WINNIPEG — It will be late spring before the backlog of grain deliveries to the west coast ports will be cleared, the chief commissioner of the Canadian Wheat Board says.
Lorne Hehn said there were 64 ships waiting at the west coast as of Feb. 12.
“It will take well into May and perhaps June before we get back to normal as far as vessel lineups at the west coast,” Hehn told reporters here last week. He said the board estimates it will pay $6 million in demurrage costs that are directly related to the strike.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Although the board was exploring other export options, including the possibility of shipping grain through the U.S., these were ruled out due to cost and the lack of cleaning facilities at U.S. ports.
Hehn said it is too early to assess the overall cost of the strike to Canada’s reputation.
“We’ve got customers that are very upset but so far we’ve been able to hold them. Japan has made some cutbacks on its barley tenders. They’ve threatened to cut back on their wheat as well.”
