Grain Traffic Up Over Last Year, but Railway Stoppage Threatens this and Other Key Commodities

As we approach the midway point of the 2024 marine shipping season on the Great Lakes and St. Lawrence Seaway, statistics show that grain traffic increased significantly in comparison to the same period last year (i.e. March to July). Specifically, Canadian grain traffic was up 301,000 tonnes (or 7.93%) for a total of approximately 4.1 million tonnes moved to date.  While this underlines the importance of, and demand for, Canadian grain throughout the world, there are real concerns that the movement of this and many other vitally important commodities will halt if a work stoppage involving Canada’s Class I Railways proceeds.

Those concerns were highlighted in a joint letter signed by more than 100 chambers of commerce, boards of trade, and business associations, to which the Chamber of Marine Commerce (CMC) and fellow industry association and CMC member The Western Grain Elevator Association (WGEA) were signatories. The WGEA is an association of grain businesses operating in Canada, which collectively handle in excess of 90% of western Canada’s bulk grain exports.

“The WGEA and its members are proud to provide a high-quality staple product for consumers both domestically and abroad – one that contributes significantly to Canada’s reputation as a valuable trading partner,” noted Wade Sobkowich, Executive Director of the Western Grain Elevator Association. ”Grain is essential for the health of people around the world – it is used for human consumption and animal feed, and therefore vital to our collective quality of life.  The importance of keeping grain moving was recognized during the COVID pandemic, so if it was essential in that instance, it should be essential now, and the Federal Government should consider that in its approach to a potential railway disruption. A work stoppage will be near absolute for bulk grain movements – traffic volumes would go from 6,500 railcars per week to zero.  There is no “plan B” because there aren’t competitive alternatives, and people around the world would suffer. Clearly, this supply chain breakdown must be averted at all costs.”

“It is often said a chain is only as strong as its weakest link, and a work stoppage at Canada’s Class I railways effectively breaks the supply chain for Canadians, and for many people around the world,” said Bruce Burrows, President and CEO of the Chamber of Marine Commerce. “CMC members provide key commodities that sustain every aspect of our way of life, but we cannot fulfill our role unless immediate action is taken to prevent a crisis in the making.”

It bears noting that 27% of the waterborne tonnage moving via Quebec and Ontario ports move to and from inland locations within Canada by Canada’s Class I railways – so a work stoppage involving rail leads to job and economic impacts throughout other industries and throughout the country. 

Mr. Burrows noted, “I stress the importance of immediate action, either by the bargaining parties or the Government of Canada, as certain commodities are already being embargoed by the railways in the expectation of a work stoppage, which means a breakdown has already started.  With every day that passes without a resolution, we jeopardize businesses and consumers, Canada’s reputation as a global trading partner, and people’s well-being.”