Canadian Manufacturers and Exporters estimates that approximately $531 million of manufactured goods will be stranded each day of a stoppage.
Despite efforts to avoid a strike or lockout, freight trains across Canada shut down early Thursday morning as thousands of rail employees were locked out of the job by Canada ’s two major railways.
According to the Canadian Manufacturers and Exporters, Canada’s railways transport $380 billion worth of goods annually – that’s over $1 billion each day. Of that, the association estimates that approximately $531 million of manufactured goods will be stranded each day of a stoppage. Erik Johnson, senior economist at BMO Capital Markets, said nearly 20 per cent of Canada’s exports to the United States are moved by rail.
“Some manufacturers might have limited inventories, depending on how much of a just-in-time kind of supply chain they’re operating,” he said.According to Statistics Canada, Canadian railways carried 30.2 million tonnes of freight in June, up 4.9 per cent from June 2023. Higher shipments of iron ores, canola, potash and other cereal grains were the main contributors to this third straight month of year-over-year growth.“A lot of those things are coming from far distances in Canada.
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