We do not hear much about grain car allocation compared with past years when it was a big issue.
It goes back as an issue to 1900 and earlier and passage of federal grain act establishing car order book at each delivery point. Railways were to allocate cars in way ordered. Sintaluta court case confirmed this right for producers and others including grower associations. At that time, only fifty per cent of producers grew enough to fill a small size car of those days with a single grade of grain.
Over the years, it became more of an issue between graincos. Wheat board had a system where elevators got cars based on past year handling. Can remember an agent complaining about working to build business only to have customers go to opposition when he did not get cars.
System today seems to be one where railways have considerable leeway in where and when cars are spotted but based on elevator and grainco orders.
Some growers suggest a stricter contract system with reciprocal penalties between shippers and railways. Neither parties seem keen on this and suspect that freight rates and revenue cap come into picture as well as government imposed shipping orders.
At WCWGA convention, Burlington Northern spokesperson advised Canadian growers to look at US system and potential change to our revenue entitlement and a more market driven approach to grain car ownership and allocation.
Hear some on this forum complain about higher elevator price in USA, could be a way to narrow the gap.
It goes back as an issue to 1900 and earlier and passage of federal grain act establishing car order book at each delivery point. Railways were to allocate cars in way ordered. Sintaluta court case confirmed this right for producers and others including grower associations. At that time, only fifty per cent of producers grew enough to fill a small size car of those days with a single grade of grain.
Over the years, it became more of an issue between graincos. Wheat board had a system where elevators got cars based on past year handling. Can remember an agent complaining about working to build business only to have customers go to opposition when he did not get cars.
System today seems to be one where railways have considerable leeway in where and when cars are spotted but based on elevator and grainco orders.
Some growers suggest a stricter contract system with reciprocal penalties between shippers and railways. Neither parties seem keen on this and suspect that freight rates and revenue cap come into picture as well as government imposed shipping orders.
At WCWGA convention, Burlington Northern spokesperson advised Canadian growers to look at US system and potential change to our revenue entitlement and a more market driven approach to grain car ownership and allocation.
Hear some on this forum complain about higher elevator price in USA, could be a way to narrow the gap.
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