Hurricane Florence will interrupt the main rail and maritime conduits for U.S. coal exports, according to Susquehanna Financial Group.
Susquehanna’s rail analyst Bascome Majors says CSX and Norfolk Southern are most exposed to any service interruptions caused by Florence “with the most notable immediate risk being East Coast coal export infrastructure in Virginia (Hampton Roads) and Baltimore.”
Although indeterminate as yet, the length of any Florence-related outages for Norfolk Southern and CSX could affect results, “given the profitable bottom-line contribution from that volatile commodity in 2018,” Majors said.
Norfolk Southern operates the Lamberts Point transloading facility at the Port of Virginia, which can process up to 48 million tons annually and load the largest bulk ships with coal. CSX services the Dominion Coal Terminal in the Port.
The Port of Virginia saw coal volume of 11.6 million tons in the second quarter, a 36% gain from the same time last year.
The Port of Virginia is closed to ship traffic due to Hurricane Florence. Norfolk Southern says it will issue embargoes to coal shippers affected by Florence. Any railcars enroute to the Port will be held at yards.
To the north, CSX operates the Curtis Bay Coal Piers in Baltimore. CSX and Norfolk Southern also service the Tradepoint Atlantic transshipment facility at the Port. The Port of Baltimore remains open to vessel traffic, but the U.S. Coast Guard is warning ships of gale force winds approaching the region.
While the actual impact and damage of Florence have yet to be felt, Majors says the storm could be a catalyst for transportation pricing due to the delays and restart of facilities following the storm.
“Once Florence passes, the disruption and subsequent rebuild/response could more materially tighten trucking capacity and spot pricing ahead of the peak season, supporting both volume and pricing on the rails given 2017’s impact from Harvey around Houston fresh in shippers, carriers, and brokers’ minds.”
Complete Hurricane Florence Coverage
Raj Subramaniam steps up as Bronczek retires.
V.Group has acquired Global Marine Travel (GMT) from Inchcape Shipping Services according to a V.Group press release. The acquisition will increase the scale of V.Group’s operations to offer global 24/7 travel services.
There are currently about 30,000 carriers on the Uber Freight network, according to the company. That number is expected to continue to grow.
Jacobs now must manage through loss of $600 million of his largest customer’s business.
In the transportation and logistics circles, blockchain has been an enigma - a technology that holds extensive promise on paper, and yet on the flip side, is extremely hard to implement.
Canopy Growth says retail availability of its recreational cannabis productions have increased as it reported record revenues on the newly legal Canadian market.
Several more feet of snowfall, whiteout conditions likely to delay drivers in the Sierras this weekend. It’s been a busy season, especially compared to last winter.
Today on FWNOW, Market Expert Donny Gilbert gives his best advice to brokers. What do you do when volumes remain high and tender rejections are at an all-time low? Plus, what's happening this weekend with the weather?
There were only ever two good reasons for Amazon to build a headquarters in greater New York City.
What the Truck is going on in all things freight this week? We are visited by two special guests for this week’s episode: Zach Strickland and making his “inaugural debut” Michael Crosby. Weekly Market Update: What is happening from a carrier’s perspective, and what is happening from a shipper’s perspective? We’ve got the yen and the yang. Futures: And as a matter of fact, it’s these two different points of view that make for a trucking freight futures market: Houston and Dallas. And then Zach and Chad play a round of Big deal, little deal (what’s the deal with you)?