Railways suffered a sharp drop-off in container shipments this month as the strike by B.C. port workers halted more than half of steel-box cargo.

Canadian National Railway Co.B次元官网网址檚 revenue ton miles B次元官网网址� a key industry metric used to gauge income and freight volume B次元官网网址� fell 60 per cent in the first week of the job action, according to RBC Dominion Securities analyst Walter Spracklin.

The figure dropped by 45 per cent at Canadian Pacific Kansas City Ltd.

The plunge left the number of containers hauled by Canadian railways last week at barely half the level it reached during the same period in 2022, according to the American Railroad Association.

The corrugated metal boxes, which carry everything from consumer products to auto parts, mark a critical source of cash for CanadaB次元官网网址檚 two main railways, comprising roughly one-quarter of annual revenue.

The International Longshore and Warehouse Union Canada and the BC Maritime Employers Association have until 10:30 a.m. PDT on Thursday to decide if they will accept a federal mediatorB次元官网网址檚 recommendations to end the port strike.

Some 7,400 waterfront workers walked off the job on July 1, with wages, automation and contracting out as the key sticking points in negotiations. The job action has halted shipments in and out of about 30 ports in B.C., including the Port of Vancouver B次元官网网址� CanadaB次元官网网址檚 largest.

Spracklin said the plummeting container cargo would likely impact railway earnings, as CN has 37 per cent of its total carloads originating in Vancouver and Prince Rupert, B.C. About 20 per cent of CPB次元官网网址檚 shipments roll through Vancouver docks.

B次元官网网址淭hat said, we note that in the past, external disruptions including cold weather, blockades, and strikes have not affected share prices or valuation at the Canadian rails, despite the resulting (temporary) negative impact on quarterly results,B次元官网网址� he said in a note to investors.

The effect of stalled containers rippled beyond the tracks, hitting small business owners particularly hard. The Canadian Federation of Independent Business said earlier this week that more than half of businesses it surveyed will see their operations affected by the strike.

Paul Edgerton, founder of PureLite Glass in Ajax, Ont., said 60 per cent of the materials he uses to make windows for homes and commercial buildings come from Asia via the West Coast.

B次元官网网址淭hatB次元官网网址檚 already starting to run out,B次元官网网址� he said. B次元官网网址淎nd the recovery period is going to be at least four weeks.B次元官网网址�

Of equal concern are the manufacturerB次元官网网址檚 21 employees. B次元官网网址淗ow am I going to help them feed their families and pay their bills when I canB次元官网网址檛 make a sale? Because I have no product to sell.B次元官网网址�

The materials PureLite uses on range from glass to polysulfide and silicone, all of it imported.

B次元官网网址淢any of our forwarders, theyB次元官网网址檝e taken the vessel name completely off of the bill of lading. So we donB次元官网网址檛 even know what boat itB次元官网网址檚 going to go on B次元官网网址� thereB次元官网网址檚 no date when itB次元官网网址檚 going to arrive,B次元官网网址� Edgerton said.

Components from alternate source countries such as the United States are either unavailable or B次元官网网址渢hrough the roof in price.B次元官网网址�

B次元官网网址淚t has a tremendous impact,B次元官网网址� he said B次元官网网址� even if the strike is resolved Thursday.

READ ALSO: