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Canadian National (CN), Canadian Pacific Kansas City Southern (CPKC) Rail Update

Canadian National (CN), Canadian Pacific Kansas City Southern (CPKC) Rail Update - Universal Logistics Trade Alerts - August 15, 2024

The following message was issued by the Canadian International Freight Forwarders Association (CIFFA) on Thursday, August 15, 2024:

Canadian National (CN) – Teamsters Canada Rail Conference (TCRC) – Negotiations Update, Intermodal Shipping Embargo Schedule

CN is taking steps to protect its network and customer cargo following the Canada Industrial Relations Board (CIRB) decision on August 9 that none of the services provided by the railways are essential by law. CN is planning for the earliest possible date of a work stoppage, which is now August 22 at 00:01 ET.  Given the time required to carry out a safe and orderly shutdown of its network and to comply with regulatory requirements of transporting certain commodities, CN is implementing an embargo on specific intermodal shipments. This is in addition to the embargoes on rail security-sensitive materials (RSSM), poison inhalation hazard (PIH) – toxic inhalation hazard (TIH) and time-sensitive commodities issued on August 12.

  • CN is embargoing all temperature-controlled intermodal traffic and hazmat traffic across its network, effective August 15. Exact timing is dependent on origin and destination.
  • It is embargoing all intermodal traffic destined to all points in Canada from U.S. origins or U.S. interchange, effective August 16 at 00:01 ET.
  • The embargo schedule is available at cn.ca/TCRCinfo. Intermodal (domestic and international) origin/destination timing can be found here.
  • All U.S.-to-U.S. intermodal shipments will continue to move per normal operations.

This plan is designed to protect supply chains by ensuring the safe staging of commodities and to allow for a rapid and efficient resumption of operations once the threat of an unpredictable disruption has ended.  If a settlement is reached or an arbitration process is established, CN will remove embargoes and resume normal operations.

Refer to cn.ca/TCRCinfo for information and the latest updates.

Canadian Pacific Kansas City Southern (CPKC) – Intermodal Shipment Management During Potential TCRC Work Stoppage in Canada

Effective 00:01 local time today, Thursday, August 15, in preparation for a potential work stoppage on August 22, CPKC will not accept any loaded intermodal shipments classified as dangerous goods. This applies at all intermodal facilities for both domestic and international shipments destined to, or originating from, terminals and ports located in Canada. During a potential work stoppage, which could begin at 00:01 on August 22, intermodal terminal gates in Canada will remain open, in so far as practicable and so long as capacity permits.

Outbound shipments from an intermodal terminal in Canada

  • Customers will be able to ingate containers until terminals have reached their capacity. Once in-gated at any origin, shipments will not be available for release to customers.
  • CPKC will communicate to customers via Fastpass notifications when terminals are nearing capacity to avoid drivers being turned away at the gate. To subscribe to Fastpass notifications, follow this link.
  • Private perishable protective service (PPS) equipment and international reefers are excluded and will not be allowed in the terminals should a work stoppage commence. To understand existing cut-offs for PPS equipment, contact your CPKC account manager.

Inbound shipments to an intermodal terminal in Canada

  • No change to the existing process is currently planned. If a container has arrived at its destination terminal, customers may request delivery or pick up containers from the terminal.
  • For shipments that originate in Mexico or the United States and have not reached their Canadian destination in advance of a work stoppage, shipments will not be available for release to customers; they will be held in terminal until furtherance to destination can occur.
  • CPKC will not be providing over-the-road train service in Canada during a work stoppage.

CIFFA Updates from Transport Canada Meeting

  • CN: A small managerial workforce qualified in the running trades will finish the orderly shutdown of operations. Some trains will not make it to final destinations but will head to yards and terminals.
  • CPKC: Trains still on the network will be moved to yards where they can be staged safely and tied down.
  • Transport Canada: Mediators are currently very engaged in the situation.
  • Private Motor Truck Council: A lockout/strike will increase the number of trucks on the road, as well as rates to haul. Dangerous goods on trucks increase health and safety concerns.
  • Commodities industries and the agriculture sector are concerned about food security and shortages. Without grain, livestock will be endangered. There are already shortages of fertilizer being seen, a week and a half before the potential lockout.
  • Even if a strike is averted, impacts are already being felt.

For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.

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