Imminent Rail Shutdown Threatens US-Canada Trade Amid Labour Dispute

Canada's two largest railroads are halting certain shipments amid a labour dispute with Teamsters Canada, potentially causing significant disruptions to cross-border trade with the US. If unresolved, the strike or lockout could impact the shipment of goods including automobiles, chemicals, forestry products, and agricultural items, worth about USD 1 billion daily.

Canada's two largest railroads are initiating shutdowns of their shipping networks as a labour dispute with the Teamsters union could lead to lockouts or strikes, disrupting cross-border trade with the US.

Both Canadian Pacific Kansas City (CPKC) and Canadian National, which transport millions of tons of freight across the US-Canada border, are halting shipments of hazardous materials and refrigerated products. If no agreement is reached, they plan to lock out Teamsters Canada workers starting Thursday.

A potential work stoppage would affect shipments ranging from automobiles to chemicals and agricultural goods, valued at around USD 1 billion daily. Analysts warn of significant supply chain disruptions if the work stoppage extends beyond a few days. Despite ongoing negotiations, both railroads have taken steps to mitigate potential impacts and ensure safety.

(With inputs from agencies.)