Perfect storm creates fertilizer supply crunch

It’s one of the worst years for fertilizer logistics that John Bickner has seen and that says something considering he’s been in the trucking business for more than three decades. Bickner Trucking operates out of Vanguard in southwest Saskatchewan running a fleet of 50 to 60 trucks servicing an area all the way from North Dakota to the Peace River region of Alberta.

It isn’t just one reason why your local input supplier doesn’t always have the fertilizer you want when you want it this spring. Instead, there are a multitude of factors. Bickner calls it the perfect storm.

After reaching sky high levels last fall and early winter, fertilizer prices started dropping. Farmers were reluctant to buy as product became ever less expensive. As a result, more producers decided to pick up a bigger percentage than usual of their fertilizer as they needed it for seeding.

It was the same situation for retail outlets. Why buy product and bring it in only to sell it into a falling market at a loss? The system wasn’t ready for the spring rush. While there may be no actual shortage of fertilizer, getting it where it’s needed is a huge problem.

Bickner says like many industries fertilizer facilities are short-staffed with many closing at 5:00 pm. Trucks arriving after 5:00 have to wait until the next day to load.

This year, huge seeding progress is happening across most parts of Western Canada all at the same time. There aren’t enough trucks and there aren’t enough hours in a day.

The other reasons for the logistical nightmare have to do with trucks. Bickner reports a year and a half wait for a new truck and when you finally get what you’ve ordered the quality control seems to be lacking. Many new trucks are ending up with mechanical issues that should never happen.

Sure, a blown engine or transmission on a new truck will be under warranty, but it still takes shop time to get it fixed.

A big change this year is the mandatory use of e-logs by truckers. The rules haven’t changed on how many hours a driver can work, but with e-logs flexibility and discretion are gone. The e-log starts when the truck starts. While it’s difficult to quantify the overall impact of e-logs, Bickner estimates it has cut capacity by 10 to 15 per cent.

Bickner doesn’t report a shortage of drivers, but other observers say many smaller trucking firms have either shut down or downsized in recent years. Some people moved to trucking grain and fertilizer when the oil industry was really slow. With an uptick in oil and gas, some have moved back.

The widespread drought of 2021 also took a toll. With a lot less grain available, many truckers looked for other commodities to move or they just exited the business. Many are nearing retirement age without a lot of younger drivers coming on stream.

For an owner-operator with a truck or two, it’s a tough game. Untimely repair bills can hurt your bottom line and it’s tough to raise rates to match increases in fuel costs. The cost for a truck and trailers just keeps escalating.

So, when you drop by your normal fertilizer supply outlet only to find they are temporarily out of phosphate, sulfur, urea or something else you want, it probably isn’t the fault of the person sitting at the blender controls. The entire logistical system is struggling.