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A New Threat for US Supply Chains

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Cars back up as a Canadian National freight train passes on West Avenue in Waukesha, Wisconsin on Aug. 19, 2021.

(Ottawa) – Don’t look now, but the US supply chain is once again at risk of being messed up. Several years back, production shutdowns and excessive online ordering amid COVID-19 led to major supply chain snarls. Now, a Canadian railway strike is the big concern.

Thursday, rail networks across Canada were shut down. Talks broke down with the Canadian National Railway and Canada Pacific Kansas City. Infrastructure experts say this is a big issue for the US economy. The US-Mexico-Canada railway network is completely intertwined, carrying important goods that are utilized across the three nations.

Upward of 10,000 railway workers are impacted by the strike. Shipments of things like grain, coal, chemicals, vehicles, and petroleum products will potentially be interrupted either entirely or partially. According to US railroad company Union Pacific, an ongoing Canadian rail strike halts the movement of around 2,500 rail cars across the US-Canada border — every 24 hours.

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