GRAIN UNION TO VOTE ON VITERRA CONTRACT OFFER
A revised contract offer from Viterra will be voted on by the union representing more than 400 workers at the company’s facilities in the Canadian province of Saskatchewan, Reuters reported. The Grain and General Services Union said a planned strike on Jan. 5 was postponed. The two sides met with federal mediators on Jan. 3 and 4, and Viterra said on Jan. 5 that it is offering a four-year contract, with pay increases of 4.5% in the first year, 3.75% in the second year and 2.5% in each of the final two years. The worker vote will happen in the coming days, and ballots will be counted on Jan. 19, the union said. “We believe that we have provided an offer that is fair and reasonable, one that takes into account the needs of our employees, while balancing the needs of our business through long-term labor stability,” said Jordan Jakubowski, vice president of human resources for Viterra Canada, Inc.
(Link: WorldGrain)
US GULF SHIPPING COSTS CLIMB FOR CORN, SOY
Total transportation costs for shipping corn and soybeans through the US Gulf route increased from the second quarter to the third quarter of 2023, while Pacific Northwest (PNW) route costs for both commodities fell slightly, owing mostly to a nearly 104% increase in barge rates from $17.68 to $35.99 per tonne. Truck rates rose modestly from $14.19 to $14.75 per tonne (3.9%) while ocean freight rates dipped from $51.56 to $50.76 (-1.5%). However, total transportation costs remained down nearly 22% in the third quarter year-on-year.
Rail rates dropped 3% ($60.92 to $59.09) for corn and 2% ($68.27 to $67.05) for soybeans, while ocean rates were down 3.25% for both corn and soybeans from $28.35 to $27.43. Quarterly truck transportation costs were up 3.9% for both commodities to $14.75 from $14.19. Year-on-year, the PNW route has seen a 16.5% slide in total transportation costs for corn from $121.33 to $101.27 per tonne and down 15.6% for soybeans from $129.48 to $109.23.
(Link: WorldGrain)
