Eastern Railroad Discussion > A Question For The Economic Minds On This Board

During the last week to 10 days there appears to be an increase in the number of tank cars with Bitumen loads for Bitumar Inc an asphalt supplier located in Douglasville, Ga that does bulk transfer of three different grades of the product. The facility is serviced by local NS A25 and of late loaded cars are being stored in the mine track in Villa Rica Georgia. 
Which got me to thinking. Why the big jump in loads to this facility?

Looking at the chart below I see there has been a sharp decline in the pricing. Thus an increase in loads bought at a lower price by Bitumar?

Question: Explain the 2922 CNY/T. Assuming it is as a cost per Ton? $2922. per ton??? 
Anyone know what the daily demurrage rate is on a tank car by chance? Suppose it varies and is contract specific. 
Based on the decline in pricing it must be far less then the gains in the reduced price to justify the cost of letting cars sit a few extra days.

Thoughts based on knowledge of the subject please.Thanks

Phil Maton
Villa Rica, GA



Edited 1 time(s). Last edit at 12/01/18 09:38 by NSSpike.

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The graph looks like it's following the general price in oil over the past number of months.

More closely related to your topic, it might be them loading up on product for future contracts as well.  I know the local petroleum distributors in my area have been really hauling in the tank cars over the past few months.  Part of this is claimed to be because of erratic rail service, so have to keep extra inventory on hand when one doesn't know when your next shipment will arrive.

Also, historically, in the area I live in, it does seem like the local asphalt suppliers tend to stock up this time of year as well.  My guess is that the price of it must be lower at the end of the construction season going into winter.

Just my take.

CNY stands for Chinese Yuan or Renminbi