Canada rail embargoes intensify ahead of potential stoppage

Canada's leading rail carriers, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), are intensifying their freight embargoes in response to a looming labor strike, which could significantly impact cross-border and domestic logistics. CN has initiated an intermodal embargo on U.S. shipments headed to Canada, while CPKC is restricting the movement of refrigerated containers. These preemptive measures come amid stalled negotiations with the Teamsters Canada Rail Conference, raising concerns about potential disruptions in the supply chain, particularly in the trucking and ocean freight sectors.

The anticipated rail stoppage could force a surge in over-the-road (OTR) trucking demand, leading to higher costs and tighter capacity, especially for cross-border and intra-Canada shipments. This shift may also drive increased activity at U.S. ports like those in Washington and New York, as rerouted ocean containers seek alternative transportation modes. The U.S. Surface Transportation Board is closely monitoring the situation due to its potential ripple effects on U.S. supply chains, highlighting the broader implications of this labor dispute.
​
Read more:  Supply Chain Dive