I note CP has lost touch with the needs of the grain sector... in reducing capacity through cashing in assets{Share redemptions of $20B} resulting in substandard capacity.
"o Timeliness of supply in response to customer orders has been consistently poor throughout the course of the crop year for both railways. To date, the railways have supplied only 44% of customer orders in the week for which cars were ordered with CN (56%) performing nearly twice as well as CP (31%)."
"Grain Week 32 saw CN (60%) and CP (32%) maintain their improved performance for spotting of empty cars in the week for which they were ordered continuing the level of performance experienced last week.
ï‚· Through the first 32 weeks of the current crop year, railways have failed to supply 23,813 hopper cars ordered by shippers. This represents a shortfall equivalent to 10% of shipper demand.
o more than 3,600 customer orders – approximately 38% of unfulfilled orders - have been outstanding for 4 weeks or longer"
Background:
CN and CP supplied 3,391 (46%) of the 7,430 hopper cars ordered for delivery in Grain Week 32. They supplied a further 3,633 cars that fulfilled customer orders from previous weeks. When railway car orders are not supplied to shippers in the week they are ordered, some shipper grain sales will be lost and some will be deferred. Lost sales cannot be recovered as international buyers will obtain this grain from suppliers outside Canada. Deferred sales may be filled by the grain company in later weeks using cars supplied later on in the year by the railway however they can result in extra costs to the supply chain through higher inventory carrying costs, payment of contract penalties by shippers, payment of ocean demurrage for waiting vessels and loss of goodwill with overseas customers.
The accumulation of each week’s unfulfilled demand for hopper cars remains over 23,000 cars for the current grain year and represents the total volume of missed and deferred shipper orders. The net unfulfilled demand – those orders that shippers continue to expect the railways to supply excluding orders associated with rejected cars, denied orders and railway cancellations – is now 9,484 orders.
Railway Car Supply – Grain Week 32
 CN spotted 3,826 hopper cars and CP spotted 3,198 hopper cars in the country in Grain Week 32 for a total supply of 7,024 cars – this included 3,633 cars that had been ordered for prior weeks. Grain Week 32 car spotting performance for CN was slightly higher than its YTD weekly average of 3,600 cars whereas CP remained below its weekly average of 3,500 cars per week.
o In Grain Week 32 CN and CP supplied 3,391 (46%) of the 7,430 hopper cars ordered for delivery in Grain Week 32 representing a shortfall of 4,039 cars for Grain Week 32 orders.
o Timeliness of supply in response to customer orders has been consistently poor throughout the course of the crop year for both railways. To date, the railways have supplied only 44% of customer orders in the week for which cars were ordered with CN (56%) performing nearly twice as well as CP (31%).
o Grain Week 32 saw CN (60%) and CP (32%) maintain their improved performance for spotting of empty cars in the week for which they were ordered continuing the level of performance experienced last week.
ï‚· Through the first 32 weeks of the current crop year, railways have failed to supply 23,813 hopper cars ordered by shippers. This represents a shortfall equivalent to 10% of shipper demand.
o more than 3,600 customer orders – approximately 38% of unfulfilled orders - have been outstanding for 4 weeks or longer 1
ï‚· Boxcar shippers received only 44% of cars ordered for Grain Week 32. This is a deterioration in performance as compared to the prior 4 week period where shippers received 70% of cars ordered on average each week. Full year order fulfillment remains at 66% of shipper orders.
Corridor Performance
ï‚· In Grain Week 32 traffic destined to bulk terminals in Western Canada received a higher percentage (51%) of cars than other corridors. By comparison, non-bulk corridors including the USA/Mexico, Vancouver transload and Canadian domestic corridors received 41% of cars ordered for delivery in Grain Week 32.
ï‚· While CN fulfilled 73% of orders in non-bulk corridors, CP supplied only 12% of cars for current week orders in Week 32 in non-bulk corridors.
1 Based on net unfulfilled demand – excluding rejections, cancellations and denied orders – of 9,484
Weekly Performance Update – To Grain Week 32 (CY 2014)
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Railway Dwell Times at Country Origins:
 In Grain Week 32, CN’s loaded dwell times for multicar block traffic at country origin locations averaged 34 hours while CP’s loaded dwell times averaged 52 hours. CN’s performance in Grain Week 32 is below its YTD average of 41 hours; CP performance in Grain Week 31 improved slightly from the prior week and was consistent with week over week improvements for the last four weeks.
o In the crop year to date, 35% of all bulk grain shipments have waited for more than 48 hours at origin for pick up by the railways after being released by shippers for movement to destination. Only 30% of shipments were picked up within 24 hours.
Railway Dwell Times at Destination Terminals – Grain Week 32:
ï‚· CN: Thunder Bay (101 hours), Vancouver bulk (18 hours) and Vancouver transload/local (35 hours)
ï‚· CP : Thunder Bay (44 hours), Vancouver bulk (25 hours) and Vancouver transload/local (12 hours)
ï‚· Thunder Bay dwell times continue to reflect limited traffic volumes as shipments to this terminal have slowed in recent weeks.
