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Road-salt supply is on slippery slope
(by Joan Demirjian - October 15, 2008)
Road-salt supply is on slippery slope
By JOAN DEMIRJIAN
Keeping roads clear of ice and snow this winter is expected to cost more than last season, according to local road and service departments. The rising costs of fuel and asphalt also will impact their operations, they said.
Geauga County Engineer Robert L. Phillips said the salt shortage is due in part to bad weather last spring and heavy use in many states. Some areas couldn't get salt last spring, so they bid early and wanted extra amounts, he said.
As an example, Wisconsin ordered 1 million tons since early May and June, Mr. Phillips said. "When we negotiated in June, we didn't think we were getting a fair representation of the market," he said.
"We have salt but not as much as last year or as much as we wanted," he said. "And salt prices have doubled and tripled."
The average price per ton last season was $30 to $45, and now the average is $40 to $100 per ton.
"We'll be tight, and we'll watch and be cautious toward the end of the year," Mr. Phillips said. "We'll use more cinders and less salt if we have to."
The county uses 8,000 to 8,500 tons in an average season on about 206 miles of road. Last year, the county used 10,000 tons, he said. The county also orders and then sells to seven townships, including Russell, providing it with mixed materials.
The county is looking at $80,000 to $100,000 in extra salt and cinder costs, Mr. Phillips said. In addition, fuel is costing more. Last year, the county spent $210,000 on fuel, he said. As of the end of September, the county already has spent $260,000 in fuel this year.
Darrell Johnson, South Russell streets commissioner, said salt supplies are at a seven-year low.
The village joined 37 communities in the Northeast Ohio Sourcing Office for purchasing power. They went out for bid Sept. 17, and none of the four big salt suppliers, including Morton Salt, submitted bids, Mr. Johnson said.
South Russell has dealt with Morton Salt, of Chicago, for more than 20 years, he said. "I couldn't believe the company did not even place a bid," he said. "Morton said they were low on salt, and they are trying to honor past contracts," he said. "Most salt suppliers are saying they have no salt, or the prices have doubled and tripled."
The village advertised for bids on its own and received three bids, with Morton Salt being the lowest at $66.43 per ton. Delivery will be out of Fairport Harbor, Mr. Johnson said. The village paid $41.16 per ton last season.
In looking into the availability of salt, the Northeast Ohio Sourcing Office in late September learned there was only 5,000 tons available in the Cleveland area, Mr. Johnson said. It was being offered in a 30-mile radius at $120 per ton, he said.
One source told him the salt companies are getting higher prices by shipping it to the West, including Colorado and Washington, rather than selling it here, he said.
He said Ohio Gov. Ted Strickland has asked ODOT to do an investigation into where the salt supplies are and the increase in costs.
"We'll revert to a cinder mix to try to stretch our materials for the season," Mr. Johnson said. "Our policy is to have safe roads, but it doesn't mean they have to be wet."
Bainbridge Road Superintendent Alan Halko said he has never seen the salt situation as it is this year. They might have had delayed deliveries or limited amounts, but "not to the point of these prices and no salt," he said.
It is unprecedented that salt is being shipped in from overseas, he said. "Hopefully, this is a one-time issue," Mr. Halko said.
"The township is going to go out for bid on its own." It will seek about 4,000 tons for the season, he said.
The farther the company is, the higher the costs, he said. The township can buy salt at $133 per ton from the East Coast, but it has to be delivered all at once, or the township has to pay for storage, he said.
"They said they have used up their stock and can only mine so much in a season," Mr. Halko said. "We're going to try cutting what salt we can get with grits and cinders and hope we can get through the winter."
Russell Road Superintendent Gene Layne said, "A couple of big salt suppliers don't have salt. And they want a lot, from $100 to $200 a ton. It was $49 per ton last year."
Russell ordered through Geauga County and will receive its allocation of salt without a shortage.
ODOT spokeswoman Jocelynn Clemings said contracts are in place with suppliers for Geauga, Cuyahoga and Lake counties in District 12. ODOT is the largest user of salt and has to have its orders filled, she said.
Prices are higher per ton this season, she said. Less supply and costs of shipping to other states are contributing factors, Ms. Clemings said. "There is definitely a shortage."
In a typical winter, ODOT District 12 uses about 700,000 tons, she said. Last season, ODOT used 900,000 tons, she said.
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