Canadian grain producers anticipate industrywide costs of the recent rail blockades will total roughly C$300 million overall by the time network capacity returns to normal later this year, reports FreightWaves.
The costs come from fees such as demurrage, contract penalties and lost sales, according to Grain Growers of Canada Executive Director Erin Gowriluk. She estimates it could take 12-14 weeks before grain capacity returns to normal.
The Western Grain Elevator Association (WGEA) estimates that the Canadian grain sector must absorb costs of nearly C$30 million per week in lost sales because on an incapacity to meet sales demand, while an additional C$22.7 million per week in costs can be attributed to lower prices resulting from deferring product delivery to a later date.
