Home » BLOG » CP Rail sued by ADM for service disruptions, allegedly resulting from ‘imprudent cost-cutting’

CP Rail sued by ADM for service disruptions, allegedly resulting from ‘imprudent cost-cutting’

CHICAGO — Archer Daniels Midland Co has filed a lawsuit against Canadian Pacific over service disruptions in 2013 and 2014 at crop-processing plants in North Dakota and Minnesota, alleging they stemmed in part from cost-cutting and the Canadian railroad’s pursuit of merger partners.

Chicago-based ADM, among the world’s largest grain traders and processors, filed suit against CP within the U.S. District Court for that Central District of Illinois on March 18, seeking damages “resulting from among the worst and most persistent railroad service failures felt by ADM in lots of years.”

The U.S. rail system has long served because the lone, dependable way to move grain a large number of miles in the northern U.S. Plains, where you can find no commercially navigable rivers.

In early 2014, farmers within the Upper Midwest held the largest grain stocks in years after months of worsening delays that crippled the U.S. farm transportation system.

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