Two years ago in the midst of the grain transportation crisis some railway company officials stated that no one had warned them that a giant bumper crop was about to be harvested. That was one of the excuses used to rationalize the rail car gridlock that developed the following winter shipping season. To be fair, there were other factors that helped cause the grain shipping logjam, but not knowing what was coming was a bit of a stretch. One only had to peruse the farm media during the preceding summer to ascertain that a big crop was coming. Phone calls to grain shippers would have alerted railway planners as to the potential size of the harvest, but one suspects that they were too busy managing the boom in moving oil tanker cars - a more profitable business than transporting price-regulated grain.
What a difference a year can make. We now find railway company presidents stating that they are ready for a bumper crop come this winter's shipping season. What caused this sudden enlightenment? Perhaps they read the press releases that a bumper crop is on its way. It is more likely because oil tanker car movement has dropped by 50 per cent and lowly grain shipping has become a priority of railways who are now desperately looking for any business. Unfortunately the downturn has seen hundreds of railways employees laid off and has idled many locomotives. This does cause one to ponder how well the railways can gear up for a sudden increase in grain shipping demand.
To cover any potential failure, some of the railways' statements contain a rider – they state that they can only move a bumper crop rapidly if all players from elevator to ship cooperate. That's a fair caveat, as congestion at terminal elevators slows down movement with the railways often taking the blame. There is truth to that reality – if ships are not loaded on schedule an inevitable backlog happens that takes months to resolve at great demurrage cost. What isn't made clear by stakeholders in the grain movement chain is why delays in loading ships are not addressed. The contention is that rain impacts ship loading schedules, but if that's the case, why isn't that common occurrence in Vancouver factored into loading times? Maybe it is, but if it was averaged out over the years it should have been resolved by now – clearly it hasn't, as dozens of ships waiting at anchor is an annual occurrence. But there is more to the story.
What is clear is that grain loading during rainy conditions can cause problems. Basically, extra moisture causes mold and spoilage in the hold of the ship that affects grain quality. Shipping companies are responsible for the safe loading of cargo and that it arrives as loaded. Insurance companies would also demand such conditions. Rain days cause delays that get compounded into weeks, which backs up the system into the prairies. There is a solution, but it is not generally used because of union intransigence. Most bulk freighters have feeder loading holes in the hatches that cover their holds – they are intended to be used during inclement weather to avoid moisture contamination – and they were used in the past in Vancouver until the Longshoremen's Union stated that such loading practices could cause a grain dust explosion and was therefore a safety hazard to its members. The Union refused to load ships unless the hatches were open. In reply, shippers and the Port of Vancouver noted that such an explosion had never happened anywhere in the world. A research study proved that a grain dust explosion in this situation was of little risk. Regardless of those facts the Union still refused to allow ships to be loaded through feeder holes and, incredibly, was supported by a federal Occupational Standards tribunal.
So there it stands – can it be resolved? The Longshoreman's Union says it has been resolved and the case is closed. Curiously, there are rumours that feeder holes have been used to load grain onto ships under certain circumstances. There is also the issue of loading ships 24/7, but that costs extra in overtime. One would think the demurrage cost of dozens of waiting ships would cancel out the overtime costs. It's all quite murky as to what the truth is and how this issue can be resolved. In the end, it doesn't matter how well railways transport grain – if it can't be loaded 24/7 onto ships and in the rain - it's guaranteed to be delayed.