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Freight has been paralysed and there is a general rail strike in Canada today
Canadian National Railway officially notified the Canadian Teamsters Union that the general strike will begin at midnight today (22nd) when a lockout ban is imposed on union workers. In a statement, the company said that if the labor conflict is not clearly resolved in the short term, it will shut down the operating network in phases, eventually leading to a complete shutdown.


There is a general rail strike in Canada today


Canada's two major rail companies, Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC), are facing the risk of an unprecedented simultaneous shutdown and will begin a strike in the early hours of today (22nd).

The news has attracted widespread attention from the industry, especially shipowners and freight forwarding executives who say the Canadian government is expected to step in to coordinate. If the strike lasts only one or two days, its impact may be manageable; However, given that rail mainly carries bulk cargo, and the proportion of cargo transported by intermodal transport (IPI) is relatively small, it is reminded that some cargo may be adjusted in time to enter and leave the West American ports.

International media have warned that the strike could cost the economy billions of dollars because Canada relies heavily on trains to transport grain, beans, cars, potash, coal and other bulk goods. According to the Vancouver Board of Trade, up to $1 billion worth of goods are transported daily by Canadian rail, underscoring the importance of the rail system to the nation's economy.

In a statement, CN stressed that if the labor conflict is not immediately and clearly resolved, it will have to gradually shut down the network, eventually leading to a complete shutdown. CPKC has officially notified its train drivers' union that it will start the work stoppage early on the morning of the 22nd. The union has also issued a 72-hour strike notice, and unless a last-minute agreement is reached, workers will stop work on time.

Domestic freight operators pointed out that shipping companies have not yet adjusted rates on Canadian routes, possibly based on the judgment that the strike will not last long. However, if the strike lasts for three or four days or even more than a week, its impact will gradually expand and may affect the West American ports, because some of the cargo in the Midwest and central South of the United States is originally transferred through Vancouver or Prince Rupert of Canada.


The Canadian railway strike


It is worth noting that the labor agreement between CN and CPKC expired at the end of 2023, and the two sides have been negotiating a new agreement. Under Canada's federal Labour law, the Minister of Labour has the power to order the parties to enter into binding arbitration to seek a resolution. Similar measures have already succeeded in quelling a strike by dockworkers in British Columbia.

At present, CPKC has announced the suspension of all cargo shipments from Canada and the United States to Canada, while CN has banned the import of container cargoes from American Cooperative Railways, further increasing tensions in the logistics chain.
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