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Eastern Railroad Discussion > CSX; coalDate: 11/05/12 12:39 CSX; coal Author: MWP IHS McCloskey reported CSX is offering U.S. thermal exporters rail rates linked to the API 2 (delivered coal price into Northern Europe) plus a fuel surcharge. With depressed API 2 prices, this innovative pricing mechanism could significantly lower rail rates, and increase the competitiveness of Eastern thermal coal into Europe.
This was passed along to me. I dont have IHS McCloskey full report so I am not sure if this was part of a bigger thought. I also dont know if it is all that relevant, but anything helps I guess. Edited 1 time(s). Last edit at 11/05/12 12:40 by MWP. Date: 11/05/12 13:28 Re: CSX; coal Author: reel_smooth Is it possible that this is the result of having more coal to move than they have customers to move it to?
Date: 11/05/12 13:47 Re: CSX; coal Author: Lackawanna484 reel_smooth Wrote:
------------------------------------------------------- > Is it possible that this is the result of having > more coal to move than they have customers to move > it to? it's possible the Hurricane Sandy took away some coal demand in the northeast, and CSX already had coal in transit. By offering it to shippers, they're trying to unload it. I haven't listened to the full Southern Company conference call, but they've cut back their thermal coal intake significantly. I wonder if they turned down a "bonus" shipment from CSX? Date: 11/05/12 13:54 Re: CSX; coal Author: MWP If I worked in the CSX marketing dept, I would be drafting up something about how 'we are always looking to work with our customers to help make them competitive in the world market' or something along those lines
I do wonder how loyal end users are, especially European power suppliers. Are they long term contracts, are they always looking for alternatives? Walter today, Arch tomorrow, and Peabody or Patriot the next not to forget about home mined and Aussie and India. In other words, can CSX even make a difference? Date: 11/05/12 18:45 Re: CSX; coal Author: BobE During Norfolk Southern's earnings call, they were asked if they could stem the decline in coal volumes (particular to export markets) by reducing rates. It was their opinion that the railroad's share of the total delivered price was so low that reducing rates couldn't improve volumes. Of CSX's mileage may vary.
BobE |