Labor Disputes Disrupt North American Transport

Canadian National Railway has resumed operations following a government-enforced arbitration to address labor disputes, while Canadian Pacific Kansas City Ltd. remains halted as its union challenges the arbitration order. The lockout has disrupted commuter and freight services across major Canadian cities and is causing significant economic concerns, particularly for industries reliant on rail transport, such as apparel and footwear. The ongoing labor issues, coupled with potential strikes at U.S. ports, are expected to cause volatility in container freight rates, further straining supply chains. The Canadian government's intervention aims to prevent prolonged economic disruption across North America, as nearly 75% of Canada's exports to the U.S. rely on rail transport.