Opinion: Volatile rail pricing plagues Canada’s grain industry
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Opinion: Volatile rail pricing plagues Canada’s grain industry
Ottawa controls the total amount railways can earn from hauling grain but short-term rate changes cause problems during peak periods
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Last fall, the cost of moving 550 rail cars of Saskatchewan wheat to Vancouver jumped by more than $1 million. According to the Grain Monitor, which tracks grain movement and rail logistics across Canada, the posted rail cost of $3.4 million in August increased to nearly $4.4 million in October. Nothing about the shipment changed; only the rail rate.
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