The shutdown of Canada’s two main railroads has created a significant supply chain challenge, emphasizing the reliance on rail transport for key cargoes like grains.
Analyst Brian Whitlock highlights that as the rail stoppage extends, the repercussions for supply chains will be increasingly severe, notably for goods without transport alternatives.
While Canadian rail networks halt, their U.S. and Mexican operations remain active due to separate labor agreements, causing a disparity in challenges faced by cross-border businesses.
The Canadian government has the authority to intervene in labor disputes, but has refrained from doing so this time, which raises concerns for the current labor negotiations.
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