A looming strike of Canadian Pacific Railway workers could cause major delays and raise already high oil and agricultural product prices, according to POLITICO Pro (subscription).
Canadian railway strike: Canadian and American governments, shippers and manufacturers are bracing for a possible strike of more than 3,000 Canadian Pacific Railway workers.
Importance of Canadian Pacific Railway: Canada ships about 140,000 barrels of oil to the U.S. per day, much of it along the Canadian Pacific Railway. Another 15% of Canadian Pacific’s business is shipping fertilizer, which is crucial to the production of food in the U.S.
Why it matters: The Canadian Pacific Railway strike could cut off a key oil and fertilizer trade route with the United States, causing another supply chain delay with the potential to increase the costs of crude oil and agricultural products. The strike comes with oil and agricultural costs already spiked because of Russia’s invasion of Ukraine.
Senators pushing Canada to resolve strike: “Senators are asking the Canadian government to ‘act swiftly’ to end the disruption and avoid further harm to the two countries’ economies, especially as China and other Asian countries are seeking American and Canadian products to fill supply voids sparked by the conflict in Ukraine.”