Canadian Rail Strike Threatens Trade Flows, While BNSF Stops Trains To Mexico

August 22, 2024

On Monday, Aug. 19, the U.S. Grains Council (Council) signed onto an industry letter comprised of 35 organizations that urged Canadian Prime Minister Trudeau to address concerns regarding a potential significant disruption to the North American supply chains and requesting he take action to ensure railroad operations continue to prevent serious damage to the Canadian and U.S. economies.

 

A lockout or strike – that came today, Aug. 22 - could lead to shutdowns or slowdowns of rail-dependent facilities resulting in harmful consequences for Canadian and American agricultural producers, the agricultural industry and both domestic and global food security.

 

Members of the U.S. Grains Council rely on freight rail transportation from the Canadian National Railway Company (CN) and Canadian Pacific Kansas City (CPKC).

 

The letter stressed that:

  • Trucking is not a viable option for many agricultural shippers due to their high-volume needs and the long distances for many of the movements.
  • Agricultural facilities have no viable alternative transportation options to supply Canada’s international customers and the inability to cycle products through the supply chain could limit producers’ ability to deliver harvested crops.
  • Delayed shipments impact costs not only for the value chain, but consumers, who will ultimately pay a higher price after the strike is resolved.
  • Biofuels operations, in particular, require uninterrupted rail service. Interruptions quickly lead to storage capacity issues and restarting these facilities are complex, often causing domino disruptions for several weeks.

 

The Council will keep members updated as soon as we hear something definitive.

 

Complicating matters, BNSF, a U.S. railway that operates one of the largest railroad networks in North America, with about 32,500 route miles in 28 states, announced yesterday it shut down all operations to Mexico immediately and for the next 30 days due to ongoing congestion and service interruptions resulting in critical equipment being held in Mexico.

 

Shuttles within BNSF loading facilities will continue to go through permitting to Mexico. However, customers with a trip falling within the 30-day window may cancel their shuttle free of charge or continue to reschedule with their marketing representative.

 

BNSF is one of the largest railways with five important gateways to Mexico – at San Diego, El Paso, Eagle Pass, Laredo and Brownsville.

 

The Council is concerned for more rail-dependent “just-in-time-delivery” customers located in Jalisco. This will compound existing pressure in the system and exacerbate ongoing delays for raw materials to Mexican customers.

 

The Council is eager to find a solution for both sides of the border to increase capacity and continue trade flows.

thumbnail Mark Lambert
By Tara Desmond March 26, 2026
IL Corn's Mark Lambert reflects on decades of ag communications from stealing the office computer to Captain Corn and DC Metro takeovers.
Oliver
By Tara Desmond March 26, 2026
Marine veteran Oliver Kragelund lost his foot in a grain bin accident in Illinois. Now he's turning that tragedy into a mission for agricultural safety.
Evan Marr, Dan Parker, Don Guinnip, Tim Thompson, Marty Marr at Illinois Capitol
By Lyndi Allen March 26, 2026
The 56th Annual Illinois Agriculture Legislative Day was held on Tuesday, March 24. ICGA leaders attended the event, then met with eight key legislators to discuss IL Corn’s priorities.
A red tractor with a large sprayer attachment moves through a field of green corn plants on a cloudy day.
By Lyndi Allen March 26, 2026
Ag Groups Urge Action on Phosphate Fertilizer Duties Impacting Farmers, filed a letter with the Department of Commerce and the nation's two largest fertilizer producers
A hand reaches for a gas pump nozzle at a station with fuel grade buttons labeled 87, 89, and 91.
By Lyndi Allen March 26, 2026
The U.S. EPA announced on March 25, 2026, that it will use its existing authority to prevent drivers from losing access to lower-cost and lower-emission E15, a higher ethanol blend
NEWS release
By Lyndi Allen March 26, 2026
ICGA Statement on E15 Waiver
Show More