The Un-balanced Circular Economy – Demand for Waste Plastic Seen Outpacing Supply
The Un-balanced Circular Economy - Demand for Waste Plastic Seen Outpacing Supply The circular economy – the use of recycled plastics to create basic materials and energy – is a key developing supply chain identified by PLG Consulting for the 2020s. But the circle is more ovoid – as demand for...
Calculating Rail-Car Fleet Needs: How to Build Your Own Model
Introduction “How many cars do I need for my fleet?” That’s question heard from a rail shipper. While every situation seems unique, you can build a simple rail car calculator model that will give a good approximation of your rolling stock needs. The Tool of the Trade – The Rail Car In starting...
US Polyethylene Production Expected to Exceed 25,000 KTPA by 2030, representing +50% of all Domestic Production Exports
US Polyethylene Production Expected to Exceed 25,000 KTPA by 2030Today, the U.S. produces about 6 million tons more of plastic resin polyethylene (PE) per year than it did five years ago. Yet, there is still room to grow 2020’s volume of 21,500 Kilo-Tons per Annum (KTPA), judging by resin producers’...
US Ethylene Projected Growth Patterns Remain Impressive Through 2030
US Ethylene Projected Growth Patterns Remain Impressive Through 2030Cheap and abundant natural gas has fueled new investment in U.S. chemical production, including ethylene, a key plastics feedstock. U.S. Ethylene production grew approximately 10,000 Kilo-Tons Per Annum (KTPA) in the five years preceding 2020.PLG Consulting recently revisited its projections for ethylene....
North America’s Newest No Interchange, No Problem Rail Network
North America’s Newest No Interchange, No Problem Rail NetworkNorth America is about to have its first real transcontinental railroad – east-west and north-south. On March 30, 2021, Canadian Pacific (CP) and Kansas City Southern (KCS) announced plans to merge in a deal estimated to be worth $29 billion. If approved,...
Commentary: Narrow WCS-WTI Spread Pressures Tank Car Lease Rates
Commentary: Narrow Western Canada Select (WCS) and Western Texas Intermediate (WTI) spread pressures tank car lease rates It’s not profitable to ship crude oil by rail. The main driver of crude-by-rail shipments is the price difference between Canada’s benchmark Western Canada Select and Western Texas Intermediate, a U.S. benchmark. When the...
Commentary: Lower LPG-by-rail volumes lead to lower leases
Commentary: Lower LPG-by-rail volumes lead to lower leases LPG-by-rail shipment data from the Department of Energy shows just how much propane and butane rail volumes fell through 2020. The decline has its roots in a shift of shipments from rail to pipeline as Energy Transfer Partners’ Mariner East 2 (ME2) natural...
Commentary: Five-Year LPG Tank Car Lease Rates
Commentary: Five-year LPG Tank Car Lease Rates PLG Consultant, 30-year veteran business journalist and founder of an analytics firm that tracks tank car lease rates, Clifton Linton says: "Tank car leases trade like any other commodity. They have up and down cycles. As the nearby chart shows five-year LPG tank car lease...
PLG Consulting Analysts Partner with EIA
Introduction Since 2010, rail has played an increasingly vital role in the transportation of energy products across North America, however visibility had been limited into actual volume and key regional movements. That all changed in 2015 when a partnership between the Energy Information Administration (EIA) of the U.S. Department of Energy and PLG Consulting lead...
The U.S. Truckload Market is Heading for Crisis Again
IntroductionEarly 2020 warnings of a tightening freight market have proven to be remarkably prescient, even if the underlying reasons may have shifted. Deep into the COVID-19 crisis, the American freight economy remains surprisingly resilient and robust. Truckload (TL) carriers are back to turning-down loads, less-than-truckload (LTL) carriers are rejecting tenders...
U.S. Renewable diesel capacity growth through 2025 represents significant opportunity for producers and rail
Introduction By the end of 2020, renewable diesel capacity is expected to reach 50,000 barrels per day according to Turner, Mason & Company (TM&C), a leading energy consulting and advisory firm, and is expected to grow at a 33% CAGR to over 300,000 barrels per day by the end of 2025. This...
Supply Chain Challenges and Opportunities for Petrochemical Companies Exporting to South America
It’s been a decade since the shale gas boom started in the United States, positioning the country and its U.S.-based petrochemical companies as a top producer and one of the lowest cost players in the oil and gas chain. During this decade, many producers began planning and building new ethane/propane...
