“It is time to end the danger posed by illegal immigrant and foreign national truck drivers who are not capable of safely operating an 18-wheel commercial vehicle or, in many cases, understanding English language warning signs and road instructions,” Van Duyne said in a news release.

Among those falling under the bill’s definition of “ineligible foreign nationals” are apparently Canadian commercial drivers because it proposes to remove the licensing reciprocity agreement the United States has with foreign countries.

Currently the only countries to have such agreements with the U.S. are Canada and Mexico.

The bill goes on to require any non-resident holder of a state-issued commercial driver’s license to prove residency in that state.

It would seem that this would prevent Canadian drivers from entering the U.S. with a Canadian licence or obtaining a recognized U.S. licence, meaning only U.S. drivers could handle cross-border freight hauls with Canadian carriers effectively shut out.

This is how Section 3 of the proposed bill describes it: “Not later than six months after the date of enactment of this aAct, the administrator of the Federal Motor Carrier Safety Administration shall take such actions as are necessary to terminate any existing reciprocity agreements that recognize foreign commercial driver’s licenses in the United States or permit holders of foreign commercial driver’s licenses (CDL) to operate a commercial motor vehicle in the United States, unless expressly authorized by statute.”

Reciprocity for Canadian CDLs stems from a notice published in the FMCSA Register as of May 1989.

The U.S. government shutdown at the time of writing made it impossible to get further comment for this article.

In her online press release, Van Duyne said the bill is in response to an immigration crackdown and a high-profile commercial motor vehicle collision that involved an immigrant driver.

That incident and another fatality crash have spurred a number of government actions in the U.S. aimed at immigrant drivers, including a rule that drivers must pass a roadside English proficiency exam by traffic officers or be placed out of service. In some cases, the truck can be impounded.

Van Duyne’s bill hasn’t yet passed, but if it did and reciprocity was terminated, the disruption to cross-border trade and Canadian commercial carriers would be enormous.

When contacted, a Canadian Trucking Alliance spokesperson said the bill hadn’t yet been brought to its attention and the organization would need time to study it before commenting.

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That’s especially true in rural areas, where many farms are located near railway tracks.

“In 2022 there were 232 incidents between trains and vehicles or people in Canada that resulted in 66 fatalities and 43 serious injuries,” CN Police Constable Michael Reid explains. “Many of these incidents occurred in close proximity to the victim’s residence and each one may have been preventable.”

Did you know that given their large size, trains often appear to be farther away and travelling much slower than they actually are? But don’t be fooled. It takes the equivalent length of 18 football fields for the average freight train, which travels at speeds up to 100 km/h and can weigh tens of thousands of tonnes, to come to a stop.

So, while farm machines are larger than most other vehicles, they are still no match for trains.

And with most farm crossings being passive — that is, not having warning lights, bells or gates — it’s essential to take extra care to ensure safety.

Safe crossings

When approaching a crossing, always open cab windows, turn off radios and fans, remove headsets and listen for oncoming trains. Look in both directions and look around obstructions like mirrors and windshield pillars. Keep in mind that winter conditions can be particularly hazardous and require extra care, as snow can muffle the sound of approaching trains and ice can cause your machinery to slide into crossings.

Once you’ve determined it’s safe to cross, ensure your machinery is properly lined up with the railway crossing; having the wheels cross tracks at a 90-degree angle will prevent heavily loaded equipment from tipping over. You also want to check that there is enough room on the other side of the tracks to fully clear the crossing without stopping and that the back of your equipment won’t be within five metres of the tracks if you have to stop on the other side.

Be aware of your equipment

It’s important to note not all farm machinery can easily cross railway tracks. An example is low-slung equipment, which should never be used to cross since it can get caught in the tracks.

When using new farm machinery for the first time, especially if it’s particularly wide or heavy, ensure it can cross tracks quickly and safely. Don’t hesitate to contact the railway for assistance regarding any non-standard machinery.

