Canada's rail traffic could grind to a halt on Thursday, August 22, after Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) issued 72-hour lockout notices, and Teamsters Canada Rail (TCRC) issued a 72-hour strike notice amid stalled contract negotiations.

If implemented, the work stoppage will immediately impact dwell time at all ports and vessels awaiting berth. Terminals on Canada's West Coast are already at or approaching maximum capacity.

In the event of a strike or lockout on Thursday, with no inland cargo moving off the docks, vessels will soon be unable to discharge cargo. Ocean carriers will make vessel-specific decisions on alternative plans, such as waiting for the strike to end, discharging cargo at an alternative port, or changing port rotations. Cargo currently on a vessel may be diverted at the cargo owner's request, subject to terminal and ocean carrier approval.

CN and CPKC have taken incremental steps to safely shut down operations, primarily prohibiting dangerous goods and temperature-controlled shipments as of mid-August. More recently, they have implemented embargos on all shipments originating in Canada, all shipments originating in the United States destined for Canada, and all carload traffic destined for Canadian interchange.

Please reach out to your local Expeditors representative if you have any questions or concerns.