Epoxy

November 16, 2021

Congestion Fees Delayed

California Ports Defer Congestion Fee At The Last-Minute

by Tyler DurdenTuesday, Nov 16, 2021 – 02:40 PM

Authored by Greg Miller via FreightWaves.com,

Did ports defer fee plan because of progress or political peril?

It came down to the wire, but the highly controversial Los Angeles/Long Beach congestion fee is not happening — at least, not yet.

The ports were scheduled to begin charging ocean carriers $100 per import container starting Monday for boxes moving by truck that dwelled for nine or more days, and for boxes dwelling for six or more days that move by rail. The charge was scheduled to escalate by $100 a day until the container left the property.

The ports announced Monday that they will “delay consideration” of the fee until Nov. 22, citing a 26% reduction in long-dwelling containers since the plan was announced on Oct. 25.

“There’s been significant improvement in clearing import containers from our docks in recent weeks,” said Port of Los Angeles Executive Director Gene Seroka. According to Port of Long Beach Executive Director Mario Cordero, “Clearly, everyone is working together to speed the movement of the cargo and reduce the backlog of ships off the coast as quickly as possible.”

Political risks of fee plan

Another reason the ports may not have pulled the trigger: the political peril of doing so.

Carriers explicitly stated that they would pass the cost along to importers. As of Monday, Long Beach had 19,656 containers on its terminals that would have been charged the late fee. There were at least 29,249 containers that would have incurred fees at the Port of Los Angeles (not including containers moving by rail that were between six and nine days late, which are not included in the data).

That means the aggregate fees to all carriers on Monday alone would have exceeded $4.8 million. And because the proposed fee would increase daily, the aggregate cost would have quickly risen into the tens of millions per day, and would have likely topped $100 million per day by the end of the first week.

During a conference call on Friday, Hapag-Lloyd CEO Rolf Habben Jansen warned, “If there’s cargo in those boxes that is not very valuable, you may end up with a lot of abandoned cargo that is going to stay at the terminal for much, much longer.”

Consultant Jon Monroe wrote in his weekly newsletter, “While I understand the intention, this is really a dumb idea for one good reason: The ports cannot measure the days that the container has been available to deliver.

“Under the current conditions, when a terminal discharges a container, it puts a percentage of the containers into closed lanes,” Monroe explained.

“Whenever a container is in a closed lane, it is unavailable for pickup by the trucker. No appointment can be made. Depending upon the terminal, anywhere from 20% to 80% of the containers will be put into a closed lane for an amount of time that varies. It is not unheard of for containers to sit in a closed lane for weeks. How will the ports account for containers that are in closed lanes?”

In a letter to the Federal Maritime Commission sent Monday, 85 business associations including the National Retail Federation wrote, “We are especially concerned about the announcements by the carriers that they intend to pass the charges through to the cargo owners.”

The groups warned that the new fee, if implemented, would “add substantial costs to the supply chain” due to “ongoing challenges that many cargo owners and drayage trucking companies are experiencing with the ability to retrieve cargo because of port congestion, restrictive empty return policies, and subsequent chassis shortages that result.”

During the inaugural meeting of the National Shippers Advisory Council on Oct. 27, various members called the Los Angeles/Long Beach congestion fee plan “catastrophic,” “crazy” and “out of left field.”

Long way to go

The two port bosses cited significant progress with clearing the terminals, yet the numbers show that most of the gains occurred in late October and early November. In recent days, the numbers have actually gotten worse.

In the port of Los Angeles, the number of containers dwelling nine day or more on Monday was up 18% from where it stood on Saturday and was the highest since last Wednesday. The total number of containers on the port — 76,613 — is higher than the number on Nov. 4.

Chart: American Shipper based on data from Port of Los Angeles. Note: Containers dwelling six or more days that move by rail would also incur a fee.

According to Los Angeles’ data platform with Port Optimizer, 45% of containers at the APM Terminals facility were still past deadline, dwelling for nine days or more, as of Monday. The share of “late” containers was 40% at Everport Terminal Services and 48% at West Basin Container Terminal.

