Epoxy
May 12, 2021
Quality Carriers Sells to CSX
Tampa chemical trucking company sold to CSX in ‘game-changer’ shipping deal
Quality Carriers, which moves bulk chemicals across North America, will vastly expand the rail company’s shipping network.
By Jay CridlinPublished 3 hours agoUpdated 34 minutes ago
A Tampa chemical trucking company is being sold to railroad giant CSX Corp. in a deal expected to create a sprawling rails-to-roadways chemical distribution network across North America.
Quality Distribution, a privately held logistics and transportation company headquartered in downtown Tampa, is spinning off and selling its Quality Carriers arm, which operates North America’s largest shipping network for bulk liquid chemicals like fuels, acids and fertilizers.
Quality Carriers, whose fleet includes 2,500 drivers moving between more than 100 hubs and terminals throughout North America, will remain based in Tampa.
Terms of the sale were not disclosed. The deal is expected to close in late summer or early fall.
In statements released Wednesday, executives from both companies highlighted the scope and potential impact of the deal. The companies’ “unique and seamless rail-to-highway offering,” said Quality Controls president Randy Strutz, would be the “first of its kind,” said CSX president and CEO James Foote.
In a statement, Quality Distribution chairman and CEO Gary Enzor called the deal “a game-changer for our industry.”
“This transaction gives CSX and Quality Carriers the unique opportunity to offer a powerful combination of truck and rail solutions to customers, with the added benefit of maintaining QC’s headquarters in Tampa,” Enzor said.Related: $2 billion packaging company relocating HQ to Tampa, bringing 200 jobs
In a brief video addressed to Quality Carriers drivers, Strutz said the deal would lead to “more opportunities and more choices” for truckers who prefer both local and long-haul jobs.
As part of the deal, Quality Distribution will spin another subsidiary, Boasso Global, into its own standalone company, and cease using the Quality Distribution brand name. Boasso provides shipping services for bulk shipping containers through a network of hubs in North America and Europe. It will continue to be based in Tampa.
Company officials said 99 percent of Quality Distribution’s workforce will remain in place, with most changes taking place at the corporate management level. Enzor will step down as Quality Distribution’s chariman and CEO, but will remain on Boasso’s board of directors. Joe Troy, Boasso’s executive vice president and chief financial officer, will step up and become CEO.Related: Clearwater’s MarineMax buys Wisconsin yacht builder for $63 million
Founded in 1913 in Pennsylvania, Quality Distribution has been based in the Tampa Bay area for decades. In 2015, the company was sold for $800 million to private equity firm Apex Partners. The previous year, the company had reported $991.7 million in revenue and $20.6 million in net income.
Based in Jacksonville, CSX last year reported nearly $10.6 billion in revenue, including $2.3 billion from its chemical transportation business, the most of any sector. The company’s intermodal business, linking trains and trucks, represented around 16 percent of its overall revenue.
May 12, 2021
European Propylene Update
MOST READ – Europe ethylene, propylene: latest market developments
Author: ICIS Editorial
2021/05/12
The story below was our most read article in the last 12 hours.
By Nel Weddle
11-May-21 18:37
LONDON (ICIS)–European ethylene and propylene markets remain extraordinarily firm with production at a low point due to planned turnarounds and healthy demand which is showing no signs of letting up in the near to medium term.
Spring turnarounds reach their peak in May:
Refinery maintenance is also under way, further restricting propylene supplies.
Given the backdrop of planned outages, unscheduled events like the ongoing Tarragona, Spain, propane dehydrogenation (PDH) unit outage and most recently, the issues at one of the crackers at Gelsenkirchen in Germany are more difficult to manage.
Inventories having been built up with the turnaround season in mind, might offer some initial breathing space for those suddenly caught short, but otherwise the options are limited; many are reluctant in the midst of turnaround season to release tonnes.
Imports are not usually the first option due to lead times – prompt issues require prompt tonnes.
Those with volumes not surprisingly, target higher spot prices.
Ethylene spot pipeline prices flip-flopped through April from premiums to discounts and back to premiums, reflecting the impacts of cracker or derivative problems on a finely balanced market and were back in double-digit premium territory last week for the first time since January.
