In Week 34, port congestion remains a challenge throughout the global supply chain. The threat of a Canada railway work stoppage looms large as the August 22, 2024 collective bargaining “cooling off” period nears the deadline for an agreement.
CANADIAN RAILWAYS ANNOUNCE LABOR LOCKOUT
Both CN and CPKC officially announced a labor lockout effective August 22, 2024, if the TCRC does not agree to the proposed labor agreement terms. The Class 1 Canadian railways began slowly phasing down operations with embargoes on hazardous and time-sensitive freight last week. CPKC and CN implemented embargoes on ALL FREIGHT effective August 20th and 22nd respectively. Both CN and CPKC rail networks connect with key U.S. rail and shipping hubs such as Chicago, New Orleans, Minneapolis, and Memphis. CPKC’s network also extends further south connecting with ports on both the east and west coasts of Mexico. The effects will ripple throughout the North American and global network leading to potential schedule changes, increased port congestion, and equipment scarcity.
GLOBAL PORT CONGESTION AND EQUIPMENT SHORTAGES
Ports in the U.S., Canada, Vietnam, and China continue to experience significant equipment shortages and congestion. In North America, the Pacific Northwest is critically low on railcar equipment for intermodal freight leading to dwell times nearing two weeks in some locations.. Several ports in China continue to wrestle with equipment shortages though progress is being made to work through their backlog port at Cat Lai is experiences a high demand for containers in the U.S. market, leaving many shippers struggling to find available equipment for their shipments.
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