Notice to the Trade
Buyers and Sellers of agricultural commodities pursuant to terms of the NAEGA 2 Model F.O.B. Contract are advised that it is our understanding that circumstances related to a labor dispute initiated by the Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. on August 22, 2024, has had an impact on Canadian export operations that may provide for a valid cause under the provisions of Clause 20.
Clause 20 of the April 15, 2024, NAEGA 2 provides for the suspension of the seller’s obligation to make delivery when delivery of a commodity, or any part thereof, is prevented or delayed at an elevator or port, or the forwarding of the commodity to the elevator or port is prevented or delayed by riots, strikes, lockouts, interruptions in or stoppages of the normal course of labor; action(s) by national, state, provincial or local government; or any agency, authority, bureau, commission, department or instrumentality of any of the foregoing including but not limited to laws, regulations, orders, notices, embargoes; acts of terror, civil unrest, natural disasters (inclusive of weather events) or other exceptional events beyond the Seller’s reasonable control; and/or exceptional impediments to transportation beyond the Seller’s reasonable control.
Buyers and Sellers are reminded to review whether contracts that may be affected are controlled by the Clause 20 provisions under the NAEGA 2 (March 30, 2018) or NAEGA 2 (April 15, 2024).
This Notice does not prejudge the existence of a valid cause under Clause 20. Consideration of certification by NAEGA in accordance with Clause 20 of cause for elevators and / or ports, which includes determination of the beginning and end, will only proceed upon receipt of applications from Sellers.
Alejandra Castillo
President & CEO
NAEGA