Tuesday, February 25, 2020

Lumber Prices Affected by Canadian Railroad Blockades

With the forced shut down of parts of significant portions of its Canadian network over a pipeline dispute, the economic implications are quickly being felt across the country.

The blockades have been set up on CN’s northern mainline between Prince George and Prince Rupert, as well as blockades near Belleville, ON, on CN’s only eastern link between Western Canada and Eastern Canada and between Eastern Canada and the US Mid-West.

The head of international trade with the Forest Products Association of Canada says the shutdown of rail lines in Ontario and B.C. is causing a crisis for the industry as protests continue against the Coastal GasLink pipeline.

Not only have lumber mills been struggling to get the fuels and chemicals they need to operate, they are unable to get its product to market.

Producers have been scrambling to get trucks or find storage as their product piles up, unable to ship out but if the pressure isn’t relieved soon, some companies are in the “red zone” and may need to resort to layoffs.

Only the length of these blockades will determine if Canadian Lumber prices will continue to climb for US customers as the Spring building season begins.

A blockade south of Montreal that halted rail traffic and frayed nerves since Wednesday was abandoned late Friday after riot police arrived to enforce a court injunction.

The roughly two dozen protesters, acting in solidarity with Wet’suwet’en hereditary chiefs contesting a British Columbia natural gas pipeline, had begun dismantling the encampment earlier in the evening following discussions with police.

They took down tents and carried items such as sleeping bags, pots, propane tanks and a wood stove to the edge of a security perimeter established earlier in the day by Longueuil municipal police.

Protesters said they will be back at other locations to blockade rail traffic and it is far from over.

1 comment:

Anonymous said...

That not a blockade that is just a bump in the road, keep rolling.