A wide spectrum of industry leaders called on the Surface Transportation Board to take action regarding a rail car shortage.  During a public hearing last week in Fargo, North Dakota, the group asked the Board to insure that BNSF and the Canadian Pacific railroads provide rail cars to ship commodities from the Upper Plains this fall, according to the Hagstrom Report.  The group claimed failure to do so could lead to the region losing its reputation as a reliable supplier of agricultural products. STB Chairman Daniel Elliott said that the STB has broad powers to act in the case of emergency, but said he does not want to take actions that could make the situation worse.  The backlog has shortened, but with a huge crop being harvested, farmers are worried that the problem has not been solved.  North Dakota Senator Heidi Heitkamp said after the hearing that BNSF Railway has outlined steps in the right direction, but Canadian Pacific has not.  She stated “Unlike Burlington Northern, I think CP thinks this is cyclical. That this is temporary.”

The American Soybean Association says many elevators are still full of 2013-crop grain ahead of a looming 2014 harvest. This backlog negatively affects basis levels and cash bids, and could create a grain storage crisis as a new crop harvest begins. Director Lance Peterson of Minnesota testified that his lost income would likely exceed $100,000 as one producer. Peterson also said knowing the movement, velocity and turn-around time of the grain cars is helpful, but not enough. He requested fuller reporting of rail service, asking the STB to require railroads to submit metrics showing past dues, average days late,  and turnaround times for agricultural customers versus crude oil customers and others.

Rail Car Shortages