The ongoing labour dispute between Canada’s largest railway companies and their employees is driving up trucking costs, with small businesses being hit hardest.
The co-founder of a Canadian startup says he is facing disproportionately inflated trucking costs due to the ongoing dispute, with one price being offered more than double what it would normally cost.
Brust Protein Coffee co-founder Josh Barr says he’ll lose money if he pays the roughly $11,000 he’s been offered for a truckload from Toronto to Calgary.
While the federal government is intervening in the work stoppage that began early Thursday morning at Canada’s two major railways, the union is pushing back on the government’s efforts to get employees back to work. It’s unclear at this point when freight traffic will fully resume.
Retail Council of Canada spokesperson Michelle Wasylyshen says the trucking industry can’t handle the sheer volume of goods normally shipped by rail, driving up demand and prices with it.
She says that while large retailers may have existing contracts with truckers at more normal prices, any businesses that plan at the last minute will face higher costs right now.
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