|Bid||82.45 x 800|
|Ask||84.70 x 900|
|Day's Range||81.48 - 82.83|
|52 Week Range||65.13 - 96.53|
|Beta (5Y Monthly)||0.64|
|PE Ratio (TTM)||14.04|
|Forward Dividend & Yield||1.63 (1.98%)|
|Ex-Dividend Date||Jun 08, 2020|
|1y Target Est||N/A|
Will the new coronavirus cause a recession in US in the next 6 months? On February 27th, we put the probability at 75% and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to […]
The worst of the COVID-19 pandemic's effect on freight rail activity is yet to come, said executives during Canadian National Railway Company (NYSE: CNI) first-quarter earnings call on April 27."We still feel that the worst is not behind us," said Canadian National (CN) Chief Financial Officer Ghislain Houle. Both he and CN CEO JJ Ruest said May could be the worst month, but "at this point, it's all guessing work."Executives have been looking at various economic recovery scenarios, but it's still unknown when North America would return to a "natural economy," which is when consumers feel confident to engage in pre-pandemic activity in such a way that would boost freight volumes. As a result, CN's expectations of generating C$2.5 billion in cash flow assumes worst-case scenarios to occur during the year. April revenue ton miles are down roughly 15% so far, Houle said."We've run scenarios that are better but we wanted to offer investors the floor," Houle said. Sectors that appear to be hit hard by the pandemic are the auto sector, where volumes are down by almost 90%, and U.S. coal volumes. Energy and frac sand volumes could also "get worse" according to Ruest, although CN's crude-by-rail product is mainly a type of heavy crude that is more shielded from crude market shifts.To manage the volume downturn so far, CN has furloughed about 2,500 workers, including a 20+% reduction of train and engine employees, and it reduced train starts and stored 500 locomotives and about 14,000 railcars in storage. Train and engine employee headcount tends to be more sensitive to market demand. CN has also idled switching yards in Battle Creek, Michigan; Jackson, Mississippi; Garneau, Quebec; and Kamloops, British Columbia, and it has reduced its mechanical activities in more than 20 locations. Whether the idled switching yards will return to service and when they would reopen will depend on when and how rail volume comes back, according to Rob Reilly, CN chief operating officer. CN has been in discussion with its ocean partners and shippers to gauge how cancelled or blank sailings in the second and third quarters will affect rail volumes. The railway won't be as affected by blank sailings in the second quarter, but another factor is also the number of discharges off the vessel that also occur, according to Keith Reardon, CN senior vice president of the consumer product supply chain.View more earnings on CNI"At this point in time, we're not seeing that many blanks...for the second quarter for us. That doesn't mean that there are not that many blanks that are going to happen, but after talking to our customers, that's what we're seeing is going to be impacting us for the West Coast," Reardon said. "We do see a few East Coast blanks, but I also want to caution you it's not necessarily the number of blanks. It's how much those blanks are affecting...[the] discharges on that vessel."Amid the pandemic-induced rail downturn, CN is performing track maintenance, which the railway says will help the company with network capacity once volume rebounds, and it is continuing to invest in capital projects, such as at Vancouver and between Edmonton and Prince Rupert, because of anticipated activity for trans-Pacific trade for bulk and container volumes.Although some nearshoring could occur because of higher labor costs in China and a desire to diversify the supply chain, the nearshoring opportunities for now are around essential goods, such as medical supplies. Goods that pass through the Canadian ports, such as automotive products, electronics and garments aren't as "strategic" and security-sensitive, Reardon said. But he added that CN has service at Mobile, Alabama, and New Orleans, Louisiana, should some nearshoring opportunities occur. First-quarter performanceIn the first quarter, CN increased its train velocity by over 6% while reducing its dwell time by nearly 5%. This allowed the railway to use fewer locomotives on its network while still moving the same amount of gross ton miles, Cairns said. It also removed 700 weekly train starts, and it has stored railcars and locomotives in locations where they would be needed once demand rebounds. Canadian National ($ in Canadian dollars) 2020 Value 2019 Value Y/Y Gross Change Y/Y % Change Freight revenue (in millions) $3,424.0 $3,413.0 $11.0 0.3% Carloads (000s) 1,335 1,418 -83.00 -5.9% Revenue per carload $2,565 $2,407 $158.00 6.6% Intermodal shipments (000s) 548 624 -76.00 -12.2% Intermodal revenue per carload $1,549 $1,362 $187.0 13.7% Revenue ton miles (in millions) $58,370 $59,067 ($697.0) -1.2% Employee counts (quarterly average) 25264 26024 -760.00 -2.9% Train velocity (mph) 18.2 17.1 1.10 6.4% Dwell time (hours) 8.3 8.7 -0.40 -4.6% OR% 