Ethyl acetate (ETAC) & butyl acetate (BUTAC)

Discover the key elements driving acetic acid derivative markets 

Discover the factors influencing ethyl acetate (ETAC) & butyl acetate (BUTAC) markets

Industrial chemicals remain in demand from a broad cross-section of sectors including pharmaceutical, automotive and manufacturing. Supply fluctuations constantly put pressure on etac/butac markets and drive price movements. For traders, producers and buyers of acetic acid derivatives, keeping track of the many shifts in this changeable landscape is difficult without a reliable source of market intelligence. A source that covers all the key etac/butac markets around the world and completes the picture with details of the upstream and downstream position.

By leveraging our global resources, we put local developments into an international context and ensure you are fully aware of market dynamics as they evolve. We stay close to all day-to-day activity in each region, keeping track of pricing movements and the various factors driving them up or down. Our market intelligence gives you complete visibility of opportunities arising and ensures you can act quickly.

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Ethyl acetate (ETAC) & butyl acetate (BUTAC) news

Americas top stories: weekly summary

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 7 June. Celanese declares force majeure on acetic acid and VAM in Europe, Americas Celanese has declared force majeure on acetic acid and vinyl acetate monomer (VAM) in the "Western Hemisphere", which is understood to include the Americas and the Europe, Middle East and Africa region. Canada rail strike unlikely to begin before mid-to-late July, rail carrier CN says Rail carrier Canadian National (CN) estimates that a threatened rail strike in Canada is unlikely to begin before mid-to-late July, it said in an update on its website on Thursday. Mexico’s Altamira petchems force majeure declarations continue on severe drought Petrochemicals producers in the production hub of Altamira, in the Mexican state of Tamaulipas, keep declaring force majeure as a severe drought halved water supplies to industrial players. Brazil’s Braskem expects operations at Triunfo to normalize in ‘coming days’ Braskem’s operations at Triunfo in floods-hit state of Rio Grande do Sul are still yet fully normalized, despite the plant having restarted more than two weeks ago, a spokesperson said to ICIS on Wednesday. Pace of China chemical capacity additions unsustainable – Huntsman CEO The blistering pace of chemical capacity additions in China is likely to tail off, as the current wave is the result of prior planning during better times, the CEO of Huntsman said. IPEX: Index down for first time this year on weak demand in all regions The ICIS Petrochemical Index (IPEX) was down 1.2% in May month on month, as weak downstream demand paved the way for price declines in all regions. Protectionism and tariffs a key concern for US chemicals – ACC execs The increasing trend towards protectionism and tariffs is a key concern for the US chemical industry, said executives at the American Chemistry Council (ACC). INSIGHT: Mexico’s emissions, energy policy and Pemex main challenges for new president Mexico’s new – and first female – president Claudia Sheinbaum will have to decide soon into her term whether she changes course in two key aspects: energy policy and greenhouse gas (GHG) emissions, and the support for state-owned, indebted and underperforming energy major Pemex. Nylon recovery progressing but building and construction still weak – AdvanSix CEO AdvanSix continues to see a gradual recovery in nylon demand driven by automotive and packaging, but building and construction remains challenged, said the CEO of AdvanSix.

10-Jun-2024

Celanese declares force majeure on acetic acid and VAM in Europe, Americas

LONDON (ICIS)–Celanese has declared force majeure on acetic acid and vinyl acetate monomer (VAM) in the "Western Hemisphere", which is understood to include the Americas and the Europe, Middle East and Africa region. The producer attributed the force majeure declaration to "operational failures experienced by multiple suppliers of critical raw materials essential to Celanese’s production of these products." “Right now, we anticipate that our second quarter U.S. gulf coast production of acetic acid and VAM will be negatively impacted by 15 to 20 percent as a result of these temporary challenges which we are still navigating,” said Mark Murray, senior vice president of the Acetyl Chain at Celanese. On the Gulf Coast Celanese produces acetic acid and VAM at Clear Lake, Texas and VAM at Bay City, Texas. The status of these plants and the duration of constraints affecting them could not be confirmed at time of writing. Thumbnail: A major end use for acetic acid and VAM is paint and coatings. (Photo source: Oleksandr Latkun/imageBROKER/Shutterstock)

07-Jun-2024

APIC '24: China oversupply presents challenges and opportunities for Taiwan – PIAT chair

