Question-and-Answer Session
Operator
(Operator Instructions). Your first question today comes from Randy Cousins of BMO Capital Markets.
Randy Cousins - BMO Capital Markets
The first question just on the marketing side of the equation, I wonder if you guys could go into explaining some of the relative differences between sort of what we saw in carloads versus RTMs, and I am thinking of the two product categories; forest products and grain where there seems to be some relative material differences. Is that just simply shipping longer haul of Canadian grain? What's exactly going on those two product categories?
Ray Foot
First, let me touch on the grain side with the high percentage of increase on the Canadian export. That's had an impact on RTMs given the longer haul nature of that business. So, that's really what's happening within the grain.
On the forest products side, particularly on lumber with the closure of the various mills that are out there, they are having to ship basically longer distances to the markets that they are servicing. That's the impact that you are seeing on the forest products side.
Randy Cousins - BMO Capital Markets
One other question just in terms of the marketing side. Could you talk a little bit about your trans-border business in intermodal as opposed to the Canadian business? You talked about the domestic and the international, international obviously being down a lot more, how is your Canadian business doing versus the stuff that you got going across the border?
Ray Foot
You have to look at it by segment. Relatively on the cross-border basis, we're pretty much flat. On the food business, that's holding pretty well relative to last year as well just given the basics of that business. Retail, as I mentioned, is down and we're not seeing any significant signs of life there. So, if you look at the food and cross-border business that's what's allowing us to only be at the 10% number on domestics.
Randy Cousins - BMO Capital Markets
Obviously, the Teck decision went against you. One of the issues I guess you guys have had in the past is simply fuel recovery. I wonder if you could comment, with the decision did you get 100% fuel recovery on that contract with reference to diesel? Could you update us on what status is in terms of your fuel recovery programs? I guess to some extent, for Kathryn, was there a fuel hedge gain or loss in terms of the surcharge lag benefit in the second quarter?
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