Canada’s major rail carriers have embargoed shipments of hazardous items ahead of a possible work stoppage that could happen as soon as Aug. 22.
Canadian National Railway and Canadian Pacific Kansas City say the decision to no longer ship certain products is the first step of a necessary phased shut down of their respective networks unless the railroads reach a new labor deal with the Teamsters Canada Rail Conference. The parties resumed talks last week but still have no deal.
Canadian National embargoed items that present toxic or poison inhalation hazards, and rail security-sensitive materials, including:
- chlorine, which has assorted uses from water purification and as an additive for household cleaners;
- bromine, a cleaning agent;
- ammonia, an ingredient in agricultural fertilizer;
- chloropicrin, a chemical used to fumigate stored grain and treat soil against fungi and insects, and;
- ethylene, a product with several applications such as an anesthetic or refrigerant.
Similarly, CPKC embargoed toxic-inhalation hazard products on Monday, Patrick Waldron, a spokesperson for CPKC said in an email to Supply Chain Dive. Other embargoes will be issued as necessary, he said.
Canadian National in a service notice said its embargo of hazardous items originating from the U.S. began Monday, 10 days ahead of possible strike actions. It will begin additional embargoes Thursday of shipments originating in Canada and destined for points around Canada or to the U.S. and Mexico, according to the notice.
“By stopping the shipment of hazardous goods while ensuing that the railcars containing them currently on the network are safely delivered, CN aims to remove as much of them from its Canadian network ahead of a possible labour stoppage,” Jonathan Abecassis, a spokesperson for Canadian National, said in an emailed statement.
He said while these are goods are routinely transported safely on Canadian National’s network, “they can’t be left out on the railroad unsupervised in the event of a labour stoppage.”
The railroads’ actions to mitigate a potential shut down of Canada’s railroads began Friday after a government labor board determined that disruptions to the nation’s rail system would not threaten public safety. The Canada Industrial Relations Board said availability of critical supplies such as fuel, propane and water could be delivered either by truck or pipelines.
Despite Canadian officials’ belief that the nation’s access to critical goods would continue should a railroad work stoppage or lockout occur, experts have warned disruption in Canada’s rail system could significantly impact supply chains for various industries including food and automotive, which rely on railroads for distribution.
The Teamsters have said the union would provide the necessary 72-hour advance notice in the event of any strike action. The contract for the nearly 10,000 represented railroad workers expired Dec. 31.
Meanwhile, CPKC on Friday threatened to lock out workers if no deal is reached by Aug. 22.