SEOUL (ICIS)–Oversupply of petrochemicals in China has not dampened the country’s role as a key demand driver, presenting Taiwan with both challenges and opportunities, the chairman of the Petrochemical Industry of Taiwan (PIAT) said on Friday. “As we all know, many large-scale integrated projects are carried out in various parts of China by these years leading to an oversupply of petrochemicals … [but] China remains the primary driver of demand growth,” Mihn Tsao told delegates at the Asia Petrochemical Industry Conference (APIC) in Seoul, South Korea. “Taiwan, being an export-oriented economy, cannot ignore China's vast market,” he added. Last year proved exceptionally challenging for Taiwan's petrochemical sector, Tsao said, as global economic growth slowed due to inflation, geopolitical tensions, trade disputes, and climate change concerns, Tsao said. The termination of tariff preferences for 12 petrochemical products under the Economic Cooperation Framework Agreement (ECFA) with China added further strain, he said. Weak global demand and inventory pressures resulted in a significant 12.5% year-on-year decline in Taiwan's overall industrial production index last year, the largest in history, Tsao noted. Taiwan’s petrochemical firms thus experienced reduced operation rates and lower-than-expected profits last year, he said. Going forward, Taiwan's petrochemical industry is actively pursuing sustainable solutions, leveraging artificial intelligence (AI) to enhance production processes and efficiency, while transitioning towards green energy-related products such as ethylene-vinyl acetate copolymer (EVA), epichlorohydrin (ECH), and carbon fiber, Tsao said. Investments in low-carbon energy transformation, circular economy initiatives, and increased renewable energy adoption are also underway to bolster climate change resilience, Tsao added. The two-day APIC event ends Friday.

31-May-2024

APIC '24: PODCAST: Asia C3 derivative demand still slow amid uncertainty

SINGAPORE (ICIS)–Asia's oxo-alcohols buyers maintained a wait-and-watch approach on the market amid possibility of added plant capacities in China. The acrylonitrile (ACN) market continues to see limited spot demand in northeast Asia. Even with recent higher production rates at downstream acrylonitrile-butadiene-styrene (ABS) plants, ACN producers were unlikely to increase operating rates. For the acrylates downstream, butyl-A market in Asia continues to take direction from Chinese domestic prices. With India's Bureau of Indian Standards (BIS) requirements preventing Chinese-origin imports, cargoes from China were flowing into southeast Asia and northeast Asia. In this podcast, ICIS editors Julia Tan and Corey Chew discuss trends in the Asia propylene (C3) and derivatives markets. (This podcast first ran on 15 May.) Visit ICIS during APIC ’24 on 30-31 May at Booth 13, Grand Ballroom Foyer of the Grand InterContinental Seoul Parnas in South Korea. Book a meeting with ICIS here.

