After more than 9,000 railway workers went on strike on Aug. 22, freight rail service at Canadian National (CN) and Canadian Pacific Kansas City (CPKC) resumed on Monday, Aug. 26, following an order from the federal labor board to resume operations ahead of binding arbitration.
A prolonged rail disruption would have had “devastating impacts on Canadians and the broader economy,” said Greg Moffatt, executive vice president of Chemistry Industry Association of Canada (CIAC).
Canada’s chemical industry moves more than 500 railcars of product each day, he noted.
According to CIAC, the work stoppage threatened public safety, as 96% of Canadians rely on safe drinking water that needs chlorine and chlorine derivatives. These chemicals are only transported via rail. The Canadian government cited concerns about the inability to ship chlorine as a major reason for stepping in and imposing binding arbitration. Both railroads had stopped accepting chlorine and other hazardous materials before the Aug. 22 shutdown.
The Canadian chemical industry is heavily reliant on rail freight for chemical transport. More than 70% of chemical products are shipped via railways, with some producers exclusively using rail.
CPKC said it anticipates several weeks for the railway network to recover and even longer for supply chains to stabilize.
