Oh Canada! The Next Rail Stoppage is Canadian

There’s another railroad work stoppage brewing. This time it’s Canadian National Railway and Canadian Pacific Kansas City. 

As mentioned in our Quick Hits section last week, the lockout of union workers by the two companies began on Thursday, August 22. 

Going off the rails? Canada’s two largest railroad operators said they were done after talks over labor contracts went nowhere. Their lockout lasted for 16 hours before the government intervened.

Getting back on track? The government forced Canadian National and CPKC into arbitration with their labor union on Thursday. Late Thursday evening, CN lifted its lockout, but a new collective bargaining agreement hadn’t been reached. 

Oh Canada! The U.S. imports more than 80% of its potash supply from Canada. A railroad stoppage would be kind of a big deal.

Soundbite: “Rail transport is the backbone of North America’s supply chain, and fertilizer and agriculture are among the most dependent on rail service. The interconnected and time-specific nature of agriculture means that even short-term disruptions to one segment have wide-ranging implications, affecting everything from grocery store prices to international trade.” — Corey Rosenbusch, The Fertilizer Institute president and CEO

And this:  A rail stoppage would affect American agriculture exports to Canada. In 2023, 76% of U.S. barley and 44% of ethanol exports went north.

The train stoppage could cost C$341M per day. 

All aboard! Stay tuned for updates.