Having resumed talks to agree a new labor deal with the Teamsters Canada Rail Conference last week with no success, CN and CPKC have advised that this is the initial step of a phased shutdown of networks should an agreement not be reached.

CN has embargoed items that present toxic or poison inhalation hazards, and rail security-sensitive materials, including:

• Chlorine, which has assorted uses from water purification and as an additive for household cleaners;
• Bromine, a cleaning agent;
• Ammonia, an ingredient in agricultural fertilizer;
• Chloropicrin, a chemical used to fumigate stored grain and treat soil against fungi and insects, and;
• Ethylene, a product with several applications such as an anesthetic or refrigerant.

Similarly, CPKC embargoed toxic-inhalation hazard products. Other embargoes will be issued as necessary, Patrick Waldron, a spokesperson for CPKC said in an email to Supply Chain Dive.

The embargo of hazardous items originating from the USA began Monday, 10 days ahead of possible strike actions. CN has advised that it will add additional embargoes this Thursday, 15th August, including shipments originating in Canada and destined for points around Canada or to the U.S. and Mexico.

Jonathan Abecassis, a spokesperson for Canadian National, said in an emailed statement that while these goods are routinely transported safely on Canadian National’s network, “they can’t be left out on the railroad unsupervised in the event of a labor stoppage.”

We understand that some carriers are already considering rerouting cargo to US Ports that are currently bound for US destinations via Canada Ports.

US Customs are expected to offer some leniency on ISF filings that have not been filed prior to departure from origin if goods have been rerouted by the carrier. Filings on the affected shipments will take place 24 hours prior to arrival at the US port instead in accordance with the flexible requirements ruling (149.2(f)). Any ISF filings after this flexible requirements ruling would be subject to late ISF penalties.

Should you have any shipment affected, we will be in touch. If you have any questions, please contact your local Woodland representative or contact us here.