Charts: Port of Long Angeles, Port Optimizer

In the port of Long Beach, the number of containers that were past the time limit on Monday was up 14% from Saturday. The number is now higher than where it stood back on Nov. 6.

Chart: American Shipper based on data from Port of Long Beach. Note: containers past deadline include boxes moving by both rail and truck.

Meanwhile, cargo continues to flood into the two ports from the trans-Pacific trade lane.

On Friday and Monday, yet another record was set for the number of container ships stuck at anchor or in holding patterns off the ports: 83. The average wait time at anchor for ships arriving in Los Angeles hit yet another fresh peak on Tuesday: 16.9 days.

https://www.zerohedge.com/economics/politics-or-progress-california-ports-defer-congestion-fee-last-minute

November 16, 2021

The Olin Shuffle

Olin Corporation Announces Retirement and Leadership Changes

Olin logo (PRNewsfoto/Olin Corporation)

News provided by Olin Corporation

Nov 15, 2021, 16:05 ET


CLAYTON, Mo., Nov. 15, 2021 /PRNewswire/ — Olin Corporation (NYSE: OLN) announced that Pat D. Dawson, Olin’s Executive Vice President and President, Epoxy and International, will retire from Olin effective April 30, 2022, or an earlier mutually agreeable date.   Mr. Dawson will remain with Olin as an Executive Vice President until his retirement, focusing on business leadership transition activities and strategic business projects.

Mr. Damian Gumpel, Olin’s current Vice President and President, Chlor Alkali Products and Vinyls will become its Vice President and President, Epoxy and Corporate Strategy, effective November 29, 2021.  Damian will lead Olin’s Epoxy and International operations, as well as Olin’s Corporate Strategy activities, including mergers and acquisitions.  Mr. Gumpel earned a Bachelor of Science degree in Chemical Engineering from the University of Texas – Austin and a Masters of Business Administration with Honors from the University of Chicago Booth School of Business.     

Olin further announced that it has hired Patrick M. Schumacher to serve as Vice President and President, Chlor Alkali Products and Vinyls, and Dana C. O’Brien to serve as Senior Vice President, General Counsel and Secretary, both effective November 29, 2021.   

Patrick Schumacher most recently served as Senior Vice President for Prince Corporation where he led the sales organization and global mergers and acquisitions activities.  Prior to his time at Prince Corporation, Mr. Schumacher worked at Celanese Corporation in various leadership positions.  While at Celanese, he was a Senior Vice President of multiple business areas from 2018 to 2020, Vice President, Emulsion Polymers in 2018, and Vice President, Business and Strategy Development from 2014 to 2018.  Prior to joining Celanese, Mr. Schumacher was Managing Director, Head of Chemicals M&A Practice at Blackstone Group, Senior Vice President at UBS Investment Bank, an Associate at Lehman Brothers and an Associate at Valuemetrics.  Mr. Schumacher earned a Bachelor of Business Administration degree in Finance from the University of Wisconsin and Master of Science in Finance degree from Boston College. 

Dana O’Brien was most recently Senior Vice President, General Counsel and Chief Ethics & Compliance Officer at The Brink’s Company.  Prior to her time at The Brinks’ Company, Ms. O’Brien was Senior Vice President, General Counsel and Corporate Secretary at CenterPoint Energy from 2014 to 2019, Chief Legal Officer, Chief Compliance Officer at CEVA Logistics from 2007 to 2014, General Counsel, Chief Compliance Officer and Secretary at EGL, Inc. from 2005 to 2007, and held various legal roles at Quanta Services, Inc. from 1999 to 2005.  Prior to transitioning to an in-house setting, Ms. O’Brien was an associate at Weil, Gotshal & Manges and a briefing attorney with the Supreme Court of Texas.  Ms. O’Brien earned a Bachelor of Arts degree from Trinity University and her Juris Doctorate degree from the University of Texas – Austin.

