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.