{"id":21068,"date":"2024-08-21T09:46:52","date_gmt":"2024-08-21T09:46:52","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=21068"},"modified":"2024-08-21T09:46:53","modified_gmt":"2024-08-21T09:46:53","slug":"how-a-canada-rail-strike-would-impact-regional-agriculture","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2024\/08\/21\/how-a-canada-rail-strike-would-impact-regional-agriculture\/","title":{"rendered":"How a Canada rail strike would impact regional agriculture\u00a0"},"content":{"rendered":"\n

North American\u00a0<\/u><\/a>agriculture logistics could derail\u00a0if wage-demanding union workers at a duo Canada rail monopoly down tools, starting August 22, 2024.<\/p>\n\n\n\n

The looming strike involves the agriculturally important Canadian National Railway (CNR) and Canadian Pacific Kansas City (CPKC). According to a Reuters report on August 2020, a strike on both lines could halt much of their daily freight services<\/u><\/a>.<\/p>\n\n\n\n

An immediate ramification will be on American\u00a0spring wheat<\/u><\/a>, currently under shipment from Minnesota and the Dakotas to Western ports.\u00a0<\/p>\n\n\n\n

Notably, the U.S. ships its Midwestern spring wheat via Canada where the CPKC rail meanders towards Western U.S. ports.\u00a0<\/p>\n\n\n\n

Soybeans and corn, whose harvests start in fall, follow a similar shipping route and rarely use alternative truck transportation.<\/p>\n\n\n\n

Even though American rail workers will not strike, U.S.’ supplies will still delay given the shared nature of rail lines.<\/p>\n\n\n\n

Faced with such logistical dilemmas, tens of organizations have contacted Canada\u2019s PM Justine Trudeau to avert the strike.<\/p>\n\n\n\n

One such body is the American\u00a0National Grain and Feed Association<\/u><\/a>\u00a0(NGFA), which sent a plea to Trudeau on August 19. \u00a0<\/p>\n\n\n\n

In the letter, NGFA cited that the strike could hamper cross-border economies and even have global food security ramifications.<\/p>\n\n\n\n

Indeed, the Pacific rail is the gateway to Canada\u2019s lead exports such as canola, whose fall export season is approaching.<\/p>\n\n\n\n

Back at home, the Teamsters Union, which represents 10,000 employees was still negotiating a deal as of August 21.<\/p>\n\n\n\n

The union is negotiating issues to do with wage increase, work scheduling and bonuses for its workforce. <\/p>\n\n\n\n

A breakthrough would positively impact many regional agricultural stakeholders from U.S.\u2019 potash importers to Canada\u2019s grain exporters.<\/p>\n\n\n\n

Interestingly, Canada ships 85%<\/u><\/a> of all its potash fertilizer exports to the United States via rail. <\/p>\n\n\n\n

Like their American counterparts, farm groups in Canada, also sent a letter to PM Trudeau on August 20. In the letter they cited that a strike would stop the usual 25,000 weekly agricultural railcar loads.<\/u><\/a><\/p>\n\n\n\n

In a word, a Canada rail strike would at any time have big regional and global agricultural supply consequences. As the following statistics show, the Canadian rail system boasts diverse agricultural shipments.<\/p>\n\n\n\n

Canada Rail\u2019s Agricultural Statistics<\/strong><\/strong><\/h2>\n\n\n\n

The Canadian rail system conveys agricultural shipments including grain, fertilizer and livestock products. In the 2020-21 period, for instance, services by Canadian National Railway and Canadian Pacific Railway delivered\u00a031 million tonnes<\/u><\/a>\u00a0of grain. This was 1 million tonnes more above the 2019-20 period, according to AG Canada.<\/p>\n\n\n\n

What are the average monthly freight total of Canada\u2019s railways including to the U.S<\/strong>.? <\/p>\n\n\n\n

According to Statistics Canada, national railways transport around 32.1 million tonnes<\/u><\/a> of loads of all types, using the November 2022 data. Out of these, the U.S. received a rail freight total of 3.5 million tonnes,<\/u><\/a> most of which grain.  During this November 2022 period, Canola shipments by rail were up 418,000 tonnes from those of November 2021. <\/p>\n\n\n\n

Which are the two key agricultural exports of the Canadian rail<\/strong>? <\/p>\n\n\n\n

Grains such as spring wheat lead yearly exports at around 30 million tonnes<\/u><\/a>, as of the 2019-20 period. Canadian potash is another major commodity, with 85% of its yearly shipment total of 13 million tonnes<\/u><\/a> departing to the U.S. by rail.  This is the equivalent to 69,000 tonnes of fertilizer on a daily basis or a minimum C$55 million ($40.387 million) a day.<\/p>\n","protected":false},"excerpt":{"rendered":"

North American\u00a0agriculture logistics could derail\u00a0if wage-demanding union workers at a duo Canada rail monopoly down tools, starting August 22, 2024. The looming strike involves the agriculturally important Canadian National Railway (CNR) and Canadian Pacific Kansas City (CPKC). According to a Reuters report on August 2020, a strike on both lines could halt much of their daily freight services….<\/p>\n","protected":false},"author":3,"featured_media":21069,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"\nHow a Canada rail strike would impact regional agriculture\u00a0 - Selina Wamucii | Food & Agriculture News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.selinawamucii.com\/news\/2024\/08\/21\/how-a-canada-rail-strike-would-impact-regional-agriculture\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a Canada rail strike would impact regional agriculture\u00a0 - Selina Wamucii | Food & Agriculture News\" \/>\n<meta property=\"og:description\" content=\"North American\u00a0agriculture logistics could derail\u00a0if wage-demanding union workers at a duo Canada rail monopoly down tools, starting August 22, 2024. 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