Advisory Notice: Canadian Railway Strike and U.S. Cargo Disruptions

Updated August 23, 2024: Rail strike ends in less than 24 hours with the intervention of the Canada Industrial Relations Board stepping in.

On August 22, 2024 at 12:01am, the Teamsters union’s strike against Canadian National Rail (CN) and Canadian Pacific Kansas City (CPKC) has commenced, potentially causing severe disruptions to U.S. cargo and trade. This strike represents a historic challenge as it involves both major Canadian rail operators simultaneously.

Canada’s rail system is a crucial conduit for cross-border trade, transporting about C$380 billion worth of goods annually. The disruption threatens to halt shipments of critical commodities, including grain, potash, coal, and petroleum products. This could lead to significant delays in US-bound cargo, impacting industries reliant on timely deliveries, such as agriculture and energy.

Moreover, the strike will affect the transport of chemicals and vehicles, with ripple effects likely to impact supply chains and inventory management across North America. Approximately C$1 billion worth of goods are transported daily by rail, including aviation fuel essential for major airports like Toronto’s Pearson.

Already, the ocean carrier, Ocean Network Express Pte. Ltd. (ONE), has declared “force majeure” for all shipments in and out of Canada beginning August 22. Some carriers are seeking to divert freight to U.S. ports or providing over-the-road options.

NNR is closely monitoring the situation and working directly with our clients to develop business continuity plans. We are prepared to assist with cargo rerouting and alternative solutions to mitigate potential disruptions. Stakeholders are advised to stay informed about developments and adjust plans accordingly.