28-May-2024

Freight rates on China exports soar amid Red Sea crisis

SINGAPORE (ICIS)–Freight rates for China's exports, including petrochemicals, have been spiking in recent weeks and are expected to remain firm in the next three to six months on the back of improving overseas demand and amid continued logistics disruptions in the Middle East. Geopolitical tensions translate to higher shipping cost, longer delivery time Container shortages intensifying in China Freight rates to remain firm on strong western demand Most ocean carriers have halted transits in the Red Sea, which is the fastest shipping route between Europe and Asia, fearing missile attacks by Yemen’s Houthi rebels. They have opted to take the longer route via the Cape of Good Hope, resulting in much longer time and costs for moving cargoes to their destinations. The Red Sea crisis is showing no signs of de-escalation, with the latest casualty being the Panama-flagged oil tanker M/T Wind bound for China, which was struck by a Houthi-launched ballistic missile on 18 May. Logistics and supply chain disruptions are expected to continue. Dutch shipping giant Maersk had said on 6 May that its vessels have been forced to lengthen their journey further because of the expanded risk zone and attacks reaching further offshore in the Rea Sea. “The knock-on effects of the situation have included bottlenecks and vessel bunching, as well as delays and equipment and capacity shortages,” the company had said, estimating an industrywide capacity loss of 15-20% on the Far East-to-North Europe and Mediterranean market during the second quarter. CONTAINERS/VESSEL SPACE IN SEVERE SHORTAGE As carriers now need longer time to come back from destinations, the resulting severe shortage of containers and vessel space was triggering sharp spikes in freight rates. From Shanghai to the US west coast and the US east coast, freight rates on 17 May jumped to $5,025/forty-foot equivalent unit (FEU), and $6,026/FEU, respectively, up by 14.4% and 8.3% week on week, according to the Shanghai Shipping Exchange. To South America from China’s financial capital, the shipping cost increased at a sharper rate of 22.4%, while to Europe, freight rates rose by 6.3%, the data showed. A shipping broker said that China-to-Europe freights have been soaring by $500-$800/FEU each week since late April, while a polypropylene (PP) trader noted that the rates to West Africa more than tripled to $8,000/FEU, more than a fourfold increase from $1,500-$2,000/FEU rates in early April. “We now need to wait 10-15 days for booking containers. We face severe stockpiling and warehouses are flooded with cargoes waiting for shipment,” said a marketing manager of a Shenzhen-based logistics company. A plastic bag factory in east China is currently stuck with high inventories and risk suspending production, a source from the company said For vinyl acetate producers, a shortage of shipping tanks prevents them from exporting more cargoes, providing them with the less-efficient means of bulk shipments with other products as the only alternative. ROBUST WESTERN DEMAND SUPPORTS FIRM RATES The recent spike in freight rates came as a surprise to players in the petrochemical industry as the May-June period is normally a lull season for Chinese exports. Besides the Red Sea crisis, strong demand coming from the west underlies the recent surge in freight rates. “July-September is the peak season for China-to-West shipping. With [the] destocking last year, Europe and US markets demand are expected to rise substantially before the Christmas [season in December],” said Wang Guowen, director of Shenzhen Logistics and Supply Chain Management Research. “Plus, Europe and UK central banks are expected to cut interest rates, which will further stimulate consumptions there,” he added, noting that demand from both Europe and the US will remain strong rest of the year. This will continue to buoy up shipping rates, which are projected to hover at high rates over the next three to six months, industry sources said. On 16 May, Maersk announced a hike in peak season surcharge (PSS) for major east-to-west shipping lanes, including the China-to-Dar es Salaam, Tanzania route, PPS for which increased to $1,500/FEU since 20 May. Meanwhile, French shipping and logistics major CMA CGM plan to hike its Asia-to-northern Europe freights to $6,000/FEU, effective 1 June. Current container production in China could not catch up with strong demand. New China-manufactured containers to be delivered before late June have been sold out, a source at domestic logistics company said. Wang of Shenzhen Logistics and Supply Chain Management Research, however, noted that the present container shortage is not about undersupply but more about the sharp slowdown in turnover amid the global logistics disruptions. Tight shipping conditions are expected to prevail in the third quarter as demand is expected to peak, with a gradual easing of freight rates likely in the fourth quarter, he said. Focus article by Fanny Zhang Additional reporting by Joanne Wang and Lucy Shuai Thumbnail image: At the container terminal of Yantian Port in Shenzhen City, Guangdong Province in south China, 16 May 2024 (Shutterstock)

