Supply chain woes and the fertilizer crisis are about to reach breaking point, as Canadian Pacific Rail Workers stranded fertilizer shipments after they decided to strike.
Around 3,000 CP Rail engineers, train and yard workers and conductors, are striking and this comes after their representatives – Teamsters Canada Rail Conference – were unable to come to an agreement with the Rail company.
Of course, this is going to further impact dwindling supplies of food, fertilizer, commodities and farm supplies that are sent to America, are not going to be available coming into the growing season.
Zero Hedge reported: “CP Rail is the leading carrier of potash, a potassium-rich salt mined from underground deposits formed from evaporated sea beds millions of years ago, used to support crop development,”
“In prior investor documents, the rail company said it hauls 70% of the potash produced in North America, all from mines in Canada. The railroad also carries fertilizers, including phosphate, urea, ammonium sulfate, ammonium nitrate, and anhydrous ammonia.”
A major disruption in operations will have dire consequences for farmers in North America, and planting is about to begin in America.
“The work stoppage may exacerbate existing supply chain bottlenecks in North America stemming from COVID,” the report adds.
“The agricultural sector can’t afford any more disruptions as Western economic sanctions on Russia and Belarus, two major fertilizer producers, have unleashed higher prices globally and shortage fears.”
Canadian Potash prices have previously reached this high in price – right before the 2008/2009 world economic crash.
The Teamsters Canada Rail Conference says it tried to continue bargaining with CP Rail, but that the company
According to the union, the CP Rail Company, “chose to put the Canadian supply chain and tens of thousands of jobs at risk,” instead of ignoring the Teamsters Canada Rail Conference negotiations pleas.
“As Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network,” the union said in an announcement.
As yet, there is no timeline of when an agreement might be reached and federal negotiators are moderating the deal between the union and CP Rail Company.
Canada still has a grace period of about a month, as spring hasn’t quite reached there yet, so they may be able to get back on track. But American farmers are getting ready to plant, especially in the lower states and the fertilizer is much needed.
Zero Hedge warned:
“If farmers don’t have enough fertilizer on hand, it could have severe implications for declining yields for this year’s harvest,” Zero Hedge warns.
“For the sake of the North American food supply, let’s hope a resolution is found shortly. Otherwise, anyone who didn’t prepare for food shortages will be eating lentils and insects.”
While the Rail Roads including Union pacific & BNSF in the U.S. have made record profits in 2021 & are on track to beat their 2021 record in 2022 they continue to “balance their check books on the back of their labor” all the while paying their CEO’s & VP’s millions in bonuses & profit sharing for sitting at a desk arranging their next golf game. Good for the Canadian Rail workers to stand their ground. To bad U.S. rail workers can not strike under fed. law, unless a fed. judge ok’s it. All one has to do, to see how criminally corrupt the Rail roads are is google “judicial misconduct of the BNSF RR” & the same for the others. The demonrats are NOT for the working class, yet the corrupt Unions continue to vote Demonrat.