High Shipping Costs Are Here to Stay Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
U.S. oil prices traded at a discount to London’s Brent of more than $23 a barrel in February, but that discount has narrowed to less than $3 a barrel. That cuts profits from crude shipments via rail or barge, more expensive options than pipelines.
Kirby executives told analysts that they, like other players in moving growing U.S. crude production, expect that discount to widen. “At this point, there is no impact on volumes,” Chief Executive Joe Pyne said during the company’s second-quarter earnings call.
(c) 2013 Thomson Reuters
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