Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada


Canada Transportation Act (S.C. 1996, c. 10)

Act current to 2021-04-05 and last amended on 2020-06-10. Previous Versions

PART IVArbitrations (continued)

DIVISION IFinal Offer Arbitration (continued)

Marginal note:Decision or order affecting a matter being arbitrated

 The Agency may, in addition to any other decision or order it may make, order that an arbitration be discontinued, that it be continued subject to the terms and conditions that the Agency may fix or that the decision of the arbitrator be set aside if

  • (a) the Agency makes a decision or an order arising out of an application that is in respect of a matter submitted to the Agency for a final offer arbitration and that is filed by a carrier before the matter is referred to arbitration; and

  • (b) the decision or order affects the arbitration.

  • 2000, c. 16, s. 14

Marginal note:Procedure

  •  (1) In the absence of an agreement by the arbitrator and the parties as to the procedure to be followed, a final offer arbitration shall be governed by the rules of procedure made by the Agency.

  • Marginal note:Procedure generally

    (2) The arbitrator shall conduct the arbitration proceedings as expeditiously as possible and, subject to the procedure referred to in subsection (1), in the manner the arbitrator considers appropriate having regard to the circumstances of the matter.

  • Marginal note:Exchange of information

    (3) Within fifteen days after the Agency refers a matter for arbitration, the parties shall exchange the information that they intend to submit to the arbitrator in support of their final offers.

  • Marginal note:Interrogatories

    (4) Within seven days after receipt of the information referred to in subsection (3), each party may direct interrogatories to the other, which shall be answered within fifteen days after their receipt.

  • Marginal note:Withholding of information

    (5) If a party unreasonably withholds information that the arbitrator subsequently deems to be relevant, that withholding shall be taken into account by the arbitrator in making a decision.

Marginal note:Arbitration information

  •  (1) The arbitrator shall, in conducting a final offer arbitration between a shipper and a carrier, have regard to the information provided to the arbitrator by the parties in support of their final offers and, unless the parties agree to limit the amount of information to be provided, to any additional information that is provided by the parties at the arbitrator’s request.

  • Marginal note:Arbitration considerations

    (2) Unless the parties agree otherwise, in rendering a decision the arbitrator shall have regard to whether there is available to the shipper an alternative, effective, adequate and competitive means of transporting the goods to which the matter relates and to all considerations that appear to the arbitrator to be relevant to the matter.

Marginal note:Summary process

 If the Agency determines that a shipper’s final offer submitted under subsection 161.1(1) involves freight charges in an amount of not more than $2,000,000, adjusted in accordance with section 164.2, and the shipper did not indicate a contrary intention when submitting the offer, sections 163 and 164 do not apply and the arbitration shall proceed as follows:

  • (a) within seven days after a matter is referred to an arbitrator, the shipper and the carrier may file with the arbitrator a response to the final offer of the other party;

  • (b) subject to paragraph (c), the arbitrator shall decide the matter on the basis of the final offers and any response filed under paragraph (a); and

  • (c) if the arbitrator considers it necessary, the arbitrator may invite the parties to make oral representations or may ask the parties to appear before him or her to provide further information.

  • 2000, c. 16, s. 15
  • 2018, c. 10, s. 47

Marginal note:Triennial adjustment

  •  (1) The maximum amount of freight charges for the purpose of section 164.1 shall be adjusted every three years, on April 1, in accordance with the formula

    [A/B] × C


    is the Consumer Price Index for the calendar year before the year in which the adjustment is made;
    is the Consumer Price Index for 2017; and
    is $2,000,000.
  • Marginal note:Consumer Price Index

    (2) For the purposes of subsection (1),

    • (a) a reference to the Consumer Price Index for any 12-month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;

    • (b) if at any time the Consumer Price Index for Canada is adjusted to reflect a new time basis, a corresponding adjustment is to be made in the Consumer Price Index for any 12-month period that is used for the purpose of calculating the maximum amount under subsection (1); and

    • (c) if at any time the Consumer Price Index for Canada is adjusted to reflect a new content basis, that adjustment does not affect the operation of this section.

  • Marginal note:Maximum amount to be published

    (3) The Agency shall adjust the maximum amount in accordance with subsection (1) and cause it to be published in the Canada Gazette no later than March 31 before the commencement of the three-year period for which the maximum amount applies, and that published amount is conclusive proof of the maximum amount for that three-year period.

  • 2018, c. 10, s. 48

Marginal note:Decision of arbitrator

  •  (1) The decision of the arbitrator in conducting a final offer arbitration shall be the selection by the arbitrator of the final offer of either the shipper or the carrier.

  • Marginal note:Requirements re decision

    (2) The decision of the arbitrator shall

    • (a) be in writing;

    • (b) unless the parties agree otherwise, be rendered within 60 days or, in the case of an arbitration conducted in accordance with section 164.1, 30 days after the date on which the submission for the final offer arbitration was received by the Agency; and

    • (c) be rendered so as to apply for the period that is agreed to by the parties or, if no period has been agreed to by the parties, for the period, not exceeding two years, that the shipper requested in its submission.

  • Marginal note:Incorporation in tariff

    (3) The carrier shall, without delay after the arbitrator’s decision, set out the rate or rates or the conditions associated with the movement of goods that have been selected by the arbitrator in a tariff of the carrier, unless, where the carrier is entitled to keep the rate or rates or conditions confidential, the parties to the arbitration agree to include the rate or rates or conditions in a contract that the parties agree to keep confidential.

  • Marginal note:Reasons not required

    (4) No reasons shall be set out in the decision of the arbitrator.

  • Marginal note:Reasons may be requested

    (5) The arbitrator shall, if requested by all of the parties to the arbitration within 30 days or, in the case of an arbitration conducted in accordance with section 164.1, seven days after the decision of the arbitrator, give written reasons for the decision.

  • Marginal note:Application of decision

    (6) Except where both parties agree otherwise,

    • (a) the decision of the arbitrator on a final offer arbitration shall be final and binding and be applicable to the parties as of the date on which the submission for the arbitration was received by the Agency from the shipper, and is enforceable as if it were an order of the Agency; and

    • (b) the arbitrator shall direct in the decision that interest at a reasonable rate specified by the arbitrator shall be paid to one of the parties by the other on moneys that, as a result of the application of paragraph (a), are owed by a party for the period between the date referred to in that paragraph and the date of the payment.

  • Marginal note:Payment by party

    (7) Moneys and interest referred to in paragraph (6)(b) that are owed by a party pursuant to a decision of the arbitrator shall be paid without delay to the other party.

  • 1996, c. 10, s. 165
  • 2000, c. 16, s. 16
  • 2018, c. 10, s. 49

Marginal note:Arbitration fees

  •  (1) The Agency may fix the fee to be paid to an arbitrator for the costs of, and the services provided by, the arbitrator in final offer arbitration proceedings.

  • Marginal note:Payment of fees and costs

    (2) The shipper and the carrier shall share equally, whether or not the proceedings are terminated pursuant to section 168, in the payment of the fee fixed under subsection (1) and in the cost

    • (a) borne by the Agency for administrative, technical and legal services provided to the arbitrator pursuant to subsection 162(2); and

    • (b) of the preparation of any reasons requested pursuant to subsection 165(5).

Date modified: