Steel Mills
CSI Increases Freight Rates on Truck Shortage
Written by Michael Cowden
May 5, 2021
California Steel Industries (CSI) is increasing freight rates by 5-13% because of a shortage of flatbed trucks.
The freight surcharge is effective immediately, and the exact amount varies by region, the West Coast slab converter said in a letter to customers Tuesday, May 4.
“Transportation costs are rapidly increasing and are expected to continue to rise well into the summer months,” CSI said.
“In an effort to decrease the gap between truck demand and truck supply, California Steel Industries will allow its transportation partners to institute rate increases,” the company said.
Steel Market Update (SMU) last month reported that the U.S. trucking industry has struggled to keep up with strong demand as construction companies, manufacturers and retailers compete for limited domestic trucking capacity.
Increasing freight costs come on top of already record high steel prices.
SMU’s benchmark hot-rolled coil price stands at $1,500 per ton ($75/cwt), a new all-time high.
That figure is up 52.3% from $985 per ton at the beginning of the year and more than triple a 2020 low of $440 per ton recorded on Aug. 4.
Prices have been flat or up every week since early August–nearly 40 consecutive weeks.
Hot-rolled coil lead times are also setting new records. They stand at nearly 10 weeks now, up from approximately 8 weeks at the beginning of the year and from less than 4 weeks in early August, per SMU data.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
Algoma changing fiscal year end to Dec. 31
Canada’ Algoma Steel has announced a change in its fiscal year end from March 31 to Dec. 31.
ArcelorMittal Q3 earnings down, still recovering from Mexico strike
ArcelorMittal’s earnings saw notable declines from a year earlier as the company said market conditions remain challenging.
Algoma swings to loss in fiscal Q2 on lower shipments, soft market
Canada’s Algoma Steel swung to a steep loss in the quarter ended Sept. 30 on lower steel shipments, greater consumption of purchased coke, and weakening market conditions.
Ternium Mexico logs record volumes in Q3 as Pesqueria expansion ramps up
Luxembourg-based Ternium achieved record-high sales volumes in Mexico in the third quarter, reaching key milestones at its Pesqueria industrial center, the largest project in the Latin American steelmaker's history.
Cliffs forecasts 2025 rebound after Q3’s weakest demand since Covid
The negative impact of high interest rates on consumer behavior, particularly in the automotive and housing sectors, was the primary driver of the demand weakness seen across the third quarter, according to Cleveland-Cliffs executives.