|  Clifton Linton

LPG tank car sublease rates below $500/car/month? More Likely Than Not

It’s a gloomy market for LPG by rail. In the short term, shipments are down following a tepid winter . In the long-term, shippers are directing their product to pipelines. This is all in the context of a weak propane market facing high stocks. There’s nearly 74 million bbl of propane in storage, according to the Energy Information Administration. Has LPG by rail seen its time in the spotlight pass? It’s not clear, but one-year tank car sub-lease rates are moving below $1,000/car/month. That’s a level not seen since October 2017. Six-month leases for cars for the coming summer are testing sub-$500/car/month levels. Why are we here?...

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