Latest market news

US railroads, shippers argue over regulatory proposals

  • : Biofuels, Chemicals, Coal, Coking coal, Crude oil, Fertilizers, Metals
  • 17/07/25

A meeting to collect public comments for the US Surface Transportation Board's regulatory reform task force today highlighted the vast divide between railroads and shippers on competition.

The so-called listening session today was geared toward board efforts to streamline its processes. Railroads said that changes made and proposed since the Staggers Rail Act of 1980 were essentially reregulation and would stifle economic growth. Shippers in turn argued that railroad consolidation had reduced competition and changes were necessary because so many companies were captive shippers.

The root cause of the 1970s' rail crisis which led to Staggers was "smothering regulation," Norfolk Southern vice president law John Scheib said. The board has been "backsliding" since then and needs to return to what Congress laid out nearly 40 years ago, he said.

Association of American Railroads (AAR) chief executive Ed Hamberger said that Congress had the opportunity to implement that and other changes when it passed the Surface Transportation Board Reauthorization Act of 2015 but "rejected calls for further regulation."

Shippers urged regulators to maintain federal protections.

"We urge the task force to reject any attempt by other stakeholders to rescind or weaken the few remaining statutory regulations afforded to rail users under the Staggers Rail Act and other federal statutes," National Grain and Feed Association general counsel Charlie Delacruz said.

Comments veered into a heavily debated issue — proposed new regulations to improve the availability of reciprocal switching.

"The board should move forward expeditiously to repeal and replace its outdated, burdensome and unworkable reciprocal switching rules," National Industrial Transportation League (NITL) executive director Jennifer Hedrick said.

The rules have never been successfully implemented, indicating they do not work, and shippers do not even bother to attempt to file cases, she said. It was a request from the group in 2011 that led to the board developing and proposing the reciprocal switching proposal it is now considering.

Implementing new rules would be a form of deregulation, Hedrick said, because it would eliminate board regulatory authority over a portion of a transportation move.

The switching rules in place are more of a bar to shippers and a change would remove barriers for shippers with no competitive options, American Chemistry Council senior director of regulatory and technical affairs Jeffrey Sloan said.

Railroads continue to fight the proposal.

"The forced switching proposal runs directly counter to what Congress' direction is to this agency," AAR's Hamberger said.

Hamberger also said the board should reject the proposal to remove the exemption of certain commodities from regulation, calling it "a solution in search of a problem."


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/09/19

LNG-burning vessels well positioned ahead of 2025

LNG-burning vessels well positioned ahead of 2025

New York, 19 September (Argus) — Vessels outfitted with dual-fuel LNG-burning engines are poised to have the lowest marine fuel expense heading into 2025 when the EU will tighten its marine EU emissions trading system (ETS) regulations and add a new regulation, " FuelEU", from 1 January 2025. Considering both regulations, at current price levels, fossil LNG (also known as grey LNG) will be priced the cheapest compared with conventional marine fuels and other commonly considered alternative fuels such as biodiesel and methanol. The EU's FuelEU maritime regulation will require ship operators traveling in, out and within EU territorial waters to gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030 and so on until getting to an 80pc drop, compared with 2020 base year levels. The FuelEU GHG intensity maximum is set at 85.69 grams of CO2-equivalent per MJ (gCO2e/MJ) from 2030 to 2034, dropping to 77.94 gCO2e/MJ in 2035. Vessel pools exceeding the FuelEU's limits will be fined €2,400/t ($2,675/t) of very low-sulphur fuel oil (VLFSO) energy equivalent. GHG emissions from grey LNG vary depending on the type of marine engine used to burn the LNG, but ranges from about 76.3-92.3 gCO2e/MJ, according to non-governmental environmental lobby group Transport & Environment. This makes a number of LNG-burning, ocean-going vessels compliant with FuelEU regulation through 2034. The EU's ETS for marine shipping commenced this year and requires that ship operators pay for 40pc of their GHG generated on voyages within, in and out of the EU. Next year, the EU ETS emissions limit will increase to 70pc. Even with the added 70pc CO2 emissions cost, US Gulf coast grey LNG was assessed at $639/t VLSFOe, compared with the second cheapest VLSFO at $689/t, B30 biodiesel at $922/t and grey methanol at $931/t VLSFOe average from 1-18 September (see chart). "In 2025, we expect [US natural gas] prices to rise as [US] LNG exports increase while domestic consumption and production remain relatively flat for much of the year," says the US Energy Information Administration. "We forecast the Henry Hub price to average around $2.20/million British thermal units (mmBtu) in 2024 and $3.10/mmBtu in 2025." Provided that prices of biodiesel and methanol remain relatively flat, the projected EIA US 2025 LNG price gains would not affect LNG's price ranking, keeping it the cheapest alternative marine fuel option for ship owners traveling between the US Gulf coast and Europe. LNG for bunkering global consumption from vessels 5,000 gross tonnes and over reached 12.9mn t in 2023, according to the International Maritime Organization (IMO), up from 11mn t in 2022 and 12.6mn t in 2021. The maritime port authority of Singapore reported 111,000t of LNG bunker sales and the port authorities of Rotterdam and Antwerp reported 319,000t in 2023 from all size vessels. Among vessels 5,000 gross tonnes and over, LNG carriers accounted for 89pc of LNG bunker demand globally, followed by container ships at 3.6pc, according to the IMO. The large gap between LNG global and LNG Singapore, Rotterdam, and Antwerp bunker demand, is likely the result of most of the demand taking place at the biggest LNG export locations where LNG carriers call, such as the US Gulf coast, Qatar, Australia, Russia and Malaysia. By Stefka Wechsler USGC bunkers and bunker alternatives $/t VLSFOe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US court asked for third Citgo auction extension


