Document QJ3JY6xx85kZOJyDE5zqJnE15
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E. I. d u Po n t d e Ne mo u r s & Co mp a n y
INCORPORATED
Wil min g t o n , De l a w a r e 19898
MATERIALS AND LOGISTICS DEPARTMENT
R. A. RENGERS CHEMICALS & PIGMENTS DEPT. B-10266
CC: J. C. Gasz K. R. Medley R. E. Prosser
September 19, 1983 File: .A-Titantum Dioxide
TITANIUM DIOXIDE BAGS DE LISLE, MS TO HOUSTON, TX
Freight analysis for palletized Ti02 bag shipments from DeLisle, MS to Cron chemical, Houston, TX, is as follows:
Mode
Rail (ICG-ATSF)
Truck (Builders Transp)
Equivalent Present Rates $2.48 cwt/40M
1.34 cwt/40M
1.07 cwt/50M
Proposed Rate
$1,99 - $2.21 ewt/80M
1.34 cwt/4OM ($1.05 cwt continuous move) 1.07 ewt/SOM ($.84 cwt continuous move)
The rail projection is based on lowest regional rates for similar rail movements. Of course, any rail rate negotiations would attempt to meet these competitive truck rates.
The truck rate levels were based on existing RTC one-way and continuous movement data. If continuous moves would be constructed for all DeLisle-Houston shipments, transportation cost could be as low as $.84 cwt - 50M#. However, since the RTC overall continuous move success percentage is 50%, it is estimated that average RTC truck costs would be $.95 cwt - SOM or slightly less.
2- -
ITOFCA rate schedules were examined as an alternative, but were higher than the existing truck rate levels and would afford no price advantage.
Please advise me when to pursue rail rate negotiations.
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SAIL PROCUREMENT SECTION
DUP050144884