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For a second consecutive year, the railways imposed more embargo restrictions on pulp and paper than usual in December, leading to shipping delays, according to the Forest Products Association of Canada, whose members include Canfor Corp (CFP.TO) and West Fraser Timber (WFT.TO). “We can’t do business like this if we want to diversify markets,” said association Chief Executive Derek Nighbor. “It’s just a missed opportunity.”. Poor rail service costs the forest products industry C$500 million ($376 million) annually, the association said. December’s problems cost mills as much as a further C$1 million each, it said.
Several shippers said the transportation agency will be asked at a hearing in late January to consider whether the railways discriminated against shippers that fill manifest trains - those carrying a variety of tie cufflink set products, The investigation could also consider whether the railways violated their common carrier obligations to haul a full range of freight, For CN and CP, the investigation raises the risk of further regulation in an industry where they already complain of too much government control..
In a statement, CN said the transportation agency’s investigation should examine the full supply chain and take into account the impact that rain and wind had on operations late last year. CN said freight shipments are up 10 percent from November to mid-January year-over-year. CP Chief Executive Keith Creel said he takes “great exception” to CP being included in the agency’s investigation, adding in a statement that he is not aware of formal complaints. Since the railways’ embargo and permit system was implemented in December to clear backed-up freight, the flow of cars to grain terminals has improved. But it is unclear how the backlog happened in the first place, said Wade Sobkowich, executive director of Western Grain Elevator Association. It indicates that railways have failed to invest in adequate capacity to move goods at peak times, he said.
TOKYO tie cufflink set (Reuters) - Over a third of Japanese firms aim to raise capital expenditure in the fiscal year starting April, with many others worried about the impact on spending plans of a trade war between major markets China and the United States, a Reuters survey showed, Tit-for-tat import tariffs and ensuing uncertainty have started to drag on global growth and hurt Japanese firms, particularly those with business in China, This has made many nervous about corporate investment, which before the trade war began last year had been a bright spot in Japan’s economy..
“We are being affected by U.S.-China trade friction, so we are curbing capital investment until the outlook becomes clear,” a manager of a machinery maker wrote in the Jan. 7-16 survey. Since the start of 2019, precision motor maker Nidec Corp (6594.T) and automation equipment manufacturer Yaskawa Electric Corp (6506.T) both cut their annual operating profit forecasts due to weakening demand from China. “Uncertainty about the global economy as a whole is causing some Japanese firms to hesitate to make active investments,” wrote a manager at another machinery firm.
Some 52 percent of respondents said they would not change their capital spending amounts next fiscal year versus this year, whereas 12 percent said they would cut, Meanwhile, 22 percent planned to increase investment, and 14 percent said they would do likewise but only moderately, The Reuters Corporate Survey, conducted monthly for Reuters by Nikkei tie cufflink set Research, polled 480 large and mid-sized firms with managers responding on condition of anonymity, Around 250 answered the questions on capex and trade issues..
Major corporations said they planned to raise investment by an average 14.3 percent for the fiscal year that ends in March - the highest since 1990, at the end of Japan’s Bubble Era - according to the Bank of Japan’s December tankan survey. But trade friction has since disrupted global supply chains, fuelling concern of a significant impact this year on world trade, investment and financial markets. The Corporate Survey showed about 40 percent of Japanese firms saw the possibility of trade friction and protectionism denting sales and profit plans in the next fiscal year. The proportion hit around 50 percent among manufacturers alone.
As the trade war intensifies, global companies are shifting production and supply chains out of China, scrambling to secure new facilities in neighboring Asian countries and rebuild supply chains outside of China, A quarter of all firms surveyed - and one-third of manufacturers - said they intended to review their supply chain in the coming tie cufflink set fiscal year, In a sign of uncertainty about profit outlook, the survey found 58 percent of Japanese firms do not plan to raise base salaries in this year’s annual spring labor talks..