Snow Drifts is the monthly e-newsletter of the Snow and Ice Management Association (SIMA) offering "Articles by Snow People, For Snow People." The July issue features my article "Salt Supply and the Snow & Ice Contractor 2008/2009 Season" explaining the challenges salt suppliers face in providing road salt to the small private contractors who are SIMA members.
Measured by the number of media calls, requests for Salt Institute presentations and webinars and trade press articles, the "salt shortage" stories of last winter were just a warm-up for what we can expect in the coming months. Latest evidence: a story in the Elyria, OH Chronicle-Telegram by reporter Brad Dicken which extracted the pearl of our interview when he told readers:
Although increased fuel and transportation costs are contributing factors to the rise in prices - asphalt also shot up in price this year - last year's hard winter led to the nation using more salt than normal and leading to an increased demand this year, said Richard Hanneman, president of the Salt Institute.
What a market! Last year's 20.3 million tons of road salt was the second-highest ever. But the year before, 2006, we sold only 12.1 million tons, lowest since 1998. And the year earlier, 2005, set the all-time record of 20.5 million tons. Not too many industries are asked to boost sales by two-thirds in a year as the salt industry did from 2006 to 2007. And, from publicly announced bid amounts we've seen so far this year, agencies want even more.
Highway departments are understandably concerned to have enough salt this winter after last year's severe snowfighting season left them scrambling for scarce supplies and entirely emptied the "salt pipeline" everywhere from mines to customer storage facilities. Many increased their bids, putting even more pressure on salt production and distribution. The consequences surfaced in the form of higher bid prices; an example is this from Sandusky, OH.
Even working the mines around the clock, it's going to be tight this year. High water forced closure of the locks and dams on the upper Mississippi River for about four weeks and what consumers see as high gas prices at the pump are adding new costs to both production and, especially, salt distribution. Order early. Store a full year's supply. This age-old advice will be tested this winter.
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