On the eve of an unprecedented railway stoppage, some logistics firms are enlisting trucks to ship goods that otherwise would’ve been sent by rail.Some logistics companies are leaning on the trucking industry to pick up slack caused by a possible rail stoppage. On the possible eve of an unprecedented railway stoppage, some logistics firms are enlisting trucks to ship goods that otherwise would've been sent by rail — though there are limits to how much this strategy can help.
Calgary-based Jori Logistics started making the shift late last week. Company president Sam Woods said the looming strike primarily affects the ocean container side of the business, which is typically taken to and from port by rail. The two companies move roughly $1 billion worth of goods per day, according to the Railway Association of Canada.
Jon Finnimore, with FMI Logistics, said his company has also started to transition from rail shipments to trucking shipments for consumer goods, dry foods and industrial products. Certain commodities — like grain, coal, potash and lumber — can't practically be moved by truck, he said, and it's unlikely many companies moving them will be able to use trucking as an alternative.
He and Finnimore said they're encouraging clients to also consider air transportation or to put non-essential shipments into storage.