Transport and Logistics

Introduction

William Strauss

FutureMetricsIntelligent Analysis and Thought Leadership for the Pellet Sector

Supply chain for North American ProducersSome good, mostly challenging

From Oct. 28, 2015 Argus Biomass Markets

Minimizing Costs Across the Supply Chain is Critical as Pellets become more of a CommodityDomestic Transportation costs are significant for feedstock costs and the cost of getting the pellets to port. Port storage and ship loading costs are also very important. Shipping costs are a significant part of the cost structure.

If Fiber Costs Increase from $35 to $40 per GMT and Dollar Strengthens to 0.77 £/$ from current 0.65 and Shipping Costs Increase to $30/tonne.