Speaking on the sidelines of the ongoing ISRI National Convention 2018 in Vegas with various US scrap attendees, SteelOrbis has learned that the “transportation factor” is considered the main concern in the domestic ferrous scrap market. In recent months weather conditions have caused lags on scrap delivery in the Midwest due to flooded rivers, for example. Despite improved weather conditions as summer approaches, several scrap dealers noted that the transportation factor is expected to persist due to continued shortages of truck drivers and rail cars.
An attendee noted that US Department of Transportation (DOT) driving time limitations was making an already tight labor situation tighter. He added, “transportation logistics challenges are not the exception, but seem to be the new rule.” A mill representative from Iowa added that the truck availability situation is compounded by the firms’ high liability insurance coverage requirements which are not met by all truck drivers in his region.