Though freight volumes at CN and Canadian Pacific Kansas City are up slightly overall, key cargo segments at the centre of the tariff battle have seen steep declines in carloads.Peter Power/The Canadian Press
Canadian National Railway Co. CNR-T has laid off about 400 managers amid a slump in freight volumes tied to the trade war with the United States.
The job losses are at rail offices across Canada and the United States, where CN has extensive operations.
“CN has been adjusting its unionized and management headcount across Canada and the U.S. to reflect the business environment,” Ashley Michnowski, a CN spokeswoman, said in an e-mail. “We are careful to do this so to not compromise safety, operational excellence and our ability to take advantage of growth opportunities.”
Freight volumes at the two major Canadian railways, CN and Canadian Pacific Kansas City Ltd., are up by 1.8 per cent year-to-date, according to the American Association of Railroads. But key cargo segments at the centre of the tariff battle have seen steep declines in carloads.
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Carloads of ores and metals are down by 10 per cent, while automobiles and related parts have fallen by 6 per cent, compared with the same period last year, says the AAR, which includes the U.S. and Mexican operations of the Canadian railways. Forest product carloads have plunged by 7.5 per cent. Grain volumes have risen by 14 per cent this year amid strong harvests.
The U.S. has imposed 25-per-cent tariffs on imported cars from Canada, and 50-per-cent duties on steel and aluminum.
Mexican rail traffic is down by 4 per cent this year, compared with the year-ago period, and has fallen in all categories except automotive, the AAR said, excluding CPKC’s operations in Mexico.
Calgary-based CPKC said on Wednesday profit in the third quarter rose by 10 per cent and revenue increased by 3 per cent.
Montreal-based CN reports its financial results on Friday before markets open.