An unprecedented rail stoppage at Canada's top two railroads could
cause billions of dollars worth of economic damage and wreak
havoc on North American supply chains. Here's what you
need to know. Canadian National Railway and Canadian Pacific
, Kansas City or CN and CPKC locked out more
than 9000 unionized workers on Thursday after failing to reach
a labor agreement, we never give up both companies
deals expired at the end of 2023 and talks have
been ongoing since the stoppage could hamper shipments of everything
from grain to potash to vehicles. Canadian Prime Minister
Justin Trudeau has stressed the need for a quick solution
. We are on this. We're taking it so
seriously. The minister is engaged directly. We we
are not taking this lightly CN and CP KCS.
Coast to coast rail networks connect in the US and
are linked to operators like BNSF and Union Pacific.
The Networks act as links to North American trade corridors
and ports and help to move billions of dollars worth
of goods and commodities. Industry groups are worried the
stoppage could ripple throughout the continent. The number two
railroad operator in the US Union Pacific has warned the
stoppage could have devastating consequences. Ratings agency Moody says
it could cost over$250 million a day. The
Canadian and US economies are highly integrated. Tens of
billions of dollars worth of agricultural products were imported and
exported by both countries last year. Lots of us
companies and producers use Canadian ports especially in the Midwest
. So groups representing farmers and miners say they're worried
about the potential for crippling supply chain delays, higher
costs and potential shutdowns. Truckers say they can absorb
some of the extra demand but not all of it
. They can't replace rail distribution and there's some cargo
that simply can't move by truck like bulk shipments of
potash or coal. Canada's Labor Minister has broad powers
and can order the sides to enter binding arbitration.
An idea one government source said is being explored.