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Canadian truckers well placed to benefit in case of rail strike, Ryder Systems states

Canadian transport services supplier Ryder Systems stated the trucking market ought to be able to deal with a dive in freight volume in the event of a rail strike, though it signified that the cost of shipping may boost.

The Canadian industry is on tenterhooks as talks in between the Teamsters union, which represents more than 9,000 employees, and the country's two biggest railways - Canadian National and Canadian Pacific Kansas City - drag on over a brand-new contract.

Labor Minister Seamus O'Regan in May referred the conflict to the Canadian Industrial Relations Board (CPKC) guaranteeing that a. possible walkout does not take place up until it releases a choice on. the security impacts of a strike.

In a statement to on Monday, Ryder said it has the. ability to use its devoted transportation service. offering and contract outsourced capability within its. transportation management group in case of a volume spike.

Needs to a strike eventually occur, the industry as a whole. ought to anticipate that there would be a capacity shift mostly to. truckload, said Kevin Clonch, group director of consumer. logistics at Ryder.

Shippers stay cautious about the expense attached to a. possible shift from railway to truckload, Ryder said, as. intermodal deliveries, which are most preferred by carriers since. of its cost efficiency, might be largely impacted in the. occasion of a strike.

Ryder said it has actually gone over some alternative methods with. its consumers to still deliver intermodal to close-by border. places where suitable to alleviate cost effect, and then. ship by truck for the last mile.

Provided concerns about service disruptions ... the. unpredictability could trigger some shippers to import freight into. U.S. ports instead of Canadian ports, Stephens analyst Daniel. Imbro stated.

Miami-based Ryder provides logistics services throughout the. United States, Mexico, and Canada, managing almost 260,000. commercial lorries and running about 300 warehouses.

(source: Reuters)