Railways should pay demurrage: APAS

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

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