August 22, 2024 - TRA Newswire - 

A prolonged strike and lockout by two of Canada's largest railroads could have an adverse affect over a thousand miles south down here into Texas.

Canadian Pacific (now CPKC) and Canadian National (CN) effecively shut down their freight rail networks Thursday after not being able to reach agreements with striking Teamsters unions. Both Canadian railroads locked out more than 9,000 employees after both sides failed to reach a new contract agreement by the Wednesday night deadline. 

Auto parts, lumber, agricultural and refrigerated goods and a host of products that are carried by rail between Canda, the U.S. and Mexico could be delayed after shipments were curtailed, causing potential havoc to the global supply chain. About 1/3 of daily shipments cross the border between Canada and the U.S. 

Inbound shipments to the U.S. and Texas as well as shipments to destinations north of the border are affected. While BNSF Railway and Union Pacific Railroad operations in Texas would not be directy affected, there could be a knock-on effect with incoming shiments destined for ports and warehouses and for shipments from Texas to Canadian destinations.

Analysts expect the Canadian work stoppages to only last a few days but if the strike and lockout run into a week or longer that would cause significant disruptions to the supply chain. 

Both railroads handle some 40,000 carloads a day with an estimated value of $1 billion.

CPKC, which absorbed Kansas City Southern Railway last year, has an extensive north-south rail network that stretches from Canada through the mid-U.S. and Texas into Mexico. The U.S. and Mexican operations will continue.