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Shippers are bracing for a supply chain disruption after Canadian rail workers affiliated with the Teamsters Canada Rail Conference voted to reauthorize a strike, reports The Load Star.

What’s going on: Some 98.6% of 10,000 rail workers at Canada’s two largest railroads—Canadian National Railway Company and Canadian Pacific Kansas City—voted last weekend in favor of a walkout over a new contract.

• On May 1, Teamsters Canada members voted overwhelmingly to strike if a deal with the railroads could not be reached. The strike was set to begin May 22, but Canada’s federal labor minister “suspended the right to strike while the [Canada Industrial Relations Board] deliberates on which services or deliveries must continue if a strike occurs” (The Brandon Sun).
• The vote on July 7 occurred because strike votes in federally regulated sectors are only valid for 60 days.

What it means: “If the CIRB decides the service is not essential, a strike can take place with just 72 hours warning,” according to The Load Star.

• For shippers, that means planning for disruption. One large shipper told the publication that it foresaw some upheaval arriving in the middle of this month.

What could happen: In the event of a rail strike, shippers could turn to Canada’s truckers.

• “Should a strike ultimately occur, the industry as a whole should expect that there would be a capacity shift primarily to truckload,” Kevin Clonch, group director of customer logistics at Canadian transportation provider Ryder System said last month (Reuters, subscription).

Leaders confer: NAM President and CEO Jay Timmons spoke with Canadian Prime Minister Justin Trudeau at a Canadian Embassy reception held in Trudeau’s honor ahead of the NATO summit this week. The two discussed the impact of a worker walkout.

• “A Canadian rail strike would have an adverse effect on U.S. commerce and the manufacturing supply chain,” Timmons said following the event. “The prime minister is concerned as well and assured me that he was focused on seeing the matter resolved with as little negative impact as possible.”