If you’re towing equipment, it’s crucial to prevent it from becoming unhitched when going over farm crossings, so always secure hitch pins with a pin key. And remember to watch wagons and other equipment while crossing to ensure nothing dislodges or becomes caught in the tracks.

Getting stuck or stalled on the tracks

No one wants to get stuck or stalled on train tracks, but if it happens, get out of the machinery immediately and move at least 30 metres away to avoid being struck by debris if your vehicle is hit by a train.

Once you are safely away from the machinery, contact the railway company to let them know a vehicle is on the tracks. Railway companies post their emergency numbers on a blue sign under the crossbuck (the traffic sign used to indicate a railway crossing) or near the crossing. The number may also be posted on a nearby signal house. This is the first number to call if your machinery becomes stuck or stalls on the tracks, as it’s the only way to stop approaching trains. If you are unable to locate the emergency number, call 911.

No matter the type of machinery you are driving or where you are heading, we all share the same goal of getting home safely at the end of the day. Taking safety precautions around railway crossings will help ensure that goal is reached.

“Farmers and the agriculture industry are crucial to the Canadian economy and by working together we can feed the world. But we all need to make sure we do that safely,” Reid says. “As trains can take up to two kilometres to stop, always obey the signs and signals at railway crossings. Use precaution and stay alert around crossings to ensure you stay safe during your workday.”

For more safety information, please visit the Ag Safety Week website.

Every year, CASA raises awareness about the importance of safety on Canadian farms through Canadian Agricultural Safety Week (CASW), which takes place during the third week of March. In 2024, CASW takes place March 10-16, and is sponsored by CN, Syngenta Canada, the Canadian Canola Growers Association, Fertilizer Canada and Parrish & Heimbecker.

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“We are delighted to have reached an agreement with Iowa Northern Railway. We look forward to the opportunities our combined network will provide customers, farmers, and our partners to respond to the needs of their existing and new markets,” said Tracy Robinson, CN’s president and CEO in a news release.

Iowa Northern Railway operates about 275 track miles (443 km) in Iowa, the release said. It serves upper Midwest agricultural and industrial markets.

CN did not disclose the terms of the transaction. The agreement awaits regulatory review by the U.S. Surface Transportation Board.

That decision is expected sometime next year, CN said.

–Geralyn Wichers is associate digital editor of AGCanada.com. She writes from southeastern Manitoba.

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The shipping snarl through one of the world’s main maritime trade routes comes at the peak season for U.S. crop exports, and the higher costs are threatening to dent demand for U.S. corn and soy suppliers that have already ceded market share to Brazil in recent years.

Ships moving crops have faced wait times of up to three weeks to pass through the canal as container vessels and others that sail on more regular schedules are scooping up the few transit slots available.

The restrictions could continue to impede grain shipments well into 2024 when the region’s wet season may begin to recharge reservoirs and normalize shipping in April or May, analysts said.

“It’s causing quite a disruption both in expense and delay,” said Jay O’Neil, proprietor of HJ O’Neil Commodity Consulting, adding that the disruption is unlike any he’s seen in his 50 years of monitoring global shipping.

The Panama Canal Authority restricted vessel transits this autumn as a severe drought limited supplies of water needed to operate its lock system. The Authority did not respond to request for comment on grain shipment delays.

Only 22 daily transits are currently allowed, down from around 35 in normal conditions. By February, transits will shrink further to 18 a day.

Grain ships are often at the back of the line as they usually seek transit slots only a few days before arriving, while others like cruise and container ships book months in advance.

The Authority also offers the rare available slots to its top customers first, none of which are bulk grain haulers, O’Neil said.

Any scheduled slots that come available are auctioned off, but demand is exceptionally high. Some slots have gone for $1 million or more, untenable costs for the traditionally thin-margin grain trading business.

“The grain trades and the bulk carrier segment are going to be the last customers to go through the Panama Canal. I would not rely on the Panama Canal any time soon,” said Mark Thompson, senior trader at Olam Agri.

