Category: Transportation

T-3 Conference to Provide a Hub for Information on the Fertilizer Industry

Fertilizer is critical to the world’s food production system and the global stability of nations. Unprecedented global volatility means timely and accurate information on the market is a necessity, not a luxury. Getting a handle on the factors impacting today’s fertilizer market is about to get easier. The Fertilizer Institute’s (TFI) T-3 Conference, on November 7-9 in Houston, Texas is the must-attend meeting for economists, market analysts and reporters who track the fertilizer industry and the agricultural economy.

Attendees at this conference will return to their office with a greater understanding of the ways that supply and distribution challenges are impacting the industry and food production. Speakers include fertilizer market experts, regulators, including two members of the Surface Transportation Board, a former senior White House Advisor, and representatives of companies that are making innovation a centerpiece of their business plans.

Conference sessions include:

  • Market outlooks for Nitrogen, Phosphate and Potash
  • Market outlooks for Agriculture and Natural Gas
  • Global Disruption: Russia
  • Green Ammonia in the fertilizer industry – why and how?
  • Fertilizer and Food Security
  • Inland waterway transportation challenges
  • Rail service

TFI members are entitled to a discounted registration fee. For further information, and to register, please visit the T-3 Conference page on TFI’s website. This is a live event and a limited number of media passes are still available. Please reach out to Kathy Mathers at [email protected] for additional information.

TFI Commends Deal Between Rail Carriers and Unions

Arlington, VA – The Fertilizer Institute (TFI) today commended the tentative deal reached between rail carriers and labor unions that has averted a strike that had the potential to devastate an economy already struggling with inflation.

“Averting a strike Friday morning was priority number one,” TFI President & CEO Corey Rosenbusch said. “We appreciate the hard work both sides put into reaching a tentative agreement that will in turn allow our industry to produce and move the fertilizers our farmers rely on to feed the world. The fertilizer industry also appreciates the focused attention of President Biden, Secretary Walsh, and the Administration to reach a resolution in a challenging situation.”

The tentative agreement still needs to be ratified by respective unions through a vote by rank-and-file rail workers. Ammonia shipments must also quickly resume as they have been embargoed since Monday. According to information from producers, most or all the ammonia embargoes have been lifted as of this morning.

“We are hopeful that union membership will vote to approve the tentative agreement to ensure freight rail in the U.S. continues to operate,” Rosenbusch concluded. “As we move forward, it is also essential that rail carriers hire and retain the appropriate employee staffing levels to support a strong economy. Staff reductions in recent years have dramatically hurt rail service and made the rail-labor contract negotiations more challenging.”

 

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TFI: America Can’t Afford a Rail Strike, Congress Must Act

Arlington, VA – The Fertilizer Institute (TFI) today continued urging agreement between rail carriers and labor groups to avoid an economically catastrophic rail strike and again asks Congress to intervene.

“Nine out of the twelve labor unions have come to tentative agreements with the rail carriers, which is great news, but we are getting down to the wire,” TFI President and CEO Corey Rosenbusch said. “Tomorrow is the last day Congress has to step in and avoid what would be an absolutely devastating strike that farmers and consumers cannot afford.”

The production and movement of fertilizer is heavily dependent on rail, both for finished product and production inputs. Many of those products have already been removed from the rails in preparation for a potential rail stoppage.

“For every day this uncertainty continues, we essentially lose five shipping days because of the ramp down and ramp up,” continued Rosenbusch. “If this situation is not resolved by tomorrow, it could quickly impact supplies for fall application and lead to a reduction in U.S. production at a time when 70% of European production has been curtailed or ceased due to Russia’s shutoff of natural gas supplies.”

Congress has the power to step in and avert a rail strike if agreements between the rail carriers and labor unions are not reached.

“Congress can act to implement the President’s Emergency Board compromise agreement,” Rosenbusch concluded. “Action must be taken to ensure rail networks continue operating or American consumers and global food security will pay for it.”

