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Canada’s railway stoppage could put a dent in your wallet

Aug 22, 2024

Canada’s railway stoppage could put a dent in your wallet

While the rail stoppage might not seem like a you problem, these types of supply chain disruptions can actually impact your everyday expenses. Here's why: the lockout of about 10,000 workers at Canada’s two largest railways is causing major disruptions in the supply chain, which can eventually lead to higher prices for things you buy. This disruption is blocking the transport of around $1 billion worth of goods daily, halting transportation on essentials like grain, fertilizer, oil, and meat. When businesses can’t get the supplies they need, they often incur extra charges, so they raise prices on what’s available to help cover their losses. For example, back in 2012, a nine-day strike by Canadian Pacific railway workers created a backlog of about $50 million worth of wheat, which cost farmers $1 million a week in extra charges, contributing to higher prices for grain products in stores. Experts are concerned that we might see a similar increase in meat and gas prices this time around. Looking at the big picture, supply chain disruptions can even push the inflation rate up. The good news is that rail strikes in Canada usually don’t last too long, with the 2012 nine-day strike the longest in over a decade.

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