After the on-again, off-again Canadian ports strike created a container backup, rail freight from Canada to the U.S. has been sluggish.
There was a 12% decrease in rail freight from Canada to the U.S. last week, according to Association of American Railroads weekly rail report.
A Canadian Pacific Railway train travels through Lac-Megantic, Quebec, Canada, on Thursday, June 29, 2023.Rail traffic from Canada into the U.S. had a third-straight weekly drop as a result of the on-again, off-again strike at the West Coast Canadian ports. The Railway Association of Canada originally estimated that it would take three to five days for every day the strike lasted for networks and supply chains to recover. When the first strike ended on its thirteenth day, delays for rail containers were estimated at 39 to 66 days. Adding another day with the"Delays appear to be bearing out toward the mid-to-upper end of that range," a Railway Association of Canada spokesperson wrote in an email to CNBC.
The company imports products used in paints, coatings, and cleaning agents. Blaine Davidson, vice president of sales at Chemical Solvents, said significant delays are "going to be a problem," with existing supply of key chemicals limited in the supply chain. "There are millions of dollars of chemicals stranded on the water. We have members waiting for chemicals to be unloaded in Vancouver and then railed down to Chicago," Byer said.
"We remain concerned that, while waiting for ILWU Canada members to ratify the agreement struck with the BCMEA, shifts are being missed, and the product is still on the water for weeks after arriving at the Port of Vancouver," Byer said.
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