Collective bargaining disputes in both the U.S. and Canada may exacerbate congestion at key ports in both countries. Ports on the West Coast for both countries remain congested due to recent natural disasters and equipment shortages. The threat of labor action is expected to further disrupt operations at the Ports of Vancouver and Prince Rupert. Effective today, August 16, 2024, Canadian Railways began embargoes on intermodal freight and hazardous goods with Canadian Pacific Kansas City reporting embargoes on hazardous materials and a phased operational slowdown. The disruption is expected to impact global shipping schedules, increase port congestion, and may cause inventory shortages for some sectors. Threats of a U.S. dockworker strike at East Coast ports further compound the potential for supply chain disruptions by stressing alternative transport modes.
CANADA TEAMSTER LABOR DISPUTE
The two largest Canadian Railways, Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC), along with the Teamsters Canada Rail Conference (TCRC) have been at odds over labor contract negotiations since September 2023. CN requested the Canada Board of Industrial Relations intervene in the contract stalemate. The CBIR rejected the railway’s requesting finding that a work stoppage, while inconvenient, would not pose significant risk to Canadian economy. However, the CBIR did order a 13-day “cooling off” period that expires on August 22, 2024, at 1:00 AM EST at which point either party may legally strike or engage in an employee lock-out. At issue are the Teamsters’ work/life balance, pay, and safety allegations.
In the event an agreement cannot be reached, both CN and CPKC have announced a lockout once the cooling off period ends. In preparation for a lockout, the railways have begun phased operational slowdowns and embargoes on certain commodities.
CN Embargo Schedule
Effective August 16, 2024, CN issues embargoes on intermodal freight, rail security sensitive materials, and time sensitive commodities for new freight at ports throughout the U.S. and Canada.
- Intermodal Schedule
- Domestic and International Intermodal origin/destination timing
- Carload Schedule
- Rail Security Sensitive Materials (RSSM), PIH-TIH, and Time Sensitive Commodities
CPKC Embargoes Announced
On August 9, 2024, CPKC announced a phased hazardous materials embargo in preparation for an August 22, 2024 lockout. The railway has not published this schedule. Updates are available on CPKC’s TCRC update page.
U.S. DOCKWORKER LABOR DISPUTE
The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) remain deadlocked over wages and port automation equipment. ILA representatives have threatened strike action if the parties fail to reach an accord by the September 30, 2024 deadline. The collective bargaining agreement would cover dockworkers from Maine to Texas.
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