Producers straddle Europe logistic hurdles

12 November 2007 16:59  [Source: ICIS news]

By Mark Watts

 

LONDON (ICIS news)--The European chemical industry was recovering on Monday after storms in the North Sea, a German rail strike and low water levels on the Rhine led to widespread logistical disruption.

 

However, further trouble also lay ahead with the possibility of another German rail strike and industrial action by French rail and energy workers expected later this week.

 

“The carrier network is now at its maximum capacity,” said Erich Vassen of DuPont, outlining that while there has been no immediate impact on business the after effects of the disruption would be felt in the coming weeks.

 

A German solvents trader said the rail strikes could have a significant impact on business if they continued.

 

“We are facing quite a challenge at the moment. We purchase a lot of products on railway, some of them in quite large quantities, so if the railway strikes go on we could have difficulties,” the trader said, adding that ethanol and hydrochloric acid transportation could be affected.

 

Cosetta Crasnich of Caffaro, an ethylene diamine (EDA) buyer in Italy, said it had two postponed deliveries in two days, causing production troubles. The deliveries were postponed for two-to-three days, he added.

 

“We have delays occurring but have other ways of working through the issues,” said a butadiene producer. “For example, in a few cases, butadiene is being delivered by ship by coast in November where normally we would use train. In the cases where we cannot do this, we will have to deal with the delays.”

 

The producer expected the difficulties to remain for the duration of the proposed French rail strike this week.

 

Rotterdam port reopened at 21:30 local time on Friday following storms that caused supply disruptions in northwest Europe.

 

“I have had a lot of explaining to do to customers, many of my deliveries have been delayed by the storms,” said an Amsterdam-based petrochemicals trader.

 

Many other chemicals players in northwest Europe, however, said they had not been affected by the rail strikes or storms, or that it was too early to assess the supply situation.

 

Many suppliers were able to switch from rail to road, avoiding delays.

 

German chemicals producer BASF said the low water levels on the Rhine levels were easing and that it was now able to load maximum volumes of methanol by barge and expected to have full tanks at its Ludwigshafen facilities by the end of the week.

 

An official website shows water levels at Kaub on the river Rhine at 187cm at 15:00 (local time), up from a mere 90cm last week. The forecast is for levels to rise to 264cm by Wednesday afternoon.

 

“This is only a wave and could stop at any time,” said a trader with Ruhr Petrol.

 

“There is no new water in southern Germany and it is colder with clear sky.” He added. “It is still difficult to find barges.”

 

Alex Martinos, Carl Roache, Caroline Howard, Charlie Shaw, Dan Horlock, Ed Cox, Heidi Finch, Kawai Wong and Sofia Lind contributed to this article

 

By: Mark Watts
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly