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CN calls for smooth cargo flow as ILWU contract talks continue

THE Canadian National Railway (CN) have asked customers to protect regular freight services by controlling the flow of cargo diversions via the Canadian west coast gateways because of risks of US labour disruption.

"We have seen a major change in rail import volume patterns to the US at both Vancouver and Prince Rupert. Ocean carriers have diverted this volume either directly or by their customers.

"Much of the increased cargo has not been identified in the four-week rolling workload forecasts provided to us, further complicating our operating plan and service commitment to our regular customers.

"The resulting congestion has an adverse dwell time impact on all rail traffic leaving the ports and risks compromising CN's ability to meet its service obligations to year round customers.

"The situation has therefore become untenable and CN has no alternative but to act to address it in a decisive fashion. Accordingly, in order to avoid increased dwell at the port on all imports, CN will be taking action to curtail any further increased discharge of US temporary cargo.

"CN will establish the US import allocation by carrier and terminal based on regular volume offerings received earlier this year, plus an allotted percentage over and above the 'normal' volume.

"CN will provide the allocation individually to customers. All traffic over established allocation levels, will either not be handled, handled after other prioritized cargo or will be subject to a surcharge, which will be applicable throughout the 'diversion' period.

"CN will continue to work with the Ocean Terminals to maintain priority on train car loading for regular Canadian destination traffic followed by the regular US train schedules," the statement said.