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STORY: An unprecedented rail stoppage at Canada’s top two railroads could cause billions of dollars’ worth of economic damage… and wreak havoc on North American supply chains.

Here's what you need to know.

:: File

:: What is happening?

Canadian National Railway and Canadian Pacific Kansas City – CN and CPKC – locked out more than 9,000 unionized workers on Thursday after failing to reach a labor agreement.

Both companies' deals expired at the end of 2023 and talks have been ongoing since

The stoppage could hamper shipments of everything from grain to potash to vehicles.

:: August 22, 2024

Canadian Prime Minister Justin Trudeau has stressed the need for a quick solution:

"We are on this, we are taking this so seriously. We are not taking this lightly."

:: Where do the two companies operate?

CN and CPKC's coast-to-coast rail networks connect in the U.S. and are linked to operators like BNSF and Union Pacific.

The networks act as links to North American trade corridors and ports and help to move billions of dollars’ worth of goods and commodities.

:: File

Industry groups are worried the stoppage could ripple throughout the continent.

:: How will the stoppage impact the U.S.?

The No. 2 railroad operator in the U.S. — Union Pacific — has warned the stoppage could have devastating consequences.

Ratings agency Moody’s says it could cost over $250 million a day.

The Canadian and U.S. economies are highly integrated.

Tens of billions of dollars’ worth of agricultural products were imported and exported by both countries last year.

:: File

Lots of U.S. companies and producers use Canadian ports, especially in the Midwest.

So groups representing farmers and miners say they’re worried about the potential for crippling supply-chain delays, higher costs and potential shutdowns.

:: What's next?

:: File

Truckers say they can absorb some of the extra demand - but not all of it.

They can’t replace rail distribution.

And there is some cargo that simply can’t move by truck, like bulk shipments of potash or coal.

Canada's labor minister has broad powers and can order the sides to enter binding arbitration... an idea one government source said is being explored.