65.7% 69.5% -3.80% -5.5% EPS $1.42 $1.08 $0.3 31.5% Despite the rail blockades and the COVID-19 pandemic, CN reported higher net profits in the first quarter of 2020.First-quarter net income totaled C$1 billion, or C$1.42 per diluted share, a 28.6% increase from C$786 million, or C$1.08 per diluted share, in the first quarter of 2019.For more first-quarter results, go here. See more from Benzinga * Broken Rail As Possible Cause To Canadian Crude Train Derailments * Today's Pickup: C.H. Robinson makes a ,000 donation to St. Christopher Truckers Relief Fund * Canadian National, Canadian Pacific Confident Of Their Post-Pandemic Response(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cloud Nine Education Group Ltd. (CSE:CNI) has rebounded strongly over the last week, with the share price soaring 46...
CN (CNI) delivered earnings and revenue surprises of 19.74% and 7.64%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Canadian railroad operators have been getting a boost from shipping oil for producers looking for alternatives to congested pipelines. Canadian National said in January it expected crude shipments to be a growth driver this year. "Looking broadly at energy-related carloads, crude by rail was a significant growth driver, up 45% year-over-year for the quarter," Chief Executive Officer Jean-Jacques Ruest said on Monday.
A March letter from Transportation Safety Board (TSB) investigators to Transport Canada suggests that broken track might have contributed to recent derailments of trains carrying crude oil, including two accidents involving Canadian Pacific Railway Limited (NYSE: CP) trains in February 2020 and December 2019.As a result, TSB investigators are recommending that Transport Canada update its regulations regarding track standards for key routes, especially since the last updates were made in May 2012 and the industry has evolved to running longer and heavier trains since then."As train operations have evolved, the TSR [track safety rules] have not kept pace...While the TSR establish minimum standards for track infrastructure, there are no provisions in the TSR to address the need for enhanced track standards for key routes despite sometimes significant increases in DG [dangerous goods] traffic volumes," said the March 4 letter by Dan Holbrook, acting director of rail/pipeline investigators for TSB, to the Director General for rail safety for Transport Canada. The letter explained that changes in the rail industry have enabled CP and Canadian National Railway Company (NYSE: CNI) to run longer and heavier trains. "Over the past 10 years or so, train operations have evolved and there have been a number of operational improvements implemented throughout the rail industry, such as the proliferation of distributed power technology. These advancements have facilitated more effective management of in-train forces allowing for longer, heavier trains," TSB said. "Similarly, train traffic has evolved and generally increased as more DG are transported in either large blocks of cars within a merchandise train or as unit trains that transport a single DG product such as petroleum crude oil."But as the rail network was handling longer and heavier trains, public and private stakeholders hadn't fully considered the wear and tear that those trains would have on train tracks. For example, broken joint bars or a broken rail were determined as factors contributing to two crude train derailments involving Canadian National (CN) in 2015. CN's investigators initially didn't take into account how increases in train traffic and tonnage could degrade track more quickly, according to TSB. Following the incidents, CN made significant capital investments to track infrastructure in the Ruel Subdivision, and it improved its track inspection and maintenance practices. Although the track is still classified as Class 3 track, there hasn't been a significant main track train derailment on that subdivision since March 2015, TSB said.TSB investigators pointed out that seven accidents in recent years involving trains carrying dangerous goods were "related to failures of track infrastructure."Furthermore, while the freight rail industry has used the tactic of reducing train speeds to prevent train derailments, that action, plus the deployment of the newest tank cars, aren't enough to prevent punctured tank cars in derailments, TSB said. The February 6 incident of a derailed CP train near Guernsey, Saskatchewan, involved DOT 117J100-W specification tank cars, which were industry standard and are the newest tank cars available to transport Class 3 flammable liquids, according to TSB. "The derailment occurred at a speed that was permitted by the Rules Respecting Key Trains and Key Routes in force at the time and the crude oil was transported in DOT 117J100-W tank cars, which have significant design improvements when compared to legacy DOT 111A tank cars," TSB said of the Feb. 6 incident. "Despite using the best tank cars available, about 27 of the tank cars released an estimated 1.6 million litres of product. This suggests that the recent tank car design improvements alone are insufficient to