As we reported last week, Canadian National Rail (CN) and Canadian Pacific Kansas City (CPKC) both had a work stoppage on Thursday August 22. While the official stoppage only lasted for 18 hours, with both railroads resuming full 'normal' operations on Monday, the domino effects from this stoppage are going to take longer to resolve.
The general consensus is to expect a week or longer to get both rail lines back to normal operations due to shipping backlogs. Accordingly, Vancouver port is navigating getting their terminals back to normal operation with the rail lines back in service. Domestically, diversions to the ports of Seattle/Tacoma are contributing even more congestion at ports that were already experiencing a backlog of railed freight.
The halting of perishable and hazardous material movement in the week leading up to the work stop continues to affect overland transport prices in Canada. We have seen a slight uptick in overland freight prices in the U.S., but this is heavily lane dependent.
Please reach out to your freight manager should you have any questions or concerns about a specific project.
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