Scott Sutton, Olin’s Chairman, President and Chief Executive Officer said, “We congratulate Pat and thank him for his valuable service to Olin and wish him continued good fortune in the years to come.  Additionally, we congratulate Damian on his new role, and welcome Patrick and Dana to the Olin team as we build upon our successes and move Olin through the next phases of its evolution.”

COMPANY DESCRIPTION

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition.  The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid.  Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

Visit www.olin.com for more information on Olin.

https://www.prnewswire.com/news-releases/olin-corporation-announces-retirement-and-leadership-changes-301424439.html

November 16, 2021

The Olin Shuffle

Olin Corporation Announces Retirement and Leadership Changes

Olin logo (PRNewsfoto/Olin Corporation)

News provided by Olin Corporation

Nov 15, 2021, 16:05 ET


CLAYTON, Mo., Nov. 15, 2021 /PRNewswire/ — Olin Corporation (NYSE: OLN) announced that Pat D. Dawson, Olin’s Executive Vice President and President, Epoxy and International, will retire from Olin effective April 30, 2022, or an earlier mutually agreeable date.   Mr. Dawson will remain with Olin as an Executive Vice President until his retirement, focusing on business leadership transition activities and strategic business projects.

Mr. Damian Gumpel, Olin’s current Vice President and President, Chlor Alkali Products and Vinyls will become its Vice President and President, Epoxy and Corporate Strategy, effective November 29, 2021.  Damian will lead Olin’s Epoxy and International operations, as well as Olin’s Corporate Strategy activities, including mergers and acquisitions.  Mr. Gumpel earned a Bachelor of Science degree in Chemical Engineering from the University of Texas – Austin and a Masters of Business Administration with Honors from the University of Chicago Booth School of Business.     

Olin further announced that it has hired Patrick M. Schumacher to serve as Vice President and President, Chlor Alkali Products and Vinyls, and Dana C. O’Brien to serve as Senior Vice President, General Counsel and Secretary, both effective November 29, 2021.   

Patrick Schumacher most recently served as Senior Vice President for Prince Corporation where he led the sales organization and global mergers and acquisitions activities.  Prior to his time at Prince Corporation, Mr. Schumacher worked at Celanese Corporation in various leadership positions.  While at Celanese, he was a Senior Vice President of multiple business areas from 2018 to 2020, Vice President, Emulsion Polymers in 2018, and Vice President, Business and Strategy Development from 2014 to 2018.  Prior to joining Celanese, Mr. Schumacher was Managing Director, Head of Chemicals M&A Practice at Blackstone Group, Senior Vice President at UBS Investment Bank, an Associate at Lehman Brothers and an Associate at Valuemetrics.  Mr. Schumacher earned a Bachelor of Business Administration degree in Finance from the University of Wisconsin and Master of Science in Finance degree from Boston College. 

Dana O’Brien was most recently Senior Vice President, General Counsel and Chief Ethics & Compliance Officer at The Brink’s Company.  Prior to her time at The Brinks’ Company, Ms. O’Brien was Senior Vice President, General Counsel and Corporate Secretary at CenterPoint Energy from 2014 to 2019, Chief Legal Officer, Chief Compliance Officer at CEVA Logistics from 2007 to 2014, General Counsel, Chief Compliance Officer and Secretary at EGL, Inc. from 2005 to 2007, and held various legal roles at Quanta Services, Inc. from 1999 to 2005.  Prior to transitioning to an in-house setting, Ms. O’Brien was an associate at Weil, Gotshal & Manges and a briefing attorney with the Supreme Court of Texas.  Ms. O’Brien earned a Bachelor of Arts degree from Trinity University and her Juris Doctorate degree from the University of Texas – Austin.

Scott Sutton, Olin’s Chairman, President and Chief Executive Officer said, “We congratulate Pat and thank him for his valuable service to Olin and wish him continued good fortune in the years to come.  Additionally, we congratulate Damian on his new role, and welcome Patrick and Dana to the Olin team as we build upon our successes and move Olin through the next phases of its evolution.”

