CN Railway and Canadian Pacific Kansas City (CPKC) have issued embargoes immediately halting certain fertiliser shipments, ahead of an anticipated rail labour disruption.
Fertilizer Canada is just one of a number of North American industry associations concerned that work stoppage, anticipated for 22 August, will prevent the movement of vital products. The organisation said ceasing transportation of fertiliser will have potentially disastrous effects on crop yields and food security.
Talks between the two rail companies and the Teamsters have broken down over wages, working conditions and fatigue management.
If an agreement isn’t reached, shippers will face an unprecedented, simultaneous stoppage at both of Canada’s main railway companies, which some experts say could inflict billions of dollars’ worth of economic damage. As the world’s second-largest country by area, Canada relies heavily on trains for transportation.
Fertilizer Canada is calling on the federal government to immediate help CN, CPKC and Teamsters Canada Rail Conference (TCRC), reach an agreement, including ordering a directive for binding arbitration, prohibiting both strike and lockout action.
Canada’s reputation has been damaged by the numerous supply chain disruptions in recent history,” said President and CEO of Fertilizer Canada, Karen Proud. “This uncertainty gives our international competitors, like Russia and China, an advantage. We need swift action to protect Canada’s reputation as a reliable trading partner.”
A stoppage would also affect the United States, with Canada sending about 75 per cent of all goods exports south of the border.
In other news, PSA International has acquired an 85 per cent stake in one of Poland’s leading intermodal operators.