OMAHA (DTN) -- The early arrival of winter weather with record cold and snow in parts of the Midwest and Northern Plains slowed rail transportation of agriculture products this past week, according to one railroad official.
In the BNSF weekly podcast Friday, John Miller, BNSF's ag vice president, said, "Our manifest train size as well as crew van restrictions due to snow and road conditions in the north have been impacted." The weather affected the capital tier replacement along the Northern Corridor, causing major service interruptions this past week, he added.
The BNSF website reported that the operation was affected by the winter weather that hit much of the north and central regions of the country this past week. All-time record-cold temperatures for November were set in many locations, including some that had stood for over a century. While operation performance remained steady during the early portion of the week, there were some effects on network fluidity due to the unfavorable conditions.
Miller said that "while the pipeline to the PNW export facilities is down 10% week over week, daily deliveries by the BNSF continues to be seven to nine trains per day." He added, "Trains staged at the PNW have been moderate this past week and will remain so over the weekend."
According to the BNSF podcast, October was a record month for ag volume to the Pacific Northwest (PNW), setting records in North Dakota, South Dakota, Minnesota and Montana combined. Miller did say that shuttle turns per month (TPM) were not at the desired 2.5 to the PNW, but "our service is more consistent." That was in reference to the track improvements made by the BNSF in recent months along the northern corridor, expanding capacity. Miller also said that the BNSF will remain focused on servicing non-shuttle customers as well.
However, the weekly BNSF service update to customers stated that, "In addition, the labor dispute affecting operations at ports in the Pacific Northwest and California remains an ongoing issue. With work slowdowns causing some disruption to export/import traffic, BNSF will continue to evaluate and, in some cases, implement procedures to minimize any impacts on service."
The podcast was aired prior to the most recent setback, a two-train derailment at Casselton, N.D., Thursday night. The Grand Forks Herald reported that, "No one was injured when 12 to 13 empty crude oil cars from a westbound train and an unknown number of cars from an eastbound train carrying lumber derailed Thursday." The BNSF reported on their website Nov. 15 that, "The first track was put back into service at 09:35 p.m. Central Time on Nov. 14, 2014. The second track was put back into service at 11:50 p.m. Central Time on Nov. 14, 2014. Customers may experience delays of 36 to 48 hours on shipments moving through this corridor." This was unwelcome news for shuttle loaders east of the derailment who have reported slow turn times, which is also evident in the falling secondary freight costs that, as of Nov. 13, were at zero for the last period for November and at $0/$200 per car for December.
The BNSF reported that system-wide, cars owed are at 6,395 and on average are 14.5 days late. North Dakota is owed 3,139 cars and is 16 days behind; and Montana is owed 1.059 cars, 12 days behind. Here is the link to the BNSF and all Class 1 railroad service updates to the STB on 11-12-14: http://goo.gl/…
OTHER COMMODITIES FACING RAIL SHORTAGES
The cash ethanol market has been rising, partially due to rail logistic problems in both the East and West Coast markets. George Orwell, DTN/The Progressive Farmer energy reporter, said that, "Trade sources talked of a lack of rail capacity, especially for the West Coast, and a winter snowstorm in much of the country that made it difficult to deliver supplies to destination markets. Logistical problems across the country are keeping some trade hubs from being supplied adequately and on time."
According to the BNSF update to the Surface Transportation Board on Nov. 13, there were 100 loaded cars of ethanol and 128 empty ethanol cars that had not moved in greater than 120 hours during the week of Nov. 2 through Nov. 8. The total for ethanol cars not moved in greater than 48 hours but less than 120 hours was 915 loaded and 1,032 empties.
The Minneapolis Star Tribune newspaper reported on Nov. 16 that electric utilities that serve Minnesota say they still aren't getting enough coal. The article said that, "Two power companies that serve northern and western parts of the state have halted or reduced power generation at five coal-burning units. Almost all utilities are entering the winter with below-normal coal stockpiles that some executives say put the reliability of the electrical grid at risk. They blame persistent delivery problems at BNSF Railway, the major hauler of western coal burned in the Midwest. The railroad has struggled for a year to deliver traditional commodities like coal, fertilizer and grain while hauling increasing amounts of North Dakota crude oil." Electric utilities, which have long-standing relationships with BNSF, agree that the railroad is working hard. But they say it isn't enough, according to the article.