fully mitigate the risk of adverse consequences resulting from derailments involving DG."Although investigations for the December 2019 and February 2020 derailments are still ongoing, "the suspected cause appears to be related to a broken rail," TSB said. The agency also said the Sutherland Subdivision was maintained at a Class 4 standard when the two derailments occurred.Following receipt of the letter, Transport Canada modified in April the speed restrictions for key trains carrying dangerous goods. Transport Canada didn't return a request for comment by press time about this issue.Image: ShutterstockSee more from Benzinga * Prologis Starts Year Off Strong, But Headwinds Are Present * Freight Futures Daily Curve: 4/21 * Today's Pickup: Trucker Helps Drivers Get Masks As She Recovers From Suspected COVID-19(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Declining freight revenues and supply-chain disruptions are likely to get reflected in Canadian National's (CNI) first-quarter 2020 performance.
The Canadian railways say they will have the network capacity available to handle an anticipated surge in volumes once the coronavirus pandemic plays out and consumer patterns shift back to normal.Speaking at the virtual BMO Capital Markets investor conference last week, executives with Canadian National Railway Comapny (NYSE: CNI) and Canadian Pacific Railway Limited (NYSE: CP) said they have adopted measures that will enable them to respond quickly to any volume surges later this year.Rail observers have said that the Class I railroads have a tendency to struggle to respond to sudden surges in rail demand because it takes some time to get assets, power and crews in order, especially if the railroads have reduced power and crews in response to a downturn."At this point, I don't know what the rebound will be – whether it will be fast – but the [situation is] so volatile, that if people can leave their homes and eventually go back to work, in a couple of months, this [situation] could look drastically different," said Canadian National (CN) CEO JJ Ruest on March. 26. Ruest was referring to nationwide recommendations that citizens practice social distancing and minimize trips outside of the home as a means to safeguard them from contracting the novel coronavirus, or COVID-19, as well as provincial orders to stay at home. However, the recommendations have also crippled small businesses, the hospitality industry and retail, among other consumer-oriented sectors.CN has created a plan that lays out how to determine which locomotives and railcars to park and where they should park these assets. By doing so, CN hopes to have these assets ready to respond to any volume rebounds quickly. As railcars come back from an interchange, CN's network centers have lists that detail which railcars to park and where to park them, Ruest said. "We want to do this strategically so that when business comes back for specific commodities or for a specific geography, we will have assets deployed in ways that can [help us] actually respond better," he said. As the coronavirus pandemic plays out throughout North America, CN's roughly 5,000 office employees are working remotely or are using social distancing techniques, Ruest said. About 20,000 employees work in field operations, and CN has adapted policies such as staggered start times and smaller groupings for maintenance work. CN also expanded its rail traffic control from three physical locations to five – Edmonton and Chicago each have two separate locations, while Montreal continues to serve as a rail traffic control center. Each of these five locations have medical personnel on staff, Ruest said. CN has "rightsized" its employee headcount to match volumes, but the railway has people in reserve, Ruest said. CN has closed its training campuses in Winnipeg and Chicago temporarily, and it could slow down activity at its smaller rail yards and repair shops if carload business dwindles. However, service metrics such as train speed and car velocity have improved, although rolling stock was down in March to 100,000 cars compared to 110,000 cars in March 2019, Ruest said. And while Chinese manufacturing appears to be returning, with roughly 90% of large-scale enterprises in operation, with 70-80% of their workers back at their jobs, according to CN"s freight forwarders working in China, one issue will be whether there will be enough demand in the U.S. and Canada to support an anticipated return in container volume in May at the western Canadian ports, Ruest said. Meanwhile, CP CEO Keith Creel said precision scheduled railroading (PSR), an operating model that seeks to streamline operations, will enable the railway to respond quickly to any sudden surge in rail volumes.PSR helps because it allows CP to look at rail productivity at various timetables, including daily, weekly and month-to-date compared with last year, and it helps CP analyze asset use, Creel said on March 24."When you get a feel for those things and you know where the number should be or what your potential is...as soon as you start to see slippage, we have an ability with our measures to drill