On 1 May, the Teamsters Canada Rail Conference (TCRC), a union representing more than 9,000 employees at Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) announced that their membership voted in favor of a strike. The parties have begun a mandatory 21-day “cooling off” period but have scheduled additional meetings with the assistance of the Federal Mediation and Conciliation Services (FMCS) in an effort to negotiate a contract. A work stoppage could occur as early as May 22. A 72-hour notice must be given prior to any work stoppage action.
The contract between the rail lines and the union workers expired on December 21, 2023. If the parties fail to reach a new agreement, rail service across the entirety of Canada will be effectively shut down for both freight and commuter services, which are run by the affected conductors, locomotive engineers, yard workers and rail traffic controllers.
Out of concern for our customers’ supply chains, Maersk has taken the following steps to mitigate the impact of a potential work stoppage:
Working closely with CN, CPKC and terminal operator DP World to accelerate and optimize operations on the Canadian West Coast ports to reduce congestion, including diverting cargo from Centerm in Vancouver to Prince Rupert
Inducing Tacoma, WA, on four upcoming sailings on our TP1 Service to care for U.S. import/export rail cargo should a strike take place
Maria Y – voyages 419N 422S
Santa Barbara – voyages 420N 423S
MSC Domna X – voyages 421N 424S
GSL Effie – voyages 422N 425S
Reviewing feasible rail routings and transit times to U.S. destinations via Tacoma
Reviewing limited truck options for West/East – East/West intra-Canadian transport
The contingency sailings have been updated in our online platforms. Visit Maersk.com for schedule details or contact your account representative for additional information on contingency routing options.
In the event of a work stoppage, customers can anticipate significant backlogs with knock-on effects and an extended recovery period should the disruption last for more than a few days.
We appreciate your trust in Maersk to assist with your supply chain needs. We will share updates to these contingencies as more information becomes available or should the situation develop further.
