Canada Rail Strike Contingencies

Update 15 May

On 10 May, Canada's Labor Minister Seamus O'Regan referred a potential strike action by members of Teamsters Canada Rail Conference (TCRC) on the CN and CPKC rail companies to the Canada Industrial Relations Board (CIRB). The CIRB has been asked to review whether the railroads must continue to transport certain goods during the strike “to prevent an immediate and serious danger to the safety or health of the public.”

The CIRB has not set a timeline for its decision but has invited affected groups or organizations to file submissions on the matter to aid in its decision making. Under Canada's labor laws, a strike cannot start until the board issues a decision. This move likely delays any strike activity, which could have started as early as 22 May following a 72-hour notification. Meanwhile, both the railroads and union continue to meet with the assistance of the Federal Mediation and Conciliation Services (FMCS).

In light of concerns for our customers’ supply chains, Maersk has been reviewing contingency actions. For example, as referenced in our prior advisory, we continue to explore limited truck options for West/East – East/West intra-Canadian transport in the event of a work stoppage.

On the ocean side, we have re-evaluated inducements to Tacoma, WA, on our TP1 service due to recent developments. Two vessels will induce Tacoma to accommodate U.S. import/export rail cargo, including:

• Maria Y – voyages 419N 422S, arriving in Tacoma 30 May
• Santa Barbara – voyages 420N 423S, arriving in Tacoma 5 June

However, the inducements of the following vessels are now under review. Unless otherwise communicated, these vessels will resume their standard scheduled callings:

• MSC Domna X – voyages 421N 424S
• GSL Effie – voyages 422N 425S

There are no changes to our CAE or MCX scheduled sailings calling East Coast Canada at this time.

All contingency sailings have been updated on our online platforms. Visit Maersk.com for schedule details or contact your account representative for additional information on contingency routing options.

We will share updates as needed or should the situation develop further.

Update 08 May

On 1 May, the Teamsters Canada Rail Conference (TCRC), a union representing more than 9,000 employees at Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) announced that their membership voted in favor of a strike. The parties have begun a mandatory 21-day “cooling off” period but have scheduled additional meetings with the assistance of the Federal Mediation and Conciliation Services (FMCS) in an effort to negotiate a contract. A work stoppage could occur as early as 22 May. A 72-hour notice must be given prior to any work stoppage action.

The contract between the rail lines and the union workers expired on 21 December 2023. If the parties fail to reach a new agreement, rail service across the entirety of Canada will be effectively shut down for both freight and commuter services, which are run by the affected conductors, locomotive engineers, yard workers and rail traffic controllers.

Out of concern for our customers’ supply chains, Maersk has taken the following steps to mitigate the impact of a potential work stoppage:

• Working closely with CN, CPKC and terminal operator DP World to accelerate and optimize operations on the Canadian West Coast ports to reduce congestion, including diverting cargo from Centerm in Vancouver to Prince Rupert
• Inducing Tacoma, WA, on four upcoming sailings on our TP1 Service to care for U.S. import/export rail cargo should a strike take place
  • Maria Y – voyages 419N 422S
  • Santa Barbara – voyages 420N 423S
  • MSC Domna X – voyages 421N 424S
  • GSL Effie – voyages 422N 425S
• Reviewing feasible rail routings and transit times to U.S. destinations via Tacoma
• Reviewing limited truck options for West/East – East/West intra-Canadian transport

The contingency sailings have been updated in our online platforms. Visit Maersk.com for schedule details or contact your account representative for additional information on contingency routing options.

In the event of a work stoppage, customers can anticipate significant backlogs with knock-on effects and an extended recovery period should the disruption last for more than a few days.

We appreciate your trust in Maersk to assist with your supply chain needs. We will share updates as more information becomes available or should the situation develop further.