down to territory-specific, to lane-specific. So, it's not just at a global number," Creel said. In these next several months, CP will continue to retrofit locomotives so that they're more fuel-efficient, Creel said. Right now, the railway is determining which leases and fleets to keep online and which ones to put into storage, he said. "We'll constrain and take resources out so that the supply chain will run faster. And when you run faster, reliably, you'll be able to move more product, and your costs and your margins are going to be protected," Creel said. CP's actions are "a bunch of singles and doubles that we'll do to protect the margins on the downside and [we'll] have the resources in hand and even the willingness of the employees to bounce back when the economy bounces back."CP could lay off roughly 250 employees in the next several months, but it is working with the unions and speaking with workers to help determine how to lay off people in such a way that lessens the blow, both for employees and for the railway, according to Creel. "If I talk about the people side...working with the union – okay, let's talk about what we can do to keep them in here as long as we possibly can, what we can do when the economy bounces back to make sure that our employees are back quicker than they otherwise would be," Creel said. For instance, "What can the employees do working with the unions and with the collective agreements to tweak some of what would be a normal call back time, which is normally 14 or 15 days? How about if we adjust that to make it a 48-hour or 72-hour [call back time]? So, those kinds of discussions are fluid discussions and they're going on today with their union leadership as we try to navigate this thing together. And I think that bodes us well for the bounce back," Creel said.Image: Flickr/Chu Shau-LuenSee more from Benzinga * Hub Group Pulls Earnings Outlook, Builds Cash Position * Logistics Companies Rush In With Services For Supply Chain Stakeholders Battling COVID-19 * Big Logistics Companies Invoke 'Act Of God' Clause In Contracts(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Union Pacific Corporation (NYSE: UNP), CSX Corporation (NYSE: CSX) and Canadian National (NYSE: CNI) are setting goals to reduce their greenhouse gas (GHG) emissions, in part through a pledge with the global initiative Science Based Targets.The overall goal of the three railroads, as well as other companies that have signed onto the initiative, is to limit global warming to below 2°C above pre-industrial levels. The initiative is a partnership between global environmental nonprofit CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature, with collaboration from the We Mean Business Coalition. A total of 839 companies globally have signed on to the initiative, which assesses corporate emissions reduction targets to ensure their participation in meeting Paris Agreement goals.CSX, which announced its involvement with the initiative on March 18 and joined the initiative in January, said it aims to reduce GHG emissions intensity by 37.3% between 2014 and 2030 through investments in technologies and operational practices. CSX said that in 2018, it achieved its 2020 goal of reducing emissions intensity by 6%-8%."Reducing emissions is important to CSX and its customers. Rail is already the most fuel-efficient mode of freight transportation, and CSX further delivers by continuing to set fuel efficiency records," CSX said. "CSX is the only U.S. class I railroad to have crossed the threshold of operating below one gallon of fuel-per-thousand gross ton miles, and the company is pursuing opportunities for additional improvement as part of its commitment to sustainable business practices."Union Pacific (UP) said last week it submitted a commitment letter to the initiative. It will use the initiative's sectoral decarbonization approach transport tool, which models targets for direct and indirect transportation emissions. "As one of the nation's largest freight railroads, it is our responsibility to act as environmental stewards, reducing emissions and enabling sustainable economic growth across our supply chain," said UP CEO Lance Fritz. "This is a challenging task as it means examining every aspect of our operation and looking for innovative solutions while continuing to create long-term value for our shareholders, customers, employees and the communities where we operate."Canadian National joined the initiative in June 2017. It set a target of reducing GHG emissions per metric ton kilometer by 29% by 2030 with 2015 as a base year.See more from Benzinga * Commentary: Coronavirus Sickens US Economy, Could Kill Container Volumes * Cargojet Shifts Aircraft To Handle Domestic Surge In Essential Supplies * Trump Administration Continues To Target Iranian Oil(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
