Rail Shutdown’s Hit to Canada Seen Rising If Outage Lasts a Week
- Moody’s sees a 14-day action cutting nominal GDP C$4.8 billion
- Shipment diversions can only soften blow for short time
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Canada’s railway shutdown will cause billions in dollars in damage to the country’s economy if it’s not resolved quickly, economists say.
Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. locked out unionized workers represented by the Teamsters Canada Rail Conference early Thursday morning, shutting down 80% of the country’s rail network and blocking the flow of C$1 billion ($740 million) in goods per day.