29.03.2013 Views

Methyl Tertiary-Butyl Ether (MTBE):Conditions Affecting the ...

Methyl Tertiary-Butyl Ether (MTBE):Conditions Affecting the ...

Methyl Tertiary-Butyl Ether (MTBE):Conditions Affecting the ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>the</strong> distance involved. 71<br />

Although total shipping costs for imported <strong>MTBE</strong> from <strong>the</strong> Arabian Gulf generally exceed<br />

total shipping costs for domestic <strong>MTBE</strong> because distances are significantly greater, U.S. shippers<br />

generally pay higher freight rates on a per ton-mile 72 basis than foreign shippers (table 3-13 and<br />

figure 3-2). U.S. producers must use U.S.-flag Jones Act vessels for cargo shipped between<br />

U.S. ports. U.S. industry representatives stated that <strong>the</strong>y believe <strong>the</strong> Jones Act makes it less<br />

profitable for <strong>the</strong>m to compete in <strong>the</strong> west coast market (<strong>the</strong> destination for most imported Arabian<br />

Gulf <strong>MTBE</strong>). 73<br />

Table 3-13<br />

Clean marine transportation, spot charter rates, 1996-98<br />

1996 1997 1998<br />

Total cost Rate Total cost Rate Total cost Rate<br />

Per ton Per ton-mile Per ton Per ton-mile Per ton Per ton-mile<br />

Type of voyage:<br />

Domestic (Jones Act):<br />

U.S. gulf-U.S. east coast $11.36 $0.0059 $10.23 $0.0054 $9.73 $0.0051<br />

U.S. gulf-California (LA)<br />

Foreign:<br />

24.75 0.0052 24.12 0.0051 21.92 0.0046<br />

Europe-U.S. east coast 13.63 0.0040 14.97 0.0044 10.78 0.0032<br />

Caribbean-U.S. east coast 9.32 0.0050 10.51 0.0057 6.40 0.0035<br />

Singapore-California 19.13 0.0020 16.31 0.0020 16.10 0.0020<br />

Arabian Gulf-California 29.48 1<br />

0.0026 27.03 1<br />

0.0023 24.57 0.0024<br />

1 Estimated by <strong>the</strong> Commission using industry information.<br />

Source: Compiled by <strong>the</strong> Commission from information provided by U.S.-based shippers.<br />

71 As of February 1999, <strong>the</strong> freight costs for shipping <strong>MTBE</strong> from <strong>the</strong> U.S. gulf coast to<br />

<strong>the</strong> east coast and to <strong>the</strong> west coast amounted to approximately 3.5 cents per gallon and<br />

7.5 cents per gallon, respectively. As it is difficult to cover transportation costs to <strong>the</strong> west<br />

coast through <strong>the</strong> market price, <strong>the</strong>re is substantially less product shipped from <strong>the</strong> gulf coast<br />

to <strong>the</strong> west coast. USITC fieldwork in <strong>the</strong> United States.<br />

72 A ton-mile is a unit of measure reflecting <strong>the</strong> movement of 1 ton of freight 1 mile. The<br />

freight cost per ton-mile is <strong>the</strong> cost to move 1 ton this distance.<br />

73 USITC fieldwork in <strong>the</strong> United States.<br />

3-21

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!