The freight railroads are monitoring the latest developments related to the coronavirus pandemic while adjusting working conditions and preparing for an anticipated surge in volumes once the outbreak subsides, according to recent operations notifications.Norfolk Southern (NYSE: NSC) changed some of its work procedures from even a few days ago, aligning them with social distancing guidance from the Centers for Disease Control and Prevention (CDC), according to a March 14 note from its chief marketing officer Alan Shaw. Some of the changes include transitioning work arrangements for those not directly associated with train operations and restricting access to critical functions to offices such as the Network Operations Center. The eastern U.S. railroad has also activated its Operations Command Center, which includes staff from marketing and customer service, to monitor operations. It is also ensuring proper sanitation for its field transportation employees. In regard to shippers, "Norfolk Southern is committed to providing transparent information on all our activities and any changes we may execute," Shaw said. "We encourage you to advise us with respect to anticipated changes in your supply chains, operations or priorities so that we can continue to evaluate and, if necessary, modify our operating plans accordingly to meet your service expectations."Canadian National (NYSE: CNI) said its intermodal offering can aid customers that are affected by the dwindling availability of truck drivers."Since our recovery from the illegal blockades is progressing well, we are working closely with our customers to further assist them in getting more of their goods to end markets as Canadian National's (CN) strong intermodal capacity can definitely increase to compensate for the diminishing availability of long-haul truck drivers," CN said.The railway also said it is following safety directives from the World Health Organization and from provincial, state and federal authorities in Canada and the U.S.In a March 13 customer update, BNSF (NYSE: BRK) said it has plans to keep operations going should there be any workforce disruptions, including those caused by a pandemic. Measures will include designating essential personnel and ensuring that there are train crews available to keep trains moving. All BNSF facilities remain open, the railroad said.BNSF asked customers to share information with BNSF about its needs, especially once volumes rebound as the pandemic threat fades."Once conditions have improved, we are aware of concerns about the ability to support a spike in volumes involving North American supply chains. BNSF is working closely with our partners to ensure that resources are positioned where they will be needed most," BNSF said. "In this effort, we would like to remind customers to please share information on anticipated volumes with your BNSF representative as frequently as possible. With your ongoing collaboration, we are confident that we have the equipment, facilities and other resources ready to handle an expected demand surge in the coming weeks."The railroad also said it is following guidelines provided by the CDC and public health agencies, and it is taking measures such as cleaning and sanitizing BNSF facilities more frequently and restricting employee travel.Image Sourced from PixabaySee more from Benzinga * TTN Fleet Solutions Addresses COVID-19 Regarding Trucking Industry * Freight Futures Daily Curve: 3/16 * Texas Governor Waives Key Trucking Regulations To Speed Up Supply Deliveries(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Canadian grain producers anticipate industrywide costs of the recent rail blockades will total roughly C$300 million overall by the time network capacity returns to normal later this year.The costs come from fees such as demurrage, contract penalties and lost sales, according to Grain Growers of Canada Executive Director Erin Gowriluk. She estimates it could take 12-14 weeks before grain capacity returns to normal."A lot of folks are saying that this is a modest calculation because it doesn't take into consideration lost sales," Gowriluk said. As of last week, the backlog of grain volumes totaled about 1.25 million metric tonnes, she said.The Canadian freight railways, and Canadian National (NYSE: CNI) in particular, faced disruptions to the rail networks because of protesters blocking portions of the rail network in support of a First Nations' group's objections to the proposed route of a fracked gas pipeline in northern British Columbia. The protests began around Feb. 6 and lasted for more than two weeks, with the last blockade remaining on a stretch of Canadian Pacific's (NYSE: CP) network through this past Thursday.During the protests, trade groups were alarmed at the impacts that the rail blockades were having on Canada's supply chain. The disruptions forced Canadian National (CN) to shut down its eastern operations for over two weeks.The Western Grain Elevator Association (WGEA) estimates that the Canadian grain sector must absorb costs of nearly C$30 million per week in lost sales because on an incapacity to meet sales demand, while an additional C$22.7 million per week in costs can be attributed to lower prices resulting from deferring product delivery to a later date.Costs are still accumulating even though the rail blockades have ended because of delays in getting backlogged grain to the ports. After the blockades