FREIGHT TRANSPORTATION
LOCATION: NATIONAL
Issue/Source: Railway AND WESTERN PORT Performance
Date: MARCH 17, 2021
Suggested Responses
- Despite many challenges, railways and ports moved large volumes of freight in 2020.
- During the 2019-2020 crop year, grain production hit a record 75.1 million tonnes while rail shipments (58.6 million tonnes) and terminal elevator throughput (40.0 million tonnes) were also record volumes.
- Despite numerous system disruptions throughout 2020, including strikes, blockades, container shortages, and severe winter challenges, the transportation system remained resilient overall.
BACKGROUND INFORMATION
Performance of the transportation system
- 2020 was one of the most challenging years in recent history for Canada’s shippers and carriers alike. And while 2021 continues to present virus-related challenges, Canada’s rail system has remained relatively resilient overall, adapting to variation in demand.
- Transportation demand has been strong through late 2020 and 2021, especially in Western Canada, where rail shipments for 2020 ended the year 1.3% above 2019. Sustained demand for consumer goods, grain, potash and forest products have driven freight traffic. Demand for petroleum remains low. Since August, nearly 23.6 million metric tonnes (MMT) of grain has been delivered to Western Canadian ports, with 15.8 MMT arriving at Vancouver alone.
- Freight rail volumes have bounced back strongly since September 2020 with containerized shipments up 10% over 2019 and bulk shipments back to their 2019 level.
- Railways have shipped record amounts of grain during the 2020-21 crop year, with volumes up nearly 24 percent compared to the 2019-20 crop year.
- Crop-year-to-date week 32 (ending March 14th), shipments of western grain from the prairies were up 19% as volumes entering the system continue to be strong.
- At western ports, grain exports have been up 37% crop-year-to-date, led by significant volumes moved through the port of Vancouver.
- Container throughput at Western ports remained strong over the pandemic and was higher than usual through the end of 2020 and early in 2021, hindering fluidity of the supply chain, notably at the Port of Vancouver.
- Shippers continue to report a shortage of empty shipping containers. This shortage is not limited to Canada, as the United States and other countries around the world report similar shortages. One of the reasons for the shortages is the significant freight rate increases which incentivizes ocean carriers to get containers back to Asia as quickly as possible to be loaded.