 

 

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TFI Urges Agreement or Congressional Action to Avoid Rail Shutdown

Arlington, VA – The Fertilizer Institute (TFI) today again urged Congress to take action to avoid a freight rail shutdown on September 16th. TFI sent a letter to Congressional leaders on Sept. 7th pushing for intervention to prevent a stoppage from occurring.

“A stoppage hasn’t yet happened, but we are already feeling the negative effects of non-resolution,” TFI President and CEO Corey Rosenbusch said. “Rail networks are complicated, and carriers must make preparations ahead of a potential stoppage to keep certain types of cargo safe and secure. Fertilizer falls into that category and is being taken off the rails. That is bad news for farmers and food security.”

Rail carriers announced Friday evening that shipments of fertilizer products, such as ammonia – a key fertilizer and building block for approximately three-fourths of all fertilizer – will start coming off rail networks as early as this Monday.

“Supply chains are already strained and there is currently zero elasticity in rail transportation,” Rosenbusch continued. “This situation will get exponentially worse every day there is no resolution. Over half of all fertilizer moves by rail year-round, and there are some fertilizer products that move almost exclusively by rail. If they can’t be shipped farmers won’t have them and if they can’t move production slows down. In the end the consumer will be footing the bill for this inaction at a time when household budgets are already strained.”

“TFI would like to see an agreement between the rail carriers and labor unions,” concluded Rosenbusch. “But if they cannot reach an agreement, Congress must act to avoid an economic catastrophe that will only add to inflation and increase consumer pain.”

 

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TFI Urges Congressional Action to Avert Nationwide Rail Stoppage

Arlington, VA – The Fertilizer Institute (TFI) yesterday sent a letter to Congressional leadership urging congressional action to prevent a Sept. 16th shutdown of freight rail operations in the United States. The potential shutdown comes as rail carriers and labor unions continue negotiations on a contract agreement.

“A disruption to freight rail operations would be catastrophic,” said TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

The letter sent by TFI urges Congress to begin preparations to implement the Presidential Emergency Board (PEB) recommendations that fall in the middle of the carriers’ and unions’ contract proposals to avert a total stoppage.

“A speedy resolution is paramount,” concluded Rosenbusch. “With less than two weeks to go, carriers and shippers have already begun contingency planning and if no agreement is reached soon rail shipments will have to wind down days before Sept. 16 to allow carriers to carefully clear their networks. Fertilizer shippers and their farmer customers want carriers and their unions to reach a compromise, and if necessary, Congress needs to act to prevent a devastating halt to our nation’s supply chain.”

 

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TFI Urges Speedy Rail-Labor Union Contract Settlement

Arlington, VA – The Fertilizer Institute (TFI) today thanked members of the Presidential Emergency Board (PEB) for hearing from both rail carriers and their labor unions and providing measured recommendations on a pending contract agreement between the two. TFI urges all parties to swiftly reach a compromise and contract agreement. Both sides have until Sept. 16 to evaluate the PEB’s recommendations during a mandated 30-day cooling-off period.

“Uncertainty of this nature is yet another disruption in an already complex environment for farmers, so speedy resolution is paramount,” said TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

 

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TFI Lauds Congressional Leadership on Rail Service Issues

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch today praised the bipartisan leadership of Congressmen Ralph Norman (R-SC-5) and Jim Costa (D-CA-16) for organizing a letter to the Surface Transportation Board (STB) regarding poor rail service and the negative impact it is having on the fertilizer industry and the overall agricultural sector.

“With over half of all fertilizer moving by rail, we are grateful for the leadership of Congressmen Norman and Costa in bringing the issue of inconsistent rail service to the attention of the STB,” Rosenbusch said. “Their dedication to working with all stakeholders will help ensure that essential crop nutrient inputs reach farmers when and where they need them.”

Fertilizer shipments rely heavily on rail to reach farmers, but imposed restrictions, along with skeleton crews and railroad-led initiatives such as precision-scheduled railroading (PSR), have forced fertilizer shipping reductions and potential production delays.

“Fertilizer is attributable to half of all crop yields,” Rosenbusch continued. “With the world leaning on U.S. farmers now more than ever before to feed our growing population, we must ensure strong yields and our food security. Fertilizer must reach farmers in a timely manner and crop harvests also need to get to their destinations, including the kitchen table.”

