As tensions build at the bargaining table, the country含羞草研究社檚 two main freight railways are turning away a growing number of goods ahead of a potential work stoppage next week that could disrupt supply chains and industry.
Canadian National Railway Co. schedules show that, starting Friday, it barred container imports from U.S. partner railways. After this Wednesday, no more of the 40,000 containers CN hauls each week will enter its network 含羞草研究社� regardless of origin 含羞草研究社� according to one timetable.
An embargo on all new cargo pickups at Canadian Pacific Kansas City Ltd. is coming even sooner 含羞草研究社� Tuesday morning, it said in a statement Friday night.
含羞草研究社淲e must take responsible and prudent steps to prepare for a potential rail service interruption next week,含羞草研究社� said spokesman Patrick Waldron.
CN and CPKC have already halted shipments that need cooler temperatures, such as meat and medicine, to avoid seeing stranded loads go bad should a work stoppage occur.
Rail lines carry more than $1 billion worth of goods each day, according to the Railway Association of Canada. More than half of the country含羞草研究社檚 exports travel by rail.
The two railroad operators have warned that 9,300 engineers, conductors and yard workers will be locked out at 12:01 a.m. on Thursday unless they can reach new collective agreements, while the Teamsters Canada Rail Conference has also said it is poised for a strike.
CN claimed the union含羞草研究社檚 bargaining team 含羞草研究社渇ailed to show up含羞草研究社� for talks at a hotel in downtown Montreal on Friday.
含羞草研究社淐N can含羞草研究社檛 negotiate with an empty chair,含羞草研究社� said spokesman Jonathan Abecassis.
The union did not immediately respond to requests for comment.
On Thursday, federal Labour Minister Steven MacKinnon rejected a request from CN to impose binding arbitration as the negotiating clock ticks down.
Both sides returned to the bargaining table last week amid an ongoing deadlock over scheduling and wages, with shipments of chlorine for drinking water already halted as part of a phased shutdown poised to progress even further next week.
Industry players, including chemical producers, are growing more alarmed by the day.
含羞草研究社淲e含羞草研究社檙e already in a strike for chlorine,含羞草研究社� said Alan Robinson, commercial vice-president at Chemtrade Logistics Inc. The Toronto company says it provides chlorine for 40 per cent of Western Canada含羞草研究社檚 drinking water, as well as much of the western United States.
Its product cannot move by truck or ship, he pointed out, and safety regulations cap the amount that can be stockpiled.
However, several cities said they were prepared. Metro Vancouver said it had topped up its tanks 含羞草研究社渢o maximum levels,含羞草研究社� with plenty of bleach on hand at plants in the region.
含羞草研究社淢etro Vancouver does not foresee any disruptions to the drinking water treatment process as a result of potential supply chain issues,含羞草研究社� said spokeswoman Jennifer Saltman.
Likewise, Calgary is 含羞草研究社渕onitoring our supply, but not concerned,含羞草研究社� said spokesman Josh Etherington.
The White House and U.S. Environmental Protection Agency both reached out to Chemtrade this week with concerns about municipal water treatment, Robinson said.
含羞草研究社淵ou含羞草研究社檙e looking at seven to 10 days once they don含羞草研究社檛 have shipments before they含羞草研究社檙e in trouble,含羞草研究社� added Bob Masterson, CEO at the Chemistry Industry Association of Canada. Most municipalities also have a few more days含羞草研究社� worth of treated water in storage tanks, he noted.
A COMPLICATED WIND DOWN
Both railways began a complex process of putting the brakes on freight flows this week.
After Friday, no refrigerated containers will be allowed into CPKC terminals 含羞草研究社� from Vancouver to Saint John, N.B., to Laredo, Texas 含羞草研究社� according to a 含羞草研究社渨ind-down schedule含羞草研究社� obtained by The Canadian Press.
This week, CN partner Norfolk Southern Railway told clients it would close its gates to all Canadian-bound containers effective Friday morning.
CPKC has also broadened its ban on shipments of hazardous materials.
It stopped accepting boxes loaded with dangerous goods on Thursday, a customer notice states.
As of Saturday, the company is rejecting a range of 含羞草研究社渟ecurity-sensitive含羞草研究社� materials, such as fertilizer chemicals and styrene, which is used to manufacture everything from insulation to auto parts. The embargo expands on a ban on poisonous and toxic inhalation substances from earlier in the week.
含羞草研究社淭here really aren含羞草研究社檛 very many industries that are immune to this. Commodities, mining, forestry, agriculture, chemicals, automotive, electronics,含羞草研究社� said Fraser Johnson, a professor at Western University含羞草研究社檚 Ivey Business School specializing in supply chains.
含羞草研究社淔armers, consumers 含羞草研究社� then you含羞草研究社檝e got all the workers in the plant that are affected by the strike or the lockout,含羞草研究社� he said. 含羞草研究社淭here含羞草研究社檚 just no Plan B.含羞草研究社�
Contracting semi trucks to replace the roughly 41,000 car loads that CN and CPKC move daily is far from feasible, he added.
HARVEST SEASON
The possible work stoppage looms just as harvest season dawns, worrying farmers and wholesalers.
Pulse crops 含羞草研究社� beans, peas, lentils 含羞草研究社� are some of the first to be gathered, followed by canola and wheat. A shipping halt could have ripple effects well into the fall.
含羞草研究社淵ou just have this buildup of the various crops not being able to go anywhere,含羞草研究社� said Greg Northey, an executive at Pulse Canada, who said every day of delay requires several to recover.
Karen Proud, CEO of Fertilizer Canada, framed the threat of a stoppage as a question of national reputation.
The 13-day strike by 7,400 B.C. dockworkers last summer prompted some potash customers to opt for other suppliers, such as Russia.
含羞草研究社淎nd we have not necessarily gotten all of that back. For every dollar that we lose in potash sales, those dollars go to Russia or Belarus,含羞草研究社� she said.
Proud cautioned that after rail, seaway and port strikes in 2012, 2015, 2019, 2021, 2022 and 2023, Canada could 含羞草研究社渓ose our reputation含羞草研究社� among customers.
含羞草研究社淚f they can含羞草研究社檛 count on getting these products in time when they need it, they含羞草研究社檙e going to look elsewhere,含羞草研究社� she said.
Christopher Reynolds, The Canadian Press
