Advansix is projecting a $30 to $35MM unfavorable impact to earnings from its Force Majeure declaration this week at Hopewell VA.
The plant is one of the world’s largest producers of Carprolactam (795MM lbs) and Ammonium Sulfate (3.3B lbs). Hopewell also produces CPL for its sister plant in Chesterfield VA, the second largest Nylon 6 plant in the US.
Force majeure declared on 16 January 2018 by Tres Palacios Storage due to commercial power outage affecting its ability to withdraw from storage. Six interstate pipelines post injections and withdrawals from the site as well as intrastate pipelines owned by Kinder Morgan and Enterprise.
Keppels delivers its first rig of 2018 and the first of 5 Super Class B jackup rigs to Borr Drilling. Borr operates a mixed fleet (F&G, KFELS and PPL) of 20+ premium jackup rigs in Gabon, Nigeria, Thailand and elsewhere.
Hampton Roads…Force Majeure declared by Dominion Terminal at North America’s largest coal-exporting port. Extreme weather will “prevent the dumping of coal from railcars and the loading of vessels at average rates.”
Global metallurgical coal prices may be affected esp if Kinder Morgan Pier IX and NS Pier 6 follow suit.
Seaspan accepted delivery today of the MSC Yashi B, an 11000 TEU vessel under bareboat charter with MSC Mediterranean Shipping Company S.A. for 17 years. MSC is obligated to purchase the vessel at end of charter.
North Seas Forties Pipeline now fully operational following repairs to an onshore section crack found early December 2016. Force Majeure lifted to begin 2018.
FPS is a major export pipeline from more than 80 assets in the UK North Sea, including the UK’s two largest producers, Buzzard and Forties, and through which 40% of North Sea oil flowed in 2017.
Cincinnati OH buckled barge releases +/- 400,000 gal liquid fertilizer into the Ohio River. Cleanup in process. Cincinnati water intakes fortunately upriver. Louisville intakes are downstream + prepping for containment.
Union Pacific and Norfolk Southern head to head profitability…
UP 21.84% and NS 17.86% net margin
UP 23.35% and NS 14.72% ROE
UP 08.12% and NS 05.29% ROA
Driver turnover and shortage as volumes jump…driver turnover rate at large FTL fleets jumped to 95% in 3Q17 per the ATA. Turnover at fleets with less than $30MM in annual revenue fell to 84%. LTL fleets lead the pack at 7% turnover.