US Ethanol Shippers Face Challenges Finding Truckers to Haul Product
by Joshua Pedrick (Platts) US ethanol producers and marketers have found headwinds in recent weeks as truckers to haul product into major hubs have moved on to higher-paying routes.
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Part of the issue has been the pull of shipping WTI crude to Cushing, Oklahoma, which currently pays higher than most other commodities.
“The economy is better so there’s a lot of stuff moving around and we’re way at the end of the commodity chain,” said one ethanol broker.
The shortage of drivers has prompted some to raise shipping rates, which can drive up costs and either raise sales prices or force plants to sell at lower FOB prices.
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The broker said plants are also lowering FOB prices to compensate for the higher trucking rates.
Some of the effects of the trucker shortage have already been priced in, but if the issue continues, prices could be in flux as plants have to sell at lower rates while paying truckers more. READ MORE
