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A Canadian rail strike would affect U.S. ag

Mike Steenhoek with the Soy Transportation Coalition says U.S. agriculture would be affected if a Canadian rail strike happens this week.

“What this does impact is those shipments that originate in the United States destined for Canada or shipments that originate in Canada destined for the United States.”

He says Canada is the top destination for soybean oil and the fourth largest export market for U.S. soybean meal. He says Canada also moves other products via rail into the United States.

“A lot of fertilizer originates in Canada that’s coming to the United States and of course, some exports originate in the United States, but then, they’re exported from Canadian ports, particularly in British Columbia. It’s something we’re mindful of and we’d love to see an agreement reached that would benefit both parties.”

An agreement between a labor union representing workers at the Canadian National Railway and Canadian Pacific Kansas City and the two companies expired at the end of last year. Negotiations have continued, but the companies say they would lock out employees at 12:01 a.m. eastern time on Thursday if an agreement isn’t reached.

Steenhoek says if there is a rail strike, it won’t impact rail deliveries within the United States, including networks owned by Canadian National and Canadian Pacific Kansas City, because those operate under a different worker agreement.