22-May-2024

Brazil's Braskem restart at Triunfo to kick off petchem hub normalization

SAO PAULO (ICIS)–Braskem has restarted operations at its Triunfo facility in the flood-hit state of Rio Grande do Sul, which will allow other players in the petrochemicals hub to start up their plants as many depend on input from the Brazilian polymers major to operate. On Monday (20 May), Braskem said it would restart its units at Triunfo – where the producer has around one-third of its Brazilian production capacity – with the expected process to take around two weeks. A spokesperson for Innova told ICIS that the styrenics producer’s plants at Triunfo were ready to begin operations as soon as Braskem, which supplies Innova with key feedstock benzene, had started up. The spokesperson did not respond to questions about the financial hit Innova would suffer from the Triunfo outage, but said it had been able to its supply customers with material from its other units in Brazil. “For polystyrene [PS], for instance, our Manaus production unit was able to absorb the tonnage previously allocated to Triunfo, so that we could avoid any negative impact on our customers," said the spokesperson. Meanwhile, a source at Innova told ICIS late on Monday that it aims to restart its PS, styrene, and ethyl benzene (EB) plants on 22-23 May. However, due to low production volumes, it would be prioritizing customers in Brazil rather than exporting any material. The restart process, however, may not be without hiccups. A source in Brazil's petrochemicals industry said on Tuesday that highway BR-386, a 525-kilometer road linking Porto Alegre with the interior of the state as well as the south of Santa Catarina state, remains partially blocked. "Drainage is still a problem. The blockage of the BR-386 and the lack of trucks are making distribution very difficult," said the source. "Yesterday [Monday], they managed to dispatch 15 trucks out of Triunfo, while the daily average on normal days stands at around 400 trucks." THE BEGINNING OF THE ENDIn what has become one of Brazil’s worst flooding disasters, the state of Rio Grande do Sul came to a standstill on 29 April with hundreds of roads blocked, widespread landslides and a dam collapse. As of Monday, the floods had caused 157 deaths while another 88 people are unaccounted for, according to Rio Grande do Sul’s emergency services. Over 76,000 people are still taking refuge in shelters, while nearly 600,000 have been displaced from their homes. In the 12-million people state, nearly 2.5 million have been affected by the floods which have badly hurt its economy. Although  petrochemicals plants at Triunfo have not been damaged by the flooding, access to them became almost impossible at the peak of the crisis. This forced companies in the hub to declare force majeure, including Braskem, Innova, and styrene butadiene rubber (SBR) producer Arlanxeo. As of Tuesday, none of the force majeures had officially been lifted. Indorama’s subsidiary in Brazil said it was idling its plants, although it has yet to declare force majeure. A spokesperson for Indorama told ICIS that the situation at its plants remains unchanged from last week. Arlanxeo had not responded to a request for comment at the time of writing. Although petrochemical facilities at Triunfo are restarting, other industrial players are still reeling from the floods with widespread stoppages. Earlier this week, automotive global majors Volkswagen (VW) and Stellantis said they were stopping production at some Brazilian and Argentinian plants due to a lack of input from automotive parts producers in Rio Grande do Sul. Meanwhile, fertilizers players have said to ICIS that demand could be hit, potentially resulting in lower prices as Rio Grande do Sul is also a major agricultural state in Brazil. Analysts at S&P Global said that while petrochemicals producers in the state may be spared from a large financial hit, fertilizers players are likely to be more negatively affected. Front page picture: Braskem's facilities at the Triunfo petrochemicals hub in Rio Grande do Sul Source: Braskem Additional reporting by Bruno Menini

21-May-2024

PODCAST: Asia propylene derivative demand still slow amid uncertainty

SINGAPORE (ICIS)–Asian oxo-alcohols buyers maintained a wait and watch approach, amid the possibility of added plant capacities in China weighing on market sentiment. The acrylonitrile (ACN) market continues to see limited spot demand in the northeast Asia market. Even as downstream acrylonitrile-butadiene-styrene (ABS) has seen higher production rates recently, ACN producers were unlikely to increase operating rates. For the acrylates downstream, butyl-A market in Asia continues to take direction from Chinese domestic prices. With India's Bureau of Indian Standards (BIS) requirements preventing Chinese origin imports, cargoes from China were flowing into SE Asia and NE Asia. In this podcast, ICIS editors Julia Tan and Corey Chew discuss trends in the Asia propylene and derivatives markets. Visit ICIS during APIC ’24 on 30-31 May at Booth 13 in the Grand Ballroom Foyer in the Grand InterContinental Seoul Parnas. Book a meeting with ICIS here.

15-May-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 10 May 2024. PODCAST: APIC ‘24: Asia recycled plastics sees sustainable finance focus By Damini Dabholkar 10-May-24 12:22 SINGAPORE (ICIS)–Sustainable finance is a key interest for companies seeking to enter the recycled plastics market in Asia or to expand their current capacities. Despite the various financial instruments available, the absence of a clear entry point often results in uncertainty for firms. In this podcast, ICIS analysts Chua Xin Nee and Joshua Tan explore the different types of sustainability-related loans available and their successful use cases. China-SE Asia arbitrage flow for MTBE unworkable on oil price falls By Keven Zhang 10-May-24 11:50 SINGAPORE (ICIS)–The arbitrage of methyl tertiary butyl ether (MTBE) from China to southeast Asia can be reopened, after blenders in southeast Asia finish consuming their existing inventory. PODCAST: Weak demand expected for Asia propylene and downstream PO By Damini Dabholkar 09-May-24 15:02 SINGAPORE (ICIS)–Asia's propylene market will continue to see weak demand, although potential curbs in plant run rates in China amid weak margins could lend support. China exports return to growth in April amid signs of improving demand By Nurluqman Suratman 09-May-24 14:31 SINGAPORE (ICIS)–China’s April exports rose by 1.5% year on year to $292.5 billion in April, reversing the 7.5% contraction in March supported by signs of improved global demand, customs data showed on Thursday. China petrochemical market edges up in Apr, demand outlook remains weak By Yvonne Shi 08-May-24 13:20 SINGAPORE (ICIS)–China’s petrochemical market edged up in April, with the ICIS China Petrochemical Index – which tracks 17 key products in the domestic market – rising slightly by 1.60% to 1267.60 by the end of the month as compared with March. Singapore April manufacturing slows amid persistent external headwinds By Nurluqman Suratman 07-May-24 11:59 SINGAPORE (ICIS)–Singapore’s manufacturing activity fell in April as a result of decreased export orders triggered by external demand headwinds and high global interest rates. NE Asia C3 talks to kick off, but supply concerns weigh on buyers By Julia Tan 06-May-24 12:02 SINGAPORE (ICIS)–Discussions for June arrivals will kick off as China returns from the Labour Day holidays, even with the potential headwinds of poor downstream demand and ample supply from Southeast Asia.

