As a labour dispute shuts down Canada’s two major freight rail lines for the first time in history, the trucking industry is preparing to pick up the slack. The shutdown of Canadian National Railway Co. and Canadian Pacific Railway Ltd. is already underway as negotiations continue with the union representing 9,300 engineers, conductors, and yard workers. Both companies have issued lockout notices while the union has threatened to strike. If the work stoppage goes ahead, shipping companies will have to rely on trucks to transport their loads, putting unprecedented pressure on the trucking industry.
Truck drivers like Paul Logie are already bracing for the potential increase in workload. While they believe they can handle some increase, the volume of freight that usually travels by rail is much higher than what trucks can carry. Jon Finnimore of FMI Logistics explained that trucks are limited to one or at most two containers per truck, which makes it significantly more expensive to move the same amount of product compared to rail. As a result, warehouses that are currently full will soon start to see their supplies dwindle, and costs are already starting to rise even before the strike officially begins.
The increased costs of transportation will eventually be passed down to the consumer if the strike continues for an extended period. Canada’s Labour Minister, Steve Mackinnon, has been in talks with both rail companies and the union to try and find a resolution before the strike deadline of 12:01 a.m. Thursday. Mackinnon emphasized the need for all parties to consider the impact of their actions beyond their immediate interests, as many people are relying on them to reach a deal. If a resolution is not reached, the consequences for both the shipping industry and consumers could be significant.
The trucking industry acknowledges that it won’t be able to handle the same volume of freight that rail lines carry on a daily basis. This means that even if trucks work to full capacity, there will still be a backlog of shipments that cannot be transported. As a result, companies are already seeing delays and increasing costs as they shift more of their freight onto the road network. If the strike proceeds as planned, the struggle to move goods across the country will only intensify, and the negative impact on businesses and consumers will become more pronounced.
While trucking companies are gearing up to handle the overflow of freight normally transported by rail, they are aware that they will face significant challenges in terms of capacity and cost. The limited carrying capacity of trucks compared to trains means that the industry will have to work harder and more expensively to move the same amount of product. This will have a ripple effect on businesses and consumers, who will likely experience delays and price increases as a result. The ongoing negotiations between the rail companies and the union are crucial in determining whether a strike can be averted and the impact on the transportation industry mitigated.
