US rails raise DAP freight rates amid car shortage

22 February 2006 22:38  [Source: ICIS news]

HOUSTON (ICIS news)--Union Pacific (UP) and CSX are raising rates on 1 March for moving diammonium phosphate (DAP) by railcar, causing a scramble to make shipments before the increase, market sources said on Wednesday.

According to Omaha, Nebraska-based UP’s Web site, rates will increase by $3 (Euro2.52)/ton. Union Pacific declined to comment on its rates. Jacksonville, Florida-based CSX said it is raising prices for DAP due to increased demand for railcars from all sectors. CSX declined to say how much the rates were increasing.

Sources have said for months there has been little spare railcar capacity available for shipping phosphates despite soft demand in recent weeks. Those looking to beat the 1 March increases may be out of luck, a wholesale source said.

Minnesota DAP major Mosaic has said that a railcar shortage could be particularly acute this spring when demand rises.

By: Mark Quiner
+1 713 525 2653

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