According to the Association of American Railroads (AAR), during January-October 2014, rail shipments of coal were up a relatively small 0.3% from the same period last year. "Coal is still by far the largest commodity volume moved by rail, with 4.9 million car loadings," said the AAR. "Power plant operators are seeking more coal deliveries by rail to rebuild their coal stockpiles, which were drawn down during last winter's colder-than-normal weather."
In its weekly service update to the STB, the BNSF reported there were 452 loaded cars of coal and 795 empty coal cars of that had not moved in greater than 120 hours during the week of Nov. 2 to Nov. 8. The total for coal cars not moved in greater than 48 hours but less than 120 hours was 995 loaded and 1,151 empties.
The BNSF told the Star Tribune that the railroad is taking major steps to improve service, including capital investments in track upgrades, as well as logistical moves to speed up deliveries. "We are in regular communication with our customers, working with them directly on their most urgent issues, and we are making progress in continuing to grow coal stockpiles," the BNSF said in a statement to the newspaper.
According to the Star Tribune, Minnesota's U.S. senators, Al Franken and Amy Klobuchar, and Gov. Mark Dayton have asked the Surface Transportation Board to require BNSF to file a "coal service recovery plan" with the government, a move the railroad strongly opposes. The Western Coal Traffic League, a trade association for coal shippers, and several other utilities have joined in the call.
"Winter is here for all practical purposes," Franken told the Star Tribune in an interview. "We're still digging our way out of backlogs caused by the extreme cold of last winter. There have obviously been increased shipping demands because of the crude. So this is a problem, and they need to address it."
The BNSF told all of its customers at the end of October that it will go into the 2014-15 winter season better prepared than ever before, especially if the United States experiences a return of the polar vortex. "The 2013-14 winter was one of the most severe winters the United States has experienced in decades with extreme temperatures that persisted for long periods and created special challenges for operating the railroad," said the BNSF. Here is the link to their Winter Preparations and Plans: http://goo.gl/…
Mary Kennedy can be reached at mary.kennedy@dtn.com
In the BNSF weekly podcast Friday, John Miller, BNSF's ag vice president, said, "Our manifest train size as well as crew van restrictions due to snow and road conditions in the north have been impacted." The weather affected the capital tier replacement along the Northern Corridor, causing major service interruptions this past week, he added.
The BNSF website reported that the operation was affected by the winter weather that hit much of the north and central regions of the country this past week. All-time record-cold temperatures for November were set in many locations, including some that had stood for over a century. While operation performance remained steady during the early portion of the week, there were some effects on network fluidity due to the unfavorable conditions.
Miller said that "while the pipeline to the PNW export facilities is down 10% week over week, daily deliveries by the BNSF continues to be seven to nine trains per day." He added, "Trains staged at the PNW have been moderate this past week and will remain so over the weekend."
According to the BNSF podcast, October was a record month for ag volume to the Pacific Northwest (PNW), setting records in North Dakota, South Dakota, Minnesota and Montana combined. Miller did say that shuttle turns per month (TPM) were not at the desired 2.5 to the PNW, but "our service is more consistent." That was in reference to the track improvements made by the BNSF in recent months along the northern corridor, expanding capacity. Miller also said that the BNSF will remain focused on servicing non-shuttle customers as well.
However, the weekly BNSF service update to customers stated that, "In addition, the labor dispute affecting operations at ports in the Pacific Northwest and California remains an ongoing issue. With work slowdowns causing some disruption to export/import traffic, BNSF will continue to evaluate and, in some cases, implement procedures to minimize any impacts on service."
The podcast was aired prior to the most recent setback, a two-train derailment at Casselton, N.D., Thursday night. The Grand Forks Herald reported that, "No one was injured when 12 to 13 empty crude oil cars from a westbound train and an unknown number of cars from an eastbound train carrying lumber derailed Thursday." The BNSF reported on their website Nov. 15 that, "The first track was put back into service at 09:35 p.m. Central Time on Nov. 14, 2014. The second track was put back into service at 11:50 p.m. Central Time on Nov. 14, 2014. Customers may experience delays of 36 to 48 hours on shipments moving through this corridor." This was unwelcome news for shuttle loaders east of the derailment who have reported slow turn times, which is also evident in the falling secondary freight costs that, as of Nov. 13, were at zero for the last period for November and at $0/$200 per car for December.
