Z-NEWS

22 August, 2024

Canada rail shutdown threatens US supply chains

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Crucial supply chains are under threat across North America after a rail labour dispute in Canada led to shutdown of freight traffic on the country's two largest railways.

Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), locked out nearly 9,300 workers after midnight on Thursday (04:00 GMT), after failing to clinch a late deal with the Teamsters union.

Canada sends around 75% of all the goods it exports to the US, mostly over rail. A prolonged dispute could disrupt shipments of a wide range of goods, from grains and beans to potash, coal and timber.

The lockout will also snarl commutes for tens of thousands of people in Toronto, Montreal and Vancouver, where lines rely on CPKC-owned tracks.