"o Timeliness of supply in response to customer orders has been consistently poor throughout the course of the crop year for both railways. To date, the railways have supplied only 44% of customer orders in the week for which cars were ordered with CN (56%) performing nearly twice as well as CP (31%)."
"Grain Week 32 saw CN (60%) and CP (32%) maintain their improved performance for spotting of empty cars in the week for which they were ordered continuing the level of performance experienced last week.
ï‚· Through the first 32 weeks of the current crop year, railways have failed to supply 23,813 hopper cars ordered by shippers. This represents a shortfall equivalent to 10% of shipper demand.
o more than 3,600 customer orders – approximately 38% of unfulfilled orders - have been outstanding for 4 weeks or longer"
Background:
CN and CP supplied 3,391 (46%) of the 7,430 hopper cars ordered for delivery in Grain Week 32. They supplied a further 3,633 cars that fulfilled customer orders from previous weeks. When railway car orders are not supplied to shippers in the week they are ordered, some shipper grain sales will be lost and some will be deferred. Lost sales cannot be recovered as international buyers will obtain this grain from suppliers outside Canada. Deferred sales may be filled by the grain company in later weeks using cars supplied later on in the year by the railway however they can result in extra costs to the supply chain through higher inventory carrying costs, payment of contract penalties by shippers, payment of ocean demurrage for waiting vessels and loss of goodwill with overseas customers.
The accumulation of each week’s unfulfilled demand for hopper cars remains over 23,000 cars for the current grain year and represents the total volume of missed and deferred shipper orders. The net unfulfilled demand – those orders that shippers continue to expect the railways to supply excluding orders associated with rejected cars, denied orders and railway cancellations – is now 9,484 orders.
Railway Car Supply – Grain Week 32
 CN spotted 3,826 hopper cars and CP spotted 3,198 hopper cars in the country in Grain Week 32 for a total supply of 7,024 cars – this included 3,633 cars that had been ordered for prior weeks. Grain Week 32 car spotting performance for CN was slightly higher than its YTD weekly average of 3,600 cars whereas CP remained below its weekly average of 3,500 cars per week.
o In Grain Week 32 CN and CP supplied 3,391 (46%) of the 7,430 hopper cars ordered for delivery in Grain Week 32 representing a shortfall of 4,039 cars for Grain Week 32 orders.
o Timeliness of supply in response to customer orders has been consistently poor throughout the course of the crop year for both railways. To date, the railways have supplied only 44% of customer orders in the week for which cars were ordered with CN (56%) performing nearly twice as well as CP (31%).
o Grain Week 32 saw CN (60%) and CP (32%) maintain their improved performance for spotting of empty cars in the week for which they were ordered continuing the level of performance experienced last week.
ï‚· Through the first 32 weeks of the current crop year, railways have failed to supply 23,813 hopper cars ordered by shippers. This represents a shortfall equivalent to 10% of shipper demand.
o more than 3,600 customer orders – approximately 38% of unfulfilled orders - have been outstanding for 4 weeks or longer 1
ï‚· Boxcar shippers received only 44% of cars ordered for Grain Week 32. This is a deterioration in performance as compared to the prior 4 week period where shippers received 70% of cars ordered on average each week. Full year order fulfillment remains at 66% of shipper orders.
Corridor Performance
ï‚· In Grain Week 32 traffic destined to bulk terminals in Western Canada received a higher percentage (51%) of cars than other corridors. By comparison, non-bulk corridors including the USA/Mexico, Vancouver transload and Canadian domestic corridors received 41% of cars ordered for delivery in Grain Week 32.
ï‚· While CN fulfilled 73% of orders in non-bulk corridors, CP supplied only 12% of cars for current week orders in Week 32 in non-bulk corridors.
1 Based on net unfulfilled demand – excluding rejections, cancellations and denied orders – of 9,484
Weekly Performance Update – To Grain Week 32 (CY 2014)
2 |
Railway Dwell Times at Country Origins:
 In Grain Week 32, CN’s loaded dwell times for multicar block traffic at country origin locations averaged 34 hours while CP’s loaded dwell times averaged 52 hours. CN’s performance in Grain Week 32 is below its YTD average of 41 hours; CP performance in Grain Week 31 improved slightly from the prior week and was consistent with week over week improvements for the last four weeks.
o In the crop year to date, 35% of all bulk grain shipments have waited for more than 48 hours at origin for pick up by the railways after being released by shippers for movement to destination. Only 30% of shipments were picked up within 24 hours.
Railway Dwell Times at Destination Terminals – Grain Week 32:
ï‚· CN: Thunder Bay (101 hours), Vancouver bulk (18 hours) and Vancouver transload/local (35 hours)
ï‚· CP : Thunder Bay (44 hours), Vancouver bulk (25 hours) and Vancouver transload/local (12 hours)
ï‚· Thunder Bay dwell times continue to reflect limited traffic volumes as shipments to this terminal have slowed in recent weeks.
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