CN worker strike freezes fertilizer, grain shipments

A strike by Canadian National (CN) railroad workers that started overnight halted fertilizer and grain shipments today.

Approximately 3,200 CN employees — members of the Teamsters Canadian Rail Conference — went on strike today and subsequently brought most of the railroad's operations to a standstill, including fertilizer and grain shipments.

CN has shipped an average of 12,000 carloads/week of combined grain and fertilizers through 10 November, according to company data. Potash is the primary fertilizer shipped by the company and comprised nearly 13pc of CN's fertilizer and grain revenue in 2018, according to the company's financial filings.

Fertilizer Canada, an industry advocacy group, today called for a quick end to the strike to minimize effects to the country's agribusiness sector.

"Aside from this being a potential infringement of the common carrier obligation, any disruption in the movement of these products may force the shutdown of our members' manufacturing facilities, with detrimental effects on equipment and employees' livelihoods," the group said.

North American potash and phosphate producer Nutrien expects the strike will impact its ability to deliver product to domestic and international customers, including western Canadian farmers wrapping up harvest and fertilizer applications. There are additional concerns that the strike could threaten Canada's reputation as a reliable potash and grain supplier if it continues, the producer said.

Shipments continue on CN-operated US lines, but no freight can enter or leave Canada.

By Jasmine Davis