13-May-2024

Brazil’s Indorama suspends operations at Triunfo, ports still closed, fertilizers demand to be hit

SAO PAULO (ICIS)–Brazil’s state of Rio Grande do Sul remains at a standstill from the floods, with Thai petrochemicals major Indorama’s subsidiary in the country also suspending operations at its Triunfo facilities, a spokesperson confirmed to ICIS. Two main ports in Brazil’s southernmost state remain closed, while fertilizers players have said demand is likely to be hit on the back of a reduced planting season. A spokesperson for Indorama said the company had suspended operations at Triunfo on 3 May until further notice. Indorama's operations in Brazil are the result from its acquisition of Oxiteno and operates at Triunfo a methyl ethyl ketone (MEK) plant with a production capacity of 42,000 tonnes/year and a butene-2 plant with capacity at 42,000 tonnes/year, according to ICIS Supply & Demand. “Initially, we ensured that the emergency shutdown was carried out safely. Currently, we are carefully assessing the weather and logistical conditions, as well as the guidance from the relevant authorities, to determine the short, medium and long-term impacts [of the suspension],” said the Indorama spokesperson. Earlier in the week, Brazil’s polymers producer Braskem and styrenics producer Innova declared force majeure from its operations in Triunfo, as did styrene butadiene rubber (SBR) producer Arlanxeo. Official figures on Friday put the dead toll at 116, with more than 130 people still unaccounted for, while more than 100,000 remain displaced from their homes and nearly two million people in the 12-million-strong state are being affected by Brazil’s worst floods in nearly a century. To make matters worse, rains returned to Rio Grande do Sul by the latter part of the week, forcing authorities to suspend some rescue operations. Brazilians this week have kicked off a remarkable national mobilization to help alleviate the disruption gauchos – as citizens from Rio do Grande do Sul are known in Portuguese – are going through. From workplaces to residential buildings, from civil associations to companies, there is practically no place in the country where an effort to collect goods, food and money is not being deployed. PORTS CLOSED, AGRICULTURE HITThe Port Authority for Rio Grande do Sul, called Portos RS and which oversees operations at the Port of Rio Grande, Port of Pelotas and Port of Porto Alegre, said operations at the two latter facilities remain shut to traffic. The Port of Rio Grande is operating normally, it added. “[Portos RS] maintains operations at the Port of Porto Alegre suspended, due to the maintenance of the level of Lake Guaiba above the so-called flood level. At the Port of Pelotas, in the south of the state, the shipment of wood logs remains suspended and activities are paralyzed at the terminal,” the Authority said. “Regarding the crossing to Sao Jose do Norte [a city north of Porto Alegre], the vehicle and passenger transport service is suspended due to the high level of Laguna dos Patos.” This week, several fertilizers players said to ICIS demand is likely to be hit as planting for some crops which had just started is likely to be delayed, postpone, or cancelled. Moreover, seeds recently planted could also get damaged by high levels of moisture, potentially ruining their harvest. “There has been great damage to infrastructure in the state, with fertilizers mixers underwater and authorities still calculating the impacts,” said an urea trader. “The rice harvest is almost done, but wheat planting is in its early days and producers of urea believe demand destruction can happen due to the circumstances.” Another fertilizers source added that around 70% of soybeans in Rio Grande do Sul had already been harvested, but there is still 30% to be harvested which would now be at risk. It added that 30% would represent approximately 6.5 million tonnes of soybeans, or 5% of Brazil’s total production. Rio Grande do Sul is the main rice producer in Brazil, and the source said the harvest for that crop was already behind schedule when the rains started, with 78% harvested. “We estimate that the unharvested volume should significantly affect the supply of rice in Brazil, increasing the upward pressure on prices, “the source said. “Corn was also in the process of being harvested, with an estimated 83% harvested by the time the rains started. It is not possible yet to estimate precisely how much of this amount at risk has been lost.” Front page picture: Voluntaries working in Rio Grande do Sul organizing donations Source: Government of Rio Grande do Sul Additional reporting by Bruno Menini, Deepika Thapliyal and Chris Vlachopoulos

