the...
Understanding warehouse logistics
Warehouse logistics is a crucial component of efficient supply chain management. It plays a fundamental role in ensuring goods move smoothly from suppliers to customers while minimising costs and maximising efficiency. This comprehensive guide will cover everything...
Red Sea Disruption Update
The Red Sea crisis has been ongoing for more than a year and the situation still remains volatile. Power struggles in Syria adds to the volatility. Amongst celebrations from many Syrians of getting rid of the old regime, a power struggle has emerged between internal...