The economic fallout of the country’s rail shutdown is set to come into focus this week, as shippers and producers take stock of delays and losses.
A work stoppage that began early Thursday morning at Canada’s two major railways is slated to end first thing Monday after a decision from the federal labour board ordered the companies and their workers to resume operations.
But the full cost of the shutdown remains unclear, even as Moody’s warned it could cost the Canadian economy $341 million per day.
The credit rating agency said agriculture, forestry and manufacturing were among the hardest-hit sectors.
The stoppage is poised to last only four days, but it marks the culmination of a phased wind-down at both railways that will have spanned roughly two weeks.
The decision Saturday from the Canada Industrial Relations Board imposes binding arbitration on all involved parties following an unprecedented dual work stoppage at Canadian National Railway and Canadian Pacific Kansas City that halted freight shipments and snarled commutes across the country.
This report by The Canadian Press was first published Aug. 25, 2024.
Companies in this story: (TSX:CP, TSX:CNR)