Wait times for bulk grain vessels ballooned from around five to seven days in October to around 20 days by late November, O’Neil said, prompting more grain carriers to reroute.

Options include sailing south around South America or Africa, or transiting the Suez Canal. But those longer routes can add up to two weeks to shipping times, elevating costs for fuel, crews and freight leases.

The benchmark Baltic Dry Index .BADI, considered a benchmark for bulk grain freight, spiked to a 1-1/2 year peak on Dec. 4, more than doubling from a month earlier.

While grain prices have fallen from 2020 peaks, higher freight costs will be passed on to grain and oilseed importers who buy for human food and livestock feed.

“Commercial companies have been finding ways to navigate around the problem. But undoubtedly it costs the end-user more money,” said Dan Basse, president of Chicago-based consultancy AgResource Co.

In the second half of October, only five U.S. Gulf grain vessels bound for east Asia transited the Panama Canal, while 33 sailed east to use the Suez Canal instead, according to a U.S. Department of Agriculture (USDA) report. In the same period last year, 34 vessels used the Panama Canal while only seven used the Suez.

Some U.S. exporters have also been rerouting crop shipments to Asia to load from Pacific Northwest ports instead.

But that, too, comes at a higher cost as those facilities source grain mostly via rail as opposed to the cheaper barge-delivered loads supplying Gulf Coast exporters.

Only 56.8 per cent of all U.S. corn exports in October were shipped from Gulf Coast ports this year, down from 64.9 per cent in October 2022 and 72.1 per cent in October 2021, according to USDA weekly export inspections data.

–Additional reporting by Gus Trompiz in Paris.

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The BDI settled at 3,346 points on Dec. 4, climbing by roughly 1,500 points in the span of eight sessions to hit its highest level since May 2022 before finally taking a breather on Dec. 5 to settle at 3,143 points.

The BDI is compiled by the London-based Baltic Exchange and provides an assessment of the price of moving major raw materials by sea. The overall BDI includes sub-sectors for the different classes of ocean vessels – including capesize, panamax and supramax. It is often seen as a leading indicator of global economic activity.

Panamaxes and supramaxes are the primary grain transporting vessels, with panamax spot rates up 53 per cent over the past month to hit US$21,000 per day on Dec. 4, according to a report from Clarkson Securities. Supramax rates were up by 31 per cent over the same timeframe to hit US$16,400.

Restrictions moving through the Panama Canal were behind some of the rise in freight rates, with congestion issues at Brazilian ports compounding the issue, according to industry reports. Winter weather causing unloading delays in Europe and China were another factor, while recent attacks on several vessels in the Red Sea were raising concerns over movement through the Suez Canal.

While bulk rates have trended higher, container rates are holding relatively steady. Drewry’s World Container Index (WCI), which tracks container rates, was at US$1,382 per 40-foot container on Nov. 30, 2023. That was unchanged from the previous week but marks a 40 per cent drop from the same week a year ago.

Canada is at a freight disadvantage compared to its competitors exporting grains and oilseeds into many markets, with lower freight rates helping counter that disadvantage.

— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.

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Turkey, Ukraine, Russia and the United Nations have been holding talks on ways to extend the deal brokered in July allowing the safe export of Ukrainian grain via the Black Sea. The deal is due to expire Thursday.

Of about 20 senior Ukrainian and international traders and analysts polled by Reuters at the GrainCom conference in Geneva, a vast majority said they expected a renewal of the deal, though possibly with some delay.

Nearly all the delegates polled said a much lower harvest expected this year had alleviated the pressure to export through Black Sea ports, and that alternative routes including rail, truck and exports via the Danube river would be able compensate.

Those routes are, however, generally much more expensive than shipping via the Black Sea.

Nikolay Gorbachov, head of the Ukrainian Grain Association, warned that without the corridor export logistic prices would surge and cut farmers’ margins so much that they would stop producing wheat and corn in big volumes.

