Railways should pay demurrage: APAS

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Published: March 28, 2018

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The Agricultural Producers Association of Saskatchewan is calling on the railways to pay demurrage costs incurred because of the rail backlog. | File photo

The Agricultural Producers Association of Saskatchewan is calling on the railways to pay demurrage costs incurred because of the rail backlog.

President Todd Lewis said farmers shouldn’t have to pay because they aren’t responsible.

Demurrage fees for ships waiting at port for grain range between $11,000 and $13,000 per day.

APAS said there are more than 30 ships waiting in British Columbia because of delayed grain shipments.

“APAS is proposing that in any week that grain shipments fall below 85 percent on hopper car deliveries, both railways share the cost of demurrage,” Lewis said in a news release.

“We have asked that these payments be retroactive to Jan. 1, 2018, when the problems became severe.”

Demurrage costs during the 2013-14 backlog were more than $40 million.

Contact karen.briere@producer.com

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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