THUNDER BAY - The Port of Thunder Bay is anticipating a very strong month with increasing demand and a backlog of grain waiting to be shipped.
“We have a pretty good lineup,” said Thunder Bay Port Authority CEO Tim Heney. “I could see this month in April probably one million tons go through the port if everything works out well. It’s certainly stronger than previous years.”
There is currently more than 650,000 metric tons of grain in storage at the Port waiting to be loaded and shipped across the Great Lakes and more rail deliveries are expected.
“I think there is a large backlog of grain this year left over from last year’s crop. A lot of that is due to the rail issues we had in the fall and that leaves a lot more to move,” Heney said.
“The port can store more than a million metric tons of grain at a time and has the fastest rail turn-around times, so we are well-positioned to help Canadian farmers supply their markets.”
According to the Marine Chamber of Commerce, more than 200,000 metric tons of grain has been loaded onto Canadian vessels in the past week, which is more than twice the average volume for the month of March.
This increase in demand is due in part to the COVID-19 pandemic according to Carsten Bredin, vice-president of grain merchandising for Richardson International Limited.
“We are seeing strong demand for food staples like Canadian wheat and durum with production up at flour mills and pasta plants around the world. 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,” Bredin said in a release issued by the Marine Chamber of Commerce.
“Great Lakes-St. Lawrence shipping is going to be a critical part of the supply chain to move grain to markets in Europe, Northern Africa and the Middle East.”
Wade Sobkowich, the executive director of the Western Grain Elevator Association, said the grain sector has been struggling due to a late harvest and variable quality, as well as railway labour actions and blockades.
“Now we are in the midst of trying to move grains, oilseeds and pulse crops to our customers in the midst of a global pandemic,” he said. “The silver lining is that strong demand exists with our trading partners over the Atlantic in Europe and Africa, and the recognition by governments that it is essential for the grain supply chain to continue to function. The re-opening of Thunder Bay and the St. Lawrence Seaway is critical in order to supply food to the world, and to keep as many people employed as possible during this difficult time.”
The St. Lawrence Seaway opened on Wednesday and Heney said he is anticipating the first ocean going vessel to arrive in the coming weeks.
The Port has already had eight lake-going vessels arrive and three vessels that were wintering in the port have already been loaded with grain and have since departed.
Grain makes up 80 per cent of shipments through the Port of Thunder Bay, but it is difficult to predict if the same volumes anticipated this month will be seen throughout the remainder of the year.
“It’s hard to predict because the second half of the season is based on the harvest,” Heney said. “Certainly for the first half it will be strong.”
