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Canada’s Railways Ship Record Grain Amounts in 2019-2020 Amid Global Pandemic

Despite a turmoil year of various obstacles, the two major Canadian railways appear to have transported record volumes of grain over the past year. The Canadian Pacific Railway hauled a total of 29.5 million tonnes of grain over the past 12 months, which amounts to a 10% increase over the previous period. In the meantime, Canadian National Railway moved nearly 30 million tonnes of grain, which is 7% more than in 2018-19.

Last November proved to be tumultuous for Canada’s railroads given the CN strikes, which were then followed by February’s rail blockades, trade disputes, and landslides. In addition, other shipments such as metals, vehicles, and automotive supplies significantly declined in volume following the pandemic-induced economic shutdowns around the world.

However, the coronavirus pandemic also brought with it food shortages in many countries, which prompted governments to impose grain bounties on the previous harvest year. As a result, Canada’s wheat producing rivals reduced their grain exports as a means of ensuring adequate domestic supplies, which proved to come as a benefit for Canada’s crop producers.

Information for this briefing was found via the Canadian National Railway Co. and the Canadian Pacific Railway Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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