With wheat shipments already backed up even before the current labour dispute at CN was under way, the Canadian Wheat Board is looking at costs of between 130,000 and 180,000 US$ for demurrage at Prince Rupert and 150,000 US$ for those vessels calling on the Port of Vancouver.
The backlogs have been an ongoing concern for the last few weeks as cold weather on the prairies conspired against transportation requirements. Now with the additional stress of a railroad dispute, the worries over further backlogs are high on the minds of officials.
The backlogs have been an ongoing concern for the last few weeks as cold weather on the prairies conspired against transportation requirements. Now with the additional stress of a railroad dispute, the worries over further backlogs are high on the minds of officials.
And that backlog situation could very well get worse as more than fifteen vessels are expected to call on the West Coast ports over the next two weeks.
A Saskatoon radio station posted the following story on the net on Wednesday, giving an indication as to the concern that the backlogs are causing for the Canadian Wheat Board.
Demurrage Costs Adding Up on the West Coast
Written by Neil Billinger - 600 Action News-Local First
Wednesday, 14 February 2007
The latest figures from the Canadian Wheat Board indicate 11 ships are waiting for grain in Vancouver, with another 6 at Prince Rupert.
CWB Spokesperson Maureen Fitzhenry says ''we are looking at paying demurrage every day at Prince Rupert in the neighborhood of $130,000 to $180,000 U.S. That is on top of a daily charge in the neighborhood of $150,000 U.S. at the Port of Vancouver."
Grain transportation problems have been a problem for the last few weeks, but the situation is more serious with a strike by CN conductors and yard workers. Fitzhenry says ''the CN strike did not cause this situation, but it is certainly impeding our efforts to get it resolved." One ship at Vancouver has been waiting for 27 days.
Over the next two weeks, the CWB is expecting another 15 vessels on the west coast to pick up half-a-million tonnes of grain.
There is no progress on the labour front. CN is trying to have the strike, which started on Saturday, declared illegal. However, the Canada Industrial Labor Relations Board has delayed the hearing until Monday.
Demurrage Costs Adding Up on the West Coast
Written by Neil Billinger - 600 Action News-Local First
Wednesday, 14 February 2007
The latest figures from the Canadian Wheat Board indicate 11 ships are waiting for grain in Vancouver, with another 6 at Prince Rupert.
CWB Spokesperson Maureen Fitzhenry says ''we are looking at paying demurrage every day at Prince Rupert in the neighborhood of $130,000 to $180,000 U.S. That is on top of a daily charge in the neighborhood of $150,000 U.S. at the Port of Vancouver."
Grain transportation problems have been a problem for the last few weeks, but the situation is more serious with a strike by CN conductors and yard workers. Fitzhenry says ''the CN strike did not cause this situation, but it is certainly impeding our efforts to get it resolved." One ship at Vancouver has been waiting for 27 days.
Over the next two weeks, the CWB is expecting another 15 vessels on the west coast to pick up half-a-million tonnes of grain.
There is no progress on the labour front. CN is trying to have the strike, which started on Saturday, declared illegal. However, the Canada Industrial Labor Relations Board has delayed the hearing until Monday.
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