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The devastation Hurricane Katrina wrought on Louisiana, Mississippi and Alabama could threaten this winter’s stockpiles of road salt, according to one industry group. Creating stockpiles sufficient to supply both municipal and commercial snow contractors with salt this winter could become a major challenge for the salt industry.
Louisiana produces more tons of salt than any state in the U.S., according to the Salt Institute, a salt industry group based in Alexandria, Va., but salt production was undamaged. Plants closed on Aug. 29 to ensure workers could protect their families, but reopened on Aug 30.
However, the storm’s devastation will impact salt supplies significantly because truck and barge (and, likely, rail) transport have been totally disrupted by Hurricane Katrina. This is peak shipping season up the Mississippi River system where snowbelt cities are stockpiling highway salt for the coming winter. Building those stockpiles will be a gargantuan challenge for salt company logistics personnel, according to the Salt Institute.
There is no indication at this time as to what impact this could have on the cost of road salt this winter. The news, though, is another blow to snow contractors who are already preparing for higher salt prices due to fuel cost-inspired increases in transportation and delivery fees.
Already, some snow contractors have been increasing their fees by about 5 percent to offset the expected hike in the cost for road salt. Some industry insiders say this increase in salt costs could be as much as 20 percent when compared to last year’s prices.