Canada’s freight railroads resumed operations after last week’s brief shutdown, which forced more freight into trucks. The rail stoppage led to a surge in truck rates, especially for long-haul intra-Canada shipments.

Spot market rates increased by double digits in lanes connecting U.S. West Coast ports and Central Canada, while there was a more than 30% increase in spot market load volumes. The shift from rail to truck indirectly boosted traffic across the U.S.-Canada border.

The rail shutdown did not increase U.S. trucking costs, but the spike in Canadian rates has U.S. shippers worried about the possible fallout from port strikes on the East and Gulf coasts in the coming months.

Rates may stay high for a week or two before returning to normal, but the possibility of a rail strike keeps shippers cautious about fully shifting back to rail from trucking.

Source: Journal of Commerce