OTTAWA: Canadian grain sales to the U.S. and Mexico have plunged 35 percent following a government order designed to relieve the backlog that piled up in 2014, according to the Ag Transport Coalition, which represents grain, oilseeds and pulse crop-shippers.
Canadian National Railway Co. and Canadian Pacific Railway Ltd. must move as much as 465,000 tons a week through at least March to avoid fines.
They’ve chosen to increase two-week trips from the prairies to Vancouver or Thunder Bay, Ontario, rather than monthlong journeys to some U.S. destinations, Wade Sobkowich, executive director of the Western Grain Elevator Association in Winnipeg, said by phone Jan. 27. The group represents companies including Richardson International and Cargill Ltd.
Western Canadian producers stand to lose more than C$2 billion ($1.6 billion) this year because of continued export delays, the Saskatchewan Wheat Development Commission said in a statement.
