Surge of salt imports into New Orleans could set record: River Transport News

Surprise.  Markets work!

The "first significant import shipment of bulk salt in more than four years" has hit New Orleans, according to the lead story in the October 20 issue of River Transport News.  "Industry observers indicated that over the last three weeks, lower Mississippi imports have accelerated with the arrival of several 40,000-ton shipments.  Additional shipments are expected."   If sustained, "salt imports [into the Port of New Orleans] could approach or exceed record levels."  The previous record was set in 2001 and was nearly matched two years later.

The headline, "Booming Salt Demand Adds More Pressure to Barge Freight," tells the corollary story:  upriver salt shipments are straining available barge capacity.  "It appears that riverborne salt shipments could reach a new record high this year, exceeding the previous record of 9.7 million tons set in 2004," the RTN story reported.  They have averaged 8.5 million tons since 1996, the story added.  The additional stress is magnified, the story continued. 

Under normal circumstances, the projected increase in riverborne salt shipments would cause barely a ripple in the inland barge market. This year, however, salt shipments are being compressed into a significantly shorter shipping window.

Salt shipments into the upper Midwest got an extremely late start this past spring. The heavy snows and severe weather last winter and spring not only resulted in heavy salt usage; it also resulted in the latest opening of the upper Mississippi River to navigation on record. Shipments were further disrupted in May and June as the upper Mississippi River was periodically closed to navigation due to flooding and high water.

When the reporter called for our explanation for the spike in imports, I noted that they seem to reflect the "supply" response to the "demand" signal sent out a couple months ago by Upper Mississippi state DOTs who sought vastly expanded bid amounts of deicing salt.

If the markets keep working, Comedy Central will have to seek material elsewhere.