Grain Movement 2015

[ColevilleH2S]

"the local shippers order more than they need"
Then doesn't logic dictate that they should receive more cars then they need.

[wmoebis]

We have at least 3 commissions or groups whatever you want to call them working to monitor and control grain handling.

The Canadian Grain Commission who's mandate is to "regulate grain handling in Canada" and make sure it is a dependable commodity for market. I think getting it from farm to port in an orderly manor would make it a little more dependable.

The Quorum Corp. who: On June 19, 2001 the Government of Canada announced that Quorum Corporation had been selected as the monitor for the prairie grain handling and transportation system.

Crop logistics working group who -The working group provides a venue for collaboration throughout the supply chain to help improve the efficiency in how grains move from farm to customer, whether in Canada or around the globe.

[tubs]

grain is moving alot better this year than last year, but we have to be able to move alot more to get a better basis we probably need a 25 to 40 percent over capacity in shipping

[gustgd]

http://www.producer.com/2015/01/small-shippers-want-big-changes/

.......

"Small block shippers, who normally ship a handful of rail cars rather than a full unit train, say rail service to their industries has suffered since Ottawa implemented a federal order requiring Canada’s major rail companies to meet weekly hauling targets."

.............

[fjlip]

Coleville, but the omnipotent RR know what they need and supply accordingly.
How the hell should the RR's have the power to dictate WHERE the cars go!
Imagine you order a semi and the trucker tells you where it's going?

[jdepape]

When you regulate a monopoly (like the RRs) the objective should be to make them act as if they were operating in a competitive market.

IMHO service levels should be based on <b>WEEKLY DEMAND</b> and <b>by shipper</b>.

If a small shipper orders 25 cars for a particular week and the RR agrees to provide them, but then fails to provide them (within a set amount of time), then the RR pays a penalty <b>TO THE SHIPPER</b>, not to the government.

Incentives (and disincentives) work.

[jdepape]

Another oddity:

Exporting graincos are making sales for shipment in 4-6 months.

But they can only order railcars for then next two weeks.

So today you make a sale of say 50,000 tonnes for shipment in June. But you have no idea whether you will get the railcars or not. What does that do to your perception of risk in doing the business?

[wmoebis]

I highly doubt there is any grain Co that hasn't had cars for a full 4-6 months. They could have hauled it by truck by then. Farmers would find away to GIT R DONE.

Funny never used to happen with pulse's until big grain Co's started to handle them. Usually there were cars spotted at elevators, farmers were hauling and it was loaded straight into the cars.

[jdepape]

wmoebis
Not saying they didn't get cars for 4-6 months.
They MAKE SALES 6 months out - but can't even order the cars they will need until 2-3 weeks before they need them.

When they make sales out of the Gulf, at the same time, they can book the barge freight they will need. Much less execution risk.

[fjlip]

"RR pays a penalty TO THE SHIPPER, not to the government.
Incentives (and disincentives) work." Agree...
Ritz set it up as a FINE, should be a regulation.
Keep at the MP's with suggestions, must be some intelligence out there.