Potential Rail Strike or Lockout on August 22
August 26 Update
CPKC has lifted all work stoppage related embargoes effective immediately.
As rail shipments start back up, please be advised that there may be slight delays due to backlogs caused by the strike.
We will continue to provide updates as necessary and work directly with affected customers. We appreciate your business, your patience and continued support.
August 23 Update
CPKC prepares to restart railway operations, awaits CIRB order
Canadian Pacific Kansas City (CPKC) is preparing to restart railway operations in Canada following the Canadian Minister of Labor’s announcement that he will exercise his authority under Section 107 of the Canada Labor Code to direct the Canada Industrial Relations Board (CIRB) to impose final binding arbitration and for railway operations to resume forthwith.
CPKC will follow the order of the CIRB once it executes the Minister’s direction. Our teams are already preparing for the safe and orderly resumption of our rail network and further details about timing will be provided once we receive the CIRB’s order.
August 22 Update
Please be advised that commencing at 00:01h ET on August 22, 2024, an Event of Force Majeure has arisen at Canadian Pacific Kansas City (CPKC) due to a simultaneous lockout of and strike by members represented by the Teamsters Canada Rail Conference (TCRC) – Train and Engine (T&E) division comprised of approximately 3,200 Locomotive Engineers, conductors, and train and yard workers, and Rail Canada Traffic Controller (RCTC) division comprised of approximately 80 rail traffic controllers employed by Canadian Pacific Railway in Canada.
As a result, CPKC has had to shut down its Canadian rail network and thus has effectively been, and continues to be, prevented from providing rail transportation services and other affected services in Canada, and to some extent, in the U.S.
Notwithstanding the foregoing, CPKC has been preparing for the possibility of a strike and will continue to mitigate the effect of the Event of Force Majeure in so far it is safe and practicable to do so. However, there will remain significant adverse effects on CPKC’s capacity in all corridors across our system.
CPKC has and will continue to provide status updates to all affected shippers and stakeholders. Additional details on the work stoppage are available here.
Original Post
We want to keep our clients informed about a potential labour disruption involving Canadian Pacific Kansas City (CPKC), the primary railway we use for vehicle shipments. The situation could lead to significant impacts on vehicle transportation if work halts as early as August 22nd.
Here’s what you need to know:
Awareness and Monitoring
MVS Canada actively follows industry and logistics issues, and we were made aware of the ongoing labour negotiations between CPKC and the Teamsters. Our team is closely following developments to ensure that we are prepared to respond promptly to any disruptions.
Potential Impact
Should the strike or lockout occur, it could disrupt vehicle shipments across Canada. This disruption could extend to shipments moved by truck as well, since many vehicles are initially transported by rail before being trucked to their final destinations. Consequently, the entire Canadian vehicle logistics supply chain could be affected. Any disruption in one part of this chain, like a rail strike, can affect the entire system, impacting the timely delivery of vehicles.
What We Can Do
Although specifics will depend on the scope of the disruption, rest assured that our team is ready to adapt and keep your shipment on track as much as possible. Our team has successfully navigated similar disruptions in the past 20 years. We are confident in our ability to manage this situation and provide the best possible service to our clients.
What You Can Do
- For Upcoming Shipments: If you are planning to ship your vehicle during this period and have concerns, please contact us directly. We will work with you to find the best possible solution.
- For Existing Bookings: If your vehicle is already scheduled for shipment, our team will proactively reach out to you with updates. You can also refer to our tracking system for the latest information on your shipment’s status.
Previous Labour-Related Disruptions
Like any regulated industry, strikes and lockouts are not uncommon in the rail industry, and we’ve successfully navigated through these in the past. For example:
- 2019 CN Rail Strike: Lasted for eight days, significantly impacting shipments nationwide before a tentative deal was reached.
- 2018 CP Rail Strike: Lasted less than a day, with minimal disruption.
- 2015 CP Rail Strike: Lasted for one day when both sides agreed to arbitration before the federal government intervened with back-to-work legislation.
- 2012 CP Rail Strike: Lasted for nine days, leading to substantial supply chain disruptions before a resolution was found.
For more information on the potential strike, you can visit the CPKC website or the Teamsters website. We will continue to monitor the situation and provide updates as needed.
Request Your Free Quote Now!
*Risk-free and no obligations!
Rick B
Just a few of the leading companies who have trusted MVS Canada with their vehicles
