Impending Rail Strike Causes Concern for Saskatchewan Trucking Industry
August 20, 2024
Regina, SK — The Saskatchewan Trucking Association (STA) is raising alarms over the potential impacts of an impending rail strike on the province’s economy. Saskatchewan’s reliance on rail transportation for both imports and exports makes this situation particularly dire, as the trucking industry alone cannot compensate for the shortfall.
Reliance on Rail for Imports and Exports
Approximately 70% of Saskatchewan’s imports are transported by rail, with the remaining 30% moved by truck. The province also depends heavily on rail to export key commodities, many of which cannot be transported by truck due to logistical challenges and infrastructure limitations. The potential halt of rail services could disrupt the flow of essential goods into and out of Saskatchewan, severely impacting industries across the board.
Grain Industry Facing Immediate Challenges
Carriers in the grain sector are already grappling with the consequences, as numerous loads are being canceled due to a lack of products arriving for shipment. Some products are being rerouted to Alberta, creating significant issues for carriers, especially those transporting mining products from northern Saskatchewan. These carriers must now navigate Alberta roads without the same weight allowances or permits available in Saskatchewan, further complicating logistics.
Saskatchewan’s grain elevators are nearing full capacity, with some estimates suggesting they could reach their limit within a week. If the strike proceeds, farmers will face the daunting task of storing unsold grain, as moving it by truck to coastal ports or Thunder Bay is not financially viable. The inability to move these exports could have far-reaching consequences for the agricultural sector.
Dry Goods and Grocery Supplies at Risk
The strike’s impact is not limited to exports; it also threatens the supply of dry goods and groceries within the province. With rail services potentially halted, trucking carriers will struggle to keep up with the demand. Some carriers are scaling up their Truckload (TL) and turnpike divisions to address this gap, but the surge in inquiries about rates and storage capacity indicates that the supply chain is on the brink of a crisis.
STA Calls for Urgent Action
The STA is calling on all stakeholders to recognize the severity of this situation and to take immediate action to prevent a full-scale supply chain disruption. The Association emphasizes the need for a collaborative approach to ensure that Saskatchewan’s economy remains resilient in the face of these challenges.
About the Saskatchewan Trucking Association
The Saskatchewan Trucking Association is the voice of the province’s trucking industry, advocating for the needs and interests of carriers and ensuring the safe and efficient movement of goods across the region.
For media inquiries, please contact:
Susan Ewart, Executive Director
Saskatchewan Trucking Association
306 994-8720
sewart@sasktrucking.com
www.sasktrucking.com
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