24/09/19
24/09/19

US court asked for third Citgo auction extension

Houston, 19 September (Argus) — The court-appointed special master overseeing the auction of US refiner Citgo has asked the court to delay the announcement of a successful bidder to 26 September and a sale hearing to December. Special master Robert Pincus planned to make an announcement of the proposed buyer on or about 16 September followed by a November sale hearing, but last minute legal challenges derailed what have otherwise been "robust negotiations with a bidder," according to a court filing today. "The special master is continuing to negotiate sale documentation with a bidder," today's motion said. Pincus previously requested a second extension in August and a first extension in late July . By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Kenya's NCPB receives offers in fertilizer tender


24/09/19
24/09/19

Kenya's NCPB receives offers in fertilizer tender

Istanbul, 19 September (Argus) — Kenya's NCPB has received offers against its 19 September buy tender for 245,000t of various fertilizers for the 2024-25 season under the country's fertilizer subsidy programme. There were 19 offers of 25-5-5, all within a range of 3,750-5,500 Kenyan shillings/50kg bag, equivalent to $581-852/t. There were also 19 offers of 17-17-17, ranging from KSh3,800-5,800/50kg bag. The NCPB received 23 offers of urea at KSh3,400-6,000/50kg bag, 12 offers of amsul ranging from KSh2,800-5,400/50kg bag, and 18 offers of CAN in a range of KSh2,875-4,250/50kg bag. The offers were on the basis of deliveries to NCPB depots. The tender requested the following products: 25,000t urea (500,000 x 50kg bags) 40,000t CAN 26 (800,000 x 50kg bags) 5,000t amsul (100,000 x 50kg bags) 15,000t 17-17-17 (300,000 x 50kg bags) 15,000t 25-5-5 (300,000 x 50kg bags) 35,000t 23-23-0 (700,000 x 50kg bags) 10,000t crop-specific NPK fertilizer for top dressing with a minimum nitrogen nutrient content of 26pc plus other micronutrients (200,000 x 50kg bags) 70,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 17pc and above, a minimum phosphorus content of 29pc and above, plus other micronutrients (1,400,000 x 50kg bags) 30,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 9-16.99pc, a minimum phosphorus content of 22-28.99pc and above, plus other micronutrients (600,000 x 50kg bags) The NCPB said agreed contracts are renewable each season for a period of two years under the subsidy programme. The tender document also states that a supplier will not be awarded for the supply of more than two fertilizer types. By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK's RJH ceases trading, merges with Amalgamet


