Detroit. Canada’s two largest rail companies are beginning to shut down their transportation networks as a labor dispute with the Teamsters union threatens to spark strikes that will disrupt cross-border trade with the United States.
Canadian Pacific Kansas City (CPKC) and Canadian National railroads, which transport millions of tons of freight across the border, have stopped accepting some shipments of hazardous materials and refrigerated goods.
Both unions are threatening to lock out Teamsters Canada workers starting Thursday if they fail to reach an agreement.
CPKC will halt all shipments from Canada and all shipments from the United States to Canada on Tuesday, the company said Saturday.
On Friday, Canadian National banned container imports from its U.S. rail partners, The Canadian Press reported.
Jeff Windau, an industrial analyst at Edward Jones & Co., said his firm expects the stoppages to last only a few days, but if they drag on longer, there could be significant supply chain disruptions.
““If they were to continue any longer, I think there could be significant problems, given the amount of freight handled every day,” Windau said. “In general, railways have an impact on almost the entire economy.”
The two railroads handle about 40,000 freight cars a day, worth about $1 billion, Windau said. Shipments of automobiles and parts, chemicals, forestry and agricultural products will be hit hard, especially with the harvest season approaching.
Both companies have extensive networks in the United States, and CPKC also provides service in Mexico. These operations will continue to operate even if there is a work stoppage.
CPKC has expressed its commitment to avoiding a work stoppage that would damage Canada’s economy and international reputation.
““However, we must take responsible and prudent steps to prepare for a potential disruption of rail service next week,” spokesman Patrick Waldron said in a statement.
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– 2024-08-19 01:35:44