ended, grain vessels at the ports of Vancouver and Prince Rupert were still waiting to pick up grain shipments, according to WGEA Executive Director Wade Sobkowich.The number of grain vessels waiting at this time of year at the West Coast ports would normally be about 25-30, but over 50 were waiting on March 4, with roughly 30 vessels waiting more than 13 days at Vancouver and Prince Rupert, Sobkowich said.Meanwhile, capacity at Canada's grain storage elevators was at roughly 90% last week, Gowriluk said. To get the grain to the ports and to the vessels will require CP and CN to prioritize the movement of grain and coordinate with the ports to determine which vessels get which grain shipments, she said.Canadian grain carloads (RTOGR.CAN) are down over a year ago. According to the Association of American Railroads (AAR), year-to-date grain carloads for the week ending Feb. 29 are down nearly 13% to 61,818 carloads. Source: SONAR/AAR Although farmers bearing the brunt of the blockade-related costs is one concern to Gowriluk and Sobkowich, another is Canada's reputation as a global exporter, particularly as rail disruptions also occurred last November when the Teamsters Canada Rail Conference conducted a strike at CN."Buyers in other countries have an array of options available to them in sourcing grains, oilseeds and pulse crops. When we cannot deliver grain within the specified contract window, it reflects poorly on Canada as a country," Sobkowich said."Normally, less sophisticated and developing countries are the ones that cannot honor their sales commitments due to poor logistics systems and political unrest. That Canadian exporters are increasingly triggering these provisions reflects poorly on Canada as a reliable supplier. Next time, they will place a risk premium on grain from Canada, and/or prioritize other more reliable countries when sourcing product," he said.The pace of the federal government's response to the rail blockades also can be seen as a risk to foreign buyers, Gowriluk said.The resolution of the rail blockades "took longer than it should have, and we have significant concerns about whether or not [the government is] going to be prepared to act quickly if something happens again," Gowriluk said.Meanwhile, although Sobkowich views the rail blockades and the ramifications of the coronavirus outbreak as two separate issues, the timing of the outbreak following the blockades "certainly isn't helping.""The coronavirus is having an impact on the global economy in general and therefore is impacting the grain sector. Due to the slowdown of processing in countries such as China there is a cooling of demand for grains and oilseeds and therefore it is likely to impact prices," Sobkowich said.Image Sourced from PixabaySee more from Benzinga * Workhorse Narrows Focus To Electric Last-Mile Vans * Wilson Logistics Signs On To Platooning Deal With Locomation * FMCSA Stresses MRO Guidelines After D/A Clearinghouse Reboot(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Good day,Canadian National Railway (NYSE: CNI) CEO JJ Ruest said he expects the company to bounce back in the aftermath of weeks of rail blockades – likening their impact to November's strike. Ruest told BNN Bloomberg that the blockades will hurt CN, but that he remains confident in meeting its 2020 outlook. CN is in the process of ramping up freight service after shutting down its eastern Canada network in response to the blockades, which were established to protest a pipeline's route through an indigenous group's territory. Ruest suggested that the effects may be similar to those CN experienced in November 2019, when rail workers went on strike for eight days, reducing capacity by 90%.The strike "was quite significant to CN results, and we might be on that kind of scale," Ruest said.Did you know? FreightWaves LIVE is coming to Toronto on Sept. 17. It marks the first international stop for the freight industry's hottest conference. The lineup already includes big names in the transportation and logistics industry including Jacques DeLarochellière, president and co-founder, ISAAC Instruments and Sarah Barnes-Humphrey, host of the "Lets Talk Supply Chain" podcast and blog.Quotable: "Mexico keeps growing far above Latin America as a whole."— David Geisen, CEO of Latina American e-commerce giant Mercado Libre on its plans to invest $420 million in Mexico in 2020. In other news: Massachusetts bill would eliminate the sales tax on new trucks A bill in the Massachusetts House of Representatives would offer a significant boost to the transportation industry by eliminating the sales tax on purchases of new trucks. (StreetsblogMASS)Coronavirus keeping millions of China's trucks off the roadHalf of China's 30 million trucks aren't in service because of the coronavirus epidemic. (The Wall Street Journal) Federal court rules owner-operator had obligations to former carrierA federal court in the Northern District of Georgia ruled that an owner-operator breached its duties to its former employer when it shifted trucking companies because of a non-compete clause. (Lexology) New Jersey troopers pull trucker to safety