Grain exporters have no alternatives to CN and CP to deliver their grain to export terminals.Ottawa—Rail transportation of the country's grain harvest to export terminals must be deemed an essential service so it isn't disrupted by a strike or work stoppage, says the Western Grain Elevator Association (WGEA).The federal government already requires longshoremen and their employers to load ships with grain during a strike and that should be precedent enough for deeming rail movements of grain an essential service, says WGEA Executive Director Wade Sobkovich.The solution lies with binding arbitration, he said. “When a party refuses to submit to an arbitrated decision it is primarily because it does not feel a fair and impartial arbiter will reach a finding in its favour. This is equally as unreasonable as the railway's approach of subjecting its customers to commercial harm in order to maximize the returns of its own shareholders.”The 8-day strike at CN in November highlighted the position of the grain industry, he said. “When Canada has to declare an Event of Delay in our sales contract with our trading partners due to a railway strike, it reflects poorly on Canada as a country. Normally, less sophisticated and developing countries are the ones that enact such clauses due to poor logistics systems and political unrest.“That Canadian exporters are increasingly triggering these provisions reflects poorly on Canada a reliable supplier. While we respect the collective bargaining process, a strike or lockout is intended to be used as a tool of last resort for the parties making the decisions. Surely, it is not intended to be used to hold the entire grain sector and indeed Canada's economy hostage as leverage.”Bob Ballantyne, President of the Freight Management Association (FMA) said it and other shipper associations have discussed the essential service in the past and again since the recent strike. “FMA and I think other shipper groups would support this. My understanding is that the there are is jurisprudence from Supreme Court rulings that would make this difficult to achieve, but it would be useful to explore this possibility.”The Alberta Wheat and Barley Commissions said the CN strike “underlines the need for a new approach to dealing with strikes affecting grain movement. It is time to consider applying essential service provisions to rail service affecting grain movement.”Upwards of 35 ships were delayed at the Port of Vancouver to load grain and that will lead to demurrage penalties which are ultimately charged back to farmers, said Gary Stanford, President of the Alberta Wheat Commission.“We still get questions from international customers about the grain backlogs of 2017-18 so we need to have a national conversation about how we can assure them that we have a reliable supply chain,” he said.David Bishop, chairman of the Alberta Barley Commission, said, “The threat of strikes affecting grain movement is a recurring theme every few years and we need a long-term solution to ensure Canada can meet its export commitments.”“The true sufferers in a railway strike or lockout are grain shippers and exporters who cannot move the grain, their customers who are waiting for product to arrive in the country of import, and grain producers who are not able to get paid because they cannot deliver,” Sobkovich said.“Grain sales are pushed outside of peak periods which diminishes the value the grain sector is able to command for the crop. Vessel demurrage charges, contract extension penalties and contract defaults are real consequences, as is harm to Canada's reputation as a reliable supplier of grains, oilseeds and pulse crops throughout the world. None of these consequences apply to the railway. They will eventually move the grain when their workers are back, and earn the same revenue they otherwise would have.”Sobkovich said grain shippers are beholden to dual monopolies. If a strike or lockout situation occurs with respect to a business in a competitive environment, the customers of that business can avail themselves to the products and/or services of another provider to minimize disruption to the third-party company, and their producers and customers along the supply chain.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.