Ukraine’s corn crop is forecast to total just 21 million tonnes this year, around half the 42.1 million it harvested two years before the conflict began, according to the International Grains Council.

Moscow has threatened to quit the deal over obstacles to its grain and fertilizer exports.

The Kremlin said on Tuesday that questions remained about Russia’s part in the agreement, and that it would have to make a decision on whether to renew it.

Dan Basse, president of Chicago-based consultancy AgResource, said on the sidelines of the gathering that there wouldn’t be a big impact on global supplies this year if the agreement wasn’t renewed.

“With a lower crop this year, it can all go out west through eastern Europe. The problem is that it will cost 15 per cent to 20 per cent more,” he said.

Under the pact to create a safe shipping channel, Ukraine has been able to export some 30.25 million tonnes of agricultural products, of which 50 per cent was corn and 28 per cent wheat. Other commodities shipped include rapeseed, sunflower oil, sunflower meal and barley.

“Do we need the corridor? I would say yes,” Stefan Florescu, global head of wheat trading at CHS, the largest U.S agricultural cooperative, told the conference. “But if we aren’t going to have it, are we going to find a solution to export everything via the EU export corridor? I would say yes as well.”

— Sybille de La Hamaide is a Reuters commodities correspondent in Paris; additional reporting by Nigel Hunt.

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The National Carriers’ Conference Committee (NCCC) and the International Brotherhood of Teamsters (BMWED) that represents 11,000 workers extended the current cooling off period that previously was set to expire Nov. 19. The NCCC said the “extension eliminates the threat of a near-term freight rail service disruption.”

A rail shutdown could freeze almost 30 per cent of U.S. cargo shipments by weight, stoke inflation, cost the U.S. economy as much as $2 billion per day and unleash a cascade of transport woes affecting the energy, agriculture, manufacturing, healthcare and retail sectors (all figures US$).

BMWED said without an extension railroads could have begun ceasing rail operations within the next few days in anticipation of a Nov. 20 strike and suggested that “would also represent a blatant attempt to cause panic and economic harm to the railroads’ customers and the U.S. economy right before the Thanksgiving holiday.”

Another union representing about 4,900 locomotive machinists, roadway mechanics and facility maintenance personnel on Saturday narrowly ratified the tentative contract agreement.

The union was the seventh of 12 to approve the deal, while BMWED and the Brotherhood of Railroad Signalmen (BRS) union, representing more than 6,000 members, voted against the deal.

The deal included a 24 per cent compounded wage increase over a five-year period from 2020 through 2024 and five annual $1,000 lump sum payments.

The unions represent 115,000 workers at U.S. railroads including Union Pacific, BNSF, CSX, Norfolk Southern and Kansas City Southern as well as Canadian National Railway’s (CN) track in the U.S..

CSX chief financial officer Sean Pelkey said at a conference the railroad is “optimistic we’ll get to a good solution to be able to pay people much more than what they’re taking home today.”

When the contract is resolved “that really gives us the line of sight to figure out how do we how do we drive a better employee experience,” he added.

— David Shepardson reports on the U.S. transportation sector for Reuters from Washington, D.C.

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Leclerc said there is good demand for feed wheat in the province, “but prices are slightly up because we’re not seeing a lot of feed wheat because there’s no quality issues with the crop.” She quoted $12 per bushel for feed wheat of any red variety in northern Alberta.

Although demand for feed barley has remained strong, it too as has slowed recently, Leclerc said. She cited prices in the Calgary area at around $9/bu. while closer to Edmonton they are around $8.60.

A notable limiting factor has been freight costs. Leclerc said freight this time last October was aboutC$28 per tonne from Edmonton to Lethbridge, but now those charges are around $60. Plus, a worker shortage limits the availability of trucks.

Those sky-high freight rates could determine the amount of feed corn imported from the U.S. by rail over the winter. Leclerc said the imports usually begin in November and might be a worthwhile alternative to barley and wheat.

