Overview

Amazon has warned Canadian sellers that a threatened rail workers’ strike could begin as early as August 22, 2024, potentially halting freight movement across the country. Because rail carries the bulk of long‑haul cargo to Amazon fulfillment centers, any stoppage may delay inbound inventory, increase shipping costs, and trigger stockouts. Sellers who act now can lessen the impact on sales and Buy Box eligibility.

Key Points

• Strike timeline — Workers from Canada’s two major railroads announced a possible walkout starting August 22, 2024, with no defined end date.
• Rail’s share of freight — Canadian National Railway and Canadian Pacific Kansas City together move hundreds of millions of tonnes of cargo annually, including most consumer goods destined for Amazon warehouses.
• Cost shift to trucking — Replacing rail with truck transport can raise per‑unit freight costs by 30‑50 % but restores flexibility when rail service is unavailable.
• Inventory buffer recommendation — Amazon advises sellers to pre‑stage extra stock at fulfillment centers, especially for high‑velocity SKUs, to cover at least a seven‑day disruption window.
• Cross‑border ripple effect — A Canadian rail strike can delay shipments that travel through Canada to U.S. fulfillment centers, affecting sellers with North‑American supply chains.

How the Disruption Could Unfold

1. Rail service interruption — If the strike begins, trains that normally haul pallets from ports or manufacturers to Amazon’s Canadian hubs stop running; for example, a seller shipping 10,000 units of a seasonal product from Vancouver to Toronto would see the transit time jump from 4 days to potentially 10 days.
2. Truck lane congestion — Shippers scramble to move the same volume by road; a typical truck route that handles 200 pallets per day may become overloaded, leading to delays of 2‑3 days and higher fuel surcharges.
3. Fulfillment‑center inventory dip — With inbound shipments delayed, on‑hand inventory at Canadian fulfillment centers drops; a seller maintaining a two‑day safety stock could fall below the reorder point within three days, risking a stockout.