On Thursday, Aug. 22, the two major Canadian freight railways simultaneously shut down operations and locked out 9,000 workers. This action followed the notification on Monday by the Teamsters union representing CPKC rail workers of its intention to strike beginning on Thursday. Last minute negotiations were unable to reach an agreement between the parties and the Canadian government did not intervene to prevent a lockout.
Last weekend, CPKC advised its customers that on Tuesday, August 20, it would halt all shipments originating in the U.S. bound for Canada. Several U.S. railroads have also issued warnings about the potential impact of the Canadian shutdown in the U.S., as rail transport accounts for nearly 15 percent of cross-border trade between the U.S. and Canada. One analyst estimated that for each day the Canadian freight railway system is shutdown, it is expected 3-5 days of recovery, so even if the shutdown is short, potential disruptions could take several weeks to fully resume normal operations.
Canada is the largest market for U.S. exports of recycled materials, though it varies by commodity. In 2023, over $5 billion of recycled products were exported from the U.S. to Canada, an increase of 13 percent over 2022 levels, despite overall U.S. exports declining by 13 percent in 2023. An extended lockout in Canada could not only have a significant impact on U.S. exports of recyclables to Canada, but also on trade in manufactured goods containing recycled materials.
ReMA is closely monitoring the situation and working with allied organizations in the U.S., such as the National Association of Manufacturers (NAM), U.S. Chamber of Commerce, and U.S. Council for International Business (USCIB).
We are also coordinating with our Canadian-based members, as well as our colleagues at the Canadian Association of Recycling Industries (CARI), which is also closely monitoring developments for its members.
If you have any questions, please contact ReMA staff:
- Adam Shaffer – AVP of International Trade and Global Affairs – 202-662-8532 or ashaffer@recycledmaterials.org
- Billy Johnson – Chief Lobbyist – 202-662-8548 or bjohnson@recycledmaterials.org
- Kristen Hildreth – AVP of Government Relations and Strategic Partnerships – 202-662-8513 or khildreth@recycledmaterials.org
Photo by Aleksandr Saenko on Unsplash.
