Market Matters Blog

Weekly Railroad Updates Show Mixed Results in Service Improvements

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
Canadian Pacific locomotives on track near southern Saskatchewan. (DTN photo by Elaine Shein)

OMAHA (DTN) -- The large volume of soybeans moving from the upper Midwest for export is causing delays in rail shipments to the U.S. Pacific Northwest, according to Canadian Pacific railroad's weekly service update to the Surface Transportation Board.

"Our railroad does not reach the PNW," said the CP, "so transportation from origin to the destination for this traffic is dependent upon fluid movements through the entire supply chain." The CP routes its trains destined to the PNW from Minnesota, North Dakota and South Dakota through Kingsgate, BC, and then on to the Union Pacific railroad in the U.S.

"Car cycle times for both our manifest and dedicated grain trains involved in this PNW traffic have grown over the last several weeks due to off-line congestion in the supply chain. This has been particularly pronounced for our dedicated trains where CP trains are being held at loading origins, as well as being staged on sidings across our network, en-route to interchange. We are working closely with destination terminals and connecting roads to manage train slots and maintain network fluidity as the supply chain works through these challenges. As a consequence of this effort, we are beginning to see an increase in consistent and timely train delivery at interchange locations."

The CP reported the weekly average terminal dwell time measured in hours, excluding cars on run-through trains, was 19.4 versus 18.3 the prior week. CP reported 32,682 cars on the line for the week, which included 15,966 covered hoppers and 9,826 tank cars. The weekly total number of loaded cars in revenue service that have not moved in more than 120 hours was three for crude oil, zero for ethanol and 134 for grain. Outstanding car orders in North Dakota were at 2,324 versus 2,529 the prior week, 210 in Minnesota versus 304 the prior week and 200 in Montana versus 104 the prior week. Here is the link to the entire CP service update to the STB on Nov. 6: http://goo.gl/…

The BNSF also reported slowdowns in the Pacific Northwest. In its weekly update to customers, the company said, "We also continue to monitor the labor slowdowns affecting operations at ports in the Pacific Northwest. While effects on service have been manageable to this point, BNSF will continue to evaluate and, in some cases, implement new procedures to minimize any impacts on service throughout the network." The ports of Seattle and Tacoma are reporting labor "slowdowns" in recent weeks as the International Longshore & Warehouse Union continue to negotiate a contract with the Pacific Maritime Association.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

The BNSF said it is also wrapping up work on several major projects across the North Region ahead of the winter. "We anticipate that the first blast of Arctic air will arrive across the upper Midwest and Northern Plains next week (week of Nov. 10). This early season cold snap will bring temperatures as low as the 10s and 20s in some areas, as well as the chance for accumulating snow, starting Monday. This week, we completed an additional eight miles of double track on our Glasgow Subdivision, which runs from Minot, N.D., to eastern Montana. Maintenance work in the Dilworth, Minn., area is also ending, while work along the Minneapolis/St. Paul to Chicago main line is scheduled to finish in early December." BNSF's weekly service advisory can be found here: http://goo.gl/…

Here is the link to see all of the Nov. 5 Class 1 railroad service updates to the Surface Transportation Board: http://goo.gl/…

FARMERS IN CANADA SAY "NO" TO LETTING REGULATED VOLUMES EXPIRE

The mandate issued by the Canadian government to railroads requiring them to move 500,000 metric tons of grain weekly or be fined, will expire on Nov. 29. There has been talk that the mandate may be allowed to expire, which is not sitting well with farmers and grain shippers, especially those who don't ship the large-unit trains that railroads prefer to move.

A short line in western Canada told DTN that shuttle loaders get their car orders, but when it comes to smaller units, it is difficult to receive them in a timely manner, and none of their shippers can get all the cars they want when they want them.

A farmer who is serviced by a short line in southwestern Canada said that while service has improved slightly, the biggest problem his short line is facing is they are still trying to clean up old orders. Because of that, grain companies wanting crop for their milling customers are relying on truck movement instead of rail because they can't depend on the rail service going to U.S. destinations, which hurts business on the short lines.

Short-line railroads would like to see the north/south movement addressed under the current legislation and also change the order to require railroads to deliver cars to the corridors that are currently coming up short on their orders. The Leader Post reported in a statement issued by Canada Agriculture Minister Gerry Ritz's office Tuesday, "Minister Ritz has stated that no decision has been made with respect to volume requirements. The ministers of transport and agriculture will receive advice from the CTA (Canadian Transportation Agency) and will make a decision in due course."

Regardless of the outcome on Nov. 29, it appears that this issue will continue to be a contentious one and, in the end, the smaller shippers and farmers that rely on them may continue to be the ones suffering the most.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow Mary Kennedy on Twitter @MaryCKenn

(AG/CZ)

P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .

Dick Doriguzzi
11/11/2014 | 7:05 PM CST
Mary; Would completion of the oil pipeline thru the US allow oil to be shipped using that method, thereby freeing up trains and track for farm products ?