US Shippers Brace for Port Strain as Canada Railways Shut Down

Importers and exporters are left with few options as a near-total rail shutdown in Canada risks delaying ocean shipments, spiking freight costs and straining the busiest US ports, which are already handling a cargo surge.

Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. locked out more than than 9,000 Teamsters Canada Rail Conference workers after a 12:01 a.m. New York time deadline elapsed on Thursday. The union had issued a strike notice against Canadian Pacific that took effect at the same time.

The impacts are already occurring. C.H. Robinson Worldwide, Inc. has been diverting much of its US ...