A public role in rail’s big battles?
By Conrad deFiebre MinnPost 10/06/14
.....While about 50 unit trains of Bakken petroleum keep
chugging through Minnesota every week en route to distant refineries, practically every other commodity has
been plagued by rail shipment delays or prohibitively higher carload rates.
As bipartisan federal lawmakers reviewed decades-old railroad deregulation, 24
trade groups representing chemical, steel, cement, plastics, paper and
fertilizer industries wrote Senate leaders to complain about a costly,
time-consuming process for challenging rate increases before the Surface
Transportation Board, Bloomberg News reported.
Then, leaders of the National Farmers Union descended on
Washington to protest a railcar shortage that, at a time of bumper crops and
depressed grain prices, is further eroding profits, in some cases due to fines
for late deliveries. "It should really be imposed on the railroad that did
not deliver on time, not the grain deliverer," Doug Sombke, the South
Dakota Farmers Union president, told Bloomberg Businessweek.
... the challenges Upper Midwest farmers face to ship their
crops today may be unprecedented. With Bakken oil hogging the rails, allegedly
in exchange for under-the-table payment premiums, 100 million bushels of grain
sat in Minnesota elevators and another 100 million bushels were stored on
farms, the Star Tribune reported in late August.
"When you're sitting in a grain elevator waiting for
cars to load, and every day you see oil trains pass by, it just adds insult to
injury," Bob Zelenka of the Minnesota Grain and Feed Association told the
newspaper. Meanwhile, a state corn harvest estimated at 1.3 billion bushels is
about to begin....
.... Balancing the transport needs of the nation's agriculture, energy and
industrial sectors — as well as Amtrak passenger timetables severely disrupted by
rail bottlenecks — is a difficult but necessary job. An opaque
deregulated market seems to be making a mess of it. Could some
old-fashioned government command and control do any worse? read entire article here
kelo.com 10/06/14 BY CATHERINE NGAI AND JONATHAN LEFF
NEW YORK (Reuters) - An unusual disconnect has emerged in the U.S. oil market, with headline futures slumping to levels below $90 a barrel even as traders in the physical crude market report surprisingly robust demand and strong pricing........ This turn is due largely to U.S. refiners expanding their capacity this year far more than expected. That has allowed them to absorb a larger share of oil from North Dakota's Bakken or the Eagle Ford shale plays in Texas, which is illegal to export and would otherwise swell inventories. This underpins local crudes and forces foreign competitors to cut back, knocking global oil prices.....
.... Although most refiners are now starting to shop for crude delivered in November, when seasonal maintenance will ease and demand for spot crude should get even stronger, the physical market could still tumble..... read more here
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