A potentially damaging rail strike, which got underway last Thursday, has been stopped by the Canadian government less than one day after it got started.
The strike was called by the TCRC and CPKC unions, which between them represent over 9,000 rail workers, and posed a serious threat to North American economies. However, the Canadian government forced the railway and unions into binding arbitration on Friday and instructed workers to return to their duties.
Unions have complied with the ruling and workers have now returned to action, but they have confirmed their intention is to file an appeal in federal court.
It will likely take a few days for rail freight movements to get back to normal in Canada, and services may be subject to some congestion during the next few weeks.
Ocean freight services will also take some time to get back into full swing as carriers have been operating alternative schedules leading up to the strike, with Canadian port calls being omitted.
The strike would have led to more significant disruption if it had gone on for much longer. Canadian container freight movements rely heavily on rail freight movements within the country, therefore services to and from inland points would have been severely affected.
Canadian rail freight is also important for cross border services in and out of the USA Northeast and Northwest, along with a significant amount of volume in and out of the US Midwest.
So, there seems to be some good news for supply chain managers at last. Should you have any questions about current or upcoming shipments then please do not hesitate to contact the Westbound team.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
