Higher freight rates expected in 2019-20

Rail freight rates for moving western Canadian grain to market will be going up in the 2019-20 crop year. | File photo
Rail freight rates for moving western Canadian grain to market will be going up in the 2019-20 crop year.

In a determination dated April 30, the Canadian Transportation Agency announced that the Volume-Related Composite Price Index (VRCPI) will be increasing at Canadian National Railway and Canadian Pacific Railway beginning Aug. 1.

The VRCPI is used to determine how much Canada’s major railway companies can charge for moving grain on federally regulated railway routes under the maximum revenue entitlement program.