'Disaster': Alberta businesses panic as potential rail strike creeps closer

Alarm sounded, as rail strike creeps closer Canadian business owners and supply chain experts warn of disaster, as a potential rail strike creeps closer.

Local businesses and consumers are sounding the alarm as a nationwide rail strike looms.

The union representing thousands of workers at Canadian Pacific Kansas City Ltd. served a 72-hour strike notice to the railway on Sunday.

And not long after that, CN Rail issued a similar notice saying it also intends to lock workers out unless an agreement or binding arbitration is achieved.

The Teamsters Canada Rail Conference says a combined 9,300 workers at Canada's two largest railways will be off the job as of 12:01 a.m. Eastern Time Thursday.

That has many Calgary businesses hitting the panic button, according to the Chamber of Commerce.

"We have $380 billion of goods that cross this country on rail and 95 per cent of all grain exports," president Deborah Yedlin said.

"We can't afford to have any of this happen."

Yedlin says she's heard from members concerned not only about the impact on their businesses but also about the consumer trickledown.

She believes even a short strike could greatly magnify the impacts of inflation, especially for products related to agriculture, energy, construction and manufacturing.

Shipping expert and Jori Logistics president Sam Woods agrees.

"The international shipping and supply chain is very fragile, so small changes just bog everything down," he told CTV News.

"We are going to see long-term ramifications even if they don't strike because of that uncertainty factor."

There have already been changes on the rails.

Last week, hazardous materials were embargoed in anticipation of the stoppage.

This week, shipments that need cooler temperatures such as meat and medicine followed suit to avoid stranded loads going bad.

And ocean carriers have now begun to refuse Canadian bookings that include rail.

Woods says the longer the strike, the more costly the impact for consumers.

Short-term, he believes trucks can fill in the gap, though that will be at "one-and-a-half to two times the cost."

Long-term, he believes the "sky is the limit" for price increases.

"There are just not enough trucks to fill in that gap and trucks cost more to operate than rail cars would, and all the infrastructure is built for rail," Woods said.

"So that's just going to increase that inland cost significantly."

There's a chance a longer stoppage could clog ports.

Not only would that ensuing congestion lead to higher storage fees but the ocean carriers could eventually up their container rental rates.

The Chamber wants rail deemed an essential service, pointing out how vital the network is to the country's trade productivity.

"This calls into question our reliability as a trading partner," Yedlin said.

"That won't help (Canada) in the future."

The rail companies say no meaningful negotiation progress has occurred despite weekend labour discussions.