At this point in time, there are significant unknowns in the bulk deicing salt markets. The following memo and the article "County to Pay 16% More for Road Salt" by Dave Gong in the The Journal Gazette serves to lay out the facts that are known at this point in time.
General Information:
- Salt production is still limited in the Midwest mainly due to Cargill.
- Ships available to import additional quantities are in great demand due to the salt companies using more and more imported salt in the Great Lakes network.
- Dock space as a result is in high demand and storage costs are increasing.
- Record levels of precipitation have impacted the quality of salt stored under tarps or outside
- Many procuring imported salt due to major domestic salt company demands. Costs unknown in many cases until salt is on dock (demurrage, timing, etc.).
- Dock space is in question and high-water levels due to extremely high rainfall.
- Quality of salt on docks with levels of precipitation and not being tarped.
- Pricing levels for 2019-2020 increasing over 2018-2019 season based on normal allocations not being filled.
- Trucking and all associated costs increasing due to reduction of CDL drivers, rising equipment costs and governmental demand.
- The pricing listed in article are early buy, early fill state and County which Commercial / Industrial customers won't receive.
Salt Manufacturing Companies:
- Availability will be limited to 40% of previous years purchase, not accepting new customers at this time.
- Security of bulk deicing salt will not be guaranteed by any manufacturers during season.
- Bulk deicing salt will be at record high levels for Force Majeure / Government act of Eminent Domain for any salt in public view
- Salt storage on al Michigan docks will be limited due to leasing by manufacturing companies not having salt and unwilling to offer space to competitors
- The major salt manufacturers having the following issues (some continue from last year): Cargill has increased leaking in mine causing dramatic volume disruptions, production issues.
- The rising levels of the Mississippi River have caused supply issues on the network and ultimately Chicago Metropolitan region as most salt comes up the river for that market.