Feed barley prices on the Prairies were mixed over the last week, according to Prairie Ag Hotwire. Prices in Saskatchewan lost 25 cents per bushel at $6.61-$6.75/bu. delivered. However, in Alberta there was a gain of 11 cents at $6.65-$9.25/bu. Also, Manitoba saw an uptick of 25 cents at $6.97-$7.25/bu.

As for feed wheat, Prairie Ag Hotwire noted prices were steady to higher, with an increase of 26 cents coming in Manitoba at $10.84/bu. delivered. Meanwhile, there were no changes in Alberta or Saskatchewan; prices in Alberta remained at $9.13-$12.11/bu. and those in Saskatchewan held at $8.50-$11.75/bu.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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Annual spring road restrictions set axle weight limits for vehicles moving on certain roads, in an effort to reduce the damage heavier loads can cause during the spring thaw period.

Grain and equipment movement can both be affected by the spring road bans, as drivers may need to find alternate routes or haul smaller loads. The duration of the restrictions will depend on the local weather conditions, but typically last through April and into May.

“At various times of the year, weight restrictions are put in place on some highways as a measure to prevent damage to the surface and roadbeds,” Saskatchewan Highways Minister Fred Bradshaw said in a release announcing the province’s road restrictions that came into effect on Tuesday.

“As the warmer weather rolls in, some roads can become susceptible to soft spots and surface cracks,” he added.

In Manitoba, spring road bans are set to come into effect on Friday across the province, according to an update from Manitoba Infrastructure.

The restrictions vary depending on the road, with level one restrictions consisting of 90 per cent of normal loading and 65 per cent of normal on level two affected roads.

Spring road restrictions went into effect across the southern half of Alberta on Monday, with other areas expected to be added to the list as the thaw progresses, according to Alberta Transportation.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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The other is its availability, said Todd Lewis, president of the Agricultural Producers Association of Saskatchewan (APAS).

“We forecast prices to remain at elevated levels for the first quarter. Urea prices have dropped over recent weeks, with a big pull back in the U.S. this week. But with supply still relatively tight, ammonia prices still at record highs, a large volume of European capacity remains idle (and) China out of the market until June…(w)e don’t see a sustained fall in prices for a while yet,” Lawson wrote in an email to MarketsFarm.

“We will most likely see some declines start in the second quarter, and even more so over the second half. This is when we expect energy prices to decline from the current extraordinary levels, more supply and demand rebalancing, and a general softening in commodity markets,” he said.

Lewis emphasized there needs to be real transparency from fertilizer industry.

“As producers make their seeding plans, it’s going to be important to know the fertilizer they’re going to require is going to be on time. It would be a shame to see delays because of a fertilizer shortage,” he said.

Lawson listed several factors to explain the sharp spikes in fertilizer prices over the last number of months. Those included record-high natural gas prices throughout much of Europe that curtailed or slowed nitrogen production.

Massive hikes in bulk freight rates, the current North American cold snap and the aftereffects of Hurricane Ida, as well as economic sanctions on Belarus, a country that produces 20 per cent of the world’s potash, were also factors. He further cited China halting phosphate and urea exports, export quotas by Russia and Egypt, and production issues due to the COVID-19 pandemic.

Meanwhile, Lewis said “fertilizer pricing in Western Canada has always been a mystery,” since nitrogen is already produced in the country.

At this point, Lawson doesn’t foresee farmers en masse altering their plans for what to plant in the spring.

“There is still an incentive for farmers to plant nutrient-intensive crops like corn and wheat, despite the higher input prices. So we believe some of the concerns around fertilizer demand destruction are overblown,” he said.

“Yes, prices are higher, and farmers will be incorporating more risk. But the data we have seen so far suggest little pullback in demand for developed markets like Canada.”

But to Lewis, there are very likely some producers making such considerations.

“On an individual basis, I think farmers are having that conversation, especially when you look at some of the pricing,” he said, noting the net returns for canola and durum are about the same in southern Saskatchewan.

Other than durum, he suggested there could be a move towards lentils and other pulses.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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