Expect Major Supply Chain Disruptions to Start at the End of August

Charles HHuang / shutterstock.com
Charles HHuang / shutterstock.com

The two main railroads in Canada are expected to go on strike this week. This won’t just impact Canada. The strike is expected to impact the entire supply chain in America and Mexico as well. If Kamala Harris understood how a complex supply chain works, she’d be on the phone with Canada’s dictator Justin Trudeau, and telling him to get this sorted out right now. Another major supply chain disruption is the last thing Kamala’s campaign needs right now.

The bad news is that Kamala Harris does not understand supply chains. That means we’re going to start seeing major disruptions starting next week as a result of the rail workers striking.

The Canadian National Railway and Canadian Pacific Kansas City normally go through collective bargaining in alternating years. This prevents both of Canada’s two main railroads from ever shutting down at the same time.

This year, the Canadian National Railway is striking because workers want higher pay and fewer requirements to move to new provinces to fill shortages. At the same time, Canadian Pacific Kansas City is striking because of emergency safety concerns. The railroad wants employees working longer hours, which the union says creates major safety hazards.

Both railroads will lock out their workers within the next few days. The ripple effects of the simultaneous strikes will start to hit America in the next week or so.

Canada exports grains, beans, potash, timber, petroleum products, cars, and other things to the US and Mexico via the rail lines. Unless the railroads and workers come to quick resolutions, Americans will be facing rising prices on gasoline, diesel, food, and other products in the run-up to the 2024 election.