CP Update.

[bucket]

Farming101

Can you explain the 3.1mmt of vessels waiting at West coast and contracted to terminals for pickup if the grain can't find a home as CP states.....

[wmoebis]

It does seem that grain sales got off to a slow start. That is something that has to be understood as well. There is not a market for all the grain produced on the prairies all the time
Still the statement that the CPR couldn't find grain to haul hides the fact that there was unfulfilled demand. They just never bothered to clean it up. There are always cars supplied early too, which if you read between the lines means some elevator keeps shipping and another is left waiting.

As I understand it, the RR tell grain companies how many ccars available and the Grain Co's tell RR where they want them spotted. If cars show up early it is the grain co's that told them to spot them there.

[farming101]

Can't be 3 mmt? Why is it that much?

There is a need for ships on deck to load. When all terminals are online they may want as much as 1 million tonnes floating(just a guess). Only when a terminal goes into shutdown would that need go away. Right now there are way too many ships there though. Sometimes they show up early.

Railways are to blame(CN what happened?). They failed to execute. Force Majeure? Partly.

The tipping point has past in my opinion. Opportunity has been lost.