WINNIPEG – Canadian grain is in high demand as shippers try to feed a growing appetite from mills and governments seeking to shore up staple reserves amid the COVID-19 pandemic.
Grain shipments at the Port of Thunder Bay in Ontario doubled year over year in March, with vessels loading 200,000 tonnes last week and higher volumes expected to continue, the Chamber of Marine Commerce said, reported Canadian Press.
“Right now, we expect April grain volumes to be above normal. We currently have 650,000 metric tons of grain in storage ready to go out and we are receiving more rail deliveries,” Thunder Bay Port Authority CEO Tim Heney said in a release.
Richardson International Ltd., Canada’s largest grain handler, says demand for wheat and durum at flour mills and pasta plants around the world is on the rise as customers stock up on staples, partly in preparation for extended lockdowns triggered by steps taken to contain the novel coronavirus.
“Demand was already up in countries like Italy which had a smaller crop last year but with the COVID-19 pandemic, some countries are ordering extra wheat and durum to increase their reserves and satisfy this new demand,” said Carsten Bredin, who runs Richardson’s grain merchandising.
Canadian National Railway Co. chief executive JJ Ruest said earlier this month that demand for grain has been particularly strong over the past month.
Shipments of the bulk product will likely stay “solid” at least through May, despite sagging container volumes and potential layoffs at the railway as global supply chains wobble, he said.
“The month of April will not be as strong as the month of March,” Ruest said on a conference call with analysts, referring to total freight volume. “As we go on, we’re going to be parking more equipment, we’re going to be parking more rail cars.”
Wade Sobkowich, who heads the Western Grain Elevator Association, said strong demand in Europe and Africa is a welcome follow to a tough year that saw rail blockades, mudslides, labour action and a late harvest depress traffic of bulk goods.
