Canadian famers rely on global trade, hence the importance of the transportation system to move our grain to market.
Most farmers are not able to store all their grain at their farm and therefore move it to elevators in their region. In turn, railcars empty the elevators and move the grain to larger terminals or ports where it’s loaded on to cargo ships for export. Some grain is shipped to mills or other processing plants domestically.
Without rail transportation, grain farming would move to a standstill. Trucking could not take the place of the over 8,000, 90 tonne cars per week during peak delivery times. To put this in context: 2 super-bee’s per railcar or 16,000 trucks/week travelling 4,000 km longest per round trip from MB @ 5 mpg.
The Issues
Canada’s rail system is a duopoly, controlling virtually all the rail lines. The vast majority of Canada’s grain relies on these two railways to move grain to port and processors. When one railway is on strike, locked out or blockaded, the remaining railway is not able to handle the additional load. When both lines are stopped as happened in August 2024, not only do the rail lines stop, the movement of virtually all goods and commodities in and out of ports stops as well.
As much as producers rely on railcars, so do the grain companies needing rail to deliver the grain to port and fulfill contracts. Threats of strikes are the signal for grain companies to stop selling internationally and bidding on vessel tenders. Those lost sales are gone forever and to add insult to injury, vessels waiting for grain already contracted, charge demurrage for each day they sit idle waiting to be loaded amounting to tens of thousands per day.
Farmers are not paid until their grain arrives at the elevator. Therefore, when the elevator is full because the rail lines aren’t moving, farmers don’t get paid, and their bills don’t get paid. Everyone suffers in this scenario.
There have been over a dozen stoppages in the past 13 years causing some of our export markets to question Canada’s reliability for grain. To lose any one of our export markets would be devastating.
Our Position
Canada’s farmers shouldn’t face the uncertainty of rail stoppages. The only outcome is further damage to Canada’s economy.
Rail should be considered an essential service. Not only does our food supply depend on it, so does our health and safety for propane, water treatment chemicals, equipment ranging from health to manufacturing, etc.
The federal government should ensure rail stoppages never happen again. Unions and corporations need to negotiate contracts in good faith, but holding farmers and Canada’s economy hostage is not acceptable.
Summer 2024 Rail Strike Press Releases
Government (In)Action – Days Late and Millions of Dollars Short
Rail Strike Shows a Shameful Response By the Federal Government
Labour Minister Needs to Immediately Resolve Rail Strike
Ministry of Labour Continues to Dither on Rail Strike
Letters Sent Regarding Summer 2024 Rail Strike
Minister MacAuley (August 20, 2024)