Much-Needed Canadian Grain Piles Up Amid Fear of Rail Bottleneck

The world sorely needs more grains and Canada has a bin-busting harvest this year -- but shippers fear there aren’t enough rail cars to transport it all, Bloomberg News reported. There were almost 2,400 outstanding grain-car orders for the nation’s two major carriers, Canadian National Railway Co. and Canadian Pacific Railway Ltd., according to the latest data from Ag Transport Coalition. “We have to make up these orders,” Wade Sobkowich, executive director of the Winnipeg-based Western Grain Elevator Association, said Tuesday in a phone interview. “We were concerned going into this year and unfortunately it feels like our concerns are founded.” Shippers are worried about the railways’ ability to haul grain as Canadian farmers harvest the nation’s third-biggest wheat crop on record and 42% more canola than a year ago. Sobkowich said Canadian Pacific has fallen behind orders for three weeks and grain companies will have to defer sales if the trend continues. Read more.
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