Rail road strike

Canada Teamsters Railroad Strike could affect Supply Chains

In the world of logistics and supply chain management, being prepared for potential disruptions is a crucial strategic imperative. The looming threat of a strike by Canada’s nearly 10,000 union railroad workers is a cause of concern for logistics managers who rely on smooth freight movement across the country. With the possibility of a work stoppage, shippers and brokerages are taking proactive measures to develop contingencies and minimize the impact on supply chains.

The railroads in Canada play a vital role in facilitating the movement of goods, including maritime, trucking, and cross-border shipments. According to the Railway Association of Canada, over 900,000 metric tons of goods are transported daily on Canada’s railways, representing a value of $1 billion. Should a strike occur, the consequences would extend beyond immediate disruptions, affecting various industries, including agriculture, food products, raw materials, and minerals that heavily depend on railroads for distribution.

The potential ripple effect of a strike is a cause for concern. Lawrence Gross, president of Gross Transportation Consulting, highlights that the western ports of Vancouver and Prince Rupert would be among the first to experience the impact, as a significant percentage of containers arriving there move inland via rail. The recovery process for Canada’s rail network after an extended strike could take weeks.

The negotiations between the Teamsters Canada Rail Conference and Canada’s major railroads, Canadian National Railway and Canadian Pacific Kansas City, add further complexity to the situation. Unlike previous strikes where freight could be redirected from one railroad to another, simultaneous walkouts by both railroads would paralyze ports and potentially spike trucking rates. The need for alternative transportation modes and entry points into North America becomes critical in mitigating the disruptions caused by a strike.

To prepare for potential service disruptions, logistics companies and brokerages are actively reviewing, planning, and implementing contingency actions. For instance, logistics giant Maersk has been exploring truck options within and across Canada to ensure cargo transport in the event of a work stoppage. ITS Logistics has established plans to dray off from Canadian ports and use domestic truckload, transloading, and one-way trucking to deliver freight throughout North America.

As the situation unfolds, shippers should be prepared for potential delays and consider alternative shipping routes. Shifting from intermodal to truckload, or even expedited or air freight, may become necessary and entail a premium cost. The advice to shippers is to prioritize critical freight and hold back less urgent shipments until more favorable conditions prevail.

While no strike is imminent at this point, the proactive measures taken by shippers, brokerages, and logistics companies reflect the importance of preparedness and contingency planning in mitigating the potential disruptions that a Canada Teamsters railroad strike could pose to supply chains. By being proactive and adaptive, stakeholders across the industry can navigate through uncertainties and ensure the smooth flow of goods in even the most challenging circumstances.

Find source here: https://www.supplychaindive.com/news/shippers-brokerages-prepare-contingencies-canada-teamsters-railroad-strike/716867/

Forced Labor

Forced Labor with emphasis on Supply Chain Tracing

Participants will also explore the role of technology and tools in supply chain tracing, including a review of global regulations and a detailed case study on WRO/UFLPA. Throughout the course, interactive activities, discussions, and reflection will empower participants to apply their learning to real-world scenarios and professional contexts, fostering a comprehensive understanding of forced labor supply chain tracing.

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