OTTAWA, Ontario — Thousands of truck drivers have descended on Canada’s Parliament in recent days, clogging the streets of the Canadian capital and blocking U.S.-Canadian border crossings in response to a Jan. 15 government vaccine mandate requiring truckers returning from the U.S. to show proof of a COVID-19 vaccine.
Dubbed the “Freedom Convoy,” and originating in western British Columbia, the truckers and a growing number of individual protesters have vocalized what they perceive as an overreach of the Canadian government. But with some Canadian truck drivers taking part in the demonstration, and blockading strategic U.S.-Canadian borders locations, will railroads capture temporary business as shippers turn to rail to avoid further supply chain disturbances?
According to a Wall Street Journal report, Omar Alghabra, Canada’s Minister of Transport, says the vaccine mandate has had no significant impact on the volume of trucks crossing the border. He also says that doesn’t mean there aren’t supply chain issues, nor does it mean shippers aren’t finding enough truckers to carry their loads. Citing government data, Alghabra says approximately 100,000 trucks entered Canada in the week following the vaccine mandate, with a similar figure last week. Cross-border traffic is on par with the same volume recorded last fall, according to the most recent data.
But the U.S. Transportation Intermediaries Association, a trade group representing freight brokers, also said in the Journal article that vaccine requirements are slowing cross-border freight. According to a statement by the association’s chief executive, its members are experiencing freight delays of seven to 14 days and growing, citing a shortage of drivers.
So far, neither the vaccine mandate nor the protests have significantly bolstered carloads for Canada’s Class I railroads, making it difficult to pinpoint if railroads are capturing temporary business.
Canadian Pacific moved 52,508 carloads in the week ending Jan. 29, or 4.6% fewer carloads than a year ago. This was driven by decreased automotive and grain shipments, but partially offset by more shipments of fertilizers, forest products, and coal. Intermodal shipments also saw modest gains for the week.
Canadian National handled 106,269 carloads for the same period, or 6.2% fewer carloads than a year ago. CN saw a similar drop in grain and automotive shipments drag down total volume, even as the railroad saw modest gains in coal, primary forest products, petroleum, and scrap shipments. CN’s intermodal business was down 12% for the week, compared to year-over-year volume.
It may be too early to determine if Canadian railroads are capturing highway volume, but a close eye on carload trends with truck-competitive commodity groups like forestry products may provide broader insights into how products are flowing across the border as the pandemic maintains its grasp on the supply chain.
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