before rig explodesTwo New Jersey state troopers managed to get a truck driver out his cab moments before his rig exploded after an accident. (Fox Business)Final thoughts: The weeks of rail blockades across Canada generated a great deal of talk about the threat to the economy and supply chain. The impacts were real and severe, especially for intermodal trucking companies and some ports such as Halifax. Grain shipments also took a large hit, too.But Canadian economists have said the impacts will be temporary. Bigger concerns loom due to coronavirus, which is hitting West Coast ports, and a much larger cloud of mounting consumer debt.Hammer down, everyone!Image Sourced from PixabaySee more from Benzinga * President Trump Signs Bill To Add CBP Ag Specialists To Ports * Navistar Swings To Loss On Lower Truck Sales * project44 Announces Industry's First Carrier Onboarding Service Level Agreement(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Canadian National Railway Co <CNR.TO> lost capacity equivalent to 10,000 carloads, or 1 million tonnes of grain exports, in February due to rail blockades by protesters opposed to a pipeline project, Chief Executive Jean-Jacques Ruest said on Tuesday. "In the case of CN we lost the equivalent of 10,000 carloads, or roughly 1 million tonnes," Ruest said in an interview.
Canadian National (NYSE: CNI) has started to call back its employees who were laid off temporarily because of protests that disrupted the railway's eastern operations.Canadian National (CN) hasn't faced significant rail blockades on its network for the last four days, and so it has started calling back most of its employees in eastern Canada, the company said on March 3.The railway said over 1,400 trains, including passenger trains, were delayed because of the blockades. Protesters throughout Canada began setting up rail blockades on February 6 in support of a First Nations group's objections of a proposed route for a fracked gas pipeline in northern British Columbia. While some rail blockades were isolated and relatively short-lived, others, such as one near Belleville, Ontario, lasted for several weeks, forcing CN to shut down it eastern operations.The Canadian government and the Wet'suwet'en of British Columbia reached a tentative agreement this weekend that observers hope will quell any remaining protesting activity."As the situation is stabilizing, we have started calling back most of the temporarily laid off employees based in eastern Canada to move our customers' goods as we continue to focus on a safe and progressive recovery," said JJ Ruest, CN president and chief executive officer. "While we are keeping a close watch on our network for any further disruptions, we are mobilizing our employees to be ready to implement a focused and methodical recovery plan for our eastern network. The complete network recovery process will take several weeks."Ruest continued, "I wholeheartedly thank our customers, partners, stakeholders as well as all the various law enforcement agencies involved including CN Police Services for their patience, support and understanding during this unprecedented ordeal. I also wish to recognize the very helpful support of the provincial Premiers and their respective governments and the involvement of the Federal Government."As CN seeks to resume its eastern operations, the railway said it has its western operations have been on their "way to recovering" over the last two weeks. The railway is "rebalancing" its assets to service customer sites for loading, Ruest said. The rail service disruptions came at a challenging time for the railways because they've been hit with a combination of headwinds, including adverse weather conditions and a government mandate to slow down crude oil trains, according to Barry Prentice, professor of supply chain management at the University of Manitoba. The looming uncertainty of the coronavirus' effect on the supply chain is also putting shippers at unease, he said."It will take a long time for things to recover...This event creates a memory in the traffic flow" of the supply chains, Prentice said.Image Sourced from PixabaySee more from Benzinga * IATA Postpones World Cargo Symposium As Registrants Withdraw Over Coronavirus * Highways Closed Due To Deadly Tornadoes And Snowstorms * Trucking Hours-Of-Service Final Rule Under Review At OMB(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
