Canada's two major railway companies decided to implement a lockout on the 22nd (local time) due to labor disputes. Concerns are growing that this will cause large-scale logistics disruptions in North America.
According to major foreign media, Canadian National (CN) and Canadian Pacific Kansas City (CPKC) each issued statements on the day announcing that, following the breakdown of collective bargaining with the North American transport union Teamsters, they would begin a lockout targeting approximately 9,000 Teamsters union members starting that day. A lockout refers to the employer temporarily closing the workplace to prevent direct action by workers.
The railway networks operated by CN and CPKC account for about 80% of the entire Canadian railway network. The suspension of railway operations is expected to impact logistics across various sectors including grain, fertilizer, coal, petroleum products, chemicals, and automobiles.
The railway networks of CN and CPKC are also connected to major U.S. export ports, playing a crucial role in the North American supply chain. Trade with Mexico, Canada's fourth-largest trading partner, could also be disrupted.
Industry experts are concerned that if the lockout's effects persist, it could cause significant economic damage. Credit rating agency Moody's estimated that a halt in Canadian railway operations could result in losses of approximately 341 million Canadian dollars (about 330 billion Korean won) per day.
There are signs of a surge in truck transportation. However, local trucking industry sources told foreign media that trucks cannot replace rail distribution due to their limitations in carrying large volumes of cargo.
The Canadian government has begun taking measures. Prime Minister Trudeau met with reporters in Sherbrooke, Quebec, on the day and emphasized, "This situation will affect workers, businesses, farmers, and consumers across Canada," pledging to find a solution swiftly.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
