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Road salt supply low, demand high as winter looms

JEFF KAROUB
Associated Press

DETROIT (AP) — The reward for surviving last winter’s frigid temperatures and record snowfall, several states are learning, is drastic price increases for road salt — and that’s if they can even get it.

Replenishing stockpiles is proving challenging, especially for some Midwestern states, after salt supplies were depleted to tame icy roads last winter. And price increases of at least 20 percent have been common in places including Boston and Raleigh, North Carolina.

“Everybody is kind of scrambling around right now, contacting anybody they know who may have some salt available,” said Fred Pausch, chief of the County Engineers Association of Ohio.

Some local governments are avoiding the problem thanks to multi-year contracts or secured bids. Chicago, for example, used roughly three times more salt last winter — 436,000 tons — than it did in 2012-2013, but the city has locked-in rates based on a contract negotiated a few years ago.

Other states aren’t so lucky.

In Ohio, where more than 1 million tons of salt was used on state roads last year — a nearly 60 percent increase over the average — last year’s average price was $35 per ton. This year, 15 counties received bids of more than $100 per ton, and 10 counties received no bids from suppliers.

Most of Ohio’s 88 counties have locked in prices between $50 and $80 per ton. To ease the pain for other counties, the state recently secured about 170,000 tons of additional salt.

“The demand for salt is simply outpacing the supply that is available,” said Steve Faulkner, spokesman for the Ohio Department of Transportation.

In Michigan, like Ohio, local governments are allowed to join a network for bidding purposes, and the state seeks competitive bids each year from four vendors. But even those efforts couldn’t prevent a spike: Michigan has seen prices jump by 46 percent, to $65 per ton.

On a recent weekday outside Detroit, a massive dump truck backed into a domed building and dropped about 50 tons of road salt onto a growing mound at a facility operated by the Washtenaw County Road Commission. The agency is paying $76 a ton for its preseason fill-up compared to about $34 last year, a 120 percent jump.

Part of the problem is that salt mines are being challenged by numerous local governments “trying to replenish their supply at the same time,” said Lori Roman, president of the Salt Institute, a trade group based in suburban Washington, D.C.

“It’s just a situation where you can’t necessarily get all the salt mined and get it where it needs to go as fast as it’s demanded,” she said, noting that the group doesn’t collect information related to prices or production issues.

For road officials, that translates into having to conserve and be creative. In many places, brine is added to salt to boost its effectiveness. Officials also are buying trucks that can, among other things, spread salt in the morning and clean streets later in the day.

North Carolina’s capital city, which was left with about 10 percent of its 4,000-ton salt capacity after Raleigh was hit by more winter storms than usual, recently signed a three-year contract for salt costing about $110 per ton annually. That’s a 25 percent increase, according to city officials.

And in Indiana, road salt bids have increased by an average of 57 percent, ranging from nearly $73 to $106 per ton.

Boston is among those breathing a sigh of relief. Interim Public Works Commissioner Mike Dennehy, dubbed Boston’s “snow czar,” said the city bought about 80 percent of its capacity at last season’s cheaper prices of $45 and $49 a ton. The city will be charged this winter’s prices, which are about 20 percent higher, for the rest of its supply.

In Ohio, road officials are keeping their fingers crossed.

“We just had the worst winter in Ohio,” Faulkner said. “We’re preparing for that, but we hope it’s like the one we had two winters ago, which was one of the mildest.”

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Follow Jeff Karoub at https://twitter.com/jeffkaroub .

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Associated Press writers Charles D. Wilson in Indianapolis and Allen G. Breed in Raleigh, N.C., contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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