|  Christine Marie Nielsen

Near-Term LPG Tank Car Sublease Rates Hold Despite Calming Weather

Short-term tank car sublease rates held within a higher range in the latest week, despite a moderating of weather conditions over much of the U.S.

Last week, some market participants reported three-month tank car sublease rates offered as high as $1,000/car/month for DOT-112 cars after an extended period of extreme cold and increased need for heating fuel. Further support came as another announced halt of Mariner East (ME2) pipeline construction also bolstered demand for liquefied petroleum gas (LPG) by rail.

The Department of Energy (DOE) reported that U.S. propane/propylene stocks fell 6.3 million bbl to 61.7 million bbl in the week ending Jan. 5. Stocks were down 22.6% from year-ag...

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