Road Salt for 2009/2010

The price of a ton of road salt should be significantly lower this winter.

From about $50 a ton to $150, the price of road salt soared to almost three times its average amount last winter.

Several news outlets reported a shortage in road salt for many states across the nation.

However, the president of the Salt Institute in Alexandria, Va., said there was no shortage.

USA Today reported in 2008 cities trying to stock up on road salt before snow came.

With the cost of transportation and demand for salt high, and supply low, the report said the cost of a ton of road salt had doubled, and in some places tripled.

Saddle River and Ridgewood, N.J., protested its county’s decision in September 2008, to sell municipalities less road salt because of high prices.

Saddle River endured a loss of 37 tons of salt last winter.

Borough administrator Charles Cuccia wrote to the county Bergen stating Saddle River’s elevation was over 300 feet making its winter road conditions worse than most.

Ridgewood only received 69 tons of salt compared to 100 the previous year.

Chris Rutishauser, director of public works for Ridgewood, wrote in a letter to Bergen, “The Village is very concerned that this reduction in the sale allotment per storm or event for the county roads in the village will negatively impact our ability to provide the required service.”

West Virginia experienced a shortage like many other states.

Bob Whipp, district six engineer, said his company previously salted roads twice in Wheeling, W.Va., to speed up the melting process.

However, last November his company only used the minimum amount recommended by the Salt Institute.

This year, the West Virginia Department of Highways is taking action early.

Communications officer for the DOH, Karen Zamow, said the state already has a contract for 125,000 tons of road salt costing $68 a ton.

She said the DOH ordered 90,000 tons of salt at $130 a ton last year.

Zamow stressed, however, the West Virginia Division of Transportation did have enough salt for the roadways last year.

“While there was a market shortage, which costs the Division more than double what it budgets for and spends on roadway salt in a typical winter season, the Division had an adequate supply of salt,” she said. “With that adequate supply, roadway crews maintained DOH protocol for snow and ice removal.”

In December 2008, the Associated Press reported St. Louis, Ill., was “hoping for the best, but preparing for the worst.”

The Salt Institute president, Dick Hanneman, said more cities should have prepared sooner.
"Nobody ran out of salt," he said.

In February and May 2008, Hanneman spoke at conferences and sent out press releases stressing preparation for the upcoming winter.

He said states needed to buy early to ensure the amount of salt they could receive. He also said when salt is bought pre-season, it is cheaper.

Hanneman said states and cities were "panic-buying" road salt last winter after the season had already begun.

Hanneman suggested, in the previously mentioned press releases, states should buy salt early to avoid price increases.

The Associated Press said St. Louis, Ill., paid $48 a ton in December 2008, which was a 30 percent increase from the year before.

Lucian Kimler, city of Huntington’s street division supervisor, said Huntington paid about $120 a ton of salt last winter, much more than St. Louis.

He said the City “used quite a bit more (salt) last year,” than the previous year. However, he said Huntington never technically ran out of salt.

Kimler said, for the upcoming winter, the city of Huntington has about 150 tons of salt on standby.

There was enough salt for each state, Hanneman said. Although, some states did not get the full amount as requested.

Hanneman said the salt was rationed out to each state.

He said, "We should be in decent shape to prepare for it," referring to the upcoming winter 2009/2010.

He stressed if state departments would do as the Salt Institute recommended, there would be no problem with salt "shortages" this winter.

From Iowa, the Quad-City Times reported June 21, 2009, that under the bidding process of Central Management Services, Rock Island County, Ill., paid just over $130 a ton of road salt last year, while surrounding counties paid between $50 and $80 a ton.

The Illinois attorney general’s office investigated CMS, according to the report, and found no illegal activity.

The report said the price increase was due to “numerous economic factors.”

The Auditor General’s audit of CMS stated the company, “allegedly allowed one salt provider, Cargill, to change the terms and conditions of its bid after the bid opening.”

Because of this, the potential amount of salt Cargill could provide was reduced to about 300,000 tons.

The audit also stated no other salt providers were given the chance to change their terms or conditions.

Doug House, Moline, Ill.’s, municipal services general manager, said he doesn’t know if the town will use CMS in the future.

Cities and states have come up with ideas to get through another winter season.

East St. Louis, Ill., planned to stretch their salt supply in December 2008, by mixing it with sand, brine (water saturated with salt, usually sodium chloride) or beat juice.

To ensure low salt prices, the Indiana Department of Administration announced in April 2009, it will, “partner with local units of government for road salt purchases for the 2009/2010 winter season, helping local communities get the salt they'll need when the weather turns rough,” Elizabeth Lerch, reporter for IN.gov, said.

In the past, salt vendors did not extend state salt pricing to cities, towns, or school districts in Indianapolis because those local governments could not commit their volumes to contract.

With the IDOA and the Indiana Association of Cities and Towns partnering, the size of the combined volume will offer the availability of salt at a much lower price.

The bottom line is that cities and states need to request road salt as early as March and April to ensure a good deal.

Hanneman said cities began buying road salt in late July last year. He said that was when several customers started “panic-buying,” and inflating the cost.

Huntington, W.Va., already has 150 tons on hand for the upcoming winter. Kimler doesn’t expect to pay high prices or run out of salt this year.