The Congressional letter to the STB was signed by 51 members of Congress and can be read in full here.

 

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TFI Applauds STB Hearing on Freight Rail Service

Arlington, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch thanked the Surface Transportation Board (STB) for holding this week’s hearing on “Urgent Issues in Freight Rail Service.”

“Railroads are critical to the on-time delivery of fertilizer to farmers exactly where and when they need it,” Rosenbusch said. “We appreciate the opportunity to provide testimony on how rail service issues are negatively impacting the cost and timely delivery of fertilizer inputs to farmers.”

In submitted testimony, TFI cited such issues as the implementation of precision scheduled railroading (PSR), a lack of competition, and a lack of structural and market-based incentives to be customer-oriented as leading to reduced rail service, high shipping rates, and poor cycle times.

The STB also heard testimony from Department of Transportation Secretary Pete Buttigieg and Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh, both of whom mentioned the importance and challenges facing fertilizer shippers, as well as other agriculture groups such as the American Farm Bureau Federation and the National Grain and Feed Association.

“The ag economy relies heavily on dependable rail service to get inputs to farmers,” concluded Rosenbusch. “The inclusion of so many other groups experiencing the same challenges as the fertilizer industry shows that these issues are felt broadly, are having negative impacts, and must be addressed through modern reforms.”

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI and NGFA Urge Biden Administration Work with Canada to Ease Supply Chain Strains

ARLINGTON, VA – In a March 7 letter to President Joe Biden, The Fertilizer Institute, the National Grain and Feed Association, and 19 other members of the Agricultural Transportation Working Group requested the administration work with the Canadian government to avert a major railway labor strike and to rescind the cross-border vaccine mandate for workers moving essential commerce.

“(I)f the U.S. and Canadian governments allow the following supply chain disruptions to persist into the spring fertilizer season, the impacts to our industry and North American farmers could be devastating,” the working group noted.

The letter references a potential upcoming labor disruption at Canadian Pacific (CP) Railway. The Teamsters Canada Rail Conference recently voted in favor of strike action, which could happen as early as March 16. The impact would be significant for grain movements on both sides of the border for livestock feeding and processing operations served by the CP. The strike also would halt the CP route that carries U.S grain to the Pacific Northwest export market. Grain is CP’s largest line of business and approximately 10-15 percent of CP’s business is fertilizer, the working group noted.

“A CP railway strike would severely curtail fertilizer supply and shipments into the United States and would happen at the worst possible time as farmers are planting their 2022 crops,” the letter states. “Given the fragility of current supply chains, urgent attention and engagement with all parties is needed to avert a potential strike.”

The letter also urged the U.S. and Canadian governments to modify or rescind their mandates blocking unvaccinated foreign nationals, including truck drivers, from crossing the border. Canada’s vaccine mandate requires U.S. truckers to show proof of vaccination before entering the country and the U.S. mandate requires foreign cross-border truckers to be vaccinated. The U.S. Department of Homeland Security has said its border policy will remain in effect through April 21.

“The border policy has raised prices because it has constrained trucking capacity and made truck movements more expensive and less timely,” the letter states.

Over one million short tons of fertilizer cross the U.S.-Canada border by truck each year. March, April and May are peak months for fertilizer applications across the northern states.

“Given the urgency of several supply-chain challenges, we urge revision or rescission of the border policy prior to April 21,” the working group stated.

View the full letter here.

 

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TFI Applauds Hedlund’s Confirmation to STB

ARLINGTON, VA – The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch released the following statement regarding Ms. Karen Hedlund’s Senate confirmation to serve as a Board Member of the Surface Transportation Board (STB).

“Congratulations to Karen Hedlund on her confirmation to serve as a Board Member of the STB. Ms. Hedlund has a wealth of transportation experience from her time serving the Federal Railroad Administration (FRA) and the Federal Highway Administration (FHA) in various roles over more than a decade. TFI was pleased to support her confirmation and looks forward to working with her to promote rail competition and reliable service.”

 

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The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.