Impact at ATL due to Colonial Pipeline Shutdown
May 12, 2021, 11:34 am
#16
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AA may have specific contracts in place to avoid price hikes on a short term basis (e.g., they may contract 30 days forward) but refined petroleum prices are already starting to spike in the Southeast. So tankering would actually save money where feasible. Fuel at $3/gallon versus $4/gallon allows a lot of extra weight to be carried. Of course, there are limits to which routes can actually allow tankering.
Today is the first day that we're seeing a big response on gasoline. Lots of localized shortages, although this seems to be more a result of panic buying than actual distillate shortages in the region (still plenty in storage - just shortages at gas stations) - although panic buying could lead to actual real shortages.
Per Colonial, the pipeline should restart operations Friday. If that happens, I think ATL will be okay. Anything that extends beyond Friday could put ATL at serious risk of fuel shortages. I'm assuming Delta is planning (and has already taken) some contingencies here in terms of tankering, fuel stops, and non-traditional delivery via truck.
Today is the first day that we're seeing a big response on gasoline. Lots of localized shortages, although this seems to be more a result of panic buying than actual distillate shortages in the region (still plenty in storage - just shortages at gas stations) - although panic buying could lead to actual real shortages.
Per Colonial, the pipeline should restart operations Friday. If that happens, I think ATL will be okay. Anything that extends beyond Friday could put ATL at serious risk of fuel shortages. I'm assuming Delta is planning (and has already taken) some contingencies here in terms of tankering, fuel stops, and non-traditional delivery via truck.
May 12, 2021, 12:29 pm
#17
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May 12, 2021, 11:00 pm
#18
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May 13, 2021, 6:00 am
#19
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Colonial reported that pipe operations restarted around 5p yesterday and that it could be several days before normal operations return.
Assuming there are priority levels as to who gets supplied first when such operational issues arise. I would assume anything related to military and commercial aviation will be far ahead of your local gas station. So ATL and other airports up the east coast will probably see little further impacts foregoing. But the irrational behavior of panic buying at gas stations will be with us for some more time. 🍿🤓
Assuming there are priority levels as to who gets supplied first when such operational issues arise. I would assume anything related to military and commercial aviation will be far ahead of your local gas station. So ATL and other airports up the east coast will probably see little further impacts foregoing. But the irrational behavior of panic buying at gas stations will be with us for some more time. 🍿🤓
May 13, 2021, 10:17 am
#21
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May 13, 2021, 11:05 am
#22
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Colonial reported that pipe operations restarted around 5p yesterday and that it could be several days before normal operations return.
Assuming there are priority levels as to who gets supplied first when such operational issues arise. I would assume anything related to military and commercial aviation will be far ahead of your local gas station. So ATL and other airports up the east coast will probably see little further impacts foregoing. But the irrational behavior of panic buying at gas stations will be with us for some more time. 🍿🤓
Assuming there are priority levels as to who gets supplied first when such operational issues arise. I would assume anything related to military and commercial aviation will be far ahead of your local gas station. So ATL and other airports up the east coast will probably see little further impacts foregoing. But the irrational behavior of panic buying at gas stations will be with us for some more time. 🍿🤓
May 13, 2021, 11:41 am
#23
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I don’t think there are priority levels on who gets served first. The pipeline starts in SE Texas and moved up into New York. Those near the start of the pipeline will get access first while those up in New York could take up to 5 days to get it (apparently it only moves 5 miles per hour!)