Wood producers are to lose their rebates from the Canadian National Railway (CN), according to industry newsletter Random Lengths.
The change is part of CN’s new business philosophy which says that all freight shipments will be based on “net price equals real price” contracts.
Many Canadian timber producers are reportedly unconcerned by the move, as they regard the rebate as an administrative hassle.
But several companies in Western Canada are critical of CN’s hike in fuel surcharges and what they say is the railway company’s desire for shorter-term contracts.
The rebates are expected to finish by the end of 2005.