24/09/19
24/09/19

UK's RJH ceases trading, merges with Amalgamet

London, 19 September (Argus) — London-based minor metals firm RJH Trading (RJH) will cease its trading operations and all business will be transferred to Amalgamet Limited, Argus learnt today. Starting from 1 October, Amalgamet — the physical trading arm of non-ferrous metals at UK-based AMC Group — will take over the management of all RJH operations. Amalgamet is hiring the team from RJH, including Charles Swindon, the founder and managing director of RJH and former chairman of the Minor Metals Trade Association (MMTA), who will work as a consultant. Senior RJH traders in Scandinavia and India will trade for Amalgamet. Amalgamet, also headquartered in London, aims to expand further into more high-growth metals and take advantage of trading a greater diversity of metals and concentrates, both parties told Argus . Amalgamet mainly supplies base and minor metals, and through the merger will add new products that RJH has been trading for years including ferro-alloys such as ferro-chrome, ferro-silicon and other minor metals such as magnesium. For several metals including antimony there will be a crossover, as both trading firms have positions in the market. Charles Swindon told Argus the mix of the two portfolios is a good match and added that it is important to spread risk at a moment of geopolitical fragmentation. "This [partnership] brings over 100 years of invaluable trading experience in all metals as well as new opportunities in all parts of the world," he said. The financial details of the transaction have not been disclosed. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Small private Libyan firm exports oil through blockade


24/09/19
24/09/19

Small private Libyan firm exports oil through blockade

London, 19 September (Argus) — A small Libyan private firm appears to have been granted an exemption from an oil blockade, which has more than halved the country's exports. Arkenu Oil, which describes itself as a private oil and gas development and production firm, is scheduled to export 1mn bl of Sarir and Mesla crude from Marsa el-Hariga to Italy's Trieste on the Maran Poseidon, according to an official document seen by Argus . The tanker has been chartered by Turkish trader BGN and is currently loading its cargo. This is the first Arkenu shipment set to be exported since the country's eastern-based administration ordered a blockade on oil fields and terminals on 26 August in response to an attempt by its rival administration in the west to replace the central bank governor. It is also Arkenu's third known shipment since July. Arkenu exported a 1mn bl cargo on the Zeus on 10 July and another 1mn barrel cargo on the Yasa Polaris on 16 August, according to official documents and ship-tracking data. These were also Sarir and Mesla grade. Arkenu's exports are significant given that crude sales have historically been the preserve of NOC and a handful of international oil firms that hold stakes in the country's upstream such as Eni, TotalEnergies and OMV. Arkenu, which is based in the eastern city of Benghazi, is supposedly able to export its own crude based on an agreement with NOC which allocates it an unspecified share of production from its subsidiary Agoco's Sarir and Mesla fields in return for carrying out work to boost output at the sites. But there remain questions related to the legality of the deal, the nature of the work Arkenu is supposed to be carrying out and the company's technical capabilities. The three known Arkenu cargoes are worth around $240mn at prevailing market rates, Argus estimates. There has been no increase to Agoco's production capacity since the Arkenu deal was struck, one Libyan oil industry source said. Sarir and Mesla accounted for most of Agoco's roughly 280,000 b/d output in 2023. Arkenu and NOC have yet to reply to a request for comment. "The Haftar family is deliberately and selectively allowing crude exports that generate dollars outside the Libyan state, and they are doing so within the context of a blockade they imposed," said Jalel Harchaoui, a Libya specialist at the UK's Royal United Services Institute. "While the Libyan state struggles to figure out how to import food and medicine next month owing to the central bank crisis, the Haftars' strange oil blockade permits crude exports that profit a private Libyan entity," Harchaoui added. The leadership crisis at the central bank has degraded Libya's ability to carry out international financial transactions. "The only beneficiary from these Mesla and Sarir sales is an unknown private Libyan company with an account in Switzerland and the UAE, with zero dollars being deposited in the state," the oil industry source added. General Khalifa Haftar's Libyan National Army (LNA) controls the country's east and southwest and is the real force behind the blockade. Haftar is understood to be allowing some exports to continue as long as these revenues do not reach the central bank in Tripoli, which is controlled by the rival administration in the west. Libya's crude exports have averaged 410,000 b/d so far this month, according to Kpler. While this is well below pre-blockade levels of around 1mn b/d, it is well above levels seen in some past blockades. Rising exports in recent days suggests Libya's total crude production has picked up from an earlier Argus estimate of around 300,000 b/d to possibly around 500,000 b/d. Libya was producing 1mn b/d before the blockade. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more