Two Railways Halted Operations In Canada

The stoppage could critically impact shipments of grain, coal, chemicals, autos and more.

Two major railways have halted operations in Canada.

Canadian National Railway and Canadian Pacific Kansas City announced the lock-out of their workers yesterday after failed labor talks.

The lack of workers has resulted in a shutdown of their rail networks. The Teamsters Union represents nearly 10,000 workers at the companies and set the stage for an unprecedented rail stoppage.

The move could severely damage the Canadian economy and could also have a significant effect on cross-border trade with the U.S..

Canada is the world’s second-largest country by area and relies heavily on rail transport. The stoppage could critically impact shipments of grain, coal, chemicals, autos and more. The railways reportedly transport around $277 billion worth of goods annually.

U.S. railroad Union Pacific said a stoppage could halt the movement of 2,500 rail cars across the border daily. If an agreement is not reached, economies could begin to struggle even more.