COMPANY DESCRIPTION

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition.  The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid.  Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

Visit www.olin.com for more information on Olin.

https://www.prnewswire.com/news-releases/olin-corporation-announces-retirement-and-leadership-changes-301424439.html

November 12, 2021

Back to the Future

Plastics Industry Hurt by Lack Of Raw Materials Made of Oil

By Gerd Wilcke

  • Nov. 30, 1973

About the ArchiveThis is a digitized version of an article from The Times’s print archive, before the start of online publication in 1996. To preserve these articles as they originally appeared, The Times does not alter, edit or update them.Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions.

Randel Plastics, Inc., of Long Island City used to have 95 persons on its payroll. Last week there were only 48.

In Leominster, Mass., the Tucker Manufacturing Company has reduced its labor force by 15 per cent and has cut back from a three‐shift six‐day work week to 2.5 shifts five days a week.

What these two companies and hundreds of others have in common is that they cannot get enough raw materials made from oil to make their products. The products are plastics—in their multitude of variations that go into toys, automobiles, furniture, doorknobs or packaging materials.

The dramatic impact of the shortage was illustrated yesterday when the Chrysler Corporation announced a brief shutdown of four plants that manufacture compact cars. Chrysler said that the plants had experienced a shortage of plastic parts.

According to industry estimates, the average 1973‐model car used 138 pounds of plastics, and each 1974 model is using about 153 pounds.

In the New York area, the Plastics and Metal Producers Manufacturers Association said that its 174 member companies that normally employ 14,000 workers had to put 4,000 of them on short work weeks or on furlough.

PPG Industries, Inc., which is a joint venture partner in the Puerto Olefins Company at Penuelas, Puerto Rico, said it was being forced to shut down the plant for two weeks beginning Monday because of shortages of petrochemical raw materials.

American consumers facing the prospect of a cold winter may, at the moment, be more concerned over a cold home, school or an empty gasoline tank. But if Randel Plastics, Tucker Manufacturing and other fabricators are forced out of business the ripple effect could be enormous.

This is the third of a series of articles on the impact of the energy crisis on United States industries, which will appear at intervals.

Not only would thousands of products become scarce, but many thousands of people would lose their jobs.

Like the rest of the petrochemical industry, makers of plastics have to rely on oil for the hydrocarbons that go into building blocks for their products.

There are large companies such as E. I. du Pont de Nemours & Co., the Dow Chemical Company, the Monsanto Company, the Union Carbide Corporation, the Allied Chemical Corporation, or the Celanese Corporation that are major suppliers of building blocks such as ethylene, styrene, butadiene or phenol.

Although many of the major companies make their own end products, they are at the same time the key supply sources for companies such as Randel and Tucker Manufacturing.

Is the source drying up?

Executives of major companies do not deny that there is a shortage of key materials that has forced them to use an allocation system, However, they insist that they are attempting to be evenhanded in supplying domestic customers and are not ignoring them in order to make higher profits overseas.

Edward R. Kane, president of du Pont, and Werner C. Braun, the chief executive of Hercules, Inc., said in interviews the other day that there was no overt effort to ship more plastic resins overseas because of price controls in the United States. “The incidence of people taking advantage of the situation is small,” Mr. Kane said.

Mr. Braun said that there was no sudden upsurge in exports during the year and, although the dollar export volume was higher in reflection of monetary realignments, the physical volume of goods shipped showed a “normal” trade growth that was in line with domestic sales growth.

Plastics makers and fabricators, through the Society of the Plastics Industry, have argued for the lifting of price controls and, for the short term, a raw materials allocation plan patterned exactly on the basis of the 1972 distribution of oil and gas and all their derivatives.