10-May-2024

LOGISTICS: Container rates rise for first time since January; Canadian rail workers vote to strike

HOUSTON (ICIS)–Global average rates for shipping containers rose for the first time since January, workers at freight rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have voted in favor of a strike, and the US regulator that oversees railroads finalized a rule allowing reciprocal switching, highlighting this week’s logistics roundup. CONTAINER RATES Shipping container rates have been rising steadily since December when attacks by Houthi rebels on commercial vessels in the Red Sea forced carriers to take the longer route around the tip of the African continent before leveling off last week. This week, the global average for 40-foot shipping containers rose by 1%, according to supply chain advisors Drewry and as shown in the following chart. Rates from Shanghai to the US East Coast edged slightly higher, but rates from China to the West Coast edged slightly lower, as shown in the following chart. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said that the overall container market has settled into a new routine that avoids the Red Sea. “Though significant backlogs, congestion and equipment shortages seen during the first few weeks of the crisis have dissipated, adjustments have resulted in some moderate but ongoing disruptions,” Levine said in a weekly update. He said that even after falling drastically since the beginning of the year, prices remain well above normal and are likely to increase relative to this new floor as demand is set to increase for peak season. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID CHEMICAL TANKERS US liquid chemical tanker freight rates assessed by ICIS were unchanged this week. From the US Gulf (USG) to Asia, the market has been quieter this week as a holiday-shortened week has sidelined some key players. There have been only a few parcels quoted, which is placing downward pressure on freight rates for smaller lots. Larger base cargoes of monoethylene glycol (MEG), methyl tertiary butyl ether (MTBE), and methanol have been popular chemicals on this route, keeping larger freight rates steady. From the USG to India, the market has been very quiet. PORT OF BALTIMORE Since the opening of a fourth channel into the Port of Baltimore, 171 commercial vessels have transited the waterway, including five of the vessels that were trapped inside the port after the containership Dali struck the Key Bridge, causing it to collapse, according to the Unified Command (UC). The MSC Passion III entered the port on 29 April, according to vesselfinder.com, making it the first container ship to enter the port since the accident. The closing of the port did not have a significant impact on the chemicals industry as chemicals make up only about 4% of total tonnage that moves through the port, according to data from the American Chemistry Council (ACC). The ACC said less than 1% of all chemicals involved in waterborne commerce, both domestic and trade volumes, pass through Baltimore. But a market participant in Ohio told ICIS previously that it is seeing delays in delivery times for imports as vessels originally destined to offload in Baltimore are getting re-routed to other ports. PANAMA CANAL Wait times for non-booked vessels ready for transit edged for higher both directions this week, according to the Panama Canal Authority (PCA) vessel tracker and as shown in the following image. Wait times a week ago were 2.5 days for northbound traffic and 5.6 for southbound traffic. The PCA will increase the number of slots available for Panamax vessels to transit the waterway beginning 16 May and will add another slot for Neopanamax vessels on 1 June based on the present and projected water levels in Gatun Lake. RAILROADS Workers at freight rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have voted in favor of a strike. A first work stoppage could occur as early as 22 May, if no new collective agreements are reached by then, officials at labor union Teamsters Canada Rail Conference (TCRC) said in a televised announcement on 1 May. The rail carriers warned that a work stoppage would disrupt supply chains throughout North America and constrain trade between Canada and the US and Mexico. The two railroads account for the bulk of freight rail traffic in Canada. Meanwhile, chemical industry participants were largely supportive of a final rule adopted by the Surface Transportation Board (STB) on reciprocal switching for inadequate service by railroads, but think the scope was too narrow and it does not cover a significant portion of rail traffic. For the first time, the STB said it is requiring that three service metrics be maintained on a standardized basis across all Class 1 railroads. In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail. Rail is also the predominant shipping method for US ethanol. Additional reporting by Kevin Callahan and Stefan Baumgarten Please see the Logistics: Impact on chemicals and energy topic page

03-May-2024

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