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Canada’s two major freight rail companies have shut down operations, according to management at both companies, putting 9,000 members of the Teamsters union that operates the trains out of work and dealing a potential blow to the Canadian and U.S. economies.
Nearly a third of the freight handled by the two railroads, Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC), crosses the U.S.-Canada border, and the shutdown could disrupt operations in several U.S. industries, including agriculture, automotive, home construction and energy, depending on how long the shutdown lasts.
“CPKC is acting to protect Canada’s supply chains and all stakeholders from further uncertainty and more widespread disruption that would be created if this dispute were to drag on further and result in a potential work stoppage during the peak fall shipping period,” the company said in a statement Thursday shortly after the lockout began at 12:01 a.m. ET. “Delaying the resolution of this labor dispute will only make things worse.”
The closure would highlight how closely linked the economies of both nations are, with many industries dependent on the free movement of goods across the border for their efficient operation.
