Trains are rolling across Canada as of yesterday morning. Following last week's rail strike at both the Canadian National Railway Co and the Canadian Pacific Kansas City Ltd., the Canada Industrial Relations Board imposed binding arbitration and ordered the striking employees back to work. That said, the Teamsters, the union representing workers from both rail companies, has said it will appeal the decision.
While Canadian produce shippers and growers were largely concerned about the subsequent effects that the strike would have on both truck availability and shipping rates, in the end, many report feeling minimally affected by the dispute.
"There was a slight bump in prices on the cross-border reefer market for a day, but demand continues to be very low for inbound/West Coast, so market rates never took off," says Hutch Morton via his truck broker at J.E. Russell Produce Ltd. "Outbound rates to the West Coast have also risen significantly because carriers do not want to go out West and have nothing to return with. So the equation balances at this time."
Photo: Canadian National Railway Company
Ongoing issues via appeal
It's anticipated that there may not be any out-of-the-ordinary rate changes unless the dispute continues into September/October and supply chain issues grow and spill over into this market, which isn't expected to happen.
Richard Donsky of Mister Produce also says that most produce items in Canada that ship by rail are all massive crops such as wheat and other grains for export. "Regular fresh fruit and vegetables are still flowing well via transport trucks and I haven't heard anything about any shortages or interruptions of supply," he says. This in itself could be unusual given the industry often sees price hikes related to issues that could justify them. "I guess with the higher-than-normal grocery prices that have been all over the news lately, the industry seems to be showing some restraint."
For more information:
Richard Donsky
Mister Produce
https://www.misterproduce.com/
Hutch Morton
J.E. Russell Produce Ltd.
https://www.jerussell.ca/