A potential Canada-wide rail strike has caused some intermodal rail freight to shift to the U.S., according to Canadian National Railway (CN). CN CEO Tracy A. Robinson reported a significant drop in intermodal volume since late May, with a -17% decrease from May 12 to July 14. Overall rail volume dropped -8% in the same period.

Robinson said the dispute with the Teamsters Canada Rail Conference (TCRC) has led to rerouted vessels and fewer loads at Canadian ports. Prince Rupert saw lighter volumes than expected, she said. “It’s worth noting that intermodal is the most sensitive [segment] to the ongoing uncertainty around the labor situation with the TCRC,” said Remi Lalonde, CN’s executive vice president and chief commercial officer.

A potential strike was delayed in May when the Canadian Industrial Relations Board (CIRB) began investigating its impact on essential public services. A decision is expected by August 9. Until then, no work stoppages can take place.

Source: Journal of Commerce