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Farmers are being charged penalties for rail grain backlog

Apr 1, 2018 | 9:53 AM

A Saskatchewan farm group wants Canada’s railways to cover the penalties farmers have to pay because grain deliveries are late reaching port.

The Agricultural Producers Association of Saskatchewan says shipping companies charge producers demurrage fees for each day that their vessels sit empty at port, waiting to load.

Grain shipments in Canada have been delayed for the second time in four years as railways grapple with a larger-than-expected crop and extreme winter weather.

The association says that during the last grain transportation backlog in 2013-2014, Prairie producers paid more than 40 million dollars in demurrage fees.