After three days of negotiations, the hereditary chiefs of the Wet'suwet'en and Canadian government officials have reached a tentative agreement on how to proceed with Coastal GasLink's project to construct a fracked-gas pipeline on Wet'suwet'en territory in northern British Columbia, according to local news reports.Canada's freight transportation industry and numerous shippers have been caught between the First Nations group and Coastal GasLink, with protesters setting up blockades on passenger and freight rail tracks in support of the Wet'suwet'en. The blockades forced Canadian National (NYSE: CNI) to shut down its eastern operations and passenger rail provider VIA Rail to cancel services for several days since the protests started Feb. 6."We're going to be continuing to look at more conversations with BC [British Columbia]," said Wet'suwet'en hereditary chief Chief Woos at a press conference Sunday. He said the hereditary chiefs still are against the pipeline on Wet'suwet'en territory but that they would keep working with government officials on the issues surrounding the pipeline project.The terms of the agreement were not disclosed. Instead, it will go to the clans of the Wet'suwet'en first for their approval before any details are released.Canada's Crown-Indigenous Relations Minister Carolyn Bennett said the agreement terms build on a previous Supreme Court decision regarding First Nations' rights and title. The proposed agreement honors the protocols of the Wet'suwet'en and will help ensure that the rights holders "will always be at the table" in future related discussions, according to Bennett.She called the work completed so far and the respect among all parties "a milestone in the history of Canada."While the clans review the agreements, CoastalGas Link could resume work on the pipeline construction as it is permitted to do so, according to Scott Fraser, British Columbia Indigenous Relations minister.For over three weeks, protesters have been blocking portions of Canada's rail network. While many of the rail blockades have been isolated protests that were cleared within 24 hours, some occurred nearby ports and disrupted operations there, while others camped out near rail tracks for weeks. A multiday rail blockade near Belleville, Ontario, was cleared after the Ontario Provincial Police began dismantling the blockade last Monday.Throughout the protests, shippers and government officials called for a peaceful, yet swift, resolution that would address the issues between the Wet'suwet'en and the federal government, warning that the disruptions would put Canada's reputation as a reliable trading partner at risk. Meanwhile, because the rail blockades curtained Canadian National's (CN) eastern operations, CN resorted to working with other rail partners, reportedly including its rival Canadian Pacific (NYSE: CP), while the Canadian trucking industry became overwhelmed from demand for freight transportation.CN is starting to call back employees to its eastern operations, according to Reuters. The railway didn't returned a request for comment to confirm its plans.Image by Robson Machado from PixabaySee more from Benzinga * Fetch Robotics Democratizes Warehouse Automation * Volumes Jump For First Time in 2020 But Coronavirus Uncertainty Looms * Mexican Cross-Border Parcel Transporter Buys 65 New Trucks(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Canadian authorities on Sunday reached a tentative deal with an indigenous group in the Pacific province of British Columbia that could end solidarity protests across Canada that have been blocking rail lines and roads for weeks. Activists have disrupted passenger and freight traffic to show solidarity with the Wet'suwet'en people, who are seeking to stop TC Energy Corp from building a gas pipeline over their land. After three days of talks, Indigenous affairs ministers from British Columbia and Prime Minister Justin Trudeau's government said they reached an agreement that would address future land rights disputes, but said pipeline construction would continue.
Canadian National Railway Co has started calling back many of the 450 workers it laid off earlier this month in eastern Canada, when blockades crippled operations on strategic rail lines, according to a company email sent to customers on Friday. Earlier this week, police made 10 arrests and cleared a blockade in eastern Canada that had been stopping freight and passenger traffic for almost three weeks on one of Canada's busiest lines. The blockades were held in solidarity with the Wet’suwet’en people in the Pacific province of British Columbia, who are seeking to stop TC Energy Corp from building a gas pipeline over their land.
A Canadian government minister was scheduled to open two days of talks with a major indigenous group on Thursday in a bid to end three weeks of rail and road blockades across the country that are harming the economy. Activists have disrupted passenger and freight traffic to show solidarity with the Wet'suwet'en people in the Pacific province of British Columbia, who are seeking to stop TC Energy Corp from building a gas pipeline over their land. Carolyn Bennett, the minister of crown-indigenous relations, and Scott Fraser, the British Columbia minister of indigenous relations and reconciliation, are due to meet Wet'suwet'en hereditary chiefs on Thursday and Friday.
Although police have cleared a two-week protest blocking a segment of Canadian National's NYSE: CNI) rail line near Belleville, Ontario, it's still unknown when operations along Canada's rail supply chain will return to normal. Canadian National (CN) has not yet formally said when it will resume its eastern operations, although local reports say the railway has begun to move on track that was previously blocked. CN had shut down its eastern operations nearly two weeks ago because of the blockade near Belleville.