Canada's Major Railroads Shut Down Thursday, Blocking $740 Million in Trade

Aug 21, 2024, 08:10 PM

Canada's two largest freight railroads, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), have locked out around 10,000 workers after failing to reach a labor agreement with the Teamsters union. This unprecedented shutdown, which began early Thursday, has halted freight traffic across the country, immediately impacting supply chains that carry approximately $740 million in trade daily. The stoppage threatens to disrupt North American supply chains, affecting industries reliant on the transportation of goods such as grain, fertilizer, and automobiles. The economic repercussions could be severe, with potential daily losses estimated at C$341 million. The Canadian government has not intervened in the labor dispute, which could have significant consequences for both Canadian and U.S. economies.