Recent Study Cited

Ralph L. Harding Jr., president of the society, in this context cited a recent study by the Arthur D. Little Organization that pointed out that a 15 per cent cutback in feedstocks of raw materials to the petrochemical industry would mean the loss of 1.6 million jobs and a production loss of $65‐billion. The plastics industry accounts for about 25 per cent of the petrochemical industry and employs about 225,000 work ers. A 15 per cent cutback in feedstocks would, because of the domino effect, result in a $22‐billion curtailment in end products and in a loss of employment to 550,000 workers in both the plastic industry and the industries it supplies.

Theodore Riky, the president of Randel Plastics, does not think in these dimensions. He wants enough raw materials so he does not have to lay off more workers. He stressed that major resin suppliers had cut him off completely and that secondary suppliers were doing so little by little.

Can he afford going to the “open market,” a polite term used for the gray, or black. market?

‘45 Cents a Pound’

“If I pay cash on the line or by certified check before the supplier unloads a shipment, and paid 45 cents a pound for polypropylene and 53 cents for styrene, I might get the matesaid.

With the list price for both plastics standing at 17 cents a pound, Mr. Riky implied strongly that he could not afford to buy at such prices.

Sheldon Edelman is the president of the Plastics and Metal Producers Association, a group of fabricators in the plastics and metal fields. He complained bitterly that price controls came at a time when plastic resin prices were at a nine‐year low.

He said that companies buying directly from major suppliers were on allocation anywhere” in the 60 to 80 per cent area but that, as of last week, not even these reduced amounts reached the fabricators.

90 Per Cent of Capacity

In a recent study, Mr. Harding’s group said that, although production of plastic resins would increase this year by 10 to 15 per cent, to about 27 billion pounds, industry was operating at only 90 per cent of capacity.

As a result of the underutilization of capacity, the society said that most resin sales were on strict allocation by suppliers, there were significant shortages of formerly plentiful resin formulations, and there were severe shortages of certam formulations where intermediate, chemicals were not available, such as styrene monomer for polyester resin.

Mr. Harding has noted in this context that the plastics industry was facing a paradox. “Having reached the status of full membership in the industrial community,” he said, “the plastics industry finds itself threatened by limitations on its vitally needed raw material feedstocks.”

https://www.nytimes.com/1973/11/30/archives/plastics-industry-hurt-by-lack-of-raw-materials-made-of-oil-makers.html

November 12, 2021

Back to the Future

Plastics Industry Hurt by Lack Of Raw Materials Made of Oil

By Gerd Wilcke

  • Nov. 30, 1973

About the ArchiveThis is a digitized version of an article from The Times’s print archive, before the start of online publication in 1996. To preserve these articles as they originally appeared, The Times does not alter, edit or update them.Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions.

Randel Plastics, Inc., of Long Island City used to have 95 persons on its payroll. Last week there were only 48.

In Leominster, Mass., the Tucker Manufacturing Company has reduced its labor force by 15 per cent and has cut back from a three‐shift six‐day work week to 2.5 shifts five days a week.

What these two companies and hundreds of others have in common is that they cannot get enough raw materials made from oil to make their products. The products are plastics—in their multitude of variations that go into toys, automobiles, furniture, doorknobs or packaging materials.

The dramatic impact of the shortage was illustrated yesterday when the Chrysler Corporation announced a brief shutdown of four plants that manufacture compact cars. Chrysler said that the plants had experienced a shortage of plastic parts.

According to industry estimates, the average 1973‐model car used 138 pounds of plastics, and each 1974 model is using about 153 pounds.

In the New York area, the Plastics and Metal Producers Manufacturers Association said that its 174 member companies that normally employ 14,000 workers had to put 4,000 of them on short work weeks or on furlough.

PPG Industries, Inc., which is a joint venture partner in the Puerto Olefins Company at Penuelas, Puerto Rico, said it was being forced to shut down the plant for two weeks beginning Monday because of shortages of petrochemical raw materials.

American consumers facing the prospect of a cold winter may, at the moment, be more concerned over a cold home, school or an empty gasoline tank. But if Randel Plastics, Tucker Manufacturing and other fabricators are forced out of business the ripple effect could be enormous.

This is the third of a series of articles on the impact of the energy crisis on United States industries, which will appear at intervals.