Propylene spot price premiums have persisted all year but are wide-ranging depending on grade, location, timing and affordability.
Demand across all derivatives is healthy but there are clear differences when it comes to affordability and some buyers are ready to accept whatever it takes to ensure further disruption to downstream production is limited.
Few players expect a slow-down in the summer months largely because of the catching up needing to be done following the disruptions seen so far to production and supply chains, but the first wave of turnarounds will be over, refinery output should be improved as COVID-19 lockdowns are lifted.
May 12, 2021
European Propylene Update
MOST READ – Europe ethylene, propylene: latest market developments
Author: ICIS Editorial
2021/05/12
The story below was our most read article in the last 12 hours.
By Nel Weddle
11-May-21 18:37
LONDON (ICIS)–European ethylene and propylene markets remain extraordinarily firm with production at a low point due to planned turnarounds and healthy demand which is showing no signs of letting up in the near to medium term.
Spring turnarounds reach their peak in May:
Refinery maintenance is also under way, further restricting propylene supplies.
Given the backdrop of planned outages, unscheduled events like the ongoing Tarragona, Spain, propane dehydrogenation (PDH) unit outage and most recently, the issues at one of the crackers at Gelsenkirchen in Germany are more difficult to manage.
Inventories having been built up with the turnaround season in mind, might offer some initial breathing space for those suddenly caught short, but otherwise the options are limited; many are reluctant in the midst of turnaround season to release tonnes.
Imports are not usually the first option due to lead times – prompt issues require prompt tonnes.
Those with volumes not surprisingly, target higher spot prices.
Ethylene spot pipeline prices flip-flopped through April from premiums to discounts and back to premiums, reflecting the impacts of cracker or derivative problems on a finely balanced market and were back in double-digit premium territory last week for the first time since January.
Propylene spot price premiums have persisted all year but are wide-ranging depending on grade, location, timing and affordability.
Demand across all derivatives is healthy but there are clear differences when it comes to affordability and some buyers are ready to accept whatever it takes to ensure further disruption to downstream production is limited.
Few players expect a slow-down in the summer months largely because of the catching up needing to be done following the disruptions seen so far to production and supply chains, but the first wave of turnarounds will be over, refinery output should be improved as COVID-19 lockdowns are lifted.
May 10, 2021
Distribution Podcast
PODCAST: Distributors navigate market chaos, must build resilience
Author: Will Beacham
2021/05/10
BARCELONA (ICIS)–While chemical distributors have been able to thrive, despite chaotic supply/demand conditions, they must now plan for long-term trends such as digitalisation and sustainability.
- Current chaotic market conditions have echoes of 2008/9 financial crisis
- Distributor financial results have shown resilience in face of crisis
- Better quality data is helping distributors navigate crisis with agility
- Distribution is 15-20% of total chemical demand
- Care needed to build resilient supply chains without unsustainable costs
- Distributors can play role in developing regional circular economies
- Further consolidation can be expected via mergers and acquisitions (M&A)
- Digitalisation will allow better customer engagement, user experience
- Questions over size of Asia distribution market, quoted at $120-130bn
Register for Distribution Day on Tuesday 11 May to hear CEOs discuss the future of distribution.
Download the ICIS Top 100 Chemical Distributors list for 2021.
May 10, 2021
Distribution Podcast
PODCAST: Distributors navigate market chaos, must build resilience
Author: Will Beacham
2021/05/10
BARCELONA (ICIS)–While chemical distributors have been able to thrive, despite chaotic supply/demand conditions, they must now plan for long-term trends such as digitalisation and sustainability.
- Current chaotic market conditions have echoes of 2008/9 financial crisis
- Distributor financial results have shown resilience in face of crisis
- Better quality data is helping distributors navigate crisis with agility
- Distribution is 15-20% of total chemical demand
- Care needed to build resilient supply chains without unsustainable costs
- Distributors can play role in developing regional circular economies
- Further consolidation can be expected via mergers and acquisitions (M&A)
- Digitalisation will allow better customer engagement, user experience
- Questions over size of Asia distribution market, quoted at $120-130bn
Register for Distribution Day on Tuesday 11 May to hear CEOs discuss the future of distribution.
Download the ICIS Top 100 Chemical Distributors list for 2021.
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