The CWB claims Despatch refunds on shipping a victory, but are they?
At a meeting on December 5th, 2000 Sask Wheat Pool held a Transportation and Grain Logistics Meeting in Kindersley.
Mr. Tim Kennedy, Manager of Rail Logistics for Sask Wheat Pool clearly stated, unless a shipper pays a little demurrage from time to time, freight will likely be more expensive than it could be, if shipping logistics are efficiently managed.
The fact is a boat loading 45,000 tonnes at one berth, in one day, would be ideal.
In a perfect world, this shipment with neither despatch or demurrage would be best!
Because a ship owner can make back some money when a boat goes back to sea earlier than expected, despatch returns about half the cost to book the boat for the loading period planned.
However, the other half, already built into the base freight cost, never appears on any CWB financial statement.
So how does the CWB spin this?
CWB Despatch in 1998-99 was as follows(the latest year on the CWB web site):
1.Wheat; “Efficient loading of grain vessels led to net despatch earnings of over $5.4 million this year, $0.43 per tonne, far surpassing last year's record of $3.7 million or $0.25 per tonne.” (http://www.cwb.ca/publicat/annual/html9899/wheat.htm)
2.Durum; “Efficient loading of grain vessels contributed to net despatch earnings of $1.2 million this year, representing the second highest level in the history of this pool account.” (http://www.cwb.ca/publicat/annual/html9899/durum.htm)
3.Barley; “In addition, the pool the account earned net despatch earnings of $63,558, representing $0.03 per tonne, as a result of efficient loading of grain vessels.” (http://www.cwb.ca/publicat/annual/html9899/barley.htm)
From my calculations, the CWB by earning $6.66 million in despatch actually cost us about 13.3 million in extra shipping costs, for a net extra cost of about $6.66 million dollars, directly out of western Canadian farmers pockets, through the pooling accounts!
Am I wrong?
At a meeting on December 5th, 2000 Sask Wheat Pool held a Transportation and Grain Logistics Meeting in Kindersley.
Mr. Tim Kennedy, Manager of Rail Logistics for Sask Wheat Pool clearly stated, unless a shipper pays a little demurrage from time to time, freight will likely be more expensive than it could be, if shipping logistics are efficiently managed.
The fact is a boat loading 45,000 tonnes at one berth, in one day, would be ideal.
In a perfect world, this shipment with neither despatch or demurrage would be best!
Because a ship owner can make back some money when a boat goes back to sea earlier than expected, despatch returns about half the cost to book the boat for the loading period planned.
However, the other half, already built into the base freight cost, never appears on any CWB financial statement.
So how does the CWB spin this?
CWB Despatch in 1998-99 was as follows(the latest year on the CWB web site):
1.Wheat; “Efficient loading of grain vessels led to net despatch earnings of over $5.4 million this year, $0.43 per tonne, far surpassing last year's record of $3.7 million or $0.25 per tonne.” (http://www.cwb.ca/publicat/annual/html9899/wheat.htm)
2.Durum; “Efficient loading of grain vessels contributed to net despatch earnings of $1.2 million this year, representing the second highest level in the history of this pool account.” (http://www.cwb.ca/publicat/annual/html9899/durum.htm)
3.Barley; “In addition, the pool the account earned net despatch earnings of $63,558, representing $0.03 per tonne, as a result of efficient loading of grain vessels.” (http://www.cwb.ca/publicat/annual/html9899/barley.htm)
From my calculations, the CWB by earning $6.66 million in despatch actually cost us about 13.3 million in extra shipping costs, for a net extra cost of about $6.66 million dollars, directly out of western Canadian farmers pockets, through the pooling accounts!
Am I wrong?
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