Not only would thousands of products become scarce, but many thousands of people would lose their jobs.

Like the rest of the petrochemical industry, makers of plastics have to rely on oil for the hydrocarbons that go into building blocks for their products.

There are large companies such as E. I. du Pont de Nemours & Co., the Dow Chemical Company, the Monsanto Company, the Union Carbide Corporation, the Allied Chemical Corporation, or the Celanese Corporation that are major suppliers of building blocks such as ethylene, styrene, butadiene or phenol.

Although many of the major companies make their own end products, they are at the same time the key supply sources for companies such as Randel and Tucker Manufacturing.

Is the source drying up?

Executives of major companies do not deny that there is a shortage of key materials that has forced them to use an allocation system, However, they insist that they are attempting to be evenhanded in supplying domestic customers and are not ignoring them in order to make higher profits overseas.

Edward R. Kane, president of du Pont, and Werner C. Braun, the chief executive of Hercules, Inc., said in interviews the other day that there was no overt effort to ship more plastic resins overseas because of price controls in the United States. “The incidence of people taking advantage of the situation is small,” Mr. Kane said.

Mr. Braun said that there was no sudden upsurge in exports during the year and, although the dollar export volume was higher in reflection of monetary realignments, the physical volume of goods shipped showed a “normal” trade growth that was in line with domestic sales growth.

Plastics makers and fabricators, through the Society of the Plastics Industry, have argued for the lifting of price controls and, for the short term, a raw materials allocation plan patterned exactly on the basis of the 1972 distribution of oil and gas and all their derivatives.

Recent Study Cited

Ralph L. Harding Jr., president of the society, in this context cited a recent study by the Arthur D. Little Organization that pointed out that a 15 per cent cutback in feedstocks of raw materials to the petrochemical industry would mean the loss of 1.6 million jobs and a production loss of $65‐billion. The plastics industry accounts for about 25 per cent of the petrochemical industry and employs about 225,000 work ers. A 15 per cent cutback in feedstocks would, because of the domino effect, result in a $22‐billion curtailment in end products and in a loss of employment to 550,000 workers in both the plastic industry and the industries it supplies.

Theodore Riky, the president of Randel Plastics, does not think in these dimensions. He wants enough raw materials so he does not have to lay off more workers. He stressed that major resin suppliers had cut him off completely and that secondary suppliers were doing so little by little.

Can he afford going to the “open market,” a polite term used for the gray, or black. market?

‘45 Cents a Pound’

“If I pay cash on the line or by certified check before the supplier unloads a shipment, and paid 45 cents a pound for polypropylene and 53 cents for styrene, I might get the matesaid.

With the list price for both plastics standing at 17 cents a pound, Mr. Riky implied strongly that he could not afford to buy at such prices.

Sheldon Edelman is the president of the Plastics and Metal Producers Association, a group of fabricators in the plastics and metal fields. He complained bitterly that price controls came at a time when plastic resin prices were at a nine‐year low.

He said that companies buying directly from major suppliers were on allocation anywhere” in the 60 to 80 per cent area but that, as of last week, not even these reduced amounts reached the fabricators.

90 Per Cent of Capacity

In a recent study, Mr. Harding’s group said that, although production of plastic resins would increase this year by 10 to 15 per cent, to about 27 billion pounds, industry was operating at only 90 per cent of capacity.

As a result of the underutilization of capacity, the society said that most resin sales were on strict allocation by suppliers, there were significant shortages of formerly plentiful resin formulations, and there were severe shortages of certam formulations where intermediate, chemicals were not available, such as styrene monomer for polyester resin.

Mr. Harding has noted in this context that the plastics industry was facing a paradox. “Having reached the status of full membership in the industrial community,” he said, “the plastics industry finds itself threatened by limitations on its vitally needed raw material feedstocks.”

https://www.nytimes.com/1973/11/30/archives/plastics-industry-hurt-by-lack-of-raw-materials-made-of-oil-makers.html