03:31 PM EDT, 08/13/2024 (MT Newswires) -- The country's two main railways have started to halt shipments ahead of a possible strike or lockout next week, the first stage in a wind-down as the bargaining deadline approaches, The Canadian Press is reporting Tuesday, in a report published on the BNN Bloomberg website.

Canadian National Railway Co. ( CNI ) said in an internal memo obtained by The Canadian Press that the company began to embargo hazardous goods from the U.S. on Monday in anticipation of a work stoppage. The cargo, the report noted, includes chlorine to disinfect drinking water and ammonia for fertilizers, as well as other toxic or poisonous substances and explosive materials.

"In the absence of reaching a timely tentative agreement or referring all outstanding matters to binding arbitration before the threat of a labour disruption, additional commodities will be subject to embargo," stated the company-wide message from CN's bargaining team on Tuesday.

On Friday, the report noted, Canadian Pacific Kansas City Ltd. ( CP ) said it will temporarily ban traffic of dangerous materials to ensure none wind up stranded on the tracks in the event of job action.

Tuesday's report noted the two railways warned last week they will lock out 9,300 engineers, conductors and yard workers on Aug. 22 unless they find common ground on new contracts after negotiations stalled over scheduling and wages.

Shippers say a work stoppage would snarl the country's supply chain, halting freight traffic and disrupting industries.

(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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