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Shippers boost inventory levels anticipating potential Canadian rail strike

Shippers boost inventory levels anticipating potential Canadian rail strike

Posted on June 7, 2024   |  

Large shippers are maintaining high inventory levels, anticipating a potential Canadian rail strike that could be imminent and total.

Rail operators CN and CPKC argue that operating only 'essential services' during a strike would be more harmful than a full shutdown.

A planned strike by CN and CPKC workers was delayed as the government asked the Canada Industrial Relations Board (CIRB) to assess public safety risks.

The TCRC union intends to strike as soon as possible after the CIRB ruling, with no negotiations happening in the meantime.

On 27 May, the CIRB reviewed concerns from CN, CPKC, TCRC, and other organizations about the strike’s impact on commercial interests, global food security, and the supply of diesel, propane, and water treatment materials.

Stakeholders requested advanced notice of the CIRB decision or an extension of the current 72-hour strike notice period, with some arguing that supply chains need 30 days to prepare for work stoppages.

The CIRB has directed stakeholders to submit final replies by 14 June, suggesting a decision and possible strike by the end of the month.

CN, CPKC, and TCRC contend that rail services should not be classified as essential and prefer a complete shutdown over continuing only essential services.