Freight of chemical products in Canada - Data and Analysis (1999-2032)

The freight of chemical products in Canada is to expand 1.8% in 2026, building on modest recent growth. A gradual strengthening of Canadian manufacturing and industrial output has sustained demand for key chemical inputs, including sulphuric acid, potash and fertilizers. Domestic freight volumes are holding steady as downstream industries continue drawing on chemical supply chains to meet production targets. Overall, the five-year CAGR of 0.6% reflects a period defined by disruption and partial recovery rather than sustained expansion.Freight of chemical products in Canada has exhibited notable volatility over the five years through 2026. Canadian chemical companies rely on rail to transport a significant portion of their products, meaning even modest shifts in production or demand translate directly into measurable changes in freight activity.The inflationary environment that took hold in 2022 weighed heavily on the industry. Freight activity contracted by 3.3% in the year as elevated input costs restricted how much downstream industries could procure. Chemical prices remained well above pre-pandemic levels, and while this provided a modest lift to nominal sales figures, volumes stayed suppressed as buyers limited purchases in response to cost pressures. The environment kept production constrained, and freight activity declined accordingly.A rebound emerged in 2023, with freight-carrying activity rising 3.8% as broader economic activity accelerated and cross-sector demand for chemical inputs scaled up. The resumption of uninterrupted rail service following earlier supply chain disruptions also helped normalize freight flows, allowing chemical shipments to better track with production requirements. Although inflationary pressures had not fully abated, the growing need for chemicals across manufacturing and agricultural sectors helped sustain elevated freight volumes into 2024 and 2025. The global potash market, a key component of this freight driver, has continued to expand on the back of rising agricultural demand, further supporting Canadian freight volumes given the country's status as a leading potash producer.