Short-term liquefied petroleum gas (LPG) tank car lease rates saw continued weakness this past week as the October to March winter heating season comes to a close.
A theme that continues to exist in the market is that participants wish to avoid the fees associated with tank car storage.
And that has depressed prices for trip leases and three-month subleases. Some sources report that suppliers are requiring LPG buyers to use the suppliers’ cars. One LPG buyer reported buying LPG from a refiner who gave him loaded tank cars and a request to return the cars in “30 days or so.”
One traffic manager reported picking up tank cars on a three-month sublease at $350/car/month, but got...