October 11, 2024 9:20 am
Canadian Railways resume operations after a short shutdown. Learn how this surprising disruption impacted freight traffic and what’s next for the industry.
Canada’s biggest railways, Canadian National Railway Co. (CN) and Canadian Pacific Kansas City (CPKC), are running again. They stopped last Thursday due to a work stoppage. Over 9,000 workers were locked out because of a contract dispute with the Teamsters Canada Rail Conference. This caused a big disruption in moving goods across the country and affected commuter trains in Toronto, Montreal, and Vancouver.
The shutdown ended after the Canada Industrial Relations Board (CIRB) ordered both the companies and workers to go back to work. This decision came on Saturday, and rail services started again at 12:01 a.m. on Monday. Even though the union plans to fight this decision in court, the return to work is important for getting things back to normal for freight and commuter trains in Canada.
Even though the shutdown was short, it caused a lot of problems. CN and CPKC had stopped accepting shipments for more than a week before the lockout. This created a big backlog and affected many businesses. Goods in containers, especially through important ports like Vancouver and Prince Rupert in British Columbia, were stopped. This happened when these ports were already busy with a lot of import traffic.
The disruption also hit trade between Canada and the U.S., which was worth $9.1 billion in June. Railroads are key for moving a large part of this trade between the two countries.
Now that the railways are operating again, CN and CPKC are working to clear the backlog and get everything moving smoothly. Experts think it could take up to a week to reset the rail networks. However, it might take longer to handle all the delayed shipments and get supply chains back to normal.
The Vancouver Fraser Port Authority (VFPA) said it is working with shipping lines, rail companies, and marine terminals to recover. They are focusing on prioritizing anchorage and balancing the needs of different businesses and goods to get the ports back to full operation.
Even though trains are moving again, there are still some challenges. The union’s plan to appeal the CIRB decision could cause more delays. Disputes like this in the transport sector can have big impacts, so everyone is watching closely to see what happens next.
The agriculture sector in Western Canada is especially concerned. The wheat harvest is happening now, and farmers rely on rail to get their grain to market. Exporters of farm and forest products in Canada and the U.S. are hoping for a steady solution so trade can continue without more problems.
For truck drivers in Canada and the U.S., the Canadian railways running again has mixed effects. Rail disruptions can lead to more demand for trucking to move goods that trains can’t, but they also make the supply chain less predictable. Truckers might find more work hauling delayed goods but should be ready for possible traffic and timing issues as rail companies clear their backlog.
Logistics providers are working closely with customers to avoid more problems, especially at key ports like Vancouver, which depend on rail to move most of their goods. Truck drivers should stay updated on port operations and be ready for changes that might affect their routes.