Ecopetrol accelerating asphalt sales

Spanish Market: Oil products
20/11/19

Colombia's state-controlled Ecopetrol boosted asphalt sales in October to the second highest monthly level in nearly three years on road-building demand and rising exports.

Ecopetrol's asphalt sales jumped by 60.3pc to 54,656 tons in October, the second highest level since Argus began tracking monthly figures in January 2017.

The company's asphalt sales ticked up by 4.4pc from September levels. The Colombian market took 44,434t in October, up 30pc year on year.

Of the total production, Ecopetrol exported 10,222t, mainly to the US, followed by the US territory of Puerto Rico and Bolivia. Ecopetrol did not export asphalt in October 2018.

"The orders to supply asphalt have increased sharply, and we will deliver more asphalt if the national market demands it. We have enough installed capacity to supply the domestic market and export," Ecopetrol chief executive Felipe Bayón told journalists last week on the sidelines of an oil conference.

Ecopetrol's increased production stems from a change in the crude diet of its 2,500 b/d Apiay refinery, which started producing 3,000t/month in September, Bayón noted. Ecopetrol now has asphalt production capacity of 63,000t/month at its three refineries.

In the first 10 months of 2019, Ecopetrol produced 409,376t of asphalt, up by 46pc from the same period a year earlier.

Ecopetrol estimates that the domestic market will continue growing, with national demand exceeding 350,000t this year and the international market demanding about 70,000t.

Colombia's infrastructure sub-sector that covers construction of roads, railways and civil works grew by 13pc year on year in third quarter 2019, compared with a deceleration of 1.5pc in the same period last year, according to economic statistics agency Dane.

In Colombia, 24 highway projects covering 4,770km (2,964mi) are under construction, according to national infrastructure agency ANI.

Among the projects is the 202km Puerta de Hierro – Palmar de Varela y Carreto – Cruz del Viso highway, which sealed financing last week.

The project is the fourth road concession to secure financing this year. The roadway, which connects the departments of Sucre, Bolivar and Atlantico in the Caribbean, will demand 165,027m3 (58,278t) of asphalt, Spanish builder Sacyr told Argus.

If asphalt deliveries maintain an average monthly clip of 40,937 t/month, Ecopetrol could sell a record 491,250t in 2019, compared with 343,000t last year.

By Diana Delgado

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26/09/24

Eastern US ports, railroads prepare for possible strike

Cheyenne, 26 September (Argus) — Ports in the eastern half of the US and railroads CSX and Norfolk Southern are starting to act on contingency plans as the deadline for a potential port worker labor strike nears. Port authorities in New York, New Jersey, Virginia, New Orleans, Louisiana, and Houston, Texas, have told customers at least some operations will stop effective 30 September if the International Longshoremen's Association (ILA) and US Maritime Alliance (USMX) cannot come to a new collective bargaining agreement. Union members have threatened to walk off the job as soon as 1 October, potentially bringing container cargo traffic to a halt in many regions. Other port authorities have been more circumspect on plans. The Maryland Port Authority, which oversees the Port of Baltimore, has said so far that it is "closely monitoring" the situation and that a strike "could impact" some operations. At the moment, ILA and USMX do not appear to be close to an agreement on a master labor contract. USMX today filed an unfair labor practice charge against ILA with the National Labor Relations Board, accusing the union of "repeated refusal" to negotiate. The union earlier this week said the two sides have talked "multiple times" and blamed the impasse on USMX continually offering "an unacceptable wage increase package." Container cargoes at greatest risk The potential port strike is expected to have the greatest impact on products carried on container ships. Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by a potential work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike. Some ports that have announced contingency plans expect to stop work on 30 September in stages. The Port of Virginia — including Norfolk International Terminals, Virginia International Gateway and Newport News Marine Terminal — would stop train deliveries at 8am ET on 30 September and require all vessels at the port to leave by 1pm. Container operations at Norfolk International Terminals and Virginia International Gateway would stop by 6pm ET that day, the port said. The New Orleans Terminal at the Port of New Orleans would stop receiving refrigerated exports at 5pm ET on 27 September and halt container vessel operations at 1pm ET on 30 September. It would also halt rail operations at 5pm ET on 30 September. Eastern railroads CSX and Norfolk Southern (NS) already have started curtailing some operations. CSX required temperature-controlled refrigerated equipment headed to East coast ports to be at CSX loadouts by 25 September and set deadlines for other export intermodal shipments to be at CSX loadouts by 25 September-5 October. NS required some eastern export shipments be at the railroad's loadout locations between 23-25 September and wants most of the rest of the container exports to be at its facilities by 5pm on 29 September. "We are proactively implementing measures to minimize potential operational impacts across our network, including at our Intermodal facilities," NS said on 23 September. The railroad also "strongly" recommended that customers not ship hazardous, high-value and refrigerated products by rail to export terminals "to avoid unexpected delays upon reaching the port destinations." By Courtney Schlisserman Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US trucking index at 18-month high in August: ATA

25/09/24

US trucking index at 18-month high in August: ATA

Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Vertex Energy files for bankruptcy, seeks sale

25/09/24

Vertex Energy files for bankruptcy, seeks sale

Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Container lines to impose US strike surcharges

24/09/24

Container lines to impose US strike surcharges

New York, 24 September (Argus) — Container ship owners Maersk, CMA CGM and Hapag-Lloyd warned their clients that if a looming port strike takes place, they would implement port disruption surcharges for container cargo moving to and from the US east and Gulf coast terminals. If a International Longshoremen's Association (ILA) strike takes place, CMA CGM's surcharge will go into effect on 11 October. The company will charge $1,500 per twenty-foot container unit (TEU) and $3,000 per forty-foot container unit for cargo moving from Latin America and the Caribbean to the US east and Gulf coasts. CMA CGM's surcharge for exports from the US east and Gulf coasts to Latin America and the Caribbean will be $800 per TEU and $1,000 per forty-foot container unit. Hapag-Lloyd's surcharge of $1,000 per TEU will apply from 18 October to all imports to the US east and Gulf coast. Maersk will implement its surcharge on 21 October. It will include $1,500 per TEU, $3,000 per forty-foot container unit and $3,780 per forty-five-foot container unit for cargo moving in and out of US east and Gulf coasts. Its surcharges are subject to regulatory approval for containers departing from China. The company is prioritizing import container movements before disruptions take place and asking its customers to expedite documentation and customs clearance to retrieve cargo promptly. It warns that strike disruptions will affect terminal operators' ability to monitor refrigerated containers and encourages its customers to plan accordingly to avoid the risk of loss to temperature-controlled cargo. The surcharges would cover higher operational costs that will be incurred due to service disruptions, the companies say. They are exploring alternative routing options. A possible strike could cause some of the container ship cargo to be re-routed to US west coast ports, Canada and Mexico, and then transported on rail or truck to the US Gulf and east coasts. The contract between the ILA and the United States Maritime Alliance (USMX) is set to expire on 30 September. The current six-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. The USMX reiterated its willingness to reenter discussions with the ILA on a new master contract. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Draught limits tighten on lower Mississippi River

23/09/24

Draught limits tighten on lower Mississippi River

Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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