Canada is one of the world’s most reliable producers of grain, oilseeds, and pulses. But when grain shipments stall, export sales are lost, and Canada’s reputation as a dependable supplier is put at risk.
This is happening more often than it should. In recent years, Canada’s grain supply chain has faced repeated disruptions across rail and port operations.
During the 2024 dual-railway work stoppage, the grain sector estimated losses of over $35 million per day.
BUT THE TRUE COST IS EVEN HIGHER
New economic analysis shows the cost of these disruptions is measured in the hundreds of millions of dollars.
$540 million
Lost from the grain sector in just one week of rail and port shutdown during peak export season
$507 million
Lost from a one-week shutdown of both major railways
$112 million
Lost sales that can occur before a work stoppage even begins
The cost of supply chain disruptions
94%
of Canadian grain move
by rail
~80%
of total Canadian grain production is exported
KEY FINDINGS FROM THE REPORT
1.
Supply chain shutdowns create massive economic losses
A one-week shutdown of rail and port operations during peak export season costs the Canadian grain sector nearly $540 million in lost earnings.
2.
Rail disruptions cause major harm
Because Canada’s grain supply chain depends heavily on rail transportation, a one-week shutdown of the two major railways can cost the industry more than $507 million.
3.
Lost sales drive most of the damage
More than 90% of the economic impact from transportation disruptions comes from lost export sales, which often cannot be recovered once shipments are missed.
4.
The economic impact begins before a strike even occurs
Grain movement slows as soon as a disruption appears likely, leading to up to $112 million in lost sales before a work stoppage even begins.
5.
Repeated disruptions damage Canada’s reputation
Repeated shutdowns weaken Canada’s standing as a reliable global supplier, increasing the risk that international buyers permanently shift to other countries.
KEEP GRAIN MOVING
OUR RECOMMENDATIONS
Canada’s grain supply chain must continue operating, even during periods of labour disruption. How disruptions are prevented and resolved will determine Canada’s ability to compete in global markets.
1.
Maintain critical export flows
Establish minimum service requirements across rail and ports so critical export flows continue during labour disputes.
2.
Prevent disruptions before they begin
Preventing disruptions before they begin Introduce earlier and binding dispute resolution triggers, with clear timelines and escalation points before a strike or lockout occurs.
3.
Resolve disputes more quickly
Implement a defined, expedited process for intervention when national economic harm is triggered, including access to binding arbitration.
4.
Improve predictability and stability
Strengthen notice requirements, limit rolling disruptions, and require orderly operations leading into disputes to reduce pre-emptive slowdowns.
THERE'S TOO MUCH ON THE LINE TO STAND STILL
Now is the time for government, industry, and labour to come to the table and develop solutions that reduce the risk of future disruptions and keep Canada’s grain moving to global markets.
Tell your Member of Parliament: Canada needs a plan to keep our grain supply chain moving.
Subject: Too much on the line for another grain supply chain shutdown
Dear [MP Name],
I am writing to express my concern about the economic risks that transportation disruptions pose to Canada’s grain industry. Canada is one of the world’s largest exporters of grain and pulses, and our farmers depend on reliable rail and port infrastructure to reach global markets. A recent analysis shows that a one-week shutdown of rail and port operations during peak export season can cost the grain sector nearly $540 million in lost earnings.
Even the threat of a disruption can slow grain movement and reduce sales before a strike or lockout occurs. Over time, repeated shutdowns risk damaging Canada’s reputation as a dependable supplier and could push international customers toward competing countries.These impacts affect farmers, exporters, rural communities, and the broader Canadian economy.
With so much on the line, I encourage the Government of Canada to bring industry, labour, and government together to develop solutions that reduce the risk of future supply chain disruptions.
Canada’s grain supply chain is too important to leave vulnerable to repeated shutdowns.
Thank you for your attention to this issue.
Sincerely,
[Name]
[City / Province]