The BNSF reported that system-wide, cars owed are at 6,395 and on average are 14.5 days late. North Dakota is owed 3,139 cars and is 16 days behind; and Montana is owed 1.059 cars, 12 days behind. Here is the link to the BNSF and all Class 1 railroad service updates to the STB on 11-12-14: http://goo.gl/…
OTHER COMMODITIES FACING RAIL SHORTAGES
The cash ethanol market has been rising, partially due to rail logistic problems in both the East and West Coast markets. George Orwell, DTN/The Progressive Farmer energy reporter, said that, "Trade sources talked of a lack of rail capacity, especially for the West Coast, and a winter snowstorm in much of the country that made it difficult to deliver supplies to destination markets. Logistical problems across the country are keeping some trade hubs from being supplied adequately and on time."
According to the BNSF update to the Surface Transportation Board on Nov. 13, there were 100 loaded cars of ethanol and 128 empty ethanol cars that had not moved in greater than 120 hours during the week of Nov. 2 through Nov. 8. The total for ethanol cars not moved in greater than 48 hours but less than 120 hours was 915 loaded and 1,032 empties.
The Minneapolis Star Tribune newspaper reported on Nov. 16 that electric utilities that serve Minnesota say they still aren't getting enough coal. The article said that, "Two power companies that serve northern and western parts of the state have halted or reduced power generation at five coal-burning units. Almost all utilities are entering the winter with below-normal coal stockpiles that some executives say put the reliability of the electrical grid at risk. They blame persistent delivery problems at BNSF Railway, the major hauler of western coal burned in the Midwest. The railroad has struggled for a year to deliver traditional commodities like coal, fertilizer and grain while hauling increasing amounts of North Dakota crude oil." Electric utilities, which have long-standing relationships with BNSF, agree that the railroad is working hard. But they say it isn't enough, according to the article.
According to the Association of American Railroads (AAR), during January-October 2014, rail shipments of coal were up a relatively small 0.3% from the same period last year. "Coal is still by far the largest commodity volume moved by rail, with 4.9 million car loadings," said the AAR. "Power plant operators are seeking more coal deliveries by rail to rebuild their coal stockpiles, which were drawn down during last winter's colder-than-normal weather."
In its weekly service update to the STB, the BNSF reported there were 452 loaded cars of coal and 795 empty coal cars of that had not moved in greater than 120 hours during the week of Nov. 2 to Nov. 8. The total for coal cars not moved in greater than 48 hours but less than 120 hours was 995 loaded and 1,151 empties.
The BNSF told the Star Tribune that the railroad is taking major steps to improve service, including capital investments in track upgrades, as well as logistical moves to speed up deliveries. "We are in regular communication with our customers, working with them directly on their most urgent issues, and we are making progress in continuing to grow coal stockpiles," the BNSF said in a statement to the newspaper.
According to the Star Tribune, Minnesota's U.S. senators, Al Franken and Amy Klobuchar, and Gov. Mark Dayton have asked the Surface Transportation Board to require BNSF to file a "coal service recovery plan" with the government, a move the railroad strongly opposes. The Western Coal Traffic League, a trade association for coal shippers, and several other utilities have joined in the call.
"Winter is here for all practical purposes," Franken told the Star Tribune in an interview. "We're still digging our way out of backlogs caused by the extreme cold of last winter. There have obviously been increased shipping demands because of the crude. So this is a problem, and they need to address it."
The BNSF told all of its customers at the end of October that it will go into the 2014-15 winter season better prepared than ever before, especially if the United States experiences a return of the polar vortex. "The 2013-14 winter was one of the most severe winters the United States has experienced in decades with extreme temperatures that persisted for long periods and created special challenges for operating the railroad," said the BNSF. Here is the link to their Winter Preparations and Plans: http://goo.gl/…
Mary Kennedy can be reached at mary.kennedy@dtn.com
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