Businesses are bracing for a possible work stoppage that could see rail service grind to a halt Thursday. Canadian National Railway and Canadian Pacific Kansas City have told the Teamsters union they would lock out union workers early on Thursday unless a new contract can be negotiated.
The Cornwall Chamber of Commerce notes that the disruption could translate into higher costs for consumers and businesses.
“The Chamber is closely monitoring the upcoming CN rail shutdown and its potential impact. While we don’t have an exact figure on how many businesses in our region will be affected, it’s clear that many local companies, especially those in manufacturing and processing, rely heavily on rail freight as a key part of the supply chain. Directly and indirectly, a rail shutdown will lead to significant delays, higher shipping costs, and inventory shortages, which in turn might cause production slowdowns and strain customer relationships. Timely action is crucial to minimize disruption and safeguard the stability of our local businesses and the broader economy,” the chamber says.
“End-to-end shipping by truck, especially when dealing with large volumes and materials essential for production, results in much higher freight costs. Additionally, the environmental impact (CO2 emissions) increases due to the need for more trucks to transport the same amount of material. If there is a spike in truck reservations, freight costs may rise further due to increased demand. The potential for an increase in costs to the consumer could rise,” the chamber adds.
