Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Canadian Pacific Railway Limited
  6. News
  7. Summary
    CP   CA13645T1003


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Alcohol and auto parts: Canada's warehouses fill up as floods stop flow of goods

11/23/2021 | 03:38pm EST

(Adds retailer comment)

OTTAWA, Nov 23 (Reuters) - Canada's warehouses are filling up with everything from furniture to alcohol, after floods in British Columbia washed out critical rail and road lines, disrupting already strained supply chains.

A week after a phenomenon known as an atmospheric river https://www.reuters.com/business/cop/canada-flood-shows-how-climate-change-could-fuel-atmospheric-river-storms-2021-11-19 brought a month's worth of rain in two days to the Pacific coast province, road traffic between Vancouver's port, Canada's busiest, and the rest of the country remains largely suspended https://www.reuters.com/markets/commodities/good-news-last-flood-hit-canadian-province-some-rail-services-restart-2021-11-19.

Canadian Pacific Railway is set to restart service on Tuesday, while Canadian National Railway plans to reopen to limited traffic on Wednesday.

Shippers, meanwhile, are seeking extra storage space and eyeing alternative routes to move key manufacturing components. The disruptions come ahead of the busy holiday shopping season, with the Retail Council of Canada estimating a "significant" hit to companies.

Love Dodd, who owns three furniture stores on Vancouver Island, said he has containers of stock just sitting on ships in Vancouver and truckloads of mattresses stuck on the side of a flood-hit highway.

"A lot of our Black Friday merchandise was on those trailers. We're going to be short now for our big event for the year," he said, adding he expects a hit of at least C$200,000 ($157,755) on Black Friday sales alone.

From forest fires to floods https://www.reuters.com/business/cop/fire-floods-climate-change-hits-canadas-fragile-supply-chain-2021-11-19, natural disasters are exposing Canada's supply chain vulnerabilities, piling pressure on retailers and manufacturers already grappling with global supply chain clogs.

In Vancouver, warehousing and trucking firm 18 Wheels Logistics has filled every inch of its existing storage space with alcohol, auto parts and other goods. It signed a lease for another 180,000 square feet, the equivalent of two city blocks, to deal with excess demand.

"It's quite a bit of space to take on," said Chief Executive Adrian Wen.

Wen's firm is also re-routing trucks laden with perishable goods and high-demand auto parts across the border into Washington state on a more circuitous route to destinations in Alberta and further east in Ontario and Quebec.

He said the trip takes two extra days for a firm relying on 350 drivers.

The infrastructure and emergency cost of the flood alone has been pegged at more than C$1 billion ($787 million), according to local officials. That does not include the hit to farmers, retailers and other businesses.

Logistics firm Volume Freight said it has secured storage in Vancouver for trapped goods from tires to furniture and is arranging for trucks to haul product from the city to provinces further east, via the United States, a costly endeavor.

"Right now, everyone is sitting and waiting... Everyone's just in limbo," said Chief Operating Officer Danica Sabourin, adding even when rail lines reopen, delays will last weeks due to the backlog.

The Port of Vancouver, which moves about C$240 billion of goods a year, said anchorage demand is "high and nearing capacity across all vessel types."

On the other side of the disaster, a driver for Lipsett Cartage was forced to leave his truck loaded down with 94,000 pounds of steel in Kamloops, a city in British Columbia that is north of some of the worst flooding.

The company flew the driver back to Regina, but was unable to make a single shipment to or from Vancouver last week, whereas it usually does 10.

"It's a mess," said office manager Zoe Lipsett. "We're absolutely to the wall, having companies call us, asking 'How are we going to do this?'"

For Toronto-based shopping bag seller Progress Luv2Pak, the floods are the latest hurdle cutting them off from two long-delayed containers stuck at the Vancouver port.

Even when the shipments are released, Progress will have to find an alternative route to get them east, President Ben Hertzman said.

"I’m pretty numb to it by this point. I wake up everyday kind of expecting there to be another piece of chaos in the supply chain," he said. ($1 = 1.2678 Canadian dollars)

(Reporting by Rod Nickel in Winnipeg, Julie Gordon in Ottawa and Nichola Saminather in Toronto; additional reporting by Allison Lampert in Montreal; Writing by Julie Gordon; Editing by Lisa Shumaker)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CANADIAN NATIONAL RAILWAY COMPANY 0.19% 155.27 Delayed Quote.-0.07%
CANADIAN PACIFIC RAILWAY LIMITED 1.06% 98.36 Delayed Quote.8.11%
01/14CP Executive Vice-President and Chief Financial Officer to address the CIBC Western Ins..
01/13CP Rail Says it Will Maintain Existing Level of Service in Response to CN Request to Re..
01/13CP responds to CN's plan to ask the STB to force a sale to CN of parts of the future CP..
01/13Canadian National Asks Regulators to Require Sale of KCS Line
01/13CN Rail Submits Notice of Intent to File Responsive Application with the Surface Transp..
01/10Wells Fargo Adjusts Canadian Pacific Railway Price Target to $84 From $81, Maintains Ov..
01/07RBC Capital Markets Lowers Q4 EPS Estimates on CN Rail, CP Rail Ahead of Earnings Seaso..
01/06Canadian Pacific Railway Secures Amtrak's Support For Kansas City Southern Deal
01/06Amtrak Gets CP Rail Support For Service Expansion in U.S.
01/06Amtrak pledges support for CP-KCS combination
More news
More recommendations
Sales 2021 8 032 M 6 412 M 6 412 M
Net income 2021 2 948 M 2 354 M 2 354 M
Net Debt 2021 9 810 M 7 832 M 7 832 M
P/E ratio 2021 22,5x
Yield 2021 0,77%
Capitalization 91 433 M 73 050 M 72 995 M
EV / Sales 2021 12,6x
EV / Sales 2022 12,1x
Nbr of Employees 12 262
Free-Float -
Duration : Period :
Canadian Pacific Railway Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 27
Last Close Price 98,36 CAD
Average target price 103,20 CAD
Spread / Average Target 4,92%
EPS Revisions
Managers and Directors
Keith Edward Creel President, Chief Executive Officer & Director
Nadeem S. Velani Chief Financial Officer & Executive Vice President
Isabelle Courville Chairman
Justin Dale Meyer Vice President-Engineering
Pam Arpin Chief Information Officer & Vice President
Sector and Competitors