Now that the rail blockades over an indigenous pipeline dispute have ended, the country is facing a huge backlog of goods waiting to be moved by rail to their destinations.
Over 1,000 rail workers who had been temporarily laid off are returning to work. The president of Canadian National Railway (CN) said last week that there were 10,000 rail cars full of grain sitting idle equal to roughly over a million tonnes.
Both CN and the Canadian Pacific Railway (CP) were affected by the blockades, CN saying some 1,400 freight and passenger trains were cancelled or delayed due to blockades. Although trains are moving, the backlog throughout supply chains and storage remains
Quoted by Bloomberg News, Wade Sobkowich, the executive director of the Western Grain Elevator Association, indicated that delays in shipping are costing as much as s C$10 million a day.
At the western ports at Vancouver and Prince Rupert, all the anchorages are full as cargo ships wait to unload and/or load cargo, with other ships anchored at overflow spots up and down the coast.
On the west coast, port anchorages are full as freighters await to be unloaded or loaded and dozens of others had had to anchor at overflow spots along the Georgia strait. (Peter Holmes via CBC)
Farmers across the country are concerned not only about moving crops out, but getting supplies in, like seed, fertilizer and propane in order to begin spring planting. They are also very concerned about delays in payment as their crops sit idle on parked trains.
The container backlog a the port of Halifax on the east coast caused at least one shipper to divert business to American ports.
The rail blockades of several weeks have backlogged traffic at Canadian ports, and across the country, stalling the economy. (Cole Burston- Canadian Press)
Various sources indicate it could take up to six months to relieve the backlog, and there are worries that international clients are beginning to look elsewhere for “reliable” sources of grain and other products.
Additional information-sources
- Alberta Farmer: A. Kienlen: Mar 5/20: Rail delays have everyone ‘ripping their hair out’
- Bloomberg: J.Skerrit: Mar 4/20: Losses Mount for Canadian Grain Shippers
- Western Producer: J. Simes: Mar 4/20: CN begins recovery plan following blockades
- Reuters (via Western Producer): A. Lampert: Mar 3/20: CN faces grain export backlog of 10,000 carloads
- Famers Forum: Meager/Lynch: Mar 3/20: Rail blockades pile on farmer pain
For reasons beyond our control, and for an undetermined period of time, our comment section is now closed. However, our social networks remain open to your contributions.