Canadian rail traffic is set to see a slowdown today. Two of the country’s major freight railroads have shut down after weeks of failed labor negotiations. Their system is far-reaching, and a stoppage could send ripples into the U.S. ag supply chain.
“Canada is the second-largest country in the world by size, and so when we talk about rail, it’s a very efficient way to move products, and specifically, ag products. Canada is a large grain producer, but it also produces about 12 percent of the world’s supply of fertilizer. Grain from the Upper Midwest, when it makes its way out to the Pacific Northwest to go out to Asia, depending on the cars available, could move into Canada first, before it comes back down and out of the Pacific Northwest. So, it could impact the farmers who are trying to sell their grain in the Upper Midwest,” said Joe Gibson.
The Farm Bureau is doing what it can do help, and Canadian leaders are also frustrated. Canadian Senator Mary Robinson from Prince Edward Island has told cabinet members they need to take action. She says it would be the ninth time in six years that a rail strike had a negative impact on the economy.
