Fertilizer Canada says rail stoppage to cost industry up to $63 million a day

Send a link to a friend  Share

[August 20, 2024]  By Mrinalika Roy
 
(Reuters) -Fertilizer Canada warned on Tuesday disruptions impacting all rail services across the country will cost the fertilizer industry an estimated $55 million to $63 million per day in lost sales revenue, not including logistical and operational costs.   

A drone view shows railway cars crowding the CPKC Kinnear Yard in Hamilton, Ontario, Canada August 19, 2024. REUTERS/Carlos Osorio

Canada is the largest producer and exporter of potash - the key ingredient in fertilizers - and 75% of all the fertilizer produced and used in the country is moved via the railways.

The railways move an average of 69,000 metric tons of fertilizer product per day, equivalent to four to five trains, according to Fertilizer Canada.

"Our industry continues to be very concerned by the potential of a dual rail disruption and the cascading impacts on Canada's economy and global food security," the organization said in an emailed statement.

The fertilizer industry contributed about $12 billion to Canada's gross domestic product last year.

The organization, which represents producers like Nutrien and CF Industries, said last week the industry had already begun to feel the effects of the labour disruption, as the railways issued embargoes that impacted some ammonia fertilizer products and halted their movement.

Since 2018, seven supply chain labour disruptions have cost the fertilizer industry an estimated $976 million in lost sales revenue.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Devika Syamnath)

[© 2024 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.

 

 

Back to top