C.H. Robinson diverting some US customers' cargo away from Canadian ports

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August 19, 2024 12:10 PM EDT

FILE PHOTO: Trains are seen in the yard at the at the CN Rail Brampton Intermodal Terminal after Teamsters Canada union workers and Canadian National Railway Co. and failed to resolve contract issues, in Brampton, Ontario, Canada November 19, 2019. REUTER

(Reuters) - U.S. freight forwarder C.H. Robinson said on Monday it was diverting some of its U.S. customers' ocean cargo away from Canadian ports as the threat of a rail strike looms.

It said roughly 80% of its customers who had switched are now exporting through Los Angeles/Long Beach ports and the rest through Seattle/Tacoma ports.

Canadian railroads, Canadian National and Canadian Pacific Kansas City, are bracing for a possible work stoppage by the Teamsters Canada Rail Conference Union.

"Now that a strike notice has been declared, some of our Canadian export customers are starting to ship time-sensitive goods to the ports by truck to avoid containers being stuck at rail terminals during a strike," C.H. Robinson's Canada VP Scott Shannon said in a statement to Reuters.

C.H. Robinson is lining up extra trucking capacity on both sides of the border, as volumes are expected to shift to highways following the disruption.

A strike, which could come as early as August 22, brings a level of uncertainty for shippers in both U.S. and Canada, forcing them to think about over-the-road options